The Arbitration Clause In Off-Plan Property Sale Agreements In Dubai

There is no doubt that the real estate market in the United Arab Emirates in general, and Dubai in particular, has witnessed — and continues to witness — significant growth, especially in recent years. This growth has led to increased investment by property developers and attracted individual investors to purchase off-plan real estate units due to the high return on investment and a legal environment that protects investors' funds, particularly in cases where the developer faces delays or fails to complete the real estate project.

In many cases, the parties to an off-plan property sale agreement include an arbitration clause to resolve any disputes or disagreements arising from or related to the execution of the agreement. This is often due to various considerations, most commonly driven by the preferences of the property developer, who typically imposes non-negotiable terms in sales agreements. However, parties sometimes overlook that the validity