United Arab Emirates

Executive Summary The father of a young child sued a healthcare facility and the treating doctors for medical negligence. The lawsuit is about a failure to diagnose a medical condition, which led to the permanent loss of the affected organ. Mrs. Awatif Al Khouri of Awatif Mohammed Shoqi Advocates and Legal Consultancy represented the father of a young child throughout these proceedings.  The case shows that the Supreme Committee for Medical Liability has ultimate authority and the application of liability in the UAE. Factual Background The child went to the hospital with severe pain, swelling, and redness. The specialized consultants only found mild inflammation. They sent the child home with medicines. Later surgery showed that the patient had an advanced infection, and the surgeons had to take out the affected organ. The claimant then filed a complaint with the Dubai Health Authority, which led to an investigation. Findings of the Supreme Committee The Supreme Committee for Medical Liability did a thorough review of the case and found that the doctors breached basic medical rules. The committee concluded that responsibility for the medical error was shared. The diagnostic imaging was not accurately interpreted, which led to a misleading clinical picture and contributed to an incorrect or delayed treatment approach; also, timely surgical action was not initiated. As a result of these combined failures, the patient suffered irreversible damage to the affected organ, amounting to a permanent disability. Judicial Analysis: Court of First Instance (CFI) The CFI’s reasoning was anchored in Federal Decree-Law No. (4) of 2016 regarding medical liability and the Civil Transactions Law. Standard of Care and Medical Error The court said that the mistake was not following accepted professional standards under Article 6 of the Medical Liability Law. It made it clear that a doctor's duty is to use the right tools, not to get the right results. The defendants' failure to effectively use available diagnostic tools was a violation of this standard. The Binding Nature of Expert Reports and Liability The Supreme Committee is the legal body in the UAE that can decide if a medical error has occurred. The committee's final reports established the liability. The court found the hospital responsible under Article 313 of the Civil Transactions Law, and the court of first instance awarded compensation with legal interest. Appellate Review: Court of Appeal Both sides appealed: Mrs. Awatif Al Khouri, on behalf of the client, sought an increase in the compensation amount, while the defendants sought dismissal of the case. The appellate court said that the initial award was inadequate, given the Permanent Physical Loss: The child has a 100% disability of the affected organ for the rest of their life. Moral Agony: The mental pain that the parents went through when they saw their child in so much pain. Logistical Burden: Costs associated with emergency international travel and specialized foreign medical care. The Court of Appeal increased the amount of compensation and dismissed the defendant's appeal. Conclusion The ruling reinforces the significance of the medical committee's findings and the compensation to cover the damage caused to the victim and their family. This case reflects the dedication of Mrs. Awatif Al Khouri to protecting the rights of vulnerable clients and ensuring that those responsible for medical negligence are held fully accountable. Author: Awatif Al Khouri

Introduction The UAE legal system is seeing a major change with the issuance of Federal Decree-Law No. 25 of 2025 on Civil Transactions Law, effective 1 June 2026. It repeals and replaces in full the long-standing Federal Law No. 5 of 1985. The Civil Code of 1985 generally left it to the courts in their broad discretion to create construction contracts. The 2026 CTL aims to improve certainty by better defining the rules on notice obligations, remedies for defective work, liquidated damages and decennial liability, and to facilitate more predictable risk allocation in project agreements. Apart from specific provisions on contract for work agreements, the 2026 Civil Transactions Law contains more general changes of broad application, which might have a material impact on the formation and execution of project agreements. Article 121 expressly regulates the pre-contractual phase and states that the initiation, conduct, and termination of negotiations shall be in accordance with good faith. The parties negotiating are not obliged to enter into a contract. A party negotiating or terminating negotiations in bad faith may be liable for actual damages suffered by the other party. The article also limits the compensation to exclude expected benefits from a contract that was never concluded, and lost opportunities to obtain such benefits, unless otherwise agreed. Importantly, when a material fact relating to the validity of the contract is knowingly concealed, it constitutes an act of bad faith. Additionally, Article 84 also states that the age of majority shall be 18 Gregorian years (reduced from 21 lunar years). The Structural Evolution of Contract for