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Law No. (8) of 2025 Concerning the Settlement of Disputes Arising from the Performance of Housing Construction Contracts for UAE Nationals in the Emirate of Dubai

Law No. (8) of 2025 Concerning the Settlement of Disputes Arising from the Performance of Housing Construction Contracts for UAE Nationals in the Emirate of Dubai

قانون رقم (8) لسنة 2025 بتسوية المنازعات الناشئة عن تنفيذ عقود بناء منازل المواطنين

Code
Dubai-Law-8-2025
Authority
H.H. The Ruler
Category
Courts/justice

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  1. المادة 1

    This Law will be cited as “Law No. (8) of 2025 Concerning the Settlement of Disputes Arising from the Performance of Housing Construction Contracts for UAE Nationals in the Emirate of Dubai.”

  2. المادة 2

    The following words and expressions, wherever mentioned in this Law, have the meanings respectively assigned to them, unless the context implies otherwise: UAE: The United Arab Emirates. Emirate: The Emirate of Dubai. Government: The Government of Dubai. Federal Law by Decree: Federal Law by Decree No. (42) of 2022 Issuing the Civil Procedure Code. Law: Law No. (18) of 2021 Regulating Conciliation in the Emirate of Dubai. Judicial Council: The Judicial Council of the Emirate. Courts: The Dubai Courts. President: The President of the Courts. Director: The Director of the Courts. Competent Entity: The Dubai Municipality or any other Government Entity responsible for supervising Construction Works in the Emirate, including the authorities supervising Special Development Zones and free zones, such as the Dubai International Financial Centre. CASD: The Centre for Amicable Settlement of Disputes regulated pursuant to the Law. CASD Branch: The CASD Branch established pursuant to this Law. Construction Contract: A contract concluded between an Owner and an Engineer or a Contractor, as the case may be, for the Construction of a House. This includes contracts for the provision of engineering consultancy services, maintenance works, and any other works related to Construction. House: This includes a vacant plot of land located in the Emirate, and any structure or building, including any part, appurtenance, or unit thereof, whether completed or under construction, designated for use as the Owner’s residence. Owner: A UAE National in whose name a House is registered in accordance with the legislation in force in the Emirate, including his universal successor. UAE National: Any person holding the UAE nationality. Conciliation: An alternative Dispute resolution method through which amicable settlements are reached between Disputants. Conciliator: A natural person appointed by the CASD Branch to conduct Conciliation between the parties to a Dispute in accordance with the provisions of this Law. This includes experts and specialists from among Employees of Government Entities and the private sector. Dispute: A dispute arising from the performance of a Construction Contract, whether such performance is partial or complete, and which falls within the jurisdiction of the CASD Branch in accordance with the provisions of this Law. Disputants: The parties to a Dispute submitted to the CASD Branch, one of whom is an Owner. Tribunal: The Tribunal for the Settlement of Construction Disputes constituted in accordance with the provisions of this Law to hear and determine Disputes where the Disputants fail to reach an amicable settlement through Conciliation. Supervising Judge: A Judge of the Courts entrusted with judicial supervision over the activities of the CASD Branch. System: The electronic system maintained by the Courts for recording Disputes, Conciliation Agreements, the resolutions issued by the Tribunal, and other applications and claims. Roll: An electronic record maintained by the Courts in which Conciliators and members of the Tribunal who satisfy the conditions and requirements prescribed by this Law are registered. Engineer: A natural or legal person authorised under the legislation in force to practise any of the engineering consultancy activities. This includes, without limitation, a consulting Engineer, a civil Engineer, and an architect. Contractor: A natural or legal person authorised under the legislation in force to carry out any contracting activity in the Emirate or to supply and install building materials in a House. This includes a main Contractor, a secondary Contractor, and a Subcontractor, as well as any company or establishment licensed to supply and install building materials.

  3. المادة 3

    This Law aims to: 1. develop an alternative system for the settlement of Disputes that may arise between Disputants, in a manner that ensures the protection of their respective interests; 2. establish a swift and effective mechanism for the settlement and resolution of Disputes arising from the performance of Construction Contracts before recourse to courts; 3. contribute to maintaining contractual relationships between Disputants by settling Disputes arising between them through amicable and consensual means, in a manner that ensures the full performance of Construction Contracts; and 4. promote alternatives to litigation in the House Construction and contracting sector, in a manner that ensures the completion and delivery of Houses within the time frames specified in Construction Contracts.

