Unregistered sales of land granted to UAE nationals in Dubai give the buyer no title and no limitation defence

Dubai Court of Cassation (General Assembly), Appeal No. 1 of 2021, judgment of 27 January 2021

Court
Dubai Court of Cassationمحكمة التمييز - دبي
Case
Dubai Court of Cassation (General Assembly), Appeal No. 1 of 2021, judgment of 27 January 2021
Arabic citation
الطعن رقم 1 لسنة 2021 هيئة عامة، جلسة 27/1/2021
Bench
General Assembly of the court General Assembly
Topics
Real estate · Civil law
Laws applied
Civil Transactions Law 1985 (repealed)
The judgment
Read it on dc.gov.ae ↗ (Dubai Courts, judgment publication service (نشر الأحكام), Court of Cassation, General Assembly appeal No. 1 of 2021)
Summary written
1 November 2026
Print

The principle

Under the Ruler of Dubai's instructions of 2 September 1994 (published on 18 November 1994), dispositions of land granted by the government to UAE nationals without the Ruler's permission are void as a matter of public order. Earlier sales are not void, as laws are not retroactive (Article 112 of the Constitution), but cannot be registered after 18 November 1994 without special permission. Since ownership passes only on registration (Articles 1275 and 1277 of the Civil Transactions Law), an unregistered sale overtaken by the instructions becomes impossible to perform (if earlier) or is void (if later), and in either case is no title. The occupier therefore cannot rely on the passage of time (Article 1321) against the grantee or his heirs.

The case and the decision

The heirs of a man who had received a plot of land in Nad Al Hamar as a grant from the Ruler of Dubai in 1993 sued the occupier of the land in 2019, after he claimed to have bought it from their father on 2 August 1994. They sought a declaration that the sale was void, return of the land and AED 4.4 million for the benefit he had derived from it. The court of first instance ordered the land returned; the Court of Appeal set that judgment aside and held the claim barred by the passage of time. The heirs appealed in cassation.

The chamber referred the appeal to the General Assembly to reconsider the principle that such a claim is in substance one for annulment of the occupier's title, barred under Article 210 of the Civil Transactions Law fifteen years after the contract.

The Assembly held that, under Article 112 of the Constitution, laws apply only from their entry into force. The Ruler's instructions of 2 September 1994 on land granted to citizens make dispositions without the Ruler's permission void as a matter of public order. Dispositions made before the instructions are not void, but because the instructions are of public order they apply immediately to the effects of those dispositions, so they cannot be registered from 18 November 1994 unless a special permission is proved. Ownership of real property passes only on registration (Articles 1275 and 1277), an unregistered sale does not transfer it, and a contract that becomes impossible to perform is dissolved. Under Article 1321 a person holding property under a document other than a title cannot rely on the passage of time against a claim of ownership. Hence sales of granted land overtaken by the instructions before registration are either impossible to perform or void and lose their character as title, and the occupier cannot raise the passage of time against the grantee or his heirs. The Assembly adopted that principle by the required majority.

The Court of Appeal had accepted the time-bar plea, which kept it from deciding the merits. The Assembly quashed its judgment and remitted the case to the Court of Appeal, to be heard by a different panel.

Why it matters

Government land grants to Emirati citizens are common in Dubai's older districts, and informal sales of such land were made over the years. Buyers or occupiers under unregistered sales overtaken by the 1994 instructions cannot defeat the grantee's heirs by pleading the passage of time, which matters for the due diligence of anyone acquiring or developing such land.

Laws applied

Article 112 of the Constitution of the United Arab Emirates
Instructions of the Ruler of Dubai of 2 September 1994 on land granted to citizens in the Emirate of Dubai (Official Gazette, 18 November 1994)
Articles 210, 1275, 1277 and 1321 of Federal Law No. 5 of 1985 (Civil Transactions Law) — text of articles 210, 1275, 1277, 1321
Decided under this law; it has been replaced by Civil Transactions Law 2025.
Article 20 of Dubai Law No. 13 of 2016 on the Judicial Authority in the Emirate of Dubai (referral to and majority of the General Assembly)

In the court’s words

“لا يجوز له التمسك بمرور الزمان المانع من سماع الدعوى المقامة ممن منحت له الأرض أو خلفه العام”

Short quotation from the judgment as published by the court. The full judgment is on the court’s official service.

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Source. Summary written by Polaris from the judgment published by the Dubai Court of Cassation on dc.gov.ae (Dubai Courts, judgment publication service (نشر الأحكام), Court of Cassation, General Assembly appeal No. 1 of 2021), read on 1 November 2026. Party names are anonymised in the court’s publication.
Published for general information by Polaris Corporate Services FZ-LLC. It is not legal advice. This page is a summary written by Polaris; it is not the judgment and is not an official translation. Read the judgment on the court’s official service before relying on it. A judgment decides the dispute before the court; its weight in a later case depends on the court, the facts and any later change in the law or in the court’s own case law.

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