This guide offers straightforward answers to common legal questions businesses in Dubai may face in 2026, drawing on DY Lawyers & Legal Consultants’ experience. Keep in mind, these responses are for general guidance and are not formal legal advice.
Contract Disputes
What qualifies as force majeure under UAE law?
Article 273 of the UAE Civil Code says a contract can be excused if an unforeseeable and uncontrollable event makes it impossible to perform. The event must make performance truly impossible, not just harder or more expensive. Courts look closely at force majeure clauses, especially if they list certain events. DY Lawyers & Legal Consultants can review your contract and give advice specific to your situation.
Can I renegotiate a contract in Dubai if market conditions have changed dramatically?
UAE law does not generally let you renegotiate contracts just because circumstances have changed, unlike some other legal systems that recognize “hardship.” Some contracts do have hardship clauses that allow renegotiation if certain conditions are met. Article 249 of the UAE Civil Code lets courts reduce an excessive obligation if an exceptional, unforeseen event makes performance much harder, but courts use this rule carefully. If your contract does not have a hardship clause, it is best to negotiate directly with the other party, with legal help to protect your interests.
Construction
What should a contractor do if building materials are delayed due to shipping disruptions?
The contractor should promptly send a written notice to the employer, or to the Engineer if using FIDIC contracts, explaining the event, how it will affect the schedule, and which contract terms apply. FIDIC Sub-Clause 20.1 says you must give this notice within 28 days of learning about the event. The contractor should also gather evidence, such as supplier emails, shipping records, and schedule updates. If you do not give notice on time, you could lose your claim. DY Lawyers and Legal Consultants can help contractors prepare notices and supporting documents.
Can a developer terminate a contractor for delay in Dubai?
To terminate a contractor for delay, the developer usually must follow the steps in the construction contract. In most FIDIC-based contracts, the employer first gives a notice to correct, allowing the contractor time to fix the delay. If the contractor does not fix it, the employer can then end the contract. If the delay is due to force majeure, termination may not be allowed. Wrongful termination can have serious legal and business consequences, so it is important to get legal advice before acting.
Real Estate
Is Dubai real estate still a safe investment in 2026?
Dubai’s property market has strong foundations, such as a growing population of over 4 million, mature regulations from RERA and the Dubai Land Department, good rental yields, and a diverse economy. The market is moving from fast price growth to a more stable phase, and analysts see 2026 as a time of normalisation, not decline. As with any investment, property has risks, so buyers should do careful research. DY Lawyers offers real estate due diligence and can advise on the legal side of property investment in Dubai.
What is the process for resolving a rent dispute in Dubai?
The Rental Disputes Settlement Centre (RDC), part of the Dubai Land Department, handles rent disputes in Dubai. You begin by filing a case with the RDC, either online or in person. The first step is conciliation. If you cannot agree, the case goes to a committee hearing. You can appeal the decision to a higher committee. The process usually takes from a few weeks to a few months, depending on the case’s complexity. DY Lawyers represents both landlords and tenants at the RDC, with a high success rate.
Business Protection
Should I include a force majeure clause in my new contracts in Dubai?
Yes, you should include a force majeure clause. After recent events like the pandemic and regional disruptions, every commercial contract in Dubai needs a clear force majeure clause. It should define what events trigger it, cover both expected and unexpected disruptions, set notice requirements, explain the consequences such as suspension or termination, and require efforts to reduce the impact. A good force majeure clause makes things clearer and can help avoid costly disputes. DY Lawyers drafts these clauses to fit each client’s industry and risk profile.
How can I protect my business from supply chain disruptions in Dubai?
To protect your business from supply chain disruptions, begin by reviewing your contracts. Make sure your supply agreements have clear force majeure and hardship clauses, allow for alternative sourcing, and include price adjustment terms. Check your insurance for business interruption and supply chain coverage. If possible, use more than one supplier. If a disruption occurs, contact your partners quickly and keep records of what happened. DY Lawyers helps businesses create strong contracts and responds quickly when disruptions lead to disputes.
Maritime & Shipping
What legal options do I have if a shipping line suspends services to Dubai?
Your options depend on your contract and the law that applies. If the shipping line claims force majeure, check if your contract’s clause covers the situation. In the UAE, force majeure means an event that could not be predicted or avoided. If the clause does not fit or is used incorrectly, you might be able to claim damages for breach of contract. DY Lawyers & Legal Consultants can review your case and advise you quickly.
Who pays the war risk surcharge on shipping the shipper or the carrier?
The contract of carriage or charter-party usually decides who pays the war risk surcharge. Many contracts let carriers pass on extra costs from security risks, but it depends on the exact wording. If you get an unexpected surcharge, ask a maritime lawyer to check your contract and see if the charge is fair.
Can I claim on my cargo insurance if goods are delayed due to port closures in the Gulf?
Standard cargo insurance policies (typically Institute Cargo Clauses A, B, or C) cover physical loss and damage but generally do not cover pure delay. However, if the delay results in physical deterioration of the goods for example, perishable items spoiling during an extended wait a claim may be possible. Additionally, if you hold a war risks extension, it may provide coverage for losses arising from the current regional situation. Each policy is different, and we recommend having your specific policy reviewed by a lawyer with marine insurance experience.
