Nisna K Muhammed

Senior Legal Correspondent

Sheikh Mohammed issues landmark legislation establishing fast-track dispute resolution for Emirati housing projects

Dubai, 21 July 2025 — In a significant move to enhance the efficiency and fairness of housing project delivery for Emirati citizens, 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 focused on the swift and amicable resolution of housing construction contract disputes. The law is part of a broader vision to reinforce family stability, safeguard public investment, and ensure the timely completion of citizen housing initiatives across Dubai.

The new legislation—effective from 1 January 2026 applies to disputes arising from contracts entered into under the Emirati Housing Programme. The law introduces a structured and time-bound dispute resolution mechanism designed to minimise delays, reduce litigation, and encourage out-of-court settlements.

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Key Features of the New Law

At the core of the legislation is the establishment of a dedicated mechanism within the Centre for Amicable Settlement of Disputes at Dubai Courts, which will exclusively handle housing contract disputes between Emiratis and contractors, consultants, or suppliers involved in such projects.

• Initial Mediation (20 Days): Once a dispute is filed, the parties are first directed to attempt mediation through the Centre, which must conclude within 20 days, extendable by another 20 days if both parties agree.

• Expert Committee (30 Days): If mediation fails, the matter proceeds to a newly formed Expert Dispute Resolution Committee, comprising a judge and two technical experts. The Committee must issue a decision within 30 days, which may be extended once if needed.

• Right to Appeal: Any party dissatisfied with the Committee’s decision may file an appeal before the Court of First Instance within 30 days of the ruling.

This structured process is designed to offer fair, expert-led decisions without unnecessary delays—particularly important in the context of time-sensitive housing construction and delivery.

Legal and Strategic Significance

The law aligns with the UAE’s broader legal reform initiatives and Dubai’s ambition to become a global benchmark for administrative efficiency and citizen satisfaction. It reflects a strategic shift toward alternative dispute resolution (ADR) as a primary mode of settling civil disputes, particularly in sectors with high social and economic impact.

By integrating judicial oversight with technical expertise, the new law aims to preserve the integrity of Emirati housing projects, protect public funds, and prevent prolonged legal uncertainty that could disrupt family planning, community development, and housing accessibility.

Moreover, the law strengthens the position of Emirati citizens by offering them a clear, specialized legal channel to address breaches of contract or performance issues without being overwhelmed by lengthy court procedures. It also holds contractors and service providers accountable, promoting greater compliance and professionalism in the housing sector.

Institutional Support and Outlook

Entities such as the Dubai Courts, the Dubai Judicial Council, and Dubai Municipality have welcomed the law as a transformative step that enhances legal clarity, protects citizen rights, and supports the continuity of national housing projects.

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This legislation also complements broader Emirati housing policies, including recent plans for 30,000 affordable housing units worth AED 5.4 billion, signaling the government’s ongoing commitment to sustainable urban development and citizen welfare.

Conclusion

The new law issued by Sheikh Mohammed represents a forward-thinking, citizen-centric legal innovation. It balances the need for speed and technical scrutiny with legal safeguards, ensuring that Emirati families receive their homes on time and with reduced legal friction. For legal practitioners, developers, and public policy stakeholders, this law underscores the growing importance of tailored dispute resolution mechanisms in the UAE's evolving legal landscape.