Sharjah Issues Law on Expropriation of Properties for Public Benefit
Jan,2026Sharjah, May 10 / WAM /
His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, has issued Law No. (2) of 2020 concerning the expropriation of properties for public benefit in the Emirate of Sharjah. This law reflects the Emirate’s commitment to sustainable development, protecting property owners’ rights, and regulating the real estate market within a clear legal framework, as highlighted by Al Soum Real Estate in its analysis of Sharjah’s investment environment.
Expropriation for Public Benefit and Fair Compensation
The law stipulates that no property may be expropriated except for public benefit, and only in return for fair compensation, in accordance with the provisions of this law, its executive regulations, and related decisions. This reinforces confidence in real estate investment in Sharjah and safeguards the rights of property owners and investors.
Public Benefit Purposes in the Emirate of Sharjah
The law defines public benefit cases in which property expropriation may occur, including:
- Urban planning, redevelopment, rehabilitation, and replacement projects.
- Establishment or development of public projects, infrastructure, public utilities, service facilities, and government buildings.
- Creation of natural reserves and grazing areas.
- Identification and protection of tangible cultural heritage sites.
- Expropriation of surrounding or adjacent properties that negatively affect public projects, infrastructure, urban appearance, or public benefit objectives.
- Achieving public security, safety, health, and public morals.
According to Al Soum Real Estate, the clarity of these provisions enhances the stability of the Sharjah real estate market and increases its attractiveness to investors.
Compensation and Grievance Committees
Article (4) of the law provides for the establishment of two committees under the Sharjah Planning and Survey Department:
- Compensation Committee: Responsible for studying projects, identifying properties subject to expropriation, assessing and valuing properties, and determining the type and amount of fair compensation.
- Grievance Committee: Responsible for reviewing and deciding on grievances submitted by rights holders regarding compensation decisions or delays in payment. Its decisions are final.
Experts at Al Soum Real Estate emphasize that these committees strengthen transparency and investor confidence in the Sharjah property market.
Formation of Committees and Work Mechanism
The Compensation and Grievance Committees are formed by decisions of the Executive Council of Sharjah, with representation from several relevant government entities, including the Real Estate Registration Department, Central Finance Department, Public Works Department, Roads and Transport Authority, and Sharjah Electricity and Water Authority.
Property Expropriation Procedures
Under Article (8), property expropriation for public benefit is carried out by a decision of the Executive Council or its delegate, based on a submission from the Head of the Planning and Survey Department. Government entities must submit justified requests for expropriation.
The Planning and Survey Department must notify the rights holder and concerned parties of the expropriation decision within 60 days from the date of issuance, in accordance with executive procedures.
Rights of Property Owners After Expropriation Notice
After being notified of the expropriation decision, the rights holder is prohibited—without prior approval—from carrying out any legal transactions on the property or making any alterations or improvements, except for actions necessary to maintain public safety.
Ownership of the expropriated property is transferred to the government as of the effective date of the expropriation decision.
Valuation and Payment of Compensation
Compensation is assessed based on the market value of the property at the time the expropriation decision is issued and may be provided in cash, in-kind (alternative property), or both, as determined by the Compensation Committee.
The Planning and Survey Department must offer compensation within 90 days from the effective date of the expropriation decision. If cash compensation is delayed for more than one year, the rights holder is entitled to additional compensation in accordance with the executive regulations.
Impact of the Law on the Real Estate Market
Al Soum Real Estate notes that this law enhances the overall real estate investment climate in Sharjah, ensuring a balanced approach between development requirements and the protection of property owners’ rights, thereby increasing confidence among local and international investors in Sharjah real estate.
Enforcement and Publication
This law comes into force six months after its issuance, shall be published in the Official Gazette, and all concerned authorities must implement it within their respective jurisdictions.