Construction Disputes of Citizens' Homes in Dubai: Jurisdiction, Deadlines, and Appeal Methods

Learn about the types of citizens' housing construction disputes in Dubai, the jurisdiction of the Amicable Dispute Settlement Centre branch, the Construction Disputes Adjudication Committee, and the time limits, fees and appeal routes under Law No. 8 of 2025.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, issued Law No. 8 of 2025 on the Settlement of Disputes Arising from the Execution of Contracts for the Construction of Citizens' Homes in the Emirate of Dubai, which came into force on 1 January 2026. The Law establishes an independent and expedited route for resolving disputes that arise between the citizen owner and the contractor or engineer during the performance of the home construction contract or after its completion.

The significance of this legislation lies in moving this category of disputes away from conventional litigation to a specialised branch of the Amicable Dispute Settlement Centre at Dubai Courts. The process begins with an offer of amicable settlement to the parties; if settlement proves impossible, the file is referred to the Construction Disputes Adjudication Committee, composed of a judge and two members of relevant expertise, which determines the dispute within a short period, while the right to challenge the decision before the competent Court of First Instance is preserved.

Why was Law No. 8 of 2025 issued?

The Law sets out its objectives clearly, all of which revolve around protecting the stability of citizens' housing projects and preventing their disruption by contractual disagreements. These objectives are:

• Developing an alternative system for settling disputes that may arise between the parties in a manner that preserves the interests of all of them.

• Providing a swift and effective mechanism for settling and resolving disputes arising from the performance of construction contracts before resorting to the courts.

• Enhancing the continuity of the contractual relationship between the parties through amicable and consensual settlement, so that construction contracts are carried through to completion.

• Promoting alternatives to litigation in the construction and contracting sector, ensuring that homes are completed and handed over on the dates specified in the contracts.

The Amicable Dispute Settlement Centre Branch: the competent authority

The Law established in the Emirate a branch of the Amicable Dispute Settlement Centre, operating under dual supervision:

• Director of the Branch: appointed by a decision of the Director of Dubai Courts, responsible for the administrative and organisational side.

• Supervising Judge: a judge whose title is no lower than a Court of First Instance judge at grade six, designated by a decision of the Chief Justice of Dubai Courts.

The Supervising Judge has general oversight of the conciliation proceedings and issues the ex parte and judicial decisions relating to the applications and disputes heard before the Branch.

Scope of jurisdiction: which disputes does the Branch hear?

The Branch has jurisdiction to hear and determine all disputes arising from the performance of construction contracts whose value does not exceed AED 10,000,000 and to which the citizen owner is a party, whether the dispute arose during performance of the contract or after the completion certificate was issued by the competent authority, up until the end of the maintenance period and the final handover of the home.

Disputes falling within the jurisdiction, in particular

• Claims for payments arising from performance of the contract, including delay in submitting and releasing them in accordance with the agreed dates.

• Variation orders relating to construction works, specifications, quantities and building materials, whether or not they were approved.

• The price of building materials, specifications and bills of quantities, and disputes over the right of recovery.

• Retention payments due to the contractor after issuance of the completion certificate, including the contractor's refusal to carry out and rectify maintenance works within the prescribed period.

• The scope of work of the contractor and the engineer and the obligations imposed on either of them under the contract.

• The causes of delay in completing the construction works against the agreed dates.

• Maintenance works arising from the construction contract after issuance of the completion certificate.

• The engineer's breach of his obligations in design and supervision of the contractor's works.

• The engineer's liability for errors in the structural and architectural design of the home against the agreed requirements and specifications.

Disputes excluded from the Branch's jurisdiction

The legislator was careful to define what falls outside the Branch's remit in order to avoid conflicts of jurisdiction. These are:

• Disputes and claims arising from the construction contract after the end of the maintenance period and final handover of the home.

• Disputes and matters in which settlement is not permitted under the legislation in force in the Emirate.

• Disputes to which the Government or any governmental or affiliated entity is a party.

• Labour disputes and claims arising from construction contracts.

