7StarsDubai

Dubai UAE News from the Press Property Market Disaster and More

  • May 2009
    M T W T F S S
    « Apr   Jun »
     123
    45678910
    11121314151617
    18192021222324
    25262728293031
  • Middle East Unrest Update

  • Talk of the Town

    Jo Hopworth on Justice For Natalie – Na…
    Mariam on Criminal Complaint filed in Ge…
    Martin Kraeter on ACI Dubai Funds filed bankrupt…
    Independent Observer on Iranian’s lawsuit reveals roya…
    Rado on DubaiTouristen landen schnell…
    Dubai Citizen on Al Fajer Properties Case…
    Dane on Outlook in concrete- Dubai Wor…
    jamesl fayad on RERA Dubai – Dubai Prope…
    Jacques on Malika Karoum finally arrested…
    James Brown on ACI – Alternative Capita…
    Journalist on Al Fajer Properties-500 Invest…
    ron oakeley on ACI – Alternative Capita…
    Benson Fu on Shahram Zadeh against Al Fajer…
    Monika on RERA – Dubai mulls cance…
    Ali Varahram on Shahram Zadeh against Al Fajer…
  • Top Rated Comments

  • Top Posts

  • RSS Dubai United Arab Emirates Property Real Estate Debt Fraud Developer Investor Court News

    • Criminal Complaint filed against Al Fajer Properties Sheikh Maktoum
      Criminal Complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Juma Al Maktoum CEO of Dubai Developer Al Fajer Properties The Dubai Sheikh who mislead and extort a German Couple  Germany – Dubai 2011 A German elderly couple , today 80 + 50 years old who have been Dubai Tourists since a decade, bought in 2005 an apartment at Nakheel´s Dubai Residen […]
    • UAE: Human Rights Blogger, Sorbonne Lecturer Charged With ‘Humiliating' Officials
      source Human Rights Watch www.hrw.org (Beirut) - The United Arab Emirates attorney general should immediately drop all charges against five pro-democracy activists to halt their trial, Human Rights Watch said today. The charges of "humiliating" top officials relate solely to the defendants' peaceful use of speech to criticize the UAE governmen […]
    • Nakheel Dubai Sunland Case
      June 5, 2011After 21 hearings, Chris O'Donnell, the Australian chief executive of Dubai's major developer, Nakheel, came to the defence of his former colleagues Matthew Joyce and Marcus Lee. Mr Joyce and Mr Lee are accused of profiting from the sale of land that had been earmarked for a colossal high-rise development, which was to include the futur […]
    • Dubai Nakheel CEO decided to leave the company
      Dubai June 7, 2011 Nakheel said on Wednesday that its CEO Chris O'Donnell had left the company "after completing his contract terms". O'Donnell, an Australian who joined the developer in 2006, said he had decided to leave Nakheel following five years spent with the company, the statement added. O'Donnell has overseen a traumatic time […]
    • Owner of Dubai Developer Damac Hussain Sajwani files case against Egypt corruption ruling
      Dubai property developer Damac said on Tuesday it had filed an international arbitration case against Egypt over a land dispute and the conviction of its chairman and owner, Hussain Sajwani.A Cairo court last week sentenced Sajwani in his absence to jail and ordered him to pay a $40.5 million fine in connection with his 2006 purchase of land at Egypt's […]
    • Dubai Palm Jumeriah - Investors plan to take legal action
      Investors in Dubai Palm Jumeirah’s Golden Mile complex will this week serve the developer behind the project with a legal ultimatum to hand over their units or issue them with a refund.Up to ten investors in the luxury complex plan to issue Souq Residences with legal notice in a bid to force a resolution to a dispute that has been ongoing for more than a yea […]
  • Top Rated Posts

