Sheikh Mohammed issues new law on expropriation of property for public use in Dubai

The law will ensure that the rights of owners of expropriated property are protected and they are afforded full and fair compensation as per a clear set of rules

A new law on expropriation of property aims to ensure that the rights of owners of expropriated property are protected. Reuters

Sheikh Mohammed bin Rashid, Ruler of Dubai and Vice President and Prime Minister of the UAE, has issued a new law to regulate the procedures for expropriating property for public use in Dubai.

Expropriation refers to a process of an authority taking over a property from an owner for public use or for social benefit.

The new law aims to ensure that the rights of owners of expropriated property are protected and that they are afforded full and fair compensation according to a clear set of rules outlined by the new law, the Dubai media office said in a statement on Tuesday.

“The new law regulates the terms and conditions under which buildings and facilities can be expropriated including those that are completed and under construction,” the statement said.

“It also sets out the terms for providing compensation to the owners whose properties are expropriated, as per a decision issued by the chairman of the court of His Highness, the Ruler of Dubai.”

According to the law, if only a portion of a property is expropriated and the remaining part becomes unfit for use as per Dubai’s construction rules and regulations, full compensation will be provided if the owner does not want to retain it to add it to an adjacent property.

The law also creates a permanent committee named “The Expropriation Committee” to oversee all matters related to the expropriation of properties in the emirate, including proposing alternatives to expropriating property for a project.

The committee will also assess whether a proposed project requires full or partial expropriation and evaluate the compensation for expropriated property.

The chairman of the Court of the Ruler of Dubai will issue a decision on the formation of the committee, its members, decision-making processes and expropriation procedures, the statement said.

In case the expropriation affects a property that belongs to a local or federal government entity, compensation will be provided as per legislations and procedures approved by the committee, it said.

“Expropriations of the property conducted before the issuance of the new law should follow all procedures and provide compensation as per previously existing terms and conditions within a year of the effective date of the new legislation,” the statement said.

“The chairman of the Court of His Highness, the Ruler of Dubai is authorised to extend the deadline by six months. If the deadline is not met, compensation will have to be provided under the terms of the new law.”

The law covers all areas across Dubai, including special development zones and free zones and annuls clauses of the resolution issued on January 1, 1964 regulating expropriation of private property for public use.