Real Estate Expropriation for Public Benefit Law - 1392

Article 1

  • The Real Estate shall be expropriated for public benefit by a Decision from the competent Minister or the Head of the Independent Authority, provided that a copy of the proposed project plan for the expropriation is attached to the Decision, along with a summary of the Real Estates to be expropriated, their boundaries, and the location of each.

  • The aforementioned Decision shall be published in the Official Gazette and one of the daily newspapers issued in the area where the mentioned Real Estates are located, and copies of it shall be posted at the court's headquarters and the emirate's headquarters that fall within the jurisdiction of those Real Estates.

  • The publication of the Decision is considered an invitation directed to the rights holders of those Real Estates to submit Claims for Compensation regarding those rights based on the condition of the Real Estate on the date of publication of the Decision in the Official Gazette. This date shall be the basis for estimating the Compensation without considering any modifications, additions, improvements, revivals, plantings, or anything that occurs thereafter. The aforementioned Claims shall be submitted to the Compensation Committees stipulated in Article Two within a maximum of thirty days from the date of publication of the Decision issued regarding the expropriation in the Official Gazette.

 

Article 2

  • A committee shall be formed in the emirate consisting of a representative from each of the emirate, the Ministry of Finance, the Ministry of National Economy, the independent ministry or department concerned, and the municipality if applicable. Two experienced individuals known for their integrity shall be appointed by the judge or the president of the court in which the real estate is located. The committee may enlist the assistance of any necessary experts and specialists. Its task is to inspect the real estate located within the boundaries of the project plan and to prepare two reports. The first report shall specify the type of real estate, its overall description, and its components, including buildings, trees, agriculture, wells, dams, embankments, or others, as well as the name of the owner and the occupant of the real estate and the rights holders based on the documents and certificates submitted to the committee, clarifying this with drawings and plans when necessary. The description of the land shall include whether it has been subject to reclamation or allocation and when this occurred. This report shall be signed by the committee members and the concerned parties present. If any of the members or concerned parties present refuse to sign, this shall be recorded in the report along with the reason. Any objections, if present, shall also be recorded. The second report shall include an assessment of the compensation value, detailing the basis upon which it was determined, and shall be signed only by the committee members. If any of them refuse to sign or object, this shall be recorded in the report along with the reason. The compensation committees have the right to enter the real estate designated for expropriation for the purpose of inspection, after notifying the rights holders in writing with sufficient time in advance.

Article 3

  • The Committee shall take into account the prevailing price in the area at the time of publishing the Decision issued regarding the report of expropriation when estimating the value of the expropriated real estate. The Committee should, whenever possible, be guided by the sale and lease contracts that occurred during the two years preceding the expropriation report, provided that they are dated prior to the expropriation report.

  • If the value of the part of the real estate that has not been expropriated increases or decreases due to the implementation of the new project, this increase or decrease must be considered when estimating the compensation due for the expropriated property, such that the amount to be added in the case of a decrease or deducted in the case of an increase does not exceed half of the estimated value of the expropriated part.

  • To implement this, the total value of the real estate is estimated, then the value of the part intended for expropriation and the part not expropriated is determined from this total value. The value of the part not expropriated is then estimated, taking into account the decrease or increase in price that will occur due to the implementation of the project. The difference between the two estimates for this part is calculated and this difference is added or deducted as appropriate from the value determined for the expropriated part according to the above, such that the amount added or deducted does not exceed fifty percent (50%) of this value. The result of the subtraction or addition, as the case may be, is the compensation due for the expropriated part.

 

Article 4

  • If the real estate is land that has not been revived or part of it has not been revived and there is a right of allocation on it, if this right arises from the grant, the owner shall not be compensated for the part that has not been revived, considering that expropriation cancels the grant before ownership is established. However, if the right of allocation arises from something other than the grant, such as a claim, the compensation shall be estimated on the basis that it is a right of allocation and not a right of ownership.

Article 5

  • After executing the previous steps, the Committee issues a Decision to fully specify each Real Estate property that has been decided to be expropriated along with its components, and the corresponding Compensation is estimated, indicating the share of each right holder. The entity responsible for the Project and the mentioned right holders are notified with a copy of the aforementioned Decision.

Article 6

  • The entity owning the project shall notify the rights holders through administrative means of the necessity to vacate the real estate that has been decided to be expropriated and handed over to it, within a period of no less than thirty days. The delivery and receipt of the real estate shall be documented in a report prepared in sufficient copies, signed by the members of the committee and the rights holders, with a copy provided to each rights holder.

Article 7

  • If the concerned party has an objection to the decision of the Compensation Committee, they must submit their objection within a period not exceeding thirty days from the date they are notified of the aforementioned decision to a committee formed in the Ministry of Justice, consisting of a legal member who will chair the committee, a technical representative from the project owner, and a representative from the Ministry of Finance. Its decision on the objection shall be final, and upon accepting the objection, it may amend the compensation as it deems fair, provided that its consideration of the objection or amendment of the compensation is restricted to the principles stipulated in Article (3) of this law and the correctness of their application. The submission of an objection to the decision of the Compensation Committee does not prevent the continuation of eviction procedures from the real property and its delivery to the competent authority after detailing its condition, nor does it prevent the completion of expropriation procedures thereafter.

Article 8

  • Compensations are paid to the rights holders after the eviction from the real property and its handover to the entity owning the project, without prejudice to the rights of the concerned parties to object to the amount of compensation in accordance with the provisions of this law.

Article 9

  • The ownership of real estate expropriated for the state is transferred through the competent notaries public in accordance with the applicable regulations.

Article 10

  • The Minister of Interior shall issue the necessary regulations to implement this law.