Are you a resident or business involved in housing contracts in Dubai? A significant change is on the horizon that promises to reshape how disputes are handled. Sheikh Mohammed has issued a new law for housing disputes. The law creates a better way to handle conflicts in citizen housing contracts. It will take effect on January 1, 2026. The goal is to make dispute resolution faster and less complicated.
Overview of the New Law
This law establishes a framework for settling housing contract disputes in Dubai. It creates an alternative system to traditional court proceedings. The system aims to resolve construction conflicts before they become serious. Dubai wants to improve citizen well-being through this proactive approach.
Key Provisions and Changes
The new law creates a step-by-step process for resolving disputes effectively:
Mediation: The First Step
All disputes must first go through a mediation process. This initial phase must be completed within 20 days. Parties can extend this period by another 20 days if needed. Experienced construction mediators will lead these important discussion sessions. They will help parties find common ground before escalating further.
Committee Decision: Binding Resolutions
If mediation fails, the dispute moves to a specialized committee. This committee includes one judge and two construction experts. They combine legal knowledge with technical construction expertise. The committee must make binding decisions within 30 days. The committee head can extend this period when necessary.
Appeals: Retaining Rights
Parties can still appeal committee decisions if they disagree. Appeals must be filed with the Court of First Instance. The deadline is 30 days after the committee’s ruling. This preserves fundamental rights while encouraging quick resolution.
Impact on Dubai’s Residents and Businesses
This law will greatly benefit Dubai’s citizens and developer companies. Residents will have faster ways to resolve housing problems. They can protect their investments and ensure timely home completion. The system helps avoid stressful and expensive court battles.
Construction businesses will have clear procedures for handling disagreements. The new process helps keep projects on schedule. Projects can continue without the usual court delays. This creates a more stable environment for housing development.
Implementation Timeline and Expectations
The Dubai Real Estate Law becomes effective on January 1, 2026. Dubai Courts will create a special branch for housing disputes. This branch will focus on citizen home building contract issues. Officials expect a major reduction in litigation timeframes. Both citizens and companies should experience greater satisfaction.
