Resolution
No. (6) of 2024
Regulating
the
Acquisition
of, and Compensation for, Buildings and Structures Constructed on
Real
Property in the Emirate of Dubai[1]
ــــــــــــــــــــــــــــــــــــــــــــــ
We, Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler
of Dubai, Chairman of His Highness the Ruler of Dubai’s
Court,
After perusal of:
Law
No. (5) of 1995 Establishing the Department of Finance;
Law
No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai
and its amendments;
Law
No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in
the Emirate of Dubai and its amendments;
Law
No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate
of Dubai and its amendments;
Law
No. (7) of 2013 Concerning the Dubai Land Department;
Law
No. (1) of 2016 Concerning the Financial Regulations of the Government of
Dubai, its Implementing Bylaw, and their amendments;
Law
No. (2) of 2022 Concerning Acquisition of Real Property for the Public Benefit in
the Emirate of Dubai;
Decree
No. (22) of 2021 Concerning the Chairman of His Highness the Ruler of Dubai’s
Court;
The
Order of 1961 Establishing the Dubai Municipality;
Resolution
No. (2) of 2022 Concerning the Committee for Acquisition of Real Property for
the Public Benefit in the Emirate of Dubai; and
Resolution
No. (6) of 2022 Concerning the Procedures for Submitting Applications for
Acquisition of Real Property for the Public Benefit in the Emirate of Dubai,
Do
hereby issue this Resolution.
The
following words and expressions, wherever mentioned in this Resolution, will
have the meaning indicated opposite each of them unless the context implies
otherwise:
|
Emirate: |
The Emirate of Dubai. |
|
Government: |
The Government of Dubai. |
|
DLD: |
The Dubai Land Department. |
|
Acquisition Committee: |
The Committee for Acquisition of Real Property for
the Public Benefit in the Emirate of Dubai, formed pursuant to the
above-mentioned Resolution No. (2) of 2022. |
|
Law: |
Law No. (2) of 2022 Concerning Acquisition of Real
Property for the Public Benefit in the Emirate of Dubai. |
|
Acquiring Entity: |
Any of the entities requesting the Acquisition of
Real Property in accordance with the Law and this Resolution. |
|
Real Property: |
The structures and buildings, including any parts,
appurtenances, or units thereof, whether completed or under construction. |
|
Owner: |
A natural or legal person in whose name the Real
Property is registered in accordance with the legislation in force in the
Emirate, or who is lawfully in possession of the Real Property. This includes
the holders of principal real rights or the long-term lease rights provided
for by the above-mentioned Law No. (7) of 2006 or Law No. (13) of 2008; and
the universal or particular successors of Owners. |
|
Acquisition: |
The expropriation of Real Property from its Owner,
or the expropriation of any principal real right in that property or any long-term
lease rights therein provided for by the above-mentioned Law No. (7) of 2006
or Law No. (13) of 2008. |
|
Compensation: |
The cash or in-kind consideration payable under this
Resolution as a result of Acquisition. |
|
Occupier: |
A Tenant or Sub-tenant who occupies Real Property
pursuant to a valid Lease Contract entered into with the Landlord. |
|
Project: |
A project that belongs to the Acquiring Entity, in
respect of which Acquisition is requested, and which is intended to serve the
public interest. |
|
A bank
account opened by the DLD in the name of a Project upon obtaining the
approval of the Department of Finance, and into which the cash equivalent of
Compensation is deposited. |
|
|
Valuator: |
An independent entity that is responsible for the
valuation of Real Property, and is selected by the Owner from the list
approved by the Acquisition Committee, for the purposes of revaluation of the
Real Property intended for Acquisition and estimation of the amount of
Compensation in accordance with the provisions of the Law and this
Resolution. |
a.
The provisions of this Resolution
apply to all Real Property Acquisition procedures undertaken after the
effective date of this Resolution, and to those initiated after the effective
date of the Law but not completed as at the effective date of this Resolution.
b.