Work Agreements Under the Civil Code of 1985, contracts for work were governed by Articles 872 to 896. Now they are dealt under Articles 812 to 839 with the implementation of the 2026 Civil Transaction Law. This change maintains the spirit of the pricing and performance of the agreements, while introducing structural flexibility and lessening the need for court involvement. The operational distinction between these two statutory frameworks is most apparent in several key legal areas: Governing Provisions and Applicability: The governing provisions of the 1985 Civil Code (Articles 872 to 896) are replaced by Articles 812 to 839 of the 2026 CTL, which will form the primary statutory framework for onshore construction contracts governed by the new law as of 1 June 2026. Contractor Notice Requirements: The 1985 Civil Code did not impose such an express notice duty on contractors. Article 816(3) of the Civil Transactions Law 2026 states that the contractor shall immediately notify the employer of any event that may impede proper execution, and failing which the contractor shall bear the resulting consequences. Defective Work Remedies: Article 877 provided for judicial approval before termination or the appointment of another contractor. However, in the 2026 Civil Transactions Law, Article 818 provides a more explicit notice and cure mechanism. Upon notice, proof of defect, and lapse of a reasonable cure period, the employer may terminate the contract or appoint another contractor at the expense of the first contractor. The Court’s Power to Reduce Liquidated Damages: Article 390 of the Civil Code of 1985 stipulates that the Court may reduce the liquidated damages. The courts and arbitrators have wide powers to increase or decrease the damages to correspond with the actual loss. This power is limited by Article 340 of the 2026 CTL, which does not permit an upward modification unless the creditor can prove the debtor’s dishonesty or gross fault. Termination for Convenience: Article 892 addressed only the general termination of a contract of work by completion, mutual agreement, or court order. Article 836 of the 2026 Civil Transactions Law now expressly regulates the employer’s right to withdraw from the contract and the compensation payable to the contractor. Decennial Liability Scope: Articles 880 to 883 of the 1985 Civil Code provided for ten-year joint liability of contractors and architects for collapse or structural defect, but did not deal with recourse against subcontractors. This regime is maintained in articles 821 to 824 of the 2026 Civil Transactions Law, but it is specified that contractor recourse against subcontractors is not regulated by the statutory decennial warranty. Arbitration and Enforcement in UAE Construction Disputes When construction disputes escalate, many major project disputes are resolved through binding arbitration, particularly where the underlying contract contains an arbitration clause, utilizing the procedural framework of Federal Law No. 6 of 2018 (the "UAE Arbitration Law") and the 2022 Arbitration Rules of the Dubai International Arbitration Center (DIAC). The UAE Arbitration Law is based on the UNCITRAL Model Law and provides strong support for complex infrastructure disputes. Article 6 of the Federal Law No. 6 of 2018 further codifies the principle of separability, by which the invalidity, cancellation or termination of the main contract does not affect the validity of the underlying arbitration agreement. However, parties must comply with severe requirements regarding capacity under Article 4, which states that an arbitration agreement can only be entered into by a natural person with the capacity to dispose of his or her rights, or by an authorized representative of a legal person. The 2022 DIAC Rules also provide for contemporary procedures such as electronic filings, virtual hearings and electronic signatures on awards under Article 34.6, while Article 41(6) of the UAE Arbitration Law separately provides for electronic signing of arbitration awards. The UAE Arbitration Law sets out the main procedural framework for challenging and enforcing arbitration awards at the enforcement stage. Articles 53 to 55 are interconnected in that they limit the grounds of annulment, govern the time and manner of filing an application for annulment, and lay down the procedure for recognition and enforcement before the competent court. Strategic Contract Updates for Construction Stakeholders To avoid disputes and protect commercial positions, stakeholders may incorporate few changes to their practices for contract administration, procurement and risk management: Establish Rigorous Claim Notice Workflows: Contractors shall, under the statutory notice duty in Article 816(3), be required to use mandatory project management checklists to ensure that any delay, disruption or obstruction is notified immediately. Standard templates must spell out precise communication channels to ensure notices are served in writing without delay on the appropriate employer representatives to preserve claims for extensions of time and cost compensation. Integrate Structured Warning and Cure Mechanisms: Employers should revise