Residential buyers have also been protected from arbitration claims linked to the developer, following the decisive court judgment.
Dubai Court Protects Buyers in Falcon City of Wonders Property Dispute
A Dubai judicial committee has ruled in favor of dozens of property purchasers in a long-standing Falcon City of Wonders dispute, cancelling attachment and enforcement measures on multiple residential plots. The court confirmed the buyers’ ownership, noting that the properties were acquired in good faith before any court seizures were recorded.
The verdict was issued on February 16, 2026.
The ruling affects dozens of plots in Wadi Al Safa 2 within the Falcon City of Wonders development. Many of these had been subject to enforcement proceedings tied to a major arbitration dispute between project companies. Authorities had planned to auction several plots under real estate execution measures after previous court decisions allowed creditors to pursue the project’s assets.
Purchases Completed Before Attachments
Court records showed that the buyers acquired their plots under registered sale agreements in 2021 and later received official title deeds from the Dubai Land Department after settling the full purchase amounts.
Despite this, precautionary attachments were subsequently placed on the properties as part of enforcement actions stemming from arbitration claims involving the developer — even though the purchasers were not parties to those disputes.
The buyers subsequently filed multiple lawsuits contesting the seizures, arguing that ownership had legally transferred before the attachments. They maintained that enforcement measures could not apply to properties owned by third-party purchasers who had lawfully acquired and registered their plots.
Expert Findings Prove Decisive
A Dubai court-appointed panel of real estate and accounting experts reviewed ownership records, contracts, and payment documents for the disputed plots. The panel confirmed that the purchasers had completed payments via verified banking transactions and that ownership registrations were finalized before any attachment notes were recorded in the land registry.
Site inspections further revealed that construction on several plots — including residential villas nearing completion — had been halted after the judicial attachments were imposed.
Judgments Apply Only to Parties Involved
The judicial committee emphasized established UAE legal principles, noting that attachment measures are valid only on assets owned by the debtor at the time of seizure. It reaffirmed that civil judgments are binding solely on the parties involved in the original litigation.
Since the purchasers were not parties to earlier lawsuits that invalidated certain inter-company land transfers, the committee ruled that those judgments could not be enforced against buyers who had already acquired and registered ownership before the attachments were recorded.
The ruling drew on provisions of the Civil Procedures Law, which allow third parties to challenge execution measures and assert their entitlement to attached real estate when ownership is supported by documented evidence.
The committee also ordered Dubailand LLC to bear the court costs and legal fees associated with the cases.
Background: Dh1.8 Billion Falcon City Dispute
The enforcement measures arose from a broader legal battle linked to the Falcon City of Wonders project within Dubai’s Dubailand master development, which spans approximately 278 square kilometres. Authorities had cleared the way to auction 424 plots as part of this Dh1.8 billion dispute.
Background: Dh1.8 Billion Falcon City of Wonders Dispute
A Dubai court has ruled that the transfer of 424 land plots within the Falcon City of Wonders project cannot be enforced against Dubai Land, allowing the properties to be considered in enforcement proceedings linked to a major arbitration verdict valued at more than Dh1.8 billion, including interest.
The Dubai Court of First Instance issued the ruling on October 26, 2021, finding that Falcon City of Wonders had transferred hundreds of plots by way of gift after a debt had already arisen in favor of Dubai Land.
The dispute traces back to a 2005 development agreement under Dubai’s Dubailand master project, covering 41 million square feet of land sold for Dh10,330,773 — roughly two fils per square foot — in exchange for Dubai Land receiving 50 percent of the project profits.
An arbitration committee in June 2020 ordered Falcon City to pay Dh749,030,716.74, plus compound annual interest at 2 percent, accruing from September 7, 2005, until the debt was fully settled.
Court Orders Reversal of Asset Transfers
Court records show that enforcement collections had reached Dh1,385,382,493.29, with accumulated interest pushing total liabilities to approximately Dh1.8 billion.
A Dubai court-appointed expert later found that 830 plots, valued at around Dh3 billion, had been transferred between 2018 and 2020, including 424 plots gifted to another company.
The court ruled that these transfers had stripped the debtor of assets needed to satisfy creditors and were therefore legally ineffective against Dubai Land. The plots were ordered returned to the debtor’s asset pool, allowing authorities to proceed with auction sales.
Defendants were also ordered to bear court costs and legal fees.