The provisions of the Law apply to
Compensation for land plots on which the constructed Real Property is acquired
in accordance with the provisions of this Resolution.
c.
No Compensation will be payable in
respect of acquired Real Property that is owned by the Government or any Government
Entity whose budget is included in the General Budget of the Government.
When
submitting an application for the Acquisition of Real Property, the following
procedures will be followed:
1.
The Acquiring Entity will submit the
Acquisition application to the DLD. The application must be accompanied by the
following:
a. a detailed
report specifying the type, nature, significance, feasibility, and objectives
of the Project to be implemented; the extent to which it serves the public
interest; and the proposed plan and timeline for its completion;
b. the financial
appropriations and the relevant approvals of the Project to be implemented;
c. the plans and
detailed drawings showing the Real Property affected by the Project to be
implemented;
d. a detailed list
of the Real Property intended for Acquisition, including its elements and the
nature of their uses;
e. a list of the
Owners of the Real Property, specifying the type of each Owner's interest in
the Real Property, as registered in the Interim Real Property Register or the Real
Property Register maintained by the DLD, together with the duration and purpose
of such interest;
f. a list of the
names of Occupiers of the Real Property intended for Acquisition, if any; and
g. any other data,
documents, or requisites determined by the Acquisition Committee.
2.
The DLD will refer the Acquisition
application, together with all the attachments specified in sub-paragraph (1)
of this Article, to the Acquisition Committee within five (5) working days from
the date on which the application is submitted complete with all the required
documents.
3.
The Acquisition Committee will,
within ten (10) working days from the date on which the Acquisition application
is referred to it by the DLD, either grant an initial approval for the DLD to proceed
with considering the application, or reject the application. The Acquisition
Committee decision rejecting any Acquisition application must be reasoned.
4.
Within twenty (20) working days from
the date on which the initial approval of an Acquisition application is granted
by the Acquisition Committee, the DLD will:
a. inspect the Real Property intended
for Acquisition to verify its description, components, and uses;
b. estimate the type and amount of equitable
Compensation for the Owner and the amount of Compensation for the Occupier of
the Real Property intended for Acquisition, in accordance with the rules and
principles set forth in the Law and this Resolution;
c. prepare a list of the Owners whose
interests are registered in the Interim Real Property Register and the Real
Property Register maintained by the DLD, stating the type of interest held by each
Owner in the Real Property, and the share of each Owner in the Compensation;
d. prepare a list of Occupiers of the
Real Property intended for Acquisition, if any, and the share of each Occupier
in the Compensation; and
e. prepare a report on the work
performed by the DLD and submit the same, together with its attachments, to the
Acquisition Committee.
5.
The Acquisition Committee may, where
necessary, extend any of the time frames specified in sub-paragraphs (2), (3),
and (4) of this Article for such periods as it deems appropriate.
a.
The Acquisition Committee will,
within ten (10) working days from the date of receiving the report prepared by
the DLD, together with its attachments, as stipulated in sub-paragraph (4) of
Article (3) hereof, determine the Acquisition application and issue the
relevant decision. For this purpose, the Acquisition Committee will have the
authority to:
1. issue Acquisition resolutions and
expropriate the Real Property in favour of the Acquiring Entity if it is
established to the satisfaction of the Acquisition Committee that the Project serves
the public interest, and that the funds required to cover the amount and type of
Compensation are available;
2. reject the Acquisition application
and disapprove the expropriation of the Real Property for which the Acquisition is requested if it
is established to the satisfaction of the Acquisition Committee that the
Project does not serve the public interest, the funds required to settle the
amount and type of Compensation are unavailable or insufficient, or any other
reason as determined by the Acquisition Committee;
3. approve the type and amount of
Compensation determined by the DLD or the Valuator, as the case may be, upon
verifying the correct application of the rules and principles based on which
the type and amount of that Compensation have been determined;
4. require the DLD to notify the
Acquiring Entity of the Acquisition resolution issued by the Acquisition
Committee and to instruct that entity to deposit the Compensation cash amount
into the Escrow Account, in addition to any other expenses determined by the
Acquisition Committee that may arise from the enforcement of the Acquisition
resolution, within a maximum period of thirty (30) working days from the date
on which the Acquiring Entity is notified thereof;
5. approve the list prepared by the
DLD, including the names of the Owners and Occupiers of the Real Property
intended for Acquisition and specifying the share of each Owner and Occupier in
the Compensation; and
6. where necessary, request the DLD to notify the concerned
entities in the Emirate and the Owner of the Acquisition resolution issued by
the Acquisition Committee, of the Project for which Acquisition is made, and of
any other information it deems necessary; and to require the Owner to report to
the Dubai Municipality to receive the site plan for the alternative land plot
allocated to him, where the Compensation is provided in-kind.
