Concerning
Acquisition of Real
Property
for the Public Benefit in the Emirate of Dubai[1]
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We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal
Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its
amendments;
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. (13) of 2008 Regulating the Interim Real Property Register in the Emirate
of Dubai, its amendments, and its Implementing Bylaw;
Law
No. (14) of 2008 Concerning Mortgage in the Emirate of Dubai;
Law
No. (13) of 2013 Concerning the Land Department;
Law
No. (1) of 2016 Concerning the Financial Regulations of the Government of Dubai
and its Implementing Bylaw;
Law
No. (8) of 2019 Concerning His Highness the Ruler’s Court;
Law
No. (5) of 2021 Concerning the Dubai International Financial Centre;
The
Order of 1961 Establishing the Dubai Municipality;
The
Decree Regulating Expropriation of Property for the Public Benefit, issued on 1 January 1964;
Decree
No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
Decree
No. (28) of 2015 Concerning Governance of the Boards and Committees Affiliated
to the Government of Dubai;
Decree
No. (22) of 2021 Concerning the Chairman of His Highness the Dubai Ruler’s
Court;
Local
Order No. (2) of 1999 Concerning Classification and Regulation of Land Use in
the Emirate of Dubai and its amendments;
Local
Order No. (1) of 2014 Concerning Compensation of Owners of Land Affected by
Road Setback in the Central Business District; and
The
legislation establishing and regulating free zones in the Emirate of Dubai,
Do hereby
issue this Law.
This
Law will be cited as "Law No. (2) of 2022 Concerning Acquisition of Real
Property for the Public Benefit in the Emirate of Dubai”.
The
following words and expressions, wherever mentioned in this Law, will have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate: |
The Emirate of Dubai. |
Chairman: |
The Chairman of His Highness the Ruler of
Dubai’s Court. |
DLD: |
The Land Department. |
Acquiring Entity: |
Any of the entities requesting the
Acquisition of Real Property under this Law. This includes, but is not
limited to, the Dubai Municipality, the Roads and Transport Authority, and
free zone authorities in the Emirate. |
Acquisition Committee: |
The Acquisition committee formed pursuant to the
provisions of this Law. |
Real Property: |
A vacant land plot, the principal real rights in that plot, and the
lease rights therein provided
for by the
above-mentioned Law No. (7) of 2006 and Law No. (13) of 2008. |
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 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 expropriation of the principal real
rights in that property or the lease rights therein provided
for by the
above-mentioned Law No. (7) of 2006 or Law No. (13) of 2008. |
Project: |
A
project that belongs to the Acquiring Entity,
for which Acquisition is requested, and which aims at serving the public interest. |
Compensation: |
The cash or in-kind consideration to which an
Owner of acquired Real Property is entitled as a result of
Acquisition. |
Escrow Account: |
A bank account which is created with 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
prepared 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 this Law. |
a.
This Law applies to all Acquisitions of Real
Property made in the Emirate, including in Special Development
Zones and free zones, such as the Dubai International Financial Centre.
b.
The procedures, rules, and requirements applicable
to the Acquisition of buildings and structures constructed on Real Property in
the Emirate, whether completed or under construction, and to the Compensation
due in respect thereof, will be prescribed by the relevant resolution
issued by the Chairman.
This
Law aims to:
1.
ensure that private ownership is protected and not prejudiced, and that private
property is not expropriated except for
the public benefit and in return for fair Compensation;
2.
regulate the process of expropriation of Real
Property for the public benefit in the Emirate, in accordance with clear and
specific procedures;
3.
establish fair rules and standards for
Compensation for the acquired Real Property in the Emirate, in accordance with
the internationally recognised best standards in this regard; and
4.
enable public and private entities in the Emirate
to implement their Projects which aim at serving the public interest.
Rules for Acquisition
Article (5)
Acquisition
of Real Property may be made only for the public benefit, in return for fair
Compensation, and in accordance with the rules, standards, provisions, and
procedures stipulated in this Law and the resolutions issued in pursuance
hereof.
a.
Where the
Acquisition of a part of Real
Property causes the remaining part thereof to become unfit
for development or for use in accordance with the planning and construction
regulations in force in the Emirate, the Acquisition resolution will extend de jure to
the remaining part of the Real
Property. In this event, the
Acquiring Entity will be liable for providing
Compensation for the Acquisition of the
whole Real Property as per its estimated value. However, where the Owner
expresses his wish to retain this part of his Real Property to amalgamate it with another adjacent
Real Property into a single Real Property fit for development or use
in accordance with the planning and building regulations in force in the
Emirate, the Acquisition Committee may issue a decision limiting the Acquisition
and Compensation to the part of the Real Property whose Acquisition is requested.
b.
