Abu Dhabi has updated its holiday home regulations, giving property owners and operators updated guidelines on how to license, to make property eligible and list them online.
The changes were announced by the Department of Culture and Tourism - Abu Dhabi (DCT Abu Dhabi) in September 2026. They are part of efforts to make the holiday home sector easier to operate while maintaining safety, quality as well as compliance standards.
Who can operate a proper holiday home?
The updated rules expand the categories of people who can operate holiday homes in Abu Dhabi.
Eligible parties can include individual owners, joint owners, legal entities, tenants and people authorised by the property owner. However, they must meet the requirements set by DCT Abu Dhabi.
This gives more property owners and tenants an opportunity to consider short-term rental activity. It also makes it important to understand the licensing process before advertising a property.
A licence is required before advertising.
One of the key changes relates to online listings. A holiday home cannot be advertised on a website or digital platform without a valid DCT Abu Dhabi licence. The licence number must also be clearly shown on the property’s listing page.
For property owners, this means licensing should be treated as an essential step before marketing a unit for short-term stays. DCT Abu Dhabi provides all the information for property owners as well as authorized operators on how to acquire permits and also the requirements to operate a holiday home.
Digitalised process for holiday home operators.
The digital platform has upgraded itself to reduce approval times and simplify the licensing process. With additional tools to compliance monitoring, inspections and revenue management, the platform offers improved services coordinating with other government entities.
These new updates have helped clients in Abu Dhabi to reduce permit issuance time to less than six hours. Hamad Mohammed Alsudain, Acting Executive Director of Support Services at DCT Abu Dhabi, said the sector is experiencing ‘robust growth’ and highlighted transparency, efficiency and a more user-friendly operating environment.
What does this mean for property owners?
For investors considering a Dubai or Abu Dhabi property for rental income the holiday home route now requires a closer look at regulatory requirements. The purchase price is only one part of the decision. Owners should also consider whether the property is eligible for holiday home use, the licensing requirements, operating costs, community rules and the process for inspections and compliance.
The Abu Dhabi Real Estate Centre (ADREC) also highlights the importance of proper governance for short-term and holiday home rentals within residential communities. Its guidance states that community rules should align with DCT Abu Dhabi’s Holiday Homes Guidelines.
Why are Holiday Homes a good investment?
Last year (2025) Abu Dhabi experienced a growing trend of Tourists that drove the demand for Holiday Homes high.
77% - Growth in holiday home supply
4,771 - Eligible holiday home units at year end
77% - Increase in total guest count
335,000+ - Guest count in 2025
114% - Growth in domestic guests
68% - Growth in international guests
AED 1,887 - Average daily revenue
These figures underline the increasing scale of Abu Dhabi’s holiday home sector and provide useful context for property owners considering short-term rentals.
For investors, the key takeaway is simple, to understand the rules before choosing the property and the rental strategy. As Abu Dhabi continues to develop its tourism and real estate sectors, regulatory clarity can help property owners make more informed decisions about how they use and maintain short-term stay properties.
Source: Khaleej Times