Dubai: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, has enacted a law concerning the settlement of disputes related to the execution of citizen home building contracts in Dubai. This initiative aims to enhance citizen well-being and ensure social stability by resolving disputes quickly and efficiently, thereby preventing disruptions in housing development projects.
According to Emirates News Agency, the newly issued law seeks to develop an alternative dispute resolution system specifically geared toward building contracts. It aims to safeguard the interests of all involved parties by providing a swift and efficient mechanism for dispute resolution before the need for litigation arises. This mechanism promotes the continuity of contractual relationships through amicable and consensual solutions, offering alternatives to traditional litigation within the construction sector for citizen housing. This ensures that projects proceed without interruption and that homes are completed and delivered on schedule.
The law establishes a specialized branch within the Dubai Courts' Centre for Amicable Settlement of Disputes to address issues related to citizen home building contracts. This branch will offer mediation services, with an initial period of 20 days to reach a resolution, extendable by another 20 days if both parties agree. Expert mediators will facilitate this process.
In cases where mediation does not yield a resolution, a committee consisting of a judge and two specialists will adjudicate the dispute within 30 days. This period may also be extended for a similar duration if deemed necessary by the head of the committee. Parties involved have the right to appeal the committee's decisions to the Court of First Instance within 30 days. The law is set to take effect on 1 January 2026.