Where mandated by work requirements, the
Acquisition Committee may permit the Acquiring Entity to use the part of the
Real Property which is subjected to de jure Acquisition in accordance with paragraph (a) of this Article
for any other purpose that is consistent with the planning and construction
regulations in force in the Emirate.
a.
Pursuant to a resolution issued by the Chairman, a
permanent committee named (the “Acquisition Committee”) will be formed. The resolution will determine the
membership of the Acquisition
Committee, the procedures for holding its meetings and
passing its resolutions, and the procedures that must be followed for filing
an Acquisition application with it; and
will include any other relevant
provisions.
b.
The above-mentioned Decree No. (28) of 2015, or
any other superseding legislation, applies to the governance of the Acquisition
Committee, to the confidentiality of information, and to the duties of the
chairman and members of the Acquisition Committee.
a.
The Acquisition Committee will have exclusive
jurisdiction to determine the Acquisition applications submitted to it. For this
purpose, the Acquisition Committee will have the authority to:
1.
request the concerned entities to provide it with
the financial appropriations allocated to the Project for which Real Property
Acquisition is requested; and the approvals, engineering plans and drawings, and other
documents related to that Project, in
order to consider the same and
determine the feasibility and significance of the Project and the extent to
which it serves the public interest;
2.
review the Project to determine whether it is aligned
with the general policy of urban planning, and whether it is in harmony with the distinctive
architectural character of the area of the requested Acquisition and with the urban
master plan of the Emirate; and consider the desired development benefit of the Project;
3.
propose, to the applicant Acquiring
Entity, appropriate planning alternatives to implement the Project without
resorting to Acquisition, such as the allocation of alternative land plots for
the construction of the Project;
4.
consider
whether the Project requires the Acquisition of the Real Property in whole or in
part;
5.
prepare a list of Valuators to re-estimate
the amount of Compensation for the Real Property acquired under this Law, and
present it to the Owner of the Real Property to select one of these Valuators as he
deems appropriate;
6.
approve the type and amount of Compensation determined by the DLD or the Valuator, as the
case may be; and notify the Acquiring Entity of the same to deposit it into the Escrow Account in addition
to other expenses incurred in respect of the Acquisition, as determined by the Acquisition
Committee, including service of notices and other administrative expenses; and
7.
exercise any other duties or powers assigned to it
by the Chairman.
b.
Paragraph (a) of this Article does not apply to
the orders issued by the Ruler concerning Acquisition of any Real Property in
the Emirate. The Chairman will issue a resolution determining the functions of
the Acquisition Committee in respect of Acquisition of Real Property under this
paragraph.
Once
an Acquisition resolution is issued by the Acquisition Committee, the Acquiring
Entity will:
1.
notify the DLD of the Acquisition resolution to
create an entry denoting its content on the registry folio of the
Real Property intended for Acquisition;
2.
notify the Owner of the acquired Real Property of
the Acquisition resolution and the type and amount of the Compensation by
registered mail with acknowledgement of receipt; by publication in
one English and one Arabic widely-circulated local daily newspaper; or by any other means which is deemed appropriate by the Acquiring Entity and ensures that the
Owner is duly informed of the Acquisition resolution. The notice must include a
request that the Owner report to the Acquiring Entity to provide a copy of the
documents proving his rights in the acquired Real Property within thirty (30)
days from the date of receiving the notice or from the date
of publication;
3.
prepare a report confirming
that the Owner has reported to the Acquiring Entity, and stating his demands and
the documents submitted by him against a receipt, in addition to his 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 notified to him, or where he fails to report to the Acquiring
Entity’s offices within the time limit mentioned in sub-paragraph
(2) of this Article. Initiating these procedures may not prejudice the Owner's
right to object to the amount of Compensation before the Acquisition Committee,
or to take recourse to
the courts to challenge the procedures for execution of the Acquisition
resolution in accordance with the provisions of this Law.
An
Owner of acquired Real Property may object to the amount, but not the type, of
the Compensation within ten (10) working days from the date of expiry of the
time limit prescribed by sub-paragraph
(2) of Article (9) of this Law.
In
considering and determining an objection
to the amount of Compensation by an Owner of acquired Real Property, the
following procedures will apply:
1.
