Dubai, UAE: 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.
The law seeks to establish an alternative dispute resolution framework specifically for building contracts, ensuring the protection of all parties involved. By offering a fast and effective method for addressing conflicts before they escalate to litigation, the law encourages the preservation of contractual relationships through amicable, mutually agreed solutions. This proactive approach minimizes disruptions in the construction of citizen housing, allowing projects to move forward smoothly and ensuring homes are completed and delivered on time.
The law creates a dedicated unit within the Centre for Amicable Settlement of Disputes at Dubai Courts, specifically tasked with handling disputes arising from citizen home building contracts. This specialized branch will provide mediation services within a 20-day timeframe, which can be extended by an additional 20 days if both parties agree. The mediation process will be led by experienced experts to help guide both sides toward a resolution.
If mediation does not result in a resolution, the dispute will be referred to a committee made up of a judge and two subject-matter experts. This committee is required to issue a ruling within 30 days, with the option to extend the period by an additional 30 days upon approval from the committee's chair. Parties have the right to appeal the committee’s decision to the Court of First Instance within 30 days. The law will officially come into effect on January 1, 2026.
