Dubai to set up refund system for stalled projectsby Courtney Trenwith on Jul 30, 2013
Dubai's government will establish a legal committee to liquidate cancelled property projects and settle related disputes, including paying out investors who have struggled to get their money back from developers.
The system will apply to projects that have been cancelled by the Real Estate Regulatory Agency (RERA).
Countless projects were announced during the Dubai property boom but were postponed or cancelled – either partway through construction or before work had begun – when the market dramatically dropped in 2008-09.
Many sites have sat idle for several years, although not all affected projects have been officially cancelled and some developers claim frozen projects, such as Palm Jebel Ali and The World, will still go ahead.
Last month, the Cayan Tower - a twisted residential tower in Dubai Marina - was finally completed after remaining part-finished for several years.
A statement on the Emirates News Agency WAM says specialists and consultants will be appointed to the committee, while developers will be required to provide their audited financial status and evidence of all cash transfers and deposits related to the failed projects.
“The committee has the right to take actions and issue decisions to guarantee the rights of those who have purchased property that fall into this category,” the statement said.
The decree, issued by the ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum, immediately puts on hold any cases or appeals related to cancelled properties presently before other courts, which will no longer be able to hear such cases.
Decisions by the committee will be final, with no avenue to appeal.
United Arab Emirates
Claire (Jul 31, 2013)
- Tasweek reports 112% profit increase
- Abu Dhabi developments to target gaps in market
- Arabtec to work with local contractors in Egypt
- Burj Al Arab offering weddings in the sky
- The time to build is now; Cityscape panel
- Record base jump broken off Dubai's Burj Khalifa
- EarthCam awarded contract for Qatar stadium
- Emaar to hold 16th Annual General Meeting today
- Aldar hopes to appoint CEO within three months
- Imdaad joins Careers UAE 2014