Dubai’s real estate market has long served as a global investment hub, attracting buyers seeking strong returns on investment (ROI) and consistent market growth. However, the increasing incidence of stalled, delayed, or uninitiated projects has raised concerns about market credibility. Such challenges not only erode investor confidence but also create opportunities for mismanagement and fraud. In response, the Government of Dubai has enacted Decree No. (33) of 2020, significantly enhancing the authority of a Special Judicial Committee to oversee incomplete and cancelled real estate projects. This Decree delivers two clear messages: one to investors and buyers, assuring them that their rights will be safeguarded, and another to developers and stakeholders, affirming that negligence, mismanagement, or unethical practices will not be tolerated. Dubai remains firmly committed to maintaining a transparent, resilient, and investor-friendly real estate market.
What Has Changed Under the New Decree?
Expanded Jurisdiction of the Committee:
Whereas the previous Decree was limited to cancelled real estate projects only, the new Decree extends its scope to include incomplete projects, those that have stalled or stopped prior to completion. This expansion reflects a regulatory acknowledgment of the widespread impact of such delays and offers a broader legal umbrella for safeguarding buyer rights.
Broader Judicial Powers:
The Committee is now empowered to adjudicate all claims, grievances, urgent applications, and arbitration-related matters concerning real estate projects. This is a significant development that facilitates quicker dispute resolution and procedural unification, thereby boosting investor confidence in the real estate legal framework.
Final and Non-Appealable Decisions:
The Decree stipulates that the Committee’s decisions are final and not subject to appeal through ordinary legal remedies, which shortens litigation timeframes and ensures legal certainty and stability for investors. However, this also places greater responsibility on the Committee to ensure fairness and accuracy in its rulings.
Enhanced Role for the Real Estate Regulatory Agency (RERA):
RERA now plays a pivotal role in supporting the Committee by providing technical and financial evaluation reports on distressed projects and participating in decisions relating to the reappointment of developers, project completion, or final liquidation.
Effective Executive Powers:
Article 9 of the Decree grants the Committee robust executive tools, including:
- Appointing auditors to examine the financial status of projects.
- Reappointing developers to complete stalled developments.
- Overseeing the distribution of liquidation proceeds to affected parties.
Preventing Judicial Overlap to Avoid Conflicting Judgments:
The Decree grants the Committee exclusive jurisdiction over these matters and explicitly bars any other court in the Emirate—including the DIFC Courts—from hearing such cases. This ensures legal clarity and prevents forum shopping or conflicting rulings.
What Practical Steps Should Investors Take?
- Check whether the project has been designated as cancelled or stalled by RERA via the official website of the Dubai Land Department.
- File an application with the Committee, attaching supporting documents such as the sale and purchase agreement (SPA), payment receipts, and correspondence with the developer.
- Attend Committee hearings in accordance with official notifications and follow the proceedings for either liquidation or project reactivation.
Why Does This Matter to You as an Investor or Buyer?
If you have purchased a unit in a stalled or uncompleted project, the new Decree provides a clearer and faster legal path to recover your rights or reactivate the development. The presence of a single authority with broad jurisdiction minimizes legal fragmentation and enhances the possibility of practical resolutions.
Potential Challenges:
A lack of investor awareness about the application procedures may delay their ability to recover entitlements.
Conclusion:
Decree No. (33) of 2020 is more than just a regulatory update—it is a decisive move by the Government of Dubai to restore confidence, enhance transparency, and ensure accountability in the real estate sector. By empowering a Special Judicial Committee with extensive authority over incomplete and cancelled projects, Dubai has reinforced its commitment to protecting investor rights and maintaining market integrity. For investors, understanding this Decree is not just advisable—it is essential. It offers a clear, legally secured pathway to resolve disputes, recover investments, and pursue justice in stalled or cancelled developments. In a market as dynamic as Dubai’s, informed investors are protected investors.
How Motei & Associates can assist you
At Motei & Associates, we leverage our extensive experience in Dubai’s real estate sector to provide comprehensive legal support to investors facing challenges with incomplete or cancelled projects.
Our services include:
- Project Status Verification: Assisting clients in verifying the status of their investments (stalled, cancelled, or active) with the Dubai Land Department (DLD) and RERA.
- Filing Applications: Guiding clients in preparing and submitting applications to the Special Judicial Committee, ensuring all required documents are correctly presented.
- Representation before the Committee: Offering skilled legal representation during hearings, safeguarding client rights and interests.
- Negotiation and Dispute Resolution: Facilitating negotiations with developers to achieve amicable settlements or supporting clients in pursuing legal remedies.
- Strategic Advice: Providing clear, actionable advice on whether to seek project reactivation, pursue compensation, or other legal options based on the specifics of each case.
Our team’s in-depth knowledge of Dubai’s real estate laws and direct experience with the Special Judicial Committee empowers us to deliver effective solutions, ensuring that our clients’ investments are protected.
About Motei & Associates
Established in 2002, Motei & Associates is a Dubai-based boutique law firm renowned for its expertise in dispute resolution and corporate and commercial law.
For inquiries or to consult with a lawyer, please reach out via phone at +971 4 4355959, mobile +971 55 3536953 or fill out the contact form here.