b.
The Acquisition Committee may, where
required, extend the time frames referred to in paragraph (a) of this Article
for the period it deems appropriate.
The
execution of an Acquisition resolution will not be affected by any objection,
submitted by the Owner to the Acquisition Committee, to the amount of
Compensation; by any challenge to the validity of the procedures for execution
of the Acquisition resolution brought by the Owner or Occupier before the
competent court; or by any legal proceedings filed by any concerned party in
respect of the acquired Real Property in accordance with the general rules
stipulated in the legislation in force.
Once
notified of the issuance of the Acquisition resolution by the Acquisition
Committee, the Acquiring Entity will:
1.
request the DLD to create an entry
denoting the content of the Acquisition resolution on the registry folio of the
Real Property subject to Acquisition;
2.
notify each Owner and Occupier of
the Real Property, by registered mail, through announcement in a widely
circulated local daily newspaper, or using any other means specified by the
Acquisition Committee, of the following:
a.
the Acquisition resolution issued by the Acquisition
Committee;
b. the date by which the Owner and the Occupier are required to report to the
Acquiring Entity to submit copies of the documents proving their interest in
the acquired Real Property; and
c. the deadline for vacating the Real
Property, in accordance with the time frames specified in Article (7) of this
Resolution.
3.
prepare a report confirming that the
Owner and the Occupier have reported to the Acquiring Entity and stating their demands
and the documents that they have submitted against a receipt, in addition to their
declaration that the acquired Real Property has been fully vacated;
4.
initiate the procedures for vacating
the acquired Real Property, where the Owner does not consent to the type or
amount of Compensation approved for him, or where he fails to report to the
Acquiring Entity within the deadline it specifies. Initiating these procedures will
not prejudice the Owner's right to object to the amount of Compensation before
the Acquisition Committee, or to take recourse to the competent court to
challenge the validity of the procedures for execution of the Acquisition
resolution in accordance with the provisions of the Law;
5.
initiate the procedures for vacating
the acquired Real Property, where the Occupier does not consent to the amount
of Compensation approved for him, or where he fails to report to the Acquiring
Entity within the deadline it specifies. Initiating these procedures will not
prejudice the Occupier's right to take recourse to the competent court to
challenge the validity of the procedures for execution of the Acquisition resolution
in accordance with the provisions of the Law; and
6.
provide the DLD with evidence that
the Owner and the Occupier of the Real Property have been notified in accordance
with sub-paragraph (2) of this Article, to enable the DLD to proceed with the
disbursement of Compensation to them.
a.
The Owner or Occupier, as the case
may be, will be granted a time limit of one (1) year to vacate the Real
Property and hand it over to the Acquiring Entity. This time limit will
commence from the date on which he is notified of the Acquisition resolution.
The Acquisition Committee may extend this time limit for the same period based
on an agreement between the Acquiring Entity and the person from whom the
property was expropriated. The Owner or Occupier may not be paid the
Compensation unless he fully vacates the Real Property.
b.
