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Dubai off-plan project cancelled: how refunds work for British buyers

Dubai off-plan project cancelled? Refund (British buyers): what the law requires when RERA cancels, the 14- and 60-day steps, and what UK banks can't do.

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

Short answer

  • Dubai off-plan project cancelled? Refund (British buyers): the rule matches everyone else's: if RERA cancels, the developer must refund all payments (Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020).
  • Under Executive Council Resolution No. 6 of 2010, as summarised by Al Tamimi, available escrow funds are refunded within 14 days of cancellation and the developer has 60 days to pay any shortfall.
  • A UK bank cannot reverse an instalment sent to Dubai: the APP reimbursement scheme covers UK-to-UK payments only.

Dubai off-plan project cancelled: is a refund owed to British buyers?

Yes, in law. If RERA cancels a Dubai project, the developer must refund all payments made by purchasers. That rule sits in Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020, and it also covers projects where work never started for reasons outside the developer's control.

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

Al Tamimi lists grounds on which RERA (the Real Estate Regulatory Agency, part of the Dubai Land Department) may cancel, including failing to start work without good reason, escrow-law offences and bankruptcy.

Cancelled project, Dubai: what happens to my money (UK buyers)?

The money is meant to come from the project's escrow account first, then from the developer. An escrow account is the bank account, opened in the project's name, into which Dubai off-plan buyers' payments must go.

Refund sequence after a RERA cancellation (per Al Tamimi's summary of ECR 6/2010)

Day 0
RERA issues its cancellation decision
Within 7 working days
Developer may appeal; RERA's rejection is final
Within 14 days
Available escrow funds are refunded; an auditor is appointed at the developer's cost
Within 60 days
Developer pays any shortfall; RERA can extend this
After that
Non-payment is referred to the judicial authorities

The Dubai Land Department (DLD) FAQ confirms the 60-day window and court referral. In liquidation, the DLD says funds are distributed "in full or proportionally", with no set end date. Our UK guide to cancelled-project liquidation covers that track.

Dubai off-plan project cancelled, refund, British buyers: first steps?

Confirm the status yourself, then gather proof of every payment. The Dubai REST app labels each project active, finished or cancelled (Gulf News, 2023); foreign investors log in with UAE PASS or a title deed.

  1. Check the status label

    Look the project up in Project Status (Mashrooi) and screenshot the label and escrow details.

  2. Match payments to the escrow account

    Pull UK bank statements showing each transfer and its recipient.

  3. Write to the developer

    Ask in writing for the refund amount and timetable.

If the developer goes quiet, see the UK guide for an unresponsive developer; to match an account number to the record, see verifying a Dubai escrow account.

Can my UK bank get the money back instead?

Almost certainly not through a UK refund scheme. The PSR's APP reimbursement rules (the PSR is being merged into the FCA) cover UK-to-UK Faster Payments and CHAPS transfers, with a cap of £85,000. International payments are excluded.

RERA cancelled project refund from the UK: how long did it take before?

Historically, a long time. In 2018 Gulf News reported more than 150 cancelled projects in Dubai Courts records, mostly launched between 2005 and 2008, with cases taking about two to four years. This is historical, from the 2008–09 crisis era, and some investors reportedly recovered only 20–30 fils per dirham from escrow.

150+Projects listed as cancelled in Dubai Courts records (historical, 2008–09 era)Source: Gulf News, 2018

Rules have changed since: Law No. 19 of 2020 removed the old deduction for not-started projects, and Decree No. 33 of 2020 created a special tribunal. The global guide, Dubai off-plan project cancelled: refunds, and the UK buyers' hub cover the wider rules. Before paying into any project, look up its registry status.

Do British buyers get a full refund if RERA cancels a Dubai project?

British buyers are owed a full refund in law when RERA cancels a Dubai project: Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020, requires the developer to refund all payments. How much actually comes back depends on what remains in the project's escrow account and on the developer's ability to pay.

How fast should a refund arrive after a Dubai project is cancelled?

After a Dubai project is cancelled, Al Tamimi's summary of Executive Council Resolution No. 6 of 2010 says available escrow funds are refunded within 14 days, and the developer then has 60 days, extendable by RERA, to pay any shortfall. If a project goes into liquidation, the DLD describes the timeline as indefinite.

Will the UK APP fraud reimbursement scheme cover my Dubai payments?

The UK APP fraud reimbursement scheme covers UK-to-UK payments sent by Faster Payments or CHAPS, up to £85,000. A transfer from a UK bank to a Dubai developer or escrow account is international, so the scheme does not apply to it. A SWIFT recall can be requested, but it depends on the receiving bank's cooperation.

How do I confirm from the UK that my Dubai project was cancelled?

To confirm from the UK that a Dubai project was cancelled, check its status label in the Project Status (Mashrooi) service of the DLD's Dubai REST app. Foreign investors log in with UAE PASS or a title deed. Screenshot the label with the date, then ask the developer in writing for the refund timetable.

Sources

  1. Law No. 19 of 2020 amending Law No. 13 of 2008 (Dubai Legislation Portal)
  2. Al Tamimi: special judicial committee for cancelled projects
  3. Dubai Land Department: FAQ
  4. PSR: APP fraud reimbursement protections
  5. Wise: amend, trace and recall payments
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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