tailored and standard form project contracts to include the notice and cure regime in Article 818. Contracts should clearly specify default notices, reasonable periods of rectification, proof of non-compliance and the process of cancellation or appointment of another contractor at the defaulting contractor’s expense. Address Subcontractor Recovery Deadlines and Evidentiary Burdens: Article 821 clarifies that the decennial warranty does not extend to the recourse claims of the contractor against the subcontractors. Main contractors should therefore explicitly address the liability of subcontractors in their sub-contracts, including warranties, indemnities, periods of liability, and back-to-back claim mechanisms where applicable. Review Liquidated Damages Clauses: Employers must be careful when drafting agreed compensation clauses, according to Article 340 of the 2026 Civil Transactions Law, and the clause must be proportionate to the expected loss. The provision empowers the court to reduce agreed compensation where it is too high, if the obligation has been partly performed or if the creditor has contributed to the harm, while any claim in excess of the agreed amount must be supported by evidence of fraud or gross fault on the part of the debtor. Conclusion The 2026 Civil Transactions Law represents an important point in the UAE construction law framework, shifting from general judicial discretion to more specific statutory provisions on notice, defective works, liquidated damages, termination and decennial liability. The reform is not just technical for contractors, employers, engineers, and subcontractors. It directly affects the drafting, administration, and enforcement of construction contracts. As the 2026 Civil Transactions Law comes into force, parties that review their contracts and strengthen their internal project-management processes early will be better placed to reduce disputes, preserve claims, and manage construction risk with greater certainty. Author: Awatif Al Khouri

The early termination of a tenancy contract is a common issue for tenants in Dubai’s fast-moving rental market when tenants have to deal with job loss, relocation, family changes, or sudden financial pressure. Though fixed-term tenancy agreements give landlords and tenants certainty, a tenant cannot usually end the lease early simply by deciding to vacate. Dubai tenancy relationships are mainly governed by Law No. 26 of 2007 on the Organization of the Relationship between the Lessors and Tenants in the Emirate of Dubai, as amended by Law No. 33 of 2008, and the lease contract itself remains the starting point for determining the parties’ rights and obligations. The written tenancy contract must clearly specify key terms such as the property details, lease period, rent, and payment method. This is why, in Dubai, early termination usually occurs through the early exit clause in the contract, a mutual written agreement between the landlord and tenant, or, in case of dispute, the Rental Disputes Center. Without a clear termination clause or mutual agreement to end the lease, the tenant risks being liable for rent, agreed penalties, or other contractual obligations if they leave before the lease expires. Anyone wishing to terminate a lease in Dubai should therefore look at the tenancy contract, which is registered with Ejari, check the notice and penalty provisions, and put in writing any settlement with the landlord. The Statutory Foundation of Tenancy Relationships in Dubai The main law governing the lease agreements in Dubai is Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai and its amendments by Law No. 33 of 2008. Article 7 of Law No. 26 of 2007 provides that if the lease contract is valid, neither the landlord nor the tenant can unilaterally terminate the contract during the contract term unless the other party agrees or the law allows such termination. This corresponds to the generally accepted rule that a tenancy agreement is binding for the agreed lease period. Article 232 of Federal Decree-Law No. 25 of 2025 also supports this by providing that where a contract is valid and binding, neither party shall revoke, amend or rescind it except by mutual consent or a court judgment or by virtue of a provision of law. Furthermore, in accordance with Article 4 of Law No. 26 of 2007, as amended by Law No. 33 of 2008, tenancy contracts and any amendments thereof shall be registered in the register maintained by RERA through the Dubai Land Department’s Ejari system. Registration is useful in establishing the existence of the tenancy relationship and in supporting enforceability before the competent forum of rental disputes. Therefore, a tenant who leaves before the end of the lease term may be liable for the rent agreed or any contractual penalty for early termination, unless the lease agreement includes a clause for early termination or the landlord and tenant reach a mutual written settlement. Termination Clauses and the Legal Consequences Parties often include an explicit early termination clause in the tenancy contract to avoid disputes. This clause may set out the notice period, the notice-giving method or any agreed compensation