Within (5) five working days from the date of receiving
the objection submitted by the Owner of the acquired Real Property, the Acquiring Entity will
forward the objection to the Acquisition Committee, together with a copy of the
title deed of the Real Property intended for Acquisition and the Real Property
survey certificate. A copy of the objection must also be sent to the DLD.
2.
Within ten (10) working days from the date of receiving
the objection in accordance with the provisions of sub-paragraph
(1) of this Article, the Acquisition Committee will, at the expense of the
Acquiring Entity, appoint the Valuator selected by the Owner to revaluate
the acquired Real Property, determine the amount of Compensation in accordance with the
internationally recognised standards, prepare a report on the same, and submit that report to the Acquisition Committee.
3.
Where the amount of Compensation determined by the
Valuator is lower than the amount of Compensation determined by the DLD, the amount
of Compensation determined by the DLD will be approved.
4.
Where the amount of Compensation determined by Valuator
is higher than the amount of Compensation determined by the DLD by no more than
ten percent (10%), the amount of Compensation determined by the Valuator will
be approved.
5.
Where the amount of Compensation determined by the Valuator is higher
than the amount of Compensation determined by the DLD by more than ten percent
(10%), the Acquisition Committee will, at the expense of the Acquiring Entity,
appoint another Valuator to revaluate the acquired Real
Property and determine the amount of Compensation.
6.
The amount of Compensation to which the Owner of
the acquired Real Property is entitled under sub-paragraph (5) of
this Article will be calculated by taking
the average of the highest
Compensation amounts estimated by the DLD and the two (2) Valuators.
7.
The Acquisition Committee will issue a decision
expropriating the Real Property; approving the type and final amount of
Compensation; and instructing the Acquiring Entity to complete the procedures
for executing the Acquisition resolution in accordance with Article (9) hereof.
The decision issued by the Acquisition Committee in this respect will be final.
a.
An Owner of acquired Real Property may challenge the
validity of the procedures for execution of the Acquisition resolution before
the competent court within sixty (60) days from the date of issuance of the
Acquisition Committee's decision expropriating the Real Property and approving
the type of Compensation, failing which any challenge to
be filed by the Owner will be
inadmissible. Where the Owner
files the challenge within the time limit,
the amount of Compensation will be retained, deposited into the Escrow Account, and disbursed
to the persons entitled to it only pursuant to a final court judgment.
b.
Courts
may not hear any application or appeal
in relation to any objection to the amount of
Compensation; and must rule that it is inadmissible.
The execution of an Acquisition resolution will not be affected
by any objection to the amount of Compensation by the Owner of the acquired Real Property or any challenge
to
the validity of the procedures for execution of the resolution before a
court. Moreover, the procedures for execution of the Acquisition resolution
will not be affected by any legal proceedings filed by the concerned parties in
respect of the acquired Real Property.
a.
The Owner of acquired Real Property will be
granted a time limit of up to one (1) year from the date of issuance
of the Acquisition resolution to vacate the Real Property. The Acquisition
Committee may extend this time limit for no more than one (1) year upon the request of
the Owner of the acquired Real Property.
b.
Where the Project implementation is time-critical,
the Acquisition Committee may, upon the request of the Acquiring Entity, shorten the
time limit stipulated in paragraph (a) of this Article.
c.
Where the acquired Real Property is not vacated
within the time limit prescribed by paragraphs (a) and (b) of this
Article, the Acquiring Entity may take the necessary actions to vacate it
through the administrative course of action.
In that case, the Owner of the
acquired Real Property will not be held
liable for any expenses arising from
the vacation. However, where it is established that the Owner of the acquired
Real Property is directly or indirectly responsible for disrupting or delaying
the vacation of the acquired Real Property, he will be held liable
for all expenses and costs arising from vacating the acquired Real Property.
d.
Notwithstanding the provisions of paragraph (a) of
this Article, and where supported by substantial grounds, the Compensation may, pursuant to a resolution of the chief official
in charge of the Acquiring Entity, be delivered
to the Owner of the acquired Real Property prior to the expiry of the time limit
prescribed for vacating the Real Property. In this case, the Compensation will be delivered
only after the Owner of the Real Property provides the relevant guarantees, as determined by the
Acquiring Entity in coordination with the Acquisition Committee, which ensure
that he vacates the Real Property within the time limit
granted to him.
The
Acquisition Committee will determine the type of due Compensation
in any of the following cases:
1.
in case of
Acquisition of Real Property in whole;
2.
in case of
Acquisition of part of Real Property;
3.
where any real rights, or any lease rights provided for
by the above-mentioned Law No. (7) of 2006 or Law No. (13) of 2008, are associated with the
acquired Real Property; or
4.
where parcels of land, located within
the Central Business District demarcated in the Master Plan of the Emirate, are
excised for purposes of road setback. In this case, the Compensation will be
limited to the area of the excised parcel of land.
