The Dubai ruler has issued a new law establishing a special tribunal to oversee the liquidation of unfinished and cancelled real estate projects in Dubai. The tribunal will resolve outstanding disputes, define purchaser and investor rights following project liquidation, and have sole jurisdiction over related legal cases. The new law aims to regulate troubled real estate projects and provide resolution for affected parties.

1. DUBAI RULER ISSUES NEW LAW ON REAL
ESTATE PROJECTS CANCELLED/UNFINISHED
https://hhslawyers.com/blog/dubai-ruler-issues-new-law-real-estate-projects-cancelled-unfinished/

2. INT.
 As per the new decree issued by Dubai Rule and UAEVice President, HH
Mohammed bin Rashid, a special committee will be set up for overseeing
liquidation of unfinished and/or cancelled construction developments and
regulate such projects within Dubai.The special committee is referred to as the
SpecialTribunal for the Liquidation of the Cancelled/Unfinished Real Estate
Projects.This new entity is responsible for conducting surveys of claims that are
related to all cancelled developments in Dubai.

3. THE SPECIALTRIBUNAL, ACCORDINGTO DUBAI
JUDICIAL COUNCIL,WILL ALSO BE
RESPONSIBLE FORTHE FOLLOWING:
 Resolving all disputes and complaints that weren’t finalized by previous
committee set up by the emirate for the same purpose (for unfinished and/or
cancelled projects)
 Define the rights and obligations of purchasers and investors following liquidation
of assets of all cancelled projects
 In addition, cases related to the suspended and/or rescinded projects can’t be filed
with any local court in Dubai, even in DIFC Courts as the new tribunal has
complete jurisdiction with all related real estate disputes. All judgments that are
made by the new tribunal will be considered final and incontestable. All decisions
will also be executed at the Execution Court of the Dubai Courts.

4. WHAT ARETHE CAUSES OF CANCELLATION OR
SUSPENSION OF DUBAI CONSTRUCTION
PROJECTS?
 A real estate project in Dubai can be led towards failure and cancellation or
suspension for various reasons, including the following:
 Lack of leadership – A construction team has to be driven by the project leader
who possesses not only the best expertise, but also sound decision-making ability.
A project leader of a real estate construction in Dubai is required in making the
correct decisions during the appropriate time as all poor choices can have extreme
repercussions with a project’s progress. Lack of supervision also deteriorates
efficiency of a project, leading to schedule and budget overruns. Eventually,
conflicts among the team members arise and the conflicts affect various tasks
that are interdependent.
 Poor communication – Poor communication of the managers of real estate
projects with the stakeholders and cross-disciplinary teams can lead to a huge
communication gap.This further causes low productivity and organizational
chaos.

5. WHAT ARETHE CAUSES OF CANCELLATION OR
SUSPENSION OF DUBAI CONSTRUCTION
PROJECTS?
 Insufficient planning – Poor project planning is a prominent reason as to why real
estate projects in Dubai are cancelled or left unfinished. Construction projects will
be spinning out of control without proper planning. Real estate development
planning includes defining the management strategy; however, insufficiency or
lack of efforts towards crucial factors can lead to project failure.This includes:
project scope, task dependencies, work breakdown structure, project risks,
project resource schedules, delivery schedules, site surveys, and logistics. More
often than not, the use of silos of spreadsheets and conventional tools for project
management can cause inconsistencies because updates aren’t made available in
real time.There may also be alteration with the scope with the project’s scope
undergoing changes, most especially with the scheduled plans. Any
miscalculation with the work breakdown structure, including cost of labor and
supplies and a changing market condition contribute to massive loss.

6. WHAT ARETHE CAUSES OF CANCELLATION OR
SUSPENSION OF DUBAI CONSTRUCTION
PROJECTS?
 Cost overruns – Cost overruns with real estate projects in Dubai are uncertain
expenses which have exceeded the initial budget estimates. It’s often the due to
the changes in the estimates or scope and delays with completing tasks because
of incompetent resource allocation. Schedule delays can also happen because of
several different reasons such as resource shortages, weather conditions,
machinery failure, and conflicts or risks.

7. WHAT ARETHE CAUSES OF CANCELLATION OR
SUSPENSION OF DUBAI CONSTRUCTION
PROJECTS?
 Failure in making a contingency plan – Due to state lockdowns and
unprecedented pandemic conditions, a project operation in Dubai can come to a
halt. Construction is most definitely a risky business. As there are complex real
estate projects that have tight schedules, they become even more difficult.
Without the ability of formulating a contingency plan, construction projects in
Dubai are cancelled or suspended. In order to mitigate risks, contingency plans of
managers should consist of hiring contingency labor and buying insurance plans.
 No proper approvals –There are investors that start projects in Dubai too early as
they assume processes have been approved already or they are guaranteed to get
approvals later on.There can be aspects of real estate projects in Dubai which are
changed or rejected altogether.This greatly affects project budgets. Not having
comprehensive plans set out to secure the right permits for construction is one of
the main causes for construction cancellation or suspension.

8. PROPERTY LAWYERS IN DUBAI
 It’s advised to consult with property lawyers in Dubai for all legal matters related
to real estate development in the emirate. Form planning to the completion or
liquidation of a cancelled construction project, property lawyers in Dubai from
HHS Lawyers represent the best interests of investors, architects, contracts,
suppliers, and subcontractors. Our property lawyers in Dubai work proactively in
assisting clients, most especially with submitting claims, fulfilling regulatory
deadlines, and terminations. Call us today to know more!

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