  4. المادة 4

    Pursuant to this Law, a branch of the CASD (the “CASD Branch”) is established in the Emirate. The CASD Branch will perform the duties and functions assigned to it under this Law, the resolutions issued in pursuance hereof, and other legislation in force in the Emirate.

  5. المادة 5

    a. Without prejudice to the functions vested in the CASD under the Law, the CASD Branch will have jurisdiction to hear and determine all Disputes arising from the performance of Construction Contracts whose value does not exceed ten million dirhams (AED 10,000,000), in which an Owner is one of the Disputants, whether those Disputes arise during the performance of a Construction Contract or after the Competent Entity issues the completion certificate and until the expiry of the maintenance period and final handover of the House. This includes, in particular, disputes relating to: 1. claims for payments arising from the performance of the Construction Contract, including Disputes related to delays in delivering or making such payments by the deadlines specified in the Construction Contract; 2. variation orders relating to Construction Works, specifications, quantities, and building materials, whether approved or not; 3. the building material prices, specifications, and bills of quantities for Construction Works, and Disputes related to the right to recover them; 4. payments withheld from the amounts payable to the Contractor for the performance of Construction Works following the issue of the completion certificate by the Competent Entity, including Disputes arising from the Contractor’s refusal to carry out maintenance or rectification works during the period prescribed by law or agreed in the Construction Contract; 5. the scope of work of the Contractor and the Engineer, and the obligations of each of them under the Construction Contract; 6. the reasons for delays in completing the Construction Works within the time frames agreed in the Construction Contract; 7. maintenance works arising from the Construction Contract following the issue of the completion certificate by the Competent Entity; 8. breaches by the Engineer of his obligations in respect of the design and supervision of the Contractor’s works, as agreed in the Construction Contract; and 9. the Engineer’s liability for errors in the engineering design of the House, in accordance with the requirements and specifications agreed in the Construction Contract. b. The CASD Branch will not have jurisdiction to hear and determine the following Disputes and claims: 1. Disputes and claims arising from the Construction Contract after the expiry of the maintenance period and the final handover of the House; 2. Disputes and matters in respect of which Conciliation is not permissible under the legislation in force in the Emirate; 3. Disputes in which the Government, any Government Entity, or any entity affiliated with any of them is a Disputant; 4. labour-related Disputes and claims arising from Construction Contracts; 5. claims filed before the Courts prior to the effective date of this Law; and 6. Disputes to be heard, pursuant to the legislation in force in the Emirate, by the CASD, the Tribunal, or any other entity.

  6. المادة 6

    a. A director will be appointed to the CASD Branch by a resolution of the Director. b. The CASD Branch will have a Supervising Judge, whose designation is not lower than that of a first instance Judge appointed at Grade Six, to be appointed by a resolution of the President. c. The President may second any Judge of the Courts to act in place of the Supervising Judge if the Supervising Judge is absent or an impediment prevents him from exercising the functions vested in him under this Law, the resolutions issued in pursuance hereof, and other legislation in force in the Emirate.

  7. المادة 7

    For the purposes of this Law, the Supervising Judge will have the following functions: 1. supervise all procedures and matters related to Conciliation; 2. issue interim orders and judicial decisions related to applications and Disputes heard before the CASD Branch; and 3. exercise any other functions vested in him under the legislation in force in the Emirate or by a resolution of the President or the President of the Courts of First Instance.

  8. المادة 8

    a. In addition to the requirements stipulated in Article (12) of the Law, to be registered on the Roll, a person must: 1. be an Employee of the Competent Entity; 2. have at least four (4) Years of practical experience with the Competent Entity; 3. be nominated by the head of the Competent Entity where he is employed; and 4. satisfy any other requirements prescribed by a resolution to be issued by the Director in this respect. b. The Director may exempt an Employee of the Competent Entity from any of the requirements set out in paragraph (a) of this Article, as well as from any requirements provided for in Article (12) of the Law, if that Employee possesses the experience and qualifications required to perform Conciliation duties or to serve on the Tribunal. c. The procedures set out in Article (13) of the Law apply to registration on the Roll. d. Notwithstanding the provisions of paragraph (a) of this Article, a person who is not an Employee of a Competent Entity may be registered on the Roll if he possesses the experience and qualifications required to perform the duties of a Conciliator or serve on the Tribunal. The requirements and procedures for registration in such a case will be prescribed by a resolution to be issued by the Director in this respect.

