We are all acquainted with the tragedy faced by property investors in Dubai or any other Emirate in UAE, when a project is cancelled by the regulating authority for several reasons mostly about incompletion of property. It is certainly not a new concept in UAE as agreed by Property Lawyers of Dubai considering the significant experience in dealing with cases for either unfinished or cancelled projects within the country..

In 2013, the property investors were given a system or were informed of a procedure for dealing with cases concerning cancelled projects by within the country by virtue of Decree 21 of 2013 (the Decree 2013). The foregoing Decree established a special judicial committee authorized to take over all cases for cancelled projects where the developer of a cancelled projects has typically failed to return the investors their due investment amount.

I am well aware that all my readers especially property investors are well versed with this subject matter and might be wondering the cause for discussing this topic. Well, I believe an amendment in Decree 2013 is certainly a cause for re-discussing this subject for a better understanding of the new law and to avoid any discrepancies moving forward.

What is this new Decree?

In the past week of December 2020, the government of Dubai has issued Decree 33 of the year 2020 (the Decree 2020) regarding the special committee for cancelled and unfinished projects in the Emirate. In accordance with the provisions of the Decree 2020, the special committee has been renamed to The Special Tribunal for Liquidation of Cancelled projects in Dubai and Settlement of Similar Rights. The foregoing name will be reflected in all the related real-estate law exist in the Emirate of Dubai.

Pursuant to the Decree 2020, the Dubai judicial Council is authorized to appoint the chairman and the other member of the new Tribunal and outline their roles and responsibilities, the meetings, the process of dealing with cases and their decision making authority. In addition, the Decree 2020 has further authorized the Special Tribunal to conclude all disputes and complaints for which the prevailing committee did not issue any final judgment. Further, the Tribunal has been granted the authority to review and take over all cases pertaining to unfinished, liquidated and cancelled all real-estate projects.

The new Decree adds further responsibility for new Tribunal to resolve disputes for all unfinished projects that were cancelled in accordance with Law number 13 of 2008 and were subsequently referred to the prevailing committee by RERA (Real-Estate Regulatory Authority). Secondly, the Tribunal is obliged to define the rights and obligations of the developer in case the project is transferred from one developer to the another. Thirdly, in the event a project is cancelled by RERA, the Tribunal will take charge in liquidating the project and assuring that the rights of all investors related to the project have been taken care of. Lastly, the Tribunal will outline the rights and responsibilities of unfinished property investors and buyers and will thereafter settle their disputes and complaints concerning such cancelled and unfinished projects.

The amendment so issued is certainly a welcome change in the real-estate market in Dubai as it assures the local or foreign investors the surety of returned investments in case the projects is unfinished or cancelled.