No Compensation
will be due in respect of:
1.
Real Property possessed by persons unlawfully or without a legal justification;
2.
structures constructed on Real Property without a permit or in
violation of the relevant legislation in force; and
3.
Utility Lines belonging to local Government
Entities, where it is possible to relocate these Utility Lines without causing any
malfunction or damage of the same. In this case, the Acquiring Entity must pay the costs of
removing and relocating these Utility Lines, and installing them at the location specified by the entity to which
they belong.
a. An Acquiring Entity
must, within the time limit prescribed by the Acquisition Committee, deposit
the Compensation amount due in respect of the acquired Real Property into the Escrow
Account, in order for the DLD to disburse that
amount to the persons entitled to
it.
b. Where an Owner of acquired
Real Property fails to claim the Compensation for a period exceeding three (3)
years from the date of its deposit into the Escrow Account, the DLD may, upon
expiry of that period, withdraw the Compensation amount from the Escrow Account
and transfer it to the Public Treasury of the Government.
c. Without prejudice
to the time bar periods prescribed by law for Compensation claims,
the transfer of the Compensation amount from the Escrow Account into the Public
Treasury of the Government under paragraph (b) of this Article will not
prejudice the right of the Owner of the acquired Real Property or his heirs to
claim the Compensation to which they are entitled under this Law.
Where
the acquired Real Property is subject to a lien created for any reason, or a
principal or ancillary real right is created over that Real Property, the
Acquiring Entity must coordinate with the DLD to deduct, from the Compensation
amount deposited into the Escrow Account, an amount equal to the value of the
lien or right; and must not pay the said amount to any entity or person without
a final court judgement.
Upon
the request of an Acquiring Entity, the
Acquisition Committee may, in
accordance with the relevant rules it adopts, approve the use of the acquired Real Property to implement
any Project other than the Project for which Acquisition is made.
Where
a dispute arises between the Acquisition Committee and the Acquiring Entity in
respect of an Acquisition application, the dispute will be referred to the
Chairman for determination. Where the
expropriation of the Real Property is approved, the Acquisition application
will be redirected to the
Acquisition Committee to issue the Acquisition resolution and complete the procedures
stipulated in this Law in relation to execution of the same.
For
the purpose of implementing the provisions of this Law, the Acquiring Entity
and the Acquisition Committee may seek assistance from the concerned Government
Entities in the Emirate, including police personnel. Upon request, these
entities must provide support and assistance.
Where
an Acquisition
affects Real Property owned or designated for any federal government entity or
local Government Entity, the Compensation
for that Real Property will be regulated by the legislation in force, and the relevant rules,
standards, and procedures adopted by the Acquisition Committee.
This
Law applies to Real Property Acquisition procedures
which are not completed by the effective date of this Law. All procedures taken
in respect of the Acquisition of such Real Property will be deemed valid as if
made in accordance with the provisions of this Law.
a.
Any person
whose Real Property was acquired prior to the effective date of this Law, but has
not completed the Acquisition procedures or received the Compensation to which
he is entitled in accordance with the legislation in force at the time of
Acquisition, must report to the competent Government Entities in the
Emirate to complete all the procedures
for receiving the Compensation owed to him within a period of
not exceeding one (1) year from
the effective date hereof. The Chairman may, where required, extend this time
limit for up to six (6) months.
b.
Where the Owner of the acquired Real Property
fails to complete the procedures for the Acquisition and receipt of the due Compensation
within the time limit prescribed by paragraph (a) of this Article, any decisions issued
concerning entitlement to the Compensation will be deemed null and void. In this
case, the due Compensation will be determined pursuant to the
provisions of this Law. The type and amount of
Compensation must be determined based on the market value of the Real Property on the date of
the Acquisition.
The
Chairman will issue the resolutions required for the implementation of the
provisions of this Law.
The
provisions of the Decree
Regulating Expropriation of Property for the Public Benefit, issued on 1 January 1964, are hereby repealed to the extent that they contradict the provisions of this Law. Any
provision in any other legislation is also hereby repealed to the extent that it contradicts
the provisions of this Law.
This Law will be published in the Official Gazette
and will come into force on the day on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler
of Dubai
Issued in Dubai on 3
January 2022
Corresponding
to 30 Jumada al-Ula 1443 A.H.
©2022
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.