On 8 July 2025, His Highness Sheikh Mohammed bin Rashid Al Maktoum issued Law No. (8) of 2025, establishing a dedicated legal mechanism to resolve disputes arising from the execution of home construction contracts for Emirati citizens in Dubai.

The law introduces a structured, alternative dispute resolution system aimed at preserving contractual relationships, ensuring timely project delivery, and minimizing reliance on formal litigation.

Key Features of the Law:

- Establishes a specialized branch under the Centre for Amicable Settlement of Disputes, with jurisdiction over housing construction disputes not exceeding AED 10 million.

- Applies to disputes related to payment delays, variations in materials or design, construction defects, delays in project timelines, and contractual breaches by contractors or engineers.

- Requires disputes to first undergo a mediation process within 20 days, extendable once by mutual agreement.

If mediation fails, the dispute is referred to a dedicated committee comprising a judge and two specialists, which must issue a decision within 30 days, also extendable once.

- Committee decisions carry the force of an executive instrument and may be appealed before the Court of First Instance within 30 days of issuance.

- Legal limitation periods are suspended during the resolution process, and the registration fee for disputes is capped at AED 250.

The law comes into effect on 1 January 2026, marking a significant step toward institutionalizing alternative dispute resolution for Emirati citizen in the construction sector and aligns with Dubai’s broader commitment to accessible, efficient, and citizen-focused legal services.

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