Cancelled Property Projects in Dubai

New Committee to Resolve Cancelled Property Projects in Dubai

On 29 July 2013 Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai issued decree No. (21) of 2013 establishing a new judicial committee to hear all cases relating to stalled property projects in Dubai.

The committee has the authority to liquidate cancelled property projects and to settle disputes relating to such projects. As a result, the Dubai Courts (including the Courts of the Dubai international Financial Centre) will no longer handle property dispute claims relating to cancelled projects. Disputes that would previously have been subject to the jurisdiction of the courts will now be heard by the new judicial committee. In addition, all disputes currently being heard by the Dubai Courts and any appeals, will now be transferred to the new judicial committee. The new decree also prevents parties from executing existing judgments of the Courts that relate to cancelled projects.

All decisions made by the committee will be final and cannot be appealed. This will mean that parties will not have to wait for the outcome of lengthy and costly appeals to higher courts before obtaining a final and enforceable decision. Details of the committee, including who will handle the cases and the processes it will follow remain to be determined. However the committee will be able to appoint experts such as auditors to assist it with reaching its determinations.

The new judicial committee is expected to provide claimants with a more accessible avenue for bringing claims against developers of cancelled projects. The announcement comes as the Dubai construction industry continues to show strong growth and is no doubt aimed at restoring investor confidence. It is encouraging news for investors left out of pocket as a result of cancelled projects who have not yet commenced proceedings. However, investors who have claims before the Courts, or judgments from the Courts that have not yet been enforced, will no doubt be anxious about the possibility of having to commence a new claim before the committee.

If you would like to discuss how this new change may affect you please contact Nathan Banks at Banks Legal.

Back