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 that introduces a streamlined legal framework to resolve disputes related to citizen housing construction contracts in the emirate.

The legislation, which will come into effect on January 1, 2026, is designed to protect the rights of all parties involved in housing projects, promote faster dispute resolution, and ensure construction timelines remain unaffected during disagreements.

The new law aligns with Dubai’s broader vision to enhance social stability, citizen satisfaction, and long-term urban development.

Key Objectives of the New Law

The law aims to:

• Establish an alternative dispute resolution (ADR) system specific to citizen housing construction contracts.
• Encourage amicable and consensual settlements while preserving contractual relationships.
• Create a fast-track mechanism for resolving disagreements, with minimal impact on ongoing projects.
• Ensure that construction progress continues uninterrupted, even during contractual disputes.

How Disputes Will Be Handled

To implement the law, a specialised branch under the Centre for Amicable Settlement of Disputes will be set up to oversee and manage housing contract disagreements.

The process includes:

• Mediation phase: All disputes will first go through mediation, to be resolved within 20 days, with a possible extension of another 20 days if both parties agree.
• If mediation fails, the case is escalated to a three-member committee (one judge and two industry experts), which must issue a decision within 30 days (extendable once).
• Parties may appeal the committee’s decision to the Court of First Instance within 30 days.

Officials Welcome the Move

Eng. Marwan Ahmed bin Ghalita, Director General of Dubai Municipality, said the law is a “significant step” for the housing sector and will improve contractual relationships between citizens, contractors, and consultants.

“This law will help ensure the sustainability of housing projects, reduce risks, and ultimately enhance comfort and satisfaction for Emirati families,” he added.

Prof Abdullah Saif Al Sabousi, Secretary-General of the Dubai Judicial Council, described the law as a “valuable addition” to Dubai’s legal system.

“It offers an advanced model of resolving disputes without immediately resorting to litigation. With highly trained personnel and efficient procedures, it serves the public interest and citizens’ aspirations for a stable housing environment,” he said.

In a major move to enhance governance and transparency in the construction and contracting sector, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (7) of 2025 regulating contracting activities across the emirate.

The new legislation introduces a unified regulatory framework aimed at standardising contractor classification, improving oversight, and reinforcing accountability across the sector. It is designed to align with Dubai’s strategic vision for sustainable development and global best practices in urban planning and infrastructure.

Oversight Committee to Lead Sector Reform

A central provision of the law is the establishment of a new Contracting Activities Regulation and Development Committee, which a representative from Dubai Municipality will chair. The committee will include members from various government entities involved in the sector.

The committee will be tasked with:

• Approving and supervising contracting activities
• Defining regulatory responsibilities across entities
• Proposing new policies and legislative updates
• Resolving jurisdictional conflicts
• Establishing a sector-wide code of ethics
• Coordinating with public and private stakeholders

Digital Transformation of Contractor Registry

Dubai Municipality has been appointed as the lead authority to manage the sector’s transformation. It will establish and operate a fully integrated electronic platform for all contracting activities in the emirate. The platform will be linked to the existing Invest in Dubai portal and serve as the official contractor registry.

The Municipality is also responsible for:

• Issuing professional competency certificates
• Creating a code of conduct for the industry
• Classifying contractors in construction, building, and demolition
• Enforcing compliance with approved classification and operating capacity

Law Applies Across Zones, with Specific Exemptions

The law applies to all contractors operating in Dubai, including those in free zones and special development zones, such as the Dubai International Financial Centre (DIFC). However, contracting activities related to airport infrastructure and other exceptions approved by the Executive Council are excluded.

Penalties and Compliance Deadlines

The law imposes strict penalties for non-compliance:

• Fines ranging from Dh1,000 to Dh100,000
• Repeat violations may result in doubled fines up to Dh200,000
• Additional measures include license suspension, contractor downgrading, and removal from the registry

Contractors currently operating in Dubai must regularise their status within one year of the law’s implementation. This deadline may be extended by the committee for an additional year if necessary. Contractors with expiring registrations during this period can renew them by submitting a pledge to comply with the law.

Law Effective in Six Months

The new law will take effect six months after its publication in the Official Gazette, and any conflicting legislation will be annulled.

This initiative marks a significant step in reinforcing Dubai’s position as a global hub for world-class infrastructure, while ensuring higher levels of efficiency, transparency, and professionalism in the contracting industry.

Afghan cricket sensation Rashid Khan has been named the new brand ambassador for Dubai-based MH Developers, a leading real estate firm making major strides in the emirate’s booming property sector.

The announcement comes at a time when Dubai’s real estate market is hitting new highs, with the first half of 2025 showing a 15% year-on-year rise in property prices and a 20% increase in transaction volumes, driven by strong investor confidence, economic stability, and world-class infrastructure.

Cricket and Construction Come Together

Known for his record-breaking feats on the pitch, including being the fastest bowler to reach 100 wickets in T20 internationals, Rashid Khan brings his global appeal and winning mindset to the real estate arena.

“The UAE has always been a second home for Afghan cricket, offering support and opportunity during difficult times,” said Khan. 

“This collaboration with MH Developers is a natural fit for me, professionally and personally, as it reflects shared values of resilience, growth, and building a better future.”

A Strategic Move by MH Developers

Murtaza Hashmi, CEO of MH Developers, said the partnership with Khan is part of a broader strategy to connect with new audiences and tap into Dubai’s rising profile as a global hub for luxury living and smart investment.

“Dubai offers a secure, well-regulated environment that continues to attract buyers and investors from around the world,” said Hashmi. 

“Rashid Khan’s international reputation and unwavering pursuit of excellence align perfectly with our mission to deliver top-tier real estate solutions during this exciting time for the market.”

What’s Next for MH Developers?

With this partnership in place, MH Developers plans to roll out signature projects that blend sophisticated design with solid investment potential, tailored to the modern lifestyle demands of Dubai’s growing resident and investor base.