Dubai has passed a new law for regulation property expropriation for public use.
In his capacity as Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, issued Law No. 2 of 2022 on the expropriation of property for public use in the UAE.
The law is intended to protect property owners’ rights and ensure that they are fairly compensated for their expropriated property, according to a detailed set of rules laid out in the law.
The law will be used to expropriate property throughout Dubai. This law applies to special development zones and free zones, such as the Dubai International Financial Center, and governs the terms and conditions under which buildings and facilities, whether completed or under construction, may be expropriated. The chairman of the Dubai Ruler’s Court issued a decision outlining the terms of compensating owners of expropriated properties.
If a portion of a property is expropriated but the remaining portion is unfit for use under Dubai’s construction rules and regulations, the owner will receive full compensation if he or she does not wish to keep the remaining portion to add to an adjacent property, according to the law.
Furthermore, the law establishes an ‘Expropriation Committee’ to oversee all expropriation-related matters. The chairman of the Dubai Ruler’s Court will make a decision on the committee’s formation, members, and the expropriation process.
In addition to reviewing law for regulation expropriation property requests, the committee must determine whether taking property is necessary to achieve the goals of a project. A committee may recommend land grants as an alternative to expropriating property for a project. It will also determine whether a proposed project will necessitate full or partial expropriation and assess compensation for expropriated property.
The committee’s orders to expropriate property in Dubai are superseded by Sheikh Mohammed’s.
When property owned by a local or federal government entity is expropriated, compensation will be provided in accordance with legislation and procedures approved by the committee.
A property expropriation conducted prior to the issuance of the new law must follow all procedures and provide compensation in accordance with previously established terms and conditions within a year of the new legislation’s effective date. The Dubai Ruler’s Court chairman has the authority to extend the deadline by six months. If the deadline is not met, compensation is required by law.
Comprehensive procedures for expropriation law of property, calculating the value of compensation, and appealing expropriation are outlined in the law.
The law was announced by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, with the goal of protecting the rights of those who own expropriated properties. It also ensures that expropriated property owners receive full and fair compensation. When it is published in the official gazette, it will be enforced throughout the Emirate.
Aside from that, a “Expropriation Committee” is formed to oversee all expropriation matters in Dubai. The chairman of the Dubai Ruler’s Court will make decisions regarding the expropriation process, the formation of the committee, and its members.
The aforementioned committee will review expropriation requests and determine whether the property in question meets the project’s requirements. It may also suggest alternatives to the property for a specific project. The committee will be in charge of determining whether the project requires partial or total expropriation. The committee will also decide on compensation for expropriated property. However, Sheikh Mohammed bin Rashid Al Maktoum has the authority to overturn the committee’s decision to expropriate property.
Compensation should be provided in accordance with the previously established terms for properties that were expropriated prior to the issuance of these new regulations. It must be completed within one year of the new legislation’s effective date. The chairman of the Dubai Ruler’s Court, however, has the authority to extend the deadline by six months.