Property arbitration cases double in Dubai

Tuesday, 8 June 2010 6:31 AM

Construction and real estate-related disputes heard at the Dubai International Arbitration Centre more than doubled last year, it was reported on Tuesday.

As the global downturn gripped the region, the centre handled 206 cases last year, compared with 100 the previous year, UAE daily The National reported.

Most of the property disputes involved late or non-delivery of projects, while contractors were chasing compensation for cancelled projects or late payments from developers, the paper said.

Fathi Kemicha, an executive committee member at the centre, told the paper: “The latest indications are that it will not slow. On the contrary, when you have a crisis, there are more disputes.”

DIAC also handled 81 cases last year that revolved around “breaches in commercial contracts” across all sectors, the paper added.

Arbitration is a legal process in which disputes are resolved by a third party without recourse to litigation, which can be expensive and time-consuming.

In April, research house Prolead said a total of 1,296 construction projects worth more than $418bn are currently being built in the UAE.

It said 842 projects with a total value in excess of $350bn were on hold as a result of the economic slowdown and a further 111 projects valued at more than $14bn have been cancelled.

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Posted by: Frank Lampard Saturday, 3 July 2010 9:23 AM[UAE]

I'm constantly baffled by many of the comments crying out for refunds on this site. IF you invested in Dubai then you CHOSE to invest in a third-world,unregulated,opaque and corrupt property market. Accept your losses and move on. For God's sake don't throW good money after bad now, and waste time with lawyers and costly arbitration processes. YOUR CASH IS GONE!!!

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Posted by: Dan McTavish Friday, 2 July 2010 9:05 PM[UAE] - Scotland

"In other words did they refund their customers?!" No, they have'nt, In Britain there are hundreds of "customers" who have yet to receive any refunds for the hundreds of thousands paid to developers. Last night there was a programme on TV called - Home from Hell on BBC3. Just in that one programme there was over 100 people that had been constantly ignored or brushed off from the developers in Dubai, one of the developers left Dubai and has'nt paid any refunds, The other is still working in Dubai and has'nt paid any refunds either. A very sad situation for those that have "invested" their life's savings into Dubai. It is wrong for the government to not step up and hold those developers to account and ensure refunds are made to the small investors. If they do not take care of this soon it will be a far more costly mistake for Dubai's future in the long run.

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Posted by: Vijay Friday, 2 July 2010 8:25 AM[UAE] - UAE

RERA laws are one sided favouring developers only. Even if the developer has not started construction, its the investors who lose 25% of the amount paid, instead of being compensated with interest/profit for the period, money was with the developers. Fail to understand how such laws can be in force.

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Posted by: obe Monday, 14 June 2010 8:01 PM[UAE]

Good questions harry and James...we can only find out if people make contact - the law is typically one sided but a lot of it is open to interpretation - the number of investors is important to hopefully bring about change...never give up. No one is giving up yet however the investors must get in contact with groups that have formed...if there are any investors who invested in DSC - Oasis Towers (1&2) please contact this address urgently - this is genuine call to everyone affected - please make every effort - oasisinvestors at googlemail dot com - (no spaces) your information is crucial. Do the right thing and contact. Genuine people only thank you.

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Posted by: harry Tuesday, 8 June 2010 10:18 PM[UAE]

Only 206 cases handled against 842 projects on hold and 111 projects cancelled....has everyone given up the battle against the developers. Or do we know the outcome is so heavily biased in the developer's favor....

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