Notwithstanding the provisions of paragraph
(a) of this Article, the following will apply:
1. The Acquisition Committee may
shorten the time limit for vacating the Real Property where the Project
implementation is time-critical.
2. Part of the Compensation may, for
justifiable reasons and pursuant to a resolution by the official in charge of
the Acquiring Entity, be paid to the Owner or Occupier of the Real Property.
However, this part of the Compensation must not be disbursed unless the Owner
or Occupier provides the guarantees determined by the Acquiring Entity in
coordination with the Acquisition Committee, ensuring that the Real Property will
be vacated within the specified time limit.
c.
Where the Owner or Occupier, as the
case may be, fails to vacate the Real Property within the time limit specified
in paragraphs (a) and (b) of this Article, the Acquiring Entity may coordinate
with the competent entity in the Emirate to take the necessary measures to
vacate the Real Property through administrative course of action, in accordance
with the provisions of the Law.
a.
Both the Owner and the Occupier are
entitled to fair Compensation for the Acquisition of the Real Property. They
may report to the Acquiring Entity within thirty (30) days from the date on
which the notification is received or the announcement is published, as
specified in sub-paragraph (2) of Article (6) of this Resolution, to submit the
documents proving their interest in the expropriated Real Property.
b.
The Owner may object before the
Acquisition Committee to the amount of Compensation payable in accordance with
the provisions of this Resolution, provided that this objection is supported by
grounds and documents. The provisions of the Law governing objections to the amount of
Compensation and the procedures for determining such objections will apply.
In
assessing the Compensation for acquired Real Property to which the Owner and
Occupier are entitled in accordance with the provisions of this Resolution, the
following principles and rules must be observed:
1.
The condition of the buildings and
structures, and whether they are completed or under construction, must be taken
into account.
2.
The age of the Real Property, the
quality and type of materials and components used in its construction and
installation, and its location-specific and structural considerations must be
taken into account.
3.
The decorations, fences, wells, or
plantings; irrigation networks; safety and fire protection systems; and other
facilities existing on the Real Property that may affect the assessment of
Compensation must be taken into account.
4.
The term of the Lease Contract
concluded between the Owner and the Occupier, and the Rent specified therein or
the prevailing market Rent, whichever is higher, paid for the remaining period
of the Lease Contract term must be taken into account.
5.
The amount of Compensation must be
proportionate to market prices as at the date of issuance of the Acquisition
resolution.
6.
The principal and ancillary real
rights arising from the Real Property intended for Acquisition must be taken
into account.
7.
The value of structures, fittings,
equipment, or movables of any kind that can be removed from the Real Property
without causing any loss or damage must not be included in the calculation of
the Compensation.
8.
The value of structures and
buildings constructed on the Real Property, or any improvements and additions
made thereto without a permit issued by the competent entity in the Emirate,
must not be included in the calculation of the Compensation.
9.
No Compensation may be paid for any
improvements or additions made to the Real Property after the issuance of the
Acquisition resolution.
10. Any
other principles and rules that may be adopted by the Acquisition Committee for
the assessment of the Compensation must be observed.
All
Government Entities in the Emirate, and all other entities, must fully
cooperate with the DLD and the Acquisition Committee and provide them with the
required support to enable them to perform their respective functions under the
Law, this Resolution, the resolutions issued in pursuance thereof, and other
legislation in force in the Emirate.
The
chairman of the Acquisition Committee will issue the resolutions and
instructions required for the implementation of the provisions of this
Resolution.
Any
provision in any other resolution is hereby repealed to the extent that it
contradicts the provisions of this Resolution.
This
Resolution will be published in the Official Gazette and will come into force
on the day on which it is published.
Maktoum bin
Mohammed bin Rashid Al Maktoum
First Deputy Ruler of Dubai
Chairman of His Highness the Ruler of Dubai’s
Court
Issued in Dubai on 6
December 2024
Corresponding to 5 Jumada al-Thaniyah 1446 A.H.
©2025 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict, the Arabic text will prevail.