    • 462,424 visitors 2010
  • Disclaimer 7 Stars Dubai

    This Website of the Blog 7starsdubai.wordpress.com and 7starsdubai.com content still existing media releases and comments from reputated press and websites only. The content of this Website focus to consumer protection for Investors of the Dubai Property market, the UAE and the Middle East. Press Article from the international Press who report about Fraud in relation with Property Investment and Real Estate Developer Investor Disputes in Dubai and the UAE as well reports from the Press about other criiminal acts and Civil Real Estate cases, Lawsuits before the Court in Dubai, the UAE or other countries. Furtheron we show reports about consumer protection and human rights in the Middle East. Actual Topics about the Unrest in Middle East. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of this site does not constitute advice or a recommendation by us.Communications and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Web site. We can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on this Web site nor do opinions of contributors necessarily reflect those of us.In no event shall we be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to this Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise. Comment Rules: Although the administrators and moderators of 7starsdubai.com will attempt to keep all objectionable comments off this Blog, it is impossible for us to review all comments . All messages express the views of the author, and neither the owners of this Blog, nor the administrator of this Blog will be held responsible for the content of any message, comment. By agreeing to these rules, you warrant that you will not post any messages that are obscene, vulgar, hateful, threatening, or otherwise violative of any laws. The adminstrator of this Blog reserve the right to remove, edit, move or close any comment (message) for any reason This Blog content still existing media releases and comments from websites only. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of this site does not constitute advice or a recommendation by us.Communications and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Blog. We can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on this Web site nor do opinions of contributors necessarily reflect those of us.In no event shall we be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to this Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise. Copyright: The copyright to the text of the blog is held by the author or link as source provided, where applicable. All images displayed are copyright their respective owners and are used either under licence or under the fair use provisions of international copyright law. The information contained in this Web site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this site. Accordingly, the information on this site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult the administrator of this website. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, 7starsdubai.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will 7starsdubai its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this site or for any consequential, special or similar damages, even if advised of the possibility of such damages. Certain links in the Web site connect to other sites maintained by third parties that may or may not be presented within a frame on the Web site. 7starsdubai.com has not verified the contents of such third party sites and does not endorse, warrant, promote or recommend any services or products, that may be provided or accessed through them or any person or body which may provide them. 7starsdubai.com has not issued or caused to be issued any advertisements which may appear on these Web sites. We do not review, monitor or endorse any third party web sites linked to Our Site and We are not responsible for the content of any web site linked to Our Site. Your access to any web site that links to Our Site is at your sole risk. We are not responsible for the information, material, products, or services contained on or accessible through such other web sites and will not be liable for any form of loss or damage arising as a result of or in connection with your visits to such web sites. Any links to other web sites are provided merely for the convenience of the users of this Site and the inclusion of these links does not imply an endorsement of the linked web sites or the content therein. In addition, you agree not to link your web site or any other third party web site to Our Site or frame Our Site as part of any other web site without Our express prior written consent. We reserve the right, at any time and for any reason not prohibited by law, to deny permission to anyone to link a web site to, or frame, Our Site. We reserve the right to withdraw Our consent at any time to a link to, or framing of, Our Site at Our sole discretion without notice. Your use of this Site and the operation of these Terms and Conditions shall be governed by and construed in accordance with the laws and regulations of and applicable in Germany You agree, acknowledge, and submit to the Court in Germany having non-exclusive jurisdiction over all and any dispute or difference between us arising out of or in connection with this Agreement. Please review these Terms and Conditions carefully before using this Site. Your use of this Site indicates your irrevocable agreement to be bound by these Terms and Conditions (as may be amended by Us from time to time). If you do not agree to be bound by these Terms and Conditions please stop accessing and using this Site immediately. Warning: We are aware that several times Cybercriminals mirrowed our Website and posted on several Forums, Website comments by misuse of our email adresses. These Cybercriminals registerd several similar looking Domains and installed several 1:1 mirrowed Websites which look like our Website 7starsdubai. We have already taken the necessary steps by filing criminal complaints against the Individuals behind this Identity theft an Cybercrime, by misusing fraudulently our Blog Identity 7starsdubai. In Search engines like Google, Yahoo, Bling and others you should always take a close view to the links. If this links do not originaly start with www.7starsdubai.com or http://7starsdubai.worpress.com/.... you will end on a faked mirrowed modificated Website. The genral Background of this Cybercriminals is a Stalking and Smear campaign, faking stories for their personal use, to discriminate Persons with the goal to destroy their reputation.
  • RSS ZDF Heute Germany

