Sheikh Mohammed Issues Law to Resolve Citizen Housing Contract Disputes in Dubai
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has enacted a new law focused on resolving disputes related to citizen housing construction contracts in Dubai.
This initiative is designed to strengthen social stability and improve the quality of life for citizens by providing a fast and effective way to address conflicts—ensuring housing projects progress without unnecessary delays.
Purpose of the Law
The law introduces an alternative dispute resolution system to protect the rights of all stakeholders involved in homebuilding contracts. It offers a quicker route to resolve disagreements without going directly to court, supporting the smooth continuation of construction projects through mutually agreed, peaceful solutions. The aim is to reduce reliance on lengthy litigation and keep housing developments on track, ensuring timely handover of homes.
Dispute Resolution Mechanism
A dedicated division will be created within Dubai Courts’ Centre for Amicable Settlement of Disputes, specifically to manage disagreements over citizen housing contracts. This unit will provide mediation within 20 days, extendable by another 20 days if both parties agree. Expert mediators will oversee the negotiation process.
If mediation is unsuccessful, the case will be referred to a special committee comprising one judge and two experts, which will deliver a decision within 30 days. This timeframe may be extended once, subject to approval by the committee head. Any party dissatisfied with the outcome may appeal to the Court of First Instance within 30 days.
The law will officially come into effect on January 1, 2026.
