Key Highlights:

  • The new law governs the expropriated property for public use.
  • The law outlines comprehensive guidelines pertaining to the procedures of calculating compensation for expropriated property owners.
  • A new committee will be formed to govern the law and its procedures.

According to the newly introduced law, if a property’s portion is expropriated; however, its remaining part is not adequate to be used as per Dubai’s construction rules and regulation, the owner must be provided full compensation in case they do not intend to retain and add to the adjacent property.

The law was announced by Vice President and Prime Minister of the UAE, Sheikh Mohammed bin Rashid Al Maktoum with the aim to protect the rights of those who own expropriated properties. It also ensures owners of expropriated properties are provided full and fair compensation. It will be enforced across the Emirate when it is published in the official gazette.

With the introduction and implementation of this new law, resolution from January 1, 1964, and its clauses will no longer govern expropriated properties for public use. Furthermore, other legislation that contradicts the new law also stays annulled. 

The law also covers free zones and special development zones, including DIFC. It governs and regulates the terms under which facilities and buildings in these zones are expropriated. These regulations apply to both under construction and fully constructed buildings. The law also outlines terms and conditions governing compensation paid to the owners of these properties.

Other than that, an ‘Expropriation Committee” is created to govern every matter pertaining to expropriation in Dubai. The decision related to the process of expropriation, creation of the committee, and its members will be made by the chairman of the Dubai Ruler’s court.

The aforementioned committee will review requests for expropriation and determine if the said property suits the requirements of the project. Furthermore, it may also suggest alternatives to the property for a particular project. The committee will be responsible for determining if the project requires partial or full expropriation. The compensation for the expropriated property will also be determined by the committee. However, the decision made by the committee to expropriate property can be overruled by Sheikh Mohammed bin Rashid Al Maktoum.

For those properties where expropriation has been conducted prior to the issuance of these new regulations, compensation should be provided as per the previously established terms. It should be done no later than one year of the new legislation’s effective date. This deadline, however, can be extended by six months by the chairman of the Dubai Ruler’s Court.

The law has outlined complete procedures and calculations for compensation value. The process to appeal against expropriation is also outlined in the law.

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