Dubai realty market underwent a significant development once again with the passing of Decree No. (21) of 2013, by the Ruler of Dubai, UAE Vice President and Prime Minister His Highness Sheikh Mohammed bin Rashid Al Maktoum. The decree, yet to be published in official gazette, set up a special judicial committee to look into and decide the matters related to liquidation of cancelled property projects in the emirate of Dubai and the settlement of rights disputes related to such projects.

Many investors who are still waiting to get their money back from the developers, who cancelled projects during the credit crunch of 2007, are quite happy and have given a welcome nod to this decision of the Dubai Government. There is still a good quantum of money, which is stuck either with the developers or in the trust accounts set up for various cancelled projects. Those investors who were part of many such projects, which were cancelled or left unfinished, are certainly going to benefit from this decision, as it will provide them a single one-stop getaway for filing such complaints.

Article three of Decree No. (21) of 2013 stipulates that all resolutions and decisions issued by the special legal committee are final and not subject to appeal. Dubai Courts will be tasked with the implementation and execution of such resolutions and decisions. The said article also stipulates that neither Dubai Courts nor Dubai International Financial Centre Courts will accept appeals or cases that fall under the specialty of the aforementioned committee. Such complaints, cases or appeals will therefore be transferred to the special legal committee set up as per the decree. Therefore, the decree halts execution of various decisions and rulings, which have been passed by the courts in Dubai.

The special legal committee is tasked with the settlement of disputes between property developers and investors over cancelled projects in addition to the liquidation of projects that have been decisively cancelled by the Real Estate Regulatory Agency (RERA) as per Law No. (13) of 2008 and its regulations. The settlement of rights, disputes, grievances and complaints will be carried out noting that settlement fees will be deducted.

In order for the special legal committee to carry out its duties, it is entitled to appoint specialists and consultants. Auditors are to be appointed on the expense of the property developer to carefully examine the financial status, cash transfers and deposits related to the cancelled projects in question.

While the decree is a welcome relief for the investors whose money ahs been stuck for years in projects that were cancelled during the credit crunch of 2007, it must also be borne in mind that such cases might not be very easy to resolve. Even though the investors may get a decree from the judicial committee, the implementation may yet be difficult because the developer may not have any assets or cash to pay back the investors. It also may not be very quick to get a decision from the judicial committee as such cases will certainly involve experts and their analysis which requires time. However, one thing that does clearly come out of this newly issued decree is that it will certainly streamline the resolution of all pending and cancelled projects and will give investors and developers a one stop solution for such disputes.

It will also be interesting to see who is going to be a part of this committee as the same is yet to be announced. Considering the nature of matters falling within the purview of the said committee, it should be comprised of lawyers, real estate experts and judges.

With all these changes that have been brought about by Dubai Government in the recent past including this decree and a few other decisions so as to streamline the realty market, the investor confidence will get a new boost and this will certainly lead to fresh investments from foreign as well as local investors.

Investors now wait eagerly for the publication of the said decree in the official gazette, which will mark the beginning of a new era in Dubai realty market.