
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued a new law to address disputes related to citizen housing building contracts in Dubai. The legislation, which comes into force on January 1, 2026, is designed to enhance citizen well-being while ensuring that housing projects continue without unnecessary delays.
The newly enacted law reflects a commitment to preserving social stability. Since unresolved disputes can disrupt development timelines, the law provides a practical framework to resolve conflicts quickly and fairly.
Key Objectives and Approach
The law introduces an alternative dispute resolution system, aimed at resolving building contract issues before they escalate to litigation. As a result, contractual relationships are more likely to continue amicably. Moreover, the initiative prioritizes the timely delivery of housing projects, benefitting both contractors and citizens.
By offering effective alternatives to traditional legal processes, the system minimizes project interruptions. It also fosters mutual agreement between involved parties, thereby reducing the strain on courts. This mechanism ensures that construction remains on schedule, supporting the government’s wider urban development goals.
Dispute Handling Process
A specialized branch will be set up within Dubai Courts’ Centre for Amicable Settlement of Disputes to manage these cases. Mediators will aim to settle disputes within 20 days, with the possibility of a 20-day extension upon mutual agreement. Experienced professionals will oversee this phase.
If mediation does not succeed, a dedicated committee consisting of a judge and two experts will issue a ruling within 30 days. This period can also be extended by decision of the committee head, should the case require more time. Importantly, parties have the right to appeal these decisions to the Court of First Instance within 30 days.
With this legal framework, Dubai aims to balance efficient conflict resolution with the protection of stakeholder rights. Ultimately, the initiative reinforces the city’s focus on innovation in public services and infrastructure development.