• Claims registered before the courts prior to the Law coming into effect.

• Disputes assigned to another centre, committee or authority under the legislation in force.

Stage one: settling the dispute through conciliation

The Law lays down a two-stage path: it begins with an offer of conciliation made to the parties by conciliators enrolled in the register; if this fails, the Committee issues a decision determining the dispute.

Procedure for registering the dispute

• An application to register the dispute is submitted through the electronic system using the approved form, supported by the specified documents and instruments.

• The application is recorded as a dispute file once the documents are complete and the prescribed fee has been paid.

• Registration of the dispute is struck out if the applicant fails to attend the session scheduled by the conciliator, and it may only be re-registered upon payment of the fee afresh.

Duration of conciliation and effect of the settlement agreement

The dispute is settled through conciliation within a period not exceeding 20 days commencing from the date on which the respondent is notified of registration of the dispute in the system, extendable for a like period subject to the parties' agreement. The settlement is evidenced by a settlement agreement which — once registered in the system — carries the force of a writ of execution, and the parties or interested persons may seek its enforcement in whole or in part in accordance with the Civil Procedure Law.

Stage two: the Construction Disputes Adjudication Committee

If conciliation fails for any reason, the Branch refers the dispute to the Committee. Before referral, the conciliator prepares a comprehensive report on the dispute setting out his technical opinion on it.

Composition of the Committee

By decision of the Chief Justice of Dubai Courts, one or more committees are formed under the name "Construction Disputes Adjudication Committee", chaired by the Supervising Judge or any judge delegated for that purpose, assisted by two persons enrolled in the register, with a secretary. A member must take the legal oath before the Chief Justice prior to assuming office.

Powers of the Committee

• To request any documents, instruments or records from the parties or the competent authority, including invoices, receipts and electronic correspondence.

• To conduct site visits to the construction site and inspect the materials and goods related to the dispute.

• To hold interviews and meetings in person or through modern technology and put questions to the parties.

• To hear witnesses and experts and to seek the assistance of persons of relevant expertise to give a technical opinion, upon notification of the parties.

• To take interim and precautionary measures, including ordering the continued performance of the construction contract and preventing a stoppage of works on site pending determination of the dispute.

• To join one or more disputes where they relate to the same parties and arise from the construction contract in question.

Time limit for determination and form of the decision

The Committee determines the dispute within 30 days from the date of referral by the Branch, extendable for a like period by decision of the Chairman of the Committee where necessary. The determination is issued by a reasoned decision disposing of the case, in accordance with the procedures for issuing judgments disposing of proceedings set out in the Civil Procedure Law.

Decision No. 7 of 2025: the Committee's rules of procedure

The Chief Justice of Dubai Courts issued a decision regulating the Committee's working mechanism. Its key provisions are:

• Convening of sessions: upon the invitation of the Chairman or in accordance with the session dates set by the Branch; sessions are valid when attended by the Chairman and all members, including the secretary.

• Venue: in person at the premises of the Branch or the Courts, with the option of convening remotely using modern technology whenever the Committee sees fit.

• Record-keeping: all decisions are recorded in clear and transparent minutes signed by the Chairman, the members and the secretary.

• Voting: decisions are issued by majority vote; in the event of a tie the side of the Chairman prevails, and in all cases decisions must be reasoned.

• Confidentiality: members and the secretary must not disclose any information relating to the dispute, both during and after their membership, and must sign the "Confidentiality and Non-Disclosure Undertaking" approved by the Courts.

Challenging the Committee's decisions

Decisions of the Committee disposing of the case may be challenged before the competent Court of First Instance by way of an original action, and the judgment issued by that court may in turn be challenged by the methods of recourse prescribed by law.

• Time limit: 30 days from the date the decision is issued if rendered in the presence of the parties, or from the date the respondent is notified of the decision if rendered in absentia.

• Effect of the challenge: the challenge stays enforcement of the decision until an enforceable judgment is issued by the competent court.

