Dubai Ruler Sheikh Mohammed issues new law starting January 2026
The law, which takes effect on January 1, 2026, creates an alternative dispute resolution system designed to resolve construction-related conflicts before they reach litigation.
Mohammed bin Rashid issues a law on the settlement of disputes arising from the execution of citizen housing building contracts in Dubai. This measure aims to enhance citizen well-being and ensure social stability by swiftly and efficiently resolving disputes without hindering… pic.twitter.com/oO2TxDfZQG
— Dubai Media Office (@DXBMediaOffice) July 21, 2025
Under the new legislation, Dubai Courts' Centre for Amicable Settlement of Disputes will establish a branch dedicated to handling disputes from citizen home building contract execution, the Dubai Media Office said in a statement.
Sheikh Mohammed establishes alternative dispute system for Dubai citizen housing contracts
The resolution process begins with mediation, which must be completed within 20 days.
This period can be extended for another 20 days if both parties consent. Mediators with construction expertise will manage these sessions.
When mediation proves unsuccessful, a committee comprising one judge and two construction specialists will make binding decisions within 30 days. The committee head can extend this period for an additional 30 days if circumstances require.
Parties retain the right to appeal committee decisions to the Court of First Instance, with appeals must be filed within 30 days of the committee's ruling.
The law targets the development of alternative dispute resolution mechanisms while protecting the interests of all contracting parties. The legislation provides dispute resolution pathways that avoid traditional litigation delays.
The framework also promotes continuity in contractual relationships through negotiated settlements. Construction projects can proceed without interruption while disputes undergo resolution, ensuring homes reach completion and delivery according to schedule.
The measure forms part of broader efforts to enhance citizen well-being and maintain social stability through efficient dispute resolution mechanisms that support housing development projects.
The law becomes effective on January 1, 2026.
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