Dubai off-plan project cancelled: how the refund works, step by step

If your Dubai off-plan project has been cancelled, the refund question has a clear legal answer and a less certain practical one. The law requires a full refund; how much arrives, and when, depends on the money left in the project's escrow account.

Below: what cancellation means, the refund sequence, what happens when escrow is short, and what to prepare, under Dubai law.

Dubai off-plan project cancelled: what refund does the law require?

A RERA cancellation triggers a legal duty to refund everything you paid. Under Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020, if RERA cancels a project by a final, reasoned decision, the developer "must refund all payments made by the purchasers" under the escrow law.

RERA is the Real Estate Regulatory Agency, the regulatory arm of the Dubai Land Department (DLD). The 2020 amendment matters: under the older text, a developer could keep up to 30% where work had not started. That deduction no longer exists, as Al Tamimi confirmed in 2021.

Why can RERA cancel a project?

RERA may cancel a project under Executive Council Resolution No. 6 of 2010 (ECR 6/2010), Article 23, according to Al Tamimi. Grounds include failing to start work without good reason, offences under the escrow law, bankruptcy and no genuine intention to carry out the project.

The DLD's FAQ adds that where a project is not cancelled but completion does not exceed 5%, RERA monitors it, gives the developer time to correct, and starts cancellation if it does not.

Cancelled project in Dubai: what happens to my money, step by step?

The refund follows a sequence set by ECR 6/2010 and summarized by Al Tamimi (2013), with the DLD's FAQ confirming the 60-day step.

Escrow is the project's dedicated bank account under Dubai Law No. 8 of 2007. Article 9(1) of that law says deposits in it cannot be seized by the developer's creditors, which is why it sits first in the refund queue.

Refund owed on RERA cancellation

All payments

Source: Law No. 19 of 2020

Escrow refund step

14 days

Source: ECR 6/2010 via Al Tamimi

Shortfall deadline

60 days, extendable

Source: DLD FAQ

Liquidation timeline

Indefinite

Source: DLD FAQ

What if the escrow account doesn't cover the refund?

When escrow runs short, the legal right stays but recovery slows. The developer owes the difference within 60 days; if it does not pay, RERA refers the matter to the courts, and the case may move into liquidation.

Unfinished, cancelled and liquidated projects can go to the Special Tribunal for Liquidation of Cancelled Real Property Projects, created by Decree No. 33 of 2020. It replaced the committee set up by Decree No. 21 of 2013. Its decisions are final and enforced by the Dubai Courts' Execution Court, according to the Dubai Media Office.

The DLD's Real Estate Projects Liquidation Section distributes escrow funds "in full or proportionally" depending on what is available, and its FAQ calls the expected time to liquidate indefinite. The tribunal process is covered in depth in the cancelled-project liquidation guide.

What history shows (2008–09 era)

Historical press gives context, not a forecast. Gulf News reported in September 2018 that more than 150 projects, mostly launched from 2005 to 2008, were listed as cancelled in Dubai Courts records. Court cases took about 2 to 4 years, and some investors reportedly recovered only 20 to 30 fils per dirham from escrow.

Those projects predate the 2020 amendment.

How do you confirm a project is cancelled and claim your refund?

Confirm the status in official records, then assemble proof of every payment. The Dubai REST app shows a status label for each registered project; Gulf News (2023) reported that labels show whether a project is active, finished or cancelled.

1. Check the official status

   In the DLD's Dubai REST app, open Project Status (Mashrooi) and search by project name. Note the status, escrow account details and completion percentage.

2. Gather your proof

   Collect the SPA, the Oqood certificate (your interim registration), every receipt and bank confirmation, and the account each payment went into.

3. Ask for your records

   Under Article 12 of Law No. 8 of 2007, depositors may see their own accounting records with the escrow agent and ask for copies.

4. Take advice on filing

   Ask a UAE-qualified lawyer whether your claim goes to liquidation, the tribunal or the courts, and what documents each needs.

Payments made outside escrow are harder to trace in a liquidation. Our guide to verifying an escrow account explains how to confirm where past payments went.

Off plan project cancelled in the UAE: does Dubai's rule apply everywhere?

No. Dubai's refund rules come from Dubai laws. Each emirate has its own property regulator and rules, and Abu Dhabi has a separate framework under its Law No. 3 of 2015, amended by Law No. 2 of 2025.

Before you rely on any refund figure, confirm which emirate's register the project sits in. If a cancellation turns into a contest with the developer, see handling an off-plan dispute. Checking takes minutes; you can see the official project status before your next step.

Buying from the UK, US, Canada or Australia?

• UK: cancelled project refunds, for UK buyers
• US: a refund playbook for US buyers
• Canada: refund timeline and checklist for Canadians
• Australia: refund decision tree for Australian buyers

This guide is general information, not legal advice. Laws and procedures change; check the official source before acting. Published 12 October 2026, last updated 12 October 2026.