  9. المادة 9

    Disputes submitted to the CASD Branch will be heard and determined in accordance with the provisions of this Law as follows:

  10. المادة 10

    a. The provisions and procedures prescribed by the Law apply to the offering of Conciliation to the Disputants, the management and confidentiality of Conciliation sessions, the duties of the Conciliator, and the completion of his assignment. b. Conciliation between the Disputants will be conducted, in accordance with this Law, by one or more Conciliators registered on the Roll and employed by the CASD. The procedures for allocating and assigning Conciliators to Disputes will be prescribed by a resolution to be issued by the Director in this respect.

  11. المادة 11

    For the purposes of this Law, a Dispute will be settled through Conciliation within a period not exceeding twenty (20) days from the date on which the respondent is notified of the registration of the Dispute in the System. This period may be extended once for the same period, subject to the agreement of the Disputants.

  12. المادة 12

    Conciliation between the Disputants will be recorded in a Conciliation Agreement. The evidentiary value of, and procedures for approving, Conciliation Agreements will be governed by the conditions and requirements stipulated in the Law.

  13. المادة 13

    a. A Conciliation Agreement concluded and signed in accordance with the provisions of this Law will have the force of a writ of execution once it is registered in the System. b. The Disputants or any interested party may request a partial or full enforcement of the Conciliation Agreement. The rules and procedures provided for in the Federal Law by Decree apply to the enforcement of Conciliation Agreements.

  14. المادة 14

    a. One or more tribunals named the "Tribunal for the Determination of Construction Disputes" will be constituted by a resolution of the President. Each Tribunal will be chaired by the Supervising Judge or a Judge seconded by the President for that purpose and assisted by two (2) persons registered on the Roll. b. The Tribunal will have a secretary appointed in accordance with the procedures applicable to the appointment of Court secretaries. c. The terms of reference of the Tribunal, the procedures for holding its meetings, and the procedures for passing its decisions will be determined by a resolution to be issued by the President in this respect. d. Each member of the Tribunal must take the legal oath before the President that he will perform the duties assigned to him with integrity and honesty, in the form approved by the President.

  15. المادة 15

    a. Where Conciliation cannot be reached for any reason, the CASD Branch will refer the Dispute to the Tribunal for hearing and determination in accordance with the procedures prescribed by this Law, the resolutions issued in pursuance hereof, and other legislation in force in the Emirate. b. The Conciliator will, prior to referring the Dispute to the Tribunal in accordance with paragraph (a) of this Article, prepare a comprehensive report on the Dispute, including his technical opinion.

  16. المادة 16

    The following procedures apply to the registration of a Dispute before the CASD Branch: 1. An application for registration of the Dispute will be submitted through the System using the relevant form approved by the CASD Branch, accompanied by the supporting documents specified in the System. 2. The CASD Branch will register the application as a Dispute case once the applicant has submitted all required documents specified in the System and paid the fee prescribed in paragraph (a) of Article (24) of this Law. 3. A Dispute will be deregistered from the System if the applicant fails to attend the session scheduled by the Conciliator to consider the Dispute, and the Dispute may be re-registered in the System only upon payment of the registration fee again.

