The Riffle
The ADGM Registration Authority has issued Consultation Paper No. 3 of 2026, proposing the Undeveloped Commercial Land Regulations 2026.
The proposed framework is designed to encourage the timely development of commercially designated land, improve land utilisation and prevent strategically important plots from remaining idle. At its centre is a series of development milestones, backed by an Undeveloped Land Fee equal to 2% of the Fair Market Value (FMV) of a relevant plot where specified requirements are not met.
Who Would the Regulations Apply To?
The proposed regulations would apply to a “Relevant Plot” within ADGM jurisdiction.
For a plot to fall within scope, its primary designation must be commercial, the necessary roads, utilities and supporting infrastructure must already be established, and the plot must remain undeveloped. Commercial use includes retail, office, hospitality and mixed-use developments where commercial use is primary.
Registered off-plan projects are excluded and would continue to be governed under the Off-Plan Development Regulations.
Development Milestones
Plot owners would need to meet a clear sequence of development deadlines:
Within 6 months: Submit a valid Building Permit Application.
Within 7 days of issuance: Provide the issued Building Permit to the Registrar.
Within 30 days of issuance: Submit the Notice of Commencement or equivalent authorisation.
Within 60 days of the Notice of Commencement: Begin physical construction.
During construction: Avoid unexplained cessation of work for 90 consecutive days or more.
Missing any applicable milestone could trigger the Undeveloped Land Fee.
The 2% Undeveloped Land Fee
The proposed fee is set at 2% of the Fair Market Value of the Relevant Plot. It would be triggered on the calendar day immediately following a missed deadline or where a relevant permit lapses or is withdrawn.
Once triggered, the fee continues to apply until satisfactory evidence is provided showing that the development has returned to compliance.
Fair Market Value would be determined through the Registrar’s ADGMValue system and reassessed annually if the plot remains undeveloped. Owners would have 30 days from fee notification to challenge a valuation by submitting an independent valuation from an ADGM-approved valuer. The fee itself must also be paid within 30 days of notification.
What If Construction Stops?
The proposal recognises that not every construction delay is within an owner’s control.
Where construction stops for 90 consecutive days, the owner must notify the Registrar within 14 days, explaining the reason for the cessation and the steps being taken to restart work.
The Registrar may treat a cessation as justified in circumstances including delays caused by a Competent Authority, site safety issues, replacement of a contractor, force majeure or other circumstances accepted by the Registrar.
Exemptions and Extensions
The proposed framework also provides limited relief for genuine commercial, administrative or legal obstacles.
A bona fide sale to a new owner may result in a fresh six-month Grace Period, although this would not apply to related-party or repeated transfers designed to circumvent the rules. Owners may also seek an exemption where development is prevented by legal or administrative constraints, while the Registrar would retain discretion to modify or disapply obligations or fees in exceptional circumstances.
Enforcement
The Registrar would be able to monitor compliance through inspections and progress reports.
Contraventions could result in fines of up to Level 9 on the ADGM Fines Scale, while false, misleading or deceptive statements may also constitute a contravention. The Registrar could additionally use enforcement mechanisms available under the Administrative Regulations 2025, including Tier 1 or Tier 2 procedures and enforceable undertakings.
Next Steps
The proposals remain subject to consultation and should not yet be treated as final rules.
Landowners, developers and professional advisers have until 4 October 2026 to submit comments through the RA Consultation Portal. Following the consultation period, the ADGM Board of Directors will consider the feedback before enacting the Regulations in their final form.
Riffle Takeaway
The proposed regulations introduce a time-bound development framework for undeveloped commercial land in ADGM, with a potentially significant 2% FMV fee for missed development milestones.
For owners and developers of potentially affected plots, the key focus will be on development timelines, permit submissions, commencement of construction and maintaining continuous progress—while keeping in mind that the framework is still under consultation and may change before final implementation.
