A UAE court has issued a decisive ruling in favor of a businessman after a three-month legal battle involving a local bank and construction rights.
The Al Ain Court of First Instance ordered the Abu Dhabi-based bank and the Urban Planning Department of the Abu Dhabi Municipality to facilitate the businessman’s project, overturning prior resistance.
The case revolved around the businessman’s plan to develop a 6,426-square-foot plot in Al Ain’s Al Muwaiji area. Despite meeting all regulatory and contractual obligations, the bank refused to endorse construction permits, stalling the project and causing significant financial losses.
On August 13, 2024, the businessman filed a claim seeking Dh100,000 in damages and approval to proceed. Legal consultant Dr. Hassan Elhais stated the bank’s refusal was unjustified and breached its contractual commitments, even though a feasibility study supported the project’s viability.
The court reviewed feasibility reports and mortgage law obligations, ultimately ruling on October 31, 2024, that the bank must approve permits as long as the project complies with zoning laws.
“This ruling protects landowners’ rights within mortgage frameworks and reinforces legal support for investors in the UAE,” said Dr. Elhais.
The decision is open to appeal until November 30, 2024.