    • Untitled
    • Erdogan: Tote bei Explosion in Istanbul
      Anschlag in der TürkeiDer Anschlag in Istanbul hat nach Angaben des türkischen Staatspräsidenten Recep Tayyip Erdogan auch Todesopfer gekostet, wie der Sender CNN Türk berichtete. Genau Zahlen nannte er nicht.Video Explosionen in IstanbulVideo Ankara verhaftet KritikerVideo Proteste gegen FestnahmenVideo Pressefreiheit am Ende
    • IS zurück in Palmyra
      Weltkulturerbe in SyrienDie Dschihadistenmiliz Islamischer Staat ist wieder in die antike Ruinenstadt Palmyra in Zentralsyrien eingedrungen. Im März hatte die syrische Armee die Stadt mit dem Weltkulturerbe von den Islamisten befreit. Nun drohen neue Zerstörungen von Kulturgütern.Video IS aus Palmyra vertriebenVideo Armee und IS kämpfen in PalmyraVideo Fünf […]
    • Merkel: Erfolge gegen IS erhöhen Anschlagsgefahr
      DeutschlandKanzlerin Merkel lobt die Erfolge im Kampf gegen die Terrormiliz IS, beispielsweise in Mossul - und sieht im Gegenzug die Anschlagsgefahr in Deutschland steigen. Verteidigungsministerin von der Leyen forderte zusätzlich zur Militärkoalition eine "Koalition der Bildung" gegen den IS.Video Prozess gegen Al-Shaabab-MitgliedVideo Von der Ley […]
    • Feuerpause für Aleppo gefordert
      Treffen in ParisAußenminister Steinmeier ist sprachlos angesichts der Gewalt und des Leids in der syrischen Stadt Aleppo. Zusammen mit den Teilnehmern der Syrien-Konferenz in Paris forderte Steinmeier eine Feuerpause für die umkämpfte Stadt sowie humanitäre Hilfe.Video Pariser Konferenz: Gnade für Aleppo?Video EU weitet Syrien-Sanktionen ausVideo "Albtr […]
    • Santos für Ende des Tötens in Kolumbien geehrt
      FriedensnobelpreisNach über 50 Jahren mit über 220.000 Todesopfern wollen Kolumbien und die FARC-Rebellen ihren Konflikt beenden. Doch der Friedensprozess gerät ins Wanken, droht zu scheitern. In letzter Minute - gerade rechtzeitig zur Nobelpreisverleihung - besiegelt Präsident Santos dann doch das Ende des Tötens.Video Entscheidung gerechtfertigt?Video Kolu […]
    • Zugexplosion in Bulgarien
      Zahlreiche Tote und VerletzteFür die Menschen in Hitrino, einem kleinen Dorf in Bulgarien, ist es ein schrecklicher Tag. Ein mit Gastanks beladener Zug entgleist bei der Einfahrt in den kleinen Bahnhof. Bei der Explosion der Behälter sterben mindestens fünf Menschen, mehr als 25 werden verletzt. (Video)
    • "Toni Erdmann" ist bester europäischer Film
      Europäischer FilmpreisTriumph für "Toni Erdmann". Die Tragikomödie von Maren Ade holt den Europäischen Filmpreis als bester Spielfilm - und weitere vier Preise.Video Kino-Ereignis "Toni Erdmann"Video Simonischek über "Toni Erdmann"Video Hüller zu "Toni Erdmann"
    • Leipzig verliert Tabellenspitze, Werder siegt bei Hertha
      Fußball | BundesligaDank der 0:1-Niederlage von Leipzig beim Tabellenvorletzten Ingolstadt haben die Bayern mit einem 5:0 gegen Wolfsburg die Tabellenspitze zurückerobert. Köln - Dortmund trennen sich 1:1, der HSV siegt 1:0 gegen Augsburg. Im Abendspiel überraschte Bremen mit einem 1:0 bei Hertha.
    • Mehr Urlaub durch geschickte Planung
      Ein Hoch auf die BrückentageDie Brückentage machen es mal wieder möglich: Wer bei seiner Urlaubsplanung genau hinschaut, kann im kommenden Jahr einige zusätzliche Urlaubstage einheimsen. Viele Feiertage fallen nämlich auf einen Wochentag.Video Brückentage 2017 geschickt planenVideo Service: Bildungsurlaub