  17. المادة 17

    For the purpose of hearing and determining Disputes under this Law, the Tribunal will have the powers to: 1. request the Disputants or the Competent Entity to provide any documents or records that it deems necessary to determine the Dispute, including invoices, receipts, or electronic communications; 2. conduct site visits to the Construction site and inspect materials and goods related to the Dispute; 3. conduct interviews and meetings, whether in person or by modern electronic means, and put questions concerning the Dispute to the Disputants; 4. hear witnesses and experts, and summon any person it deems appropriate to give testimony, provided that the Disputants are duly notified thereof; 5. seek the assistance of experts and specialists, as it deems appropriate, to give a technical opinion on any matter related to the Dispute, provided that the Disputants are notified thereof. The decision appointing an expert or specialist must specify the assigned tasks, the period required for their completion, and the Disputant responsible for the payment of fees, in accordance with the procedures prescribed by the above-mentioned Law No. (13) of 2020 and other legislation in force in the Emirate. Such period may be extended only for serious reasons accepted by the Tribunal, provided that such extension does not exceed the original period and does not conflict with the approved timetable for determining the Dispute; 6. take any interim or precautionary measures required by the nature of the Dispute, including ordering the continuation of performance of the Construction Contract in Dispute and preventing the suspension of works at the Construction site until the Dispute is determined; 7. consolidate the Dispute with one or more other Disputes registered in the System if they involve the same Disputants and arise from the same Construction Contract in Dispute; 8. take all necessary measures to ensure the proper conduct of the proceedings and the prompt determination of the Dispute; and 9. exercise any other powers related to the achievement of the objectives of this Law, as assigned to the Tribunal by the President.

  18. المادة 18

    a. The Tribunal will determine a Dispute within thirty (30) days from the date on which the Dispute is referred to it by the CASD Branch. This period may, where required, be extended once for the same period by a resolution of the chairman of the Tribunal. b. The Tribunal will determine the Dispute by issuing a reasoned decision disposing of the proceedings, in accordance with the procedures prescribed by the Federal Law by Decree for issuing judgments disposing of proceedings.

  19. المادة 19

    a. A decision issued by the Tribunal disposing of the proceedings may be appealed before the Competent Court of First Instance by bringing an originating action. A judgment issued by that Court may, in turn, be appealed by the legally prescribed means of appeal, in accordance with the rules, procedures, time frames, and cases prescribed by the Federal Law by Decree. b. An appeal against a Tribunal decision will be brought before the Competent Court of First Instance within thirty (30) days from the date on which the decision is issued, if it is rendered in the presence of the Disputants, or from the date on which the respondent is notified thereof, if the decision is deemed to have been rendered in his presence. c. An appeal against a decision issued by the Tribunal has the effect of staying the enforcement of that decision until an enforceable judgment is issued by the Competent Court, in accordance with the rules prescribed by the Federal Law by Decree and other legislation in force in the Emirate.

  20. المادة 20

    a. An appeal against a decision issued by the Tribunal will not be admitted after the expiry of the appeal period specified in paragraph (b) of Article (19) of this Law. Upon expiry of that period, the decision will have the force of a writ of execution and will be enforced in accordance with the enforcement procedures prescribed by the Federal Law by Decree. b. Notwithstanding the provisions of paragraph (a) of this Article, a decision issued by the Tribunal may, after the expiry of the appeal period, be appealed by a petition for review in the cases and within the time frames provided for in the Federal Law by Decree, including in cases involving invalidity arising from service of notice. The petition will be submitted to the Tribunal that heard the Dispute and issued the appealed decision.

  21. المادة 21

    a. Neither the chairman nor any member of the Tribunal may hear a Dispute or take any action therein in any of the following cases: 1. if he was previously appointed as a Conciliator in the same Dispute referred to the Tribunal; 2. if he is a partner of any of the Disputants, whether that partnership existed before or arose during the hearing of the Dispute; 3. if he previously represented any of the Disputants in the same Dispute or in any other Dispute connected with the same Construction Contract; 4. if he previously considered the subject matter of the Dispute or expressed an opinion thereon by virtue of his official position; or 5. if any of the Disputants is his spouse or a relative up to the fourth degree. b. The chairman or any member of the Tribunal must recuse himself from hearing the Dispute in any of the cases stipulated in paragraph (a) of this Article.