for early termination. When the tenancy contract does not say anything about early termination, in such cases, the landlord is not automatically required to agree to an early termination just because the tenant wants to move out. The parties can instead agree to a settlement that might include payment of compensation, adjustment of advance rent, or treatment of the security deposit. Any deductions from the security deposit should also be considered in the light of Article 20 of Law No. 26 of 2007, which requires the landlord to refund the deposit or the balance remaining upon expiry of the lease. The tenant shall obtain the written consent of the landlord to substitute another tenant, especially since Article 24 of the law prohibits assignment or sublease without the consent of the landlord, unless otherwise provided for in the lease contract. Statutory Limits on Landlord-Initiated Early Termination Dubai law limits the landlord’s right to terminate a tenancy before the end of a lease. Article 25 of Law no. 26 of 2007, amended by Law no. 33 of 2008, makes a distinction between eviction before and after the expiry of the lease. Under Article 25(1) a landlord can only seek to evict a tenant before expiry in limited circumstances, including where the tenant has failed to pay rent after 30 days’ notice, where the property is sublet without authorisation, where the property is used for illegal purposes, where commercial premises have been left vacant for a prolonged period, where the property has been subject to damaging or unsafe alterations, where the property has been misused, where planning regulations have been breached, where the tenant has failed to meet legal or contractual obligations after notice or where the property has been certified as unsafe. Notice shall be given by registered mail or by a notary public. Article 25(2) provides that a landlord may apply for eviction on the following grounds: demolition and reconstruction of the property; major renovation or maintenance of the property; personal use by the owner or a first-degree relative; or sale of the property. In such cases, the tenant must be notified by a notary public or by registered mail at least 12 months before. If these statutory grounds or notice requirements are not met, the tenant may challenge the eviction before the Rental Disputes Center under Decree No. 26 of 2013 concerning the Rental Disputes Settlement Center in the Emirate of Dubai and may, where appropriate, seek compensation for unlawful eviction. Federal Civil Law: Hardship versus Force Majeure If a tenant is unable to reach an amicable settlement, they can try to invoke the force majeure and exceptional hardship clauses under the UAE Civil Transactions Law. But these clauses are strictly applied and don’t automatically give a tenant the right to terminate a tenancy contract in Dubai. Law No. 26 of 2007 Regulating the Relationship of Tenancy in Dubai (as amended by Law No. 33 of 2008). Where more general contract principles are applicable, the applicable federal framework as of 1 June 2026 is Federal Decree-Law No. 25 of 2025 on the Civil Transactions Law, in which the concept of exceptional hardship is addressed in Article 224 and force majeure or impossibility of performance in Article 236. Art. 236 allows for the dissolution of a contract if, due to a force majeure, the performance becomes impossible. It’s rarely just financial trouble, a lost job, a slowing business, or a move. The event must make performance legally or practically impossible. Article 224 applies in the case of unforeseeable and exceptional general circumstances which make performance excessively burdensome and threaten serious loss. In such cases the court will, after balancing the parties’ interests, either reduce the obligation to a reasonable level or rescind the contract. Any relief depends on the specific facts, the tenancy agreement, the evidence available, and the discretion of the competent rental dispute forum. Expatriate Relocation, Job Loss, and Personal Unforeseen Circumstances In Dubai, tenants often seek early termination of the tenancy due to changes in employment, redundancy, visa cancellation, or moving outside the UAE. That doesn’t mean that a tenant can just terminate a lease without consequences under these circumstances. Article 738 of Federal Decree-Law No. 25 of 2025 allows a party to terminate a lease agreement for an intervening reason. The party seeking termination shall be liable to the other party for any losses incurred within the ordinary limitations. Unlike the hardship provisions in Article 224 that apply to exceptional and unforeseen circumstances that make performance excessively burdensome, Article 738 applies specifically to lease contracts and may be relevant in situations such as job loss, relocation, or changes in residency status. Relief under Article 738 is not automatic.  