Your Rights Protected: The Agencies and Courts Governing Real Estate in Dubai and Abu Dhabi

The real estate sectors in Dubai and Abu Dhabi are vital to the UAE economy. To ensure market stability, transparency, and the protection of rights for all involved parties, both Emirates have established distinct, yet comprehensive, regulatory and judicial frameworks.

1. Regulatory Agencies: The Market Guardians
   The foundation of a stable real estate market rests on robust regulation.
   Dubai: Real Estate Regulatory Agency (RERA)
   In Dubai, the principal regulator is the Real Estate Regulatory Agency (RERA), established in 2007 as an arm of the Dubai Land Department (DLD). RERA’s multifaceted role encompasses licensing all real estate brokers, developers, and property management companies. For developers, RERA manages trust accounts (escrow accounts) for off-plan sales, safeguarding buyer funds. It also mandates and oversees the Ejari system, which registers all tenancy contracts to legalize leases and provide a transparent framework for rental relationships.
   Abu Dhabi: Abu Dhabi Real Estate Centre (ADREC)
   Abu Dhabi’s property market is governed by the Abu Dhabi Real Estate Centre (ADREC), operating under the Department of Municipalities and Transport (DMT). ADREC is responsible for regulating, managing, and overseeing all real estate activities across the Emirate. It oversees the official tenancy contract registration system known as Tawtheeq, which is mandatory for all rental agreements. It aims to elevate the market’s status, enhance transparency, and ensure a competitive environment. Properties within the financial free zone of the Abu Dhabi Global Market (ADGM) are governed by the ADGM Real Estate and Infrastructure (RE&I).
2. Dispute Resolution Mechanisms and Court Jurisdiction
   Both Emirates provide specialized, efficient, and legally binding channels for resolving property disputes, carefully dividing jurisdiction between specialized centers and general courts.
   Dubai: Specialized Centers and Courts
   Dubai uses a specialized court system for tenancy matters and the general court for other complex real estate claims.
   Rental Disputes
   The Rental Disputes Settlement Center (RDSC), a judicial arm of the DLD, holds exclusive jurisdiction over the majority of disputes between landlords and tenants concerning rental contracts, eviction notices, and rent increases. This offers a fast and specialized alternative to standard civil courts.
   However, the RDSC’s jurisdiction generally excludes long-term leases (over 10 years), ‘lease-to-own’ contracts, and properties located within free zones that have their own court system, such as the DIFC.
   Property Sales and Ownership Disputes
   The Dubai Courts (Property Court) maintain general jurisdiction over major real estate disputes. This includes claims concerning property ownership and title deeds, as well as complex contractual disputes between buyers/investors and developers (e.g., project delays or breach of sales agreements). Appeals from the RDSC, subject to certain value and criteria, are also heard by the Dubai Courts.
   The DIFC Courts hold exclusive jurisdiction over real estate physically located within the Dubai International Financial Centre (DIFC) free zone. Parties outside the DIFC can also agree to “opt-in” to the DIFC Courts’ jurisdiction for commercial matters.
   Abu Dhabi: Settlement Centers and ADJD Courts
   Abu Dhabi directs many real estate conflicts through conciliation centers before they can be escalated to the formal court system under the Abu Dhabi Judicial Department (ADJD).
   Settlement and Conciliation
   The Abu Dhabi Real Estate Settlement Centre (“Taswea”) focuses primarily on conciliation and amicable settlements for disputes involving project development, construction contracts, and delays in project completion. If a settlement is not reached, the dispute is referred to the relevant court within the ADJD.
   Judicial Resolution
   The ADJD Courts (Courts of First Instance) hold general jurisdiction over substantive real estate claims, including claims of property entitlement, ownership rights, and complex commercial disputes arising from real estate transactions. These courts also handle cases related to long-term leases. Disputes may proceed through the Court of First Instance, the Court of Appeal, and finally, the Court of Cassation.
   Within the financial free zone, the ADGM Courts have exclusive jurisdiction over real estate and transactions within the Abu Dhabi Global Market.
   Alternative Dispute Resolution (ADR)
   For complex commercial disagreements, both Emirates encourage arbitration. The Dubai International Arbitration Centre (DIAC) and the Abu Dhabi International Arbitration Centre (arbitrateAD) offer a fast, confidential, and internationally enforceable method for resolution, provided the parties have included an arbitration clause in their contract.

Conclusion
Both Dubai and Abu Dhabi have invested significantly in legal and administrative infrastructure to ensure their real estate markets operate with the highest levels of transparency and investor protection. By establishing regulatory agencies like RERA and ADREC, and specialized dispute centers like the RDSC and Taswea, the Emirates have created a robust, multi-layered system designed to minimize risks and provide clear, fair legal recourse for buyers, tenants, and investors alike. Understanding these frameworks is essential for anyone engaging in real estate transactions in the UAE.