Short answer
- Liquidation of cancelled Dubai projects is handled by the Special Tribunal for Liquidation of Cancelled Real Property Projects, created by Decree No. 33 of 2020.
- The tribunal's decisions are final and enforced by the Dubai Courts' Execution Court; other Dubai courts, including the DIFC Courts, cannot hear these disputes.
- The DLD's liquidation section distributes escrow funds in full or proportionally, depending on what is available.
- The DLD describes the time to liquidate as indefinite; it depends on complete documents, amounts and eligible claimants.
- Buyers in Canada should file complete paperwork early and, if fraud is suspected, also report to the Canadian Anti-Fraud Centre.
When a cancelled real estate project in Dubai moves into liquidation, Canada investors stop dealing with the developer and start dealing with a process. Liquidation is a separate legal track with its own tribunal, and its pace depends heavily on how complete each buyer's file is.
The liquidation track, stage by stage
How does cancelled real estate project liquidation in Dubai work for Canada investors?
A dedicated tribunal oversees it and the DLD pays out what escrow holds. Decree No. 33 of 2020, announced on 15 December 2020, set up the Special Tribunal for Liquidation of Cancelled Real Property Projects, replacing a committee created by Decree No. 21 of 2013.
- Governing decree
- Decree No. 33 of 2020
- Source: Dubai Media Office
- Tribunal decisions
- Final
- enforced by the Execution Court
- Source: Dubai Media Office
- Payout basis
- Full or proportional
- depends on escrow funds available
- Source: DLD FAQ
- Expected duration
- Indefinite
- Source: DLD FAQ
What does the special tribunal for cancelled projects do for buyers in Canada?
The tribunal handles unfinished, cancelled and liquidated projects, including those RERA has cancelled. Its members are appointed by the Chairman of the Dubai Judicial Council, and it can give directions to escrow trustees.
The tribunal is a Dubai body. Canadian courts and regulators have no role in it, and Canadian consular officials cannot intervene in private legal matters, under the Consular Services Charter. They can supply a list of local lawyers.
How is escrow liquidation shared among Canadian buyers?
From whatever the project's escrow account holds, in full or in proportion. The DLD's Real Estate Projects Liquidation Section takes the funds from escrow and distributes them according to what is available, its FAQ says.
Under Dubai Law No. 8 of 2007, escrow deposits are kept for that single project and cannot be seized by the developer's creditors. The DLD FAQ adds that withdrawals are generally limited to contractors, consultants and marketing, so part of the money may already have been spent on the build.
…I have yet to see the funds despite repeatedly pressing the claims…
What should Canada investors file, and when?
File early and file completely. The DLD links liquidation time to complete documents, amounts and eligible persons, so a missing receipt can hold up your share.
Liquidation claim file
Keeping the file alive from Canada
Should you also report to Canadian authorities?
Report if anything looks like fraud rather than a failed project. The Canadian Anti-Fraud Centre (CAFC) takes reports online at reportcyberandfraud.canada.ca or on 1-888-495-8501, weekdays 10:00 to 16:45 ET, and advises victims to contact local police as soon as possible.
If the unit was marketed in British Columbia, BCFSA can investigate complaints under the Real Estate Development Marketing Act. For the steps before liquidation, see the refund rules after a RERA cancellation. For court options, see taking a dispute further. The global liquidation guide and the Canadian buyers' hub cover the wider picture, and you can check where a project stands today.
Who decides liquidation claims for cancelled projects in Dubai?
How long does escrow liquidation take for Canadian buyers?
Will I get my full payment back in a Dubai liquidation?
Should Canadian investors report a cancelled Dubai project to the CAFC?
Related guides
- GuideCancelled real estate project in Dubai: how liquidation and the tribunal work
- Country hubDubai off-plan problems for Canadian buyers: find your stage, then your guide
- Canada guideDubai off-plan project cancelled: how a refund works for buyers in Canada
- Canada guideOff-plan dispute with a developer in Dubai: where Canadian buyers can take it
Sources
- Mohammed bin Rashid issues new legislations, 15 Dec 2020 (Dubai Media Office)
- Frequently asked questions (Dubai Land Department)
- Law No. 8 of 2007 concerning escrow accounts (Dubai Legislation Portal)
- Affected property buyers are yet to see the money (Gulf News, 2018)
- Report a scam or fraud (Canadian Anti-Fraud Centre)
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.