Mohammed bin Rashid issues the law of settling disputes arising from the implementation of the construction contracts of citizens in the Emirate of Dubai

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, may God bless him, in his capacity as ruler of the Emirate of Dubai, issued a law of settling disputes arising from the implementation of building contracts for citizens ’homes in the Emirate of Dubai, with the aim of enhancing the welfare of citizens and ensuring their social stability, as this law is a qualitative step to settle disputes that may arise during the implementation of construction projects quickly and efficiently without affecting the path of developing housing projects.

The law aims to develop an alternative system to settle disputes that may arise between the parties to construction contracts, in a way that ensures the preservation of the interest of all parties, and to find a quick and effective mechanism for settlement and resolution of disputes that arise from the implementation of construction contracts before resorting to the judiciary, in addition to contributing to enhancing the continuity of the contractual relationship between the parties to construction contracts by settling disputes that arise between them with a friendly manner In order to ensure the completion of the implementation of these contracts, in addition to finding alternative solutions to litigate in the construction and contracting sector for citizens ’homes in the Emirate of Dubai, in order to ensure that it does not affect the continuity of projects and the completion and delivery of homes within their dates specified in construction contracts.

The rules of consideration and separation in disputes under the new mechanism

According to the mechanism developed by the law, a branch of the friendly settlement center for disputes will be established in the Dubai courts, which is concerned with considering and adjudicating all disputes arising from the implementation of contracts for building the homes of citizens in which the owner is one of the parties.

The branch will, according to the provisions of the law, 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 to this, provided that the branch is established in an independent headquarters with integrated services, and that the reconciliation process is carried out by reformers who have experience in areas related to construction disputes, whether from government or non -governmental agencies.

In the event that the reconciliation is not successful, the dispute is transferred to a committee formed by a judge and two specialized experts, provided that the dispute is decided within (30) days, subject to an extension for a similar period when needed and by a decision of the Chairman of the Committee. The parties can appeal the committee’s decision before the Court of First Instance within (30) days that start from the date of the decision.

The Dispute Resolution Law on the implementation of construction contracts will be entered into the citizens of Dubai on the first of January of the year 2026.