  22. المادة 22

    a. A member of the Tribunal may be recused in any of the following cases: 1. if he or his spouse has a dispute similar to the Dispute under consideration, or if either of them has, after the Dispute before the Tribunal arose, an ongoing case with any of the Disputants or with the spouse of any Disputant; 2. if his former spouse, with whom he has children, or any of his relatives or relatives by marriage, has an ongoing case before the courts with any of the Disputants or with the spouse of any Disputant; 3. if any of the Disputants is his direct superior, works under his supervision in the Competent Entity, previously employed by him, or habitually dines or lives with him, or if he has received from that Disputant any gift or anything of material or moral value prior to the filing of the Dispute; 4. if animosity or affection exists between him and any of the Disputants that is likely to affect his impartiality; or 5. if any of the Disputants previously selected him as an Arbitrator or Conciliator in another Dispute. b. The requirements and rules governing the recusal of a member of the Tribunal, and the authority responsible for considering a recusal request, will be prescribed by a resolution to be issued by the President in this respect.

  23. المادة 23

    The time-bar periods applicable to claims relating to Disputes, and limitation periods prescribed by the legislation in force in the Emirate, will be suspended from the date on which the Dispute is registered in the System and resume on the date on which the assignment of the Conciliator and the Conciliation proceedings are concluded, or on the date on which the Disputants agree to refer the Dispute to the Tribunal.

  24. المادة 24

    a. A fee of two hundred and fifty dirhams (AED 250) will be collected from the applicant for registering a Dispute in the System. b. The fees and security deposits prescribed by the above-mentioned Law No. (21) of 2015 and other legislation in force in the Emirate will be collected in respect of each appeal brought before the Competent Court of First Instance against a decision issued by the Tribunal under this Law, without deduction of the registration fee paid upon registration of the Dispute in the System in accordance with the provisions of paragraph (a) of this Article.

  25. المادة 25

    a. The procedures for service prescribed by the Federal Law by Decree apply to serving notices on Disputants. b. The CASD Branch will notify the Competent Entity of the decisions issued in Disputes.

  26. المادة 26

    أ- لا تخل صلاحية كل من المصلح واللجنة بالنظر والفصل في المنازعة، بالاختصاصات المنوطة بالجهات المختصة في توقيع الجزاءات والتدابير الإدارية على الأفعال المخالفة لأحكام التشريعات السارية في الإمارة المتعلقة بأعمال البناء والمقاولات والاستشارات الهندسية. ب- إذا تبيّن للجنة أثناء النظر في المنازعة ارتكاب أي من الأطراف لفعل يُشكّل جريمة وفقاً للتشريعات السارية في الإمارة، تتولى اللجنة إخطار النيابة العامة بهذا الفعل، على أن تستمر اللجنة بالنظر في المنازعة ما لم يكن الفصل فيها يتوقّف على نتيجة الفصل في الدعوى الجزائية.

  27. المادة 27

    a. The Courts will continue to hear and determine all claims and applications falling within the jurisdiction of the CASD Branch under this Law and that were registered before its effective date, until final judgments are rendered. b. After the effective date of this Law, the Courts and every other Judicial Body in the Emirate must not register any new application or claim falling within the jurisdiction of the CASD Branch under this Law.

  28. المادة 28

    a. The Courts will provide the administrative, financial, and technical support required to enable the CASD Branch and the Tribunal to perform their functions under this Law, the resolutions issued in pursuance hereof, and other legislation in force in the Emirate, including the outfitting of the premises of the CASD Branch. b. All competent and concerned entities must fully cooperate with the CASD Branch and the Tribunal to enable them to perform the functions assigned to them under this Law, the resolutions issued in pursuance hereof, and other legislation in force in the Emirate.

  29. المادة 29

    The remuneration of the members of the Tribunal, its secretary, and the Conciliators registered on the Roll will be determined by a resolution of the Chairman of the Judicial Council, based on the recommendation of the President.

  30. المادة 30

    The President may, pursuant to a resolution he issues in this respect, amend the functions assigned to the CASD Branch under this Law.

  31. المادة 31

    Where this Law is silent, the provisions of the Law and the legislation issued in pursuance thereof will apply.

  32. المادة 32

    With the exception of the resolutions which the Chairman of the Judicial Council is exclusively authorised to issue under this Law, the President and the Director will, each within his respective jurisdiction, issue the resolutions required for implementing the provisions of this Law.

  33. المادة 33

    Any provision in any other legislation is hereby repealed to the extent that it conflicts with the provisions of this Law.

  34. المادة 34

    This Law comes into force on 1 January 2026, and will be published in the Official Gazette.

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