Mohammed bin Rashid issues law on settlement of disputes related to execution of citizen home building contracts in Dubai

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued a law on the settlement of disputes arising from the execution of citizen housing building contracts in Dubai. This measure aims to enhance citizen well-being and ensure social stability by swiftly and efficiently resolving disputes without hindering housing development projects.

Objectives

The law aims to develop an alternative dispute resolution system for building contracts, safeguarding the interests of all parties. It provides a swift and efficient mechanism for resolving disputes before resorting to litigation, promoting the continuity of contractual relationships through amicable and consensual solutions. This approach also offers alternative solutions to traditional litigation in the construction sector for citizen housing, ensuring projects continue uninterrupted and homes are completed and delivered on schedule.

Adjudication of disputes under the new law

The law establishes a specialised branch within Dubai Courts' Centre for Amicable Settlement of Disputes, to handle disputes relating to the execution of citizen home building contracts. This branch will offer mediation within 20 days, extendable for another 20 days with mutual consent. Expert mediators will facilitate the process.

If mediation fails, a committee comprising a judge and two specialists will adjudicate within 30 days, also extendable for a similar period if necessary by a decision of the head of the committee. Parties can appeal committee decisions to the Court of First Instance within 30 days. The law takes effect on 1 January 2026.