• After the time limit: the challenge is inadmissible, the decision acquires the force of a writ of execution and is enforced under the prescribed enforcement procedures.

• Petition for reconsideration: available after expiry of the time limit in the cases and within the periods set out in the Civil Procedure Law, together with nullity arising from a cause connected with service of notice; it is submitted to the same Committee that issued the decision.

Impartiality safeguards: abstention and recusal of members

The Law requires the Chairman or a member of the Committee to abstain from hearing the dispute and to withdraw of his own motion where he was previously appointed conciliator in the same dispute, was a partner of one of the parties or previously represented one of them, previously considered the subject matter or expressed an opinion on it by virtue of his office, or where a party is his spouse or a relative up to the fourth degree.

The Law also permits the recusal of a member in cases including: an existing dispute involving him or his spouse with one of the parties; where a party is his direct superior; where he has received a gift from a party; or where there is enmity or friendship such that he is unlikely to be able to give an impartial opinion. The controls governing recusal are determined by a decision of the Chief Justice of Dubai Courts.

Suspension of legal time limits and registration fees

One of the most important practical safeguards for litigants is that the statutory periods barring the hearing of a claim and the limitation periods are suspended from the date the dispute is registered in the system, and resume once the conciliator's role and the conciliation proceedings come to an end, or upon the parties' agreement to refer the matter to the Committee. Pursuing the settlement route therefore causes no loss of rights through lapse of time.

Transitional provisions and effect on pending claims

• The courts continue to hear and determine all claims and applications falling within the Branch's jurisdiction that were registered before the Law came into effect, until a final judgment is issued.

• After the Law came into effect, all courts and any other judicial body in the Emirate are barred from registering any new application or claim falling within the Branch's jurisdiction.

• The powers of the conciliator and the Committee do not affect the competence of the relevant authorities to impose administrative penalties and measures for breaches relating to construction, contracting and engineering consultancy works.

• If the Committee finds that a party has committed an act constituting a crime, it notifies the Public Prosecution and continues hearing the dispute unless its determination depends on the outcome of the criminal case.

Time limits, deadlines and fees at a glance

Practical tips for owners, contractors and engineers

• Record every variation order in writing before it is carried out; variation orders on specifications and quantities are among the most common causes of dispute and the first matter the Committee examines.

• Keep a chronological record of payments, their due dates and the dates of settlement — these disputes are decided on documents, not assertions.

• Do not miss the conciliator's session; non-attendance leads to the registration being struck out and the fee having to be paid again.

• Check the date of the completion certificate and the maintenance period; their expiry removes the dispute from the Branch's jurisdiction.

• Calculate the time limit for challenge precisely; letting it lapse gives the decision the force of a writ of execution.

• Engage a specialised lawyer from the conciliation stage, since the conciliator's report contains a technical opinion that is referred to the Committee with the file.

Article summary

Learn about the types of citizens' housing construction disputes in Dubai, the jurisdiction of the Amicable Dispute Settlement Centre branch, the Construction Disputes Adjudication Committee, and the time limits, fees and appeal routes under Law No. 8 of 2025.

Legal references

• Law No. 8 of 2025 on the Settlement of Disputes Arising from the Execution of Contracts for the Construction of Citizens' Homes in the Emirate of Dubai.

• Decision No. 7 of 2025 on the Rules of Procedure of the Committee for Adjudicating Citizens' Housing Construction Disputes.

• Federal Decree-Law No. 42 of 2022 issuing the Civil Procedure Law, as amended.

• Law No. 21 of 2015 concerning Judicial Fees in Dubai Courts, as amended.

• Law No. 13 of 2016 concerning the Judicial Authority in the Emirate of Dubai, as amended.

• Law No. 13 of 2020 regulating expert work before the judicial authorities in the Emirate of Dubai.

• Law No. 18 of 2021 regulating conciliation work in the Emirate of Dubai, as amended.

• Law No. 11 of 2025 establishing the Dubai Centre for Judicial Expertise.

• Local Order No. 3 of 1999 regulating construction works in the Emirate of Dubai, as amended.

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