FAQ: Can a developer contracting with a government entity in Dubai still be held liable for delayed infrastructure payments after it ceases to be the project’s beneficiary due to cancellation or transfer of the project?

Answer:

Not necessarily. If the developer is no longer the “beneficiary” due to project cancellation and takeover by another party, it may no longer be legally responsible for such penalties. The court must consider whether the new company legally succeeded the obligations.

Legal Basis:

Article 2 and 8 of Dubai Administrative Decision No. 603 of 2021 Issuing the Executive Regulations of Dubai Law No. 6 of 2006 Concerning Contribution of Beneficiaries to the Cost of Roads and Public Transport Contracts

Relevant Case Law:

Case No. 441 of 2025 / Dubai Court of Cassation / Administrative Appeal, Commercial