Tenants should submit supporting evidence such as documents of employment termination or visa cancellation. In deciding an appropriate resolution, the Rental Disputes Center may take into account the circumstances, the terms of the lease, notice given, and any loss suffered by the landlord. Procedural Steps and the Role of the Rental Disputes Center To properly handle early termination, tenants must adhere to the tenancy agreement, notify the landlord in writing, observe any notice period or penalties specified, and settle any outstanding rent, utilities, and other charges. They must do a final inspection and have a written handover record to avoid future disputes about damage, deductions from the deposit, or late payment. After the handover, the parties are required to complete the Ejari cancellation via Dubai Land Department or Dubai REST channels. Failing to cancel the Ejari may lead to practical and registration difficulties, such as registering a new tenancy for the same property. But the final decision on any outstanding legal or financial responsibility will depend mainly on the tenancy contract, the handover record, any written agreement between the parties and, where appropriate, any ruling from the Rental Disputes Center. In case of refusal of early termination by the landlord, retention of the deposit or an excessive penalty, the dispute can be filed before the Rental Disputes Center, established under Decree No. 26 of 2013, subject to the jurisdiction and exclusions set out in the Decree. The party should provide the tenancy contract, Ejari certificate, payment records, correspondence, identity documents, and any proof for the early termination, such as redundancy, relocation, or cancellation of visa documents. RDC cases may begin with an amicable settlement stage. If no settlement is reached, the matter may proceed before the competent rental dispute committee. Conclusion The key factors for early tenancy termination in Dubai are the tenancy contract, mutual consent, and the relevant Dubai rental laws. Normally, a tenant cannot end a fixed-term lease just by moving out. If the contract doesn’t say anything about this, the most practical way is usually to negotiate. Serious personal circumstances such as losing a job, moving, or losing a visa might be taken into account, depending on the evidence. Landlords and tenants must document any settlement in writing, complete the handover and Ejari cancellation properly, and approach the Rental Disputes Center if the dispute cannot be resolved amicably. Author: Awatif Al Khouri

Introduction The UAE has adopted large-scale initiatives to embed advanced technologies in public services, regulation, and technology-enabled dispute resolution. This evolution in the area of conflict resolution is based on a strong legislative basis that addresses the validity of electronic transactions, the admissibility of digital evidence, and the updating of civil procedures. The overall objective is to make the justice system more efficient, transparent, and accessible, while maintaining the fundamental principles of fairness and human oversight. The Statutory Pillar: Federal Decree-Law No. 46 of 2021 on Electronic Transactions and Trust Services The main law regulating the legality of electronic transactions in the UAE is Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Trust Services. It is relevant to technology-enabled dispute resolution because it gives legal recognition to electronic documents, electronic signatures, electronic seals, automated electronic systems, and trust services, which may form part of digital transactions and electronic evidence in modern disputes. “Automated Electronic Medium” means an electronic information system that is fully or partially automated and does not require the intervention of any natural person at the time of operation or response, as defined in Article (1) of Federal Decree-Law No. (46) of 2021. This may include automated transactional systems and smart contracts. Article 11 acknowledges that contracts may be formed through prearranged and programmed automated electronic systems. These contracts shall be valid and enforceable even if no physical person shall be personally or directly involved in concluding the contract. Also, a contract may be made between an automated electronic system and a person where that person knows, or is expected to know, that the system will conclude or perform the contract automatically. The law also recognizes different levels of electronic signatures and electronic stamps. Article 19 sets out the requirements for a qualified electronic signature or stamp, including that it must identify the signatory, be linked to the signed data, and show if the data has later been changed. Article 20 further recognizes approved electronic signatures and stamps, provided they are supported by an approved authentication certificate and verified through an Approved Trust Service Provider. Federal Decree-Law No. 35 of 2022 Promulgating the Law of Evidence in Civil and Commercial Transactions Federal Decree-Law No. (35) of 2022 on Evidence in Civil and Commercial Transactions has explicitly authorized the use of electronic and digital evidence. Article 53 (1) Electronic evidence shall mean evidence obtained from data or information generated, stored, extracted, copied, sent, communicated, or received through information technology and capable of being rendered in a perceivable form. Examples include electronic records, electronic documents, electronic signatures, electronic seals, electronic correspondence, modern means of communication, electronic media, and other forms of electronic evidence as per Article 54.  