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After purchase · Decision tree · For buyers in Australia

Dubai off-plan project cancelled: how the refund works for Australia investors

Dubai off plan project cancelled and a refund due? Australia investors: see the RERA steps, the 14- and 60-day deadlines and what escrow can actually pay.

By HomeProof Research TeamUpdated 5 min readDubai law · every fact with a source

Short answer

  • When a Dubai off-plan project is cancelled, the refund rule for Australia investors is full repayment: the developer must return everything paid (Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020).
  • Cancellation becomes official with a final, reasoned RERA decision.
  • Escrow money on hand goes back within 14 days; any gap is the developer's to pay within 60 days, a period RERA may lengthen.
  • If the developer still owes money, the courts take over and liquidation has no fixed end date.
  • Australia's Scams Prevention Framework is not a mandatory reimbursement scheme, and none of its sources address transfers to a UAE account.

Decision

Is the cancellation official?

  • RERA decision

    Full refund rule applies

    Decision

    Enough money in escrow?

    • Yes

      Outcome

      Escrow refund, 14 days

    • No

      Developer pays gap, 60 days

      Decision

      Paid in time?

      • No

        Outcome

        Courts or liquidation tribunal

      • Yes

        Outcome

        Confirm receipt in AUD

  • Only a rumour

    Outcome

    Check the label in Dubai REST

Dubai off-plan project cancelled: the refund rule for Australia investors

Everything you paid must come back. Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020, obliges the developer to repay all purchaser payments after RERA cancels by a final reasoned decision.

RERA regulates on behalf of the Dubai Land Department (DLD). The old 30% deduction for not-started projects was dropped in 2020.

A project is officially deemed 'cancelled' when Rera issues a final, reasoned decision…
Nikhat Sardar Khan, lawyer, head of corporate, DIFC Litigation and Arbitration at Hilal & Associates · Khaleej Times, Dec 2024

Branch 1: you have only heard the project may be cancelled

Check the official label before reacting. Gulf News (2023) reports that each project in Dubai REST carries an active, finished or cancelled label. A rumour in a buyers' chat group is not a RERA decision.

From Australia, foreign investors log in with UAE PASS (Visitor path, passport) or a title deed. If the label still reads active but the site looks idle, use the delay guide for Australian buyers.

Branch 2: RERA has cancelled the project — what happens to your money

Cancelled project in Dubai — what happens to my money? For buyers in Australia, the answer on paper is a fixed sequence, set out in Al Tamimi's summary of Executive Council Resolution 6 of 2010.

Refund steps after a RERA cancellation

Within 7 working days
Developer may appealRERA's rejection of the appeal is final (Art. 24)
Within 14 days
Available escrow funds refundedAuditor appointed at the developer's cost (Art. 25)
Within 60 days
Developer pays any shortfallRERA can extend this (Art. 26)
After that
Referral to the judicial authoritiesIf the developer does not pay (Art. 27)

Escrow here means the single-project account required by Dubai Law No. 8 of 2007, which the developer's creditors cannot touch.

Branch 3: escrow cannot cover the full RERA cancelled project refund

A legal right to 100% and the cash in the account are different things. Escrow controls how deposits are spent; it cannot make money reappear once spent on construction.

When funds fall short, the DLD pays out "in full or proportionally", and its FAQ gives no end date for liquidation. See the liquidation guide for buyers in Australia for the Special Tribunal.

…I have got neither my apartment nor a refund of my money.
an investor in a cancelled project quoted in Gulf News · Gulf News, Sept 2018

Historical context: Gulf News reported in 2018 that some investors in crisis-era (2008–09) cancellations got back 20–30 fils per dirham. The legal text has changed since.

Australian steps while you wait

Put your own records in order now. No Australian agency will recover the money, but good files make the Dubai process faster.

For Australian buyers of a cancelled project

Mind the clock. Perth is 4 hours ahead of Dubai all year, so a Perth lunchtime call lands at Dubai's 08:00 to 09:00.

Tax pointer: the ATO says CGT may apply when an overseas asset is sold; ask a registered tax adviser about a refund (general information only).

The figures in one view

Refund after RERA cancellation
100% of payments
Law No. 19 of 2020
Developer appeal window
7 working days
ECR 6/2010 Art. 24
Escrow refund
14 days
ECR 6/2010 Art. 25
Shortfall deadline
60 days
Extendable by RERA

See also what to do when the developer goes quiet, the explainer on refunds after a Dubai off-plan cancellation and the Australian buyers' hub. You can run a registry check on any project.

Cancellation refunds: questions from Australia

What is the RERA cancelled project refund for Australian buyers?
The RERA cancelled project refund is a full refund of all payments, for Australian buyers as for anyone else (Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020). How much actually arrives depends on the escrow balance and whether the developer covers the gap.
How long does a Dubai cancellation refund take?
A Dubai cancellation refund starts on a schedule: escrow money in 14 days, then the developer's top-up within 60 days unless RERA allows longer. Past that point, unpaid sums move to the courts or liquidation, where the DLD sets no end date.
Can my Australian bank reverse the transfers I sent to Dubai?
An Australian bank cannot simply reverse money already credited to a Dubai escrow account. A SWIFT recall is only a request: the receiving bank must cooperate and success is uncertain. The Scams Prevention Framework is not mandatory reimbursement and does not address UAE-bound payments.
Is the cancelled project refund taxable in Australia?
Whether a cancelled project refund has Australian tax consequences depends on your circumstances. The ATO says residents must declare worldwide income and that CGT may apply when an overseas asset is sold. A registered tax adviser can say how a refund of purchase money is treated. This is general information, not tax advice.

Related guides

Sources

  1. Law No. 19 of 2020 amending Law No. 13 of 2008 (Dubai Legislation Portal)
  2. Al Tamimi: special judicial committee for Dubai's cancelled projects
  3. Dubai Land Department: FAQ
  4. Scamwatch: report a scam
  5. ATO: foreign and worldwide income for Australian residents
HomeProof Research TeamFacts from Dubai law and official registries. HomeProof sells no property and takes no commission. About HomeProof

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.

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