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.