Article 55 also reiterates that electronic evidence has the same legal effect as written evidence under the Law, if the relevant legal requirements are met. Where the evidence is provided in electronic or digital form, the general burden of proof continues to apply. According to Article 1 of the Evidence Law, the burden of proof is on the plaintiff to prove the right claimed and on the defendant to disprove it. Article 2 also repeats the burden of proof on the plaintiff. The facts relied upon must be relevant, material, and admissible. The judge cannot decide the case on the basis of personal knowledge. Article 10 also recognizes electronic evidence procedures, providing that all electronic evidence procedures shall be binding under the Law. The value of digital evidence in practice may depend on its reliability, integrity and traceability. Considerations include when the record was created, its source, whether it has been altered and whether it can be produced in a clear and verifiable form. Secure electronic archiving systems, including technologies such as blockchain, may help preserve audit trails, but the evidence still needs to meet the applicable legal requirements for the court. Procedural Modernization: Federal Decree-Law No. 42 of 2022 on Civil Procedure The practical application of digital court procedures in the UAE is supported by Federal Decree-Law No. 42 of 2022 on the Civil Procedure Law. This legislation, which came into effect in early 2023, authorizes the use of remote communication technology in civil procedures and modernizes the service of process. In accordance with Article 6 of the Civil Procedure Law, notices may be delivered by a process server or in the manner prescribed by law, upon request of a party or by order of the competent court or case management office. The court, case management office or supervising judge may also empower the plaintiff or the plaintiff's agent to serve notice by the means referred to in Article 9(1). Article 6 also provides for notices to be served through licensed private companies or offices as per the relevant regulations. This is a testament to the relative flexibility of the methods of service available under UAE civil procedure, as long as the notice is served through legally recognized means and can be properly evidenced. Article 5 of the Civil Procedure Law confirms that the language before UAE courts is Arabic. It also allows the competent federal or local judicial authority to decide that English can be used in some specialized circuits, in particular, lawsuits or categories of cases. Where permitted, English may be used for the trial, proceedings, judgments, decisions, hearings, pleadings, memoranda, applications, and documents. This may be of particular relevance in specialized commercial or technical disputes, subject to conditions imposed by the relevant judicial authority. The Rise of Specialized Digital Economy Courts (DEC): The DIFC Model The Dubai International Financial Center (DIFC) has taken a leading role in creating a specialized environment for technology disputes. The DIFC Courts launched the Digital Economy Court (DEC) Division to address sophisticated transnational disputes related to technologies such as big data, blockchain, fintech, and cloud services. The DEC is governed by Part 58 of the DIFC Courts Rules. Rule 58.12 allows the Court to operate an electronic dynamic system for DEC claims, through which parties may provide information using smart forms or decision-tree software. Separately, Rule 58.11 gives the Court power to order a party to operate, modify, sign, or cancel a digital asset using any digital signature, cryptographic key, password, or other digital access or control mechanism available to that party. Alternative Dispute Resolution: Mediation, Arbitration UAE has also been at the forefront of digital dispute resolution through the enactment of laws on mediation and arbitration. Federal Decree-Law No. 40 of 2023 provides that mediation agreements can be concluded in writing or electronically. The arbitration proceedings shall be carried out physically or remotely by modern technological means, in accordance with Federal Law No. 6 of 2018, as amended by Federal Decree-Law No. 15 of 2023. Mediation settlement agreements and arbitral awards are enforceable under UAE law upon ratification or confirmation by the competent court. Conclusion The UAE’s path to technology-enabled dispute resolution is changing with the electronic transactions law, rules of evidence, digital court procedures, special mechanisms within the DIFC, and modern dispute resolution procedures. The existing framework offers important building blocks for the use of digital tools, electronic evidence, virtual hearings, and responsible use of technology. As digital adoption accelerates, courts, regulators, and practitioners need to find a balance between innovation and accuracy, transparency, data protection, and human oversight. Author: Awatif Al Khouri