    • Welche Games Teenagern Spaß machen
      ComputerspieleWie bekommt man Teenager vom Handy los? Zum Beispiel mit cleveren Spielen, die mehr als nur Bildschirmaction bieten. Hier ein paar Vorschläge, die Kindern und Eltern gleichermaßen Spaß machen.Bilderserie Spiele für TeenagerVideo Nostalgie pur: Retro-GamesVideo Deutschland - Games-Land?Video Neues von der Gamescom
    • Der Löffel-Schnitzer von London
      "Barn the spoon"Barnaby Carder ist der Löffel-Schnitzer von London. Jeden Tag sitzt er im Schaufenster in der Hackney Road Nr 260 und schnitzt acht Stunden lang Löffel. Diese sind aus Holz, das er im Rahmen eines Naturschutzprojekts umsonst bekommt. Auch kann man bei ihm das Löffel-Schnitzen lernen. (Video)
    • Zu Besuch in einem Land vor unserer Zeit
      Lascaux-Höhlen eröffnetDie Höhlenmalereien von Lascaux sind die wohl ältesten noch sichtbaren Bilder, die Menschen von sich und ihrem Leben gemalt haben. Um Besuchern die 17.000 Jahre alten Kunstwerke zugänglich zu machen, wurde die Höhle nun originalgetreu nachgebaut. (Video)
    • Geschenke: Kaufen oder Selbermachen?
      WeihnachtenZwei Wochen vor Weihnachten wird es in den deutschen Innenstädten immer hektischer. Statt langen Shoppingtouren widmen sich viele aber einem neuen alten Trend: Do-it-Yourself-Geschenke.
    • Untitled
    • Erdogan: Mehrere Tote bei Anschlag in Istanbul
      11.12.16 00:29 | Bei dem Anschlag in der Nähe des Besiktas-Fußballstadions in Istanbul hat nach Angaben des türkischen Staatspräsidenten Recep Tayyip Erdogan offenbar mehrere Tote gegeben. "Leider haben wir Märtyrer und Verletzte", hieß es in seiner Erklärung vom Samstagabend. Der türkische Innenminister Süleyman Soylu teilte mit, er gehe von einem […]
    • Hollande weiht Nachbildung der Lascaux-Steinzeithöhle ein
      11.12.16 00:28 | Frankreichs Staatschef Francois Hollande hat am Samstag eine neue Nachbildung der für ihre steinzeitlichen Malereien berühmten Höhle von Lascaux eingeweiht. Die mehr als 60 Millionen Euro teure Replik in der südwestfranzösischen Gemeinde Montignac im Departement Dordogne wurde in der Nähe der echten Grotte erbaut und zeigt alle Höhlenmalerei […]
    • Porsche-Betriebsratschef: Kein großer Stellenabbau durch E-Mobilität
      10.12.16 23:50 | Porsche-Betriebsratschef Uwe Hück sieht keinen Grund für einen enormen Stellenabbau durch E-Mobilität. Dem Branchenblatt "Automobilwoche" sagte er, dass man bereits bei der Einführung von Robotern in den 1990er Jahren Sorge um Stellenstreichungen hatte. "Es hat sich gezeigt, dass wir die Technologie gebraucht haben und trotzde […]
    • Bundesregierung für Verlängerung von Grenzkontrollen offen
      10.12.16 23:19 | Die Bundesregierung schließt eine Verlängerung der Grenzkontrollen nicht aus. "Wenn es die Situation erforderlich macht, plädiert Deutschland für eine Verlängerung der Grenzkontrollen", sagte eine Sprecherin des Bundesinnenministeriums. Derzeit darf die Bundesrepublik bis Februar 2017 ihre Außengrenzen schützen. Im Schengen-Raum si […]
    • Bouffier: RWE soll Klage gegen Hessen fallen lassen
      10.12.16 22:33 | Der hessische Ministerpräsident Volker Bouffier (CDU) geht davon aus, dass der Energiekonzern RWE im Gegenzug für einen milliardenschweren Entsorgungspakt mit dem Bund seine Klage gegen das Land Hessen fallen lässt. Das teilte ein Regierungssprecher am Samstag in Wiesbaden mit. RWE fordert im Zusammenhang mit der Stilllegung des Atomkraftwer […]

