Dubai Introduces New Law to Resolve Housing Construction Disputes Involving UAE Citizens

Dubai has enacted a new law governing the resolution of disputes arising from the execution of contracts for the construction of homes for UAE citizens within the Emirate of Dubai (the “New Law”). This legislation represents a significant step toward resolving such disputes promptly and efficiently, ensuring that the projects construction continue without disruption and minimizing the need for court intervention.

The New Law, which prioritizes mediation, introduced a mechanism whereby a branch of the Amicable Dispute Resolution Centre will be established within Dubai Courts, equipped with comprehensive services, to hear and resolve all disputes arising from the execution of construction contracts for citizens’ homes.

In accordance with the provisions of the New Law, the reconciliation process will be led by specialists with expertise in construction-related disputes, drawn from governmental and non-governmental entities. The branch will offer reconciliation and settle the dispute amicably between the parties within a period not exceeding 20 days, with the possibility of extending it for a similar period if the parties to the dispute agree.

If reconciliation is unsuccessful, the case may be referred to a special committee (the “Committee”) comprising one judge and two industry experts. The Committee is required to issue a decision within 30 days, with the possibility of an extension for an additional 30 days. The disputed parties have the right to appeal the Committee’s decision before the Court of First Instance within 30 days of its issuance.

The New Law will come into force on 1 January 2026.

Abdulla Ziad Galadari Senior Partner abdulla@galadarilaw.com