Interesting article published recently on the site www.propertycommunity.com referring to an investors win in a court case against a well known Dubai Developer ACI. The investor successful achieved an order for the refund of DHS 1 million invested in 2007 for 2 commercial units that are now 20 months behind there due date.
I am sure Developers (and Investors) across the UAE are looking into this judgement in depth as there are a huge number of delayed or late projects in the region.
What is comforting for all investors however is the fact that with this judgement the Court has shown that it is going to adjudicate fairly in property disputes. I think everyone was concerned that the judiciary would have been under considerable pressure to ‘support’ developers to provide stability to the property markets in the region. The fact that they will pass judgement against developers in this way does cause a risk of significant capital flight from the region, something it really doesn’t need right now. However I believe that all investors should take comfort from the fact that the decision was made notwithstanding this fact, and that ultimately the fair and right decision was made irrespective of extraneous events.
This should give all investors a great deal of comfort and I believe shows a level of maturity in Dubai’s overall governance that many people have been concerned may not existed.
You can read the article here.