RERA – Dubai mulls cancellation of 27 projects

Posted by 7starsdubai on May 12, 2009


source ArabianBusiness

Dubai is considering cancelling 27 projects, the head of its real estate regulator said on Monday, as the emirate’s property market slumps in the global downturn.

A decision whether to cancel or not would be made by the end of the month, said Marwan bin Ghalita, the head of the Real Estate Regulatory Authority (RERA).

“The decision has not been done. They are projects all over Dubai – third party projects (sub developers),” he said.

Earlier this year, Ghalita said he believed 25 percent of projects will be cancelled in Dubai as a result of the global economic slowdown.

“It’s almost the same,” he said when asked if that figure had changed. The Dubai Land Department and RERA set up a committee last week to cancel projects in the emirate that are not feasible.

7 Responses to “RERA – Dubai mulls cancellation of 27 projects”

  1. Monika said

    RERA Luck transparancy, and professionalism

    RERA Is weak, I have spend days in RERA, the size of the problem of buyer is growing and growing big, its going be a big mess and if not action is taken seriously
    is going togenerate a chaos.
    RERA need people with high charisma, people that love and believe on solving problems. People motivated, from new era, people with high qualifications and experiences, determined to come with solution and apply them, people that like challenges and conscious of the size of this problem, bring light in this unit, nice smiles and checking hands is not enough.

    New professional need to be recruited, women and men that like challenge and tread all case and people equally, give time to desperate and confused people, helping equally, RERA need people that work with all there heart, mind and faith. Is the only office in Land department that is weak, un-organized, slow and doesn’t faithful the loads of work need people with concrete solution. Happy to help all people not small minority

    I don’t think one person in this unit can solve problem with this size. Need a lawyer with a good experience and like challenges. Changes need to be made seriously

    And who ever agree with me rise you voice for every single person rich or poor that are going trough this nightmare.

    We are after our money that we worked hard for it. No one seems to care go and find lawyer loose more than you already lost, Shame really.

  2. Joe said

    Using lawyer in this stage is costly and time consuming process. Registration of case in Dubai Property court cost AED 31.000/ agreement. Process with appeals can last more than year. What will be developer financial condition in that time we can jusr speculate. How much will Lawyer take for process you can just imagine. Court will not recognize anything more than 9% of interest rate. They will recognize just AED 1000 for costs of Lawyers. When you will make simple calculation you will find this fight useless. Authority has decisive position in this mess. RERA and Land Department are responsible for keeping the property Law. If they will work in accordance with accepted law we should not have trouble. Every investor who invested in property that never commenced inside 6 months after pre launching started should get refund and RERA should cancel project (deleting developer from developer list) LAW No 8 article 17) . In accordance with Law No 8 our money should have to be on escrow account safe under control of Bank Escrow Agent.
    RERA is not able to control whether developer register project or not what alone if money exist on escrow account. That’s the problem! We were convinced that law protects us and Developers are respecting the law but the truth revealed recently and there is a mess and most of projects has never been registered and many of sent money is illegally kept on accounts that were never registered with RERA.. Ignoring registration of escrow account means criminal offence for developer and in my opinion most of developer managers should finish in jail. But who stay behind Developers? Who are majority owners? Do you think that RERA has power to punish Developers and put managers in jail? Read again my contribution bellow and you will understand that investors are on the losing side. I am not telling that some of us will somehow find exit from this mess but in general we are going to be at losing side.
    As announced RERA is going to disclose what projects will be cancelled. Be sure that majority of investor will not be satisfy with their decision. They will never punish own friends as can outside investors. If RERA should disclose the criteria they are going to use in canceling projects than we should have more transparency in this decision. But omitting to disclose criteria they have wide range for manipulations and I am sure on whose behalf.
    One more point: Most of developers are threatening investors to pay or they will cancel agreement. They have no rights to do it far from April 2008 after Law no 8 was accepted. They have to do it through Land Department but if they did not register properly project as well as escrow account they cannot even knock on their doors. So if any of you experienced cancelation directly from developers this is VOID.
    It will be very interesting to follow RERA decisions and post period.

  3. Del said

    I cannot not believe the impatience of the investors calling for projects to be cancelled. I am an investor with ACW and yes, there have been delays, but I am overall content with the way things are going. Did any of you not get the letter from Ian Pask?? things are finally progressing and yet some of you still show impatience. Its a lifetime investment, so a years or so’s delay will be very small in the grand scheme of things, give the moaning a break!

  4. manuel said

    I have an apartment which is 60% paid for in Platinum One, and have similar concerns to Shafiq.
    Perhaps we should consult a property lawyer in Dubai , who could tell us definitively for a fee exactly what our rights are.
    If anyone else in this email list is buying a property in Platinum One, please get in touch, and maybe we could share the cost of approaching a lawyer. I fancy talking to Holman Fenwick Williams, details on this site:
    http://rpdubai.ae/rpdubai/professionals/lawyers.do?lang=0
    I look forward to hearing from you.

  5. john hill said

    I have read in an article if the majority investors complain on a project then RERA could cancel the project and we get our full refund. I am planning to travel to UAE to check the progress for myself and if anybody who aint happy with the way things are going with ACW holding and skycom please join me to pressure RERA to either push for construction of our projects or cancel them.

  6. Nass said

    Do we know which 27 projects they are talking about? have u heard any cancelation related to water front??

  7. Joe said

    A tale of scorpion and the turtle

    We all know the famous story about a scorpion asking a turtle to carry him across a river. The turtle is afraid of being stung, but the scorpion reassures him that if it stung the turtle, the turtle would sink and the scorpion would drown as well. The turtle then agrees; nevertheless, in mid-river, the scorpion stings him, dooming the two of them. When asked why, the scorpion explains, “I’m a scorpion; it’s my nature.”

    Before investing in Dubai property market I have been warned about the ways and means of merchants and rulers from the Gulf. At the time I choose to ignore them, now I am not so sure I have made the right decision.

    Dubai market has exploded in the past few years and attracted many foreign investors to participate in a very lucrative business based on off plan project model and huge potential profit. Most of the buyers were speculators who only wanted to invest in part of property process and later sell it with huge profit expectations. Dubai has had very small number of end user investors.

    This business model was perfect until market price was rising and there was still enough interest for speculation. Developers also added their pot into this game by speculating with period when to sell off plan units. So they didn’t want to sell all units at once but rather gradually selling units by progressing of time. They wanted to get piece of profit cake as well protect themselves in the case of increasing construction expenses based on USD oscillation (AED is pegged to USD).

    After recession started this seemingly perfect “business” collapsed for both sides Developers as well as Investors (speculators). Speculators over invested themselves and was never able to sustain whole investment in property. Their plan was to invest in short time as much as possible and sell it as soon as possible. But after market collapsed there was not any more buyers neither end users nor speculators. The whole construction progress gets stuck. Developers in the same time was circumvented Law commenced in the last few years. Mostly they have violated Law no 8 especially obligation to register every project with RERA and open separate account for each project solely. They did not open escrow accounts or they have open one and collect money on it and misconduct escrow agents, authority and at last investors that their money is save and exactly dedicated for the invested project. Many of accounts were depleted based on such mismatches and disability (intentional or unintentional) of authority to control developers. But frankly is there (in authority) anybody so bold to apply law to developers whose owners are close to top people in UAE?

    Now there is question how to solve this situation? On one side there are Developers whose ownership is more or less in hands of top UAE people. And on the other side there are Investors and speculators who are mostly coming from outside. Who will be protected and who will be punished in this polarization is out of question. The question is just how to legally do it? After Developers spent most of investors money and they did not commence any construction they are in very delicate situation how to overcome this problem and not put on bankruptcy track. The authority came with solution how legally protect developers (read UAE people) and pull them out of trouble but at the same time show the world how they take care about investors and represent themselves as high standard rule of law country.

    In summary most of I investors are going to lose money and almost all developers will have ability to legally cover illegally spent money.
    The sliding scale and Law No 9 cannot be read in any other way than as in accordance with explanation above. Everybody who is reading Law No 9 in details will see that billions of money will be (now legally) stolen from investors. Can anybody imagine how to finance even 10-20% of purchased units without having help from any Bank today? So even if investors paid almost the whole amount they will lost all money. Speculators who never paid more than 30% will lose their entire investment.

    So, dear fellows, find your position in this game and think about it! The only side who will benefit will be the domestic people who spent the money and still have at least plot in their hands as well as full basket of money on private accounts.

Sorry, the comment form is closed at this time.

 
%d bloggers like this: