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Deal by Design
Welcome to this edition of Law Update, focusing on the evolving M&A landscape across the MENA region. With deal activity and value continuing to grow, the region is seeing increased investor interest alongside a changing regulatory environment.
This edition explores key legal and market developments affecting M&A transactions, including regulatory reforms, foreign investment, governance, due diligence and deal structuring across the region.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (3) of 2026 on the Quality and Safety of Buildings in the Emirate of Dubai (the “Law”), which was announced on 10 March 2026. The Law introduces a robust regulatory framework designed to ensure that all buildings across the Emirate meet stringent standards of quality, safety, and sustainability. This alert summarises the key provisions and their implications for stakeholders.
The Law applies to all buildings in Dubai, including those located within private development zones and free zones such as the Dubai International Financial Centre (DIFC), irrespective of whether construction was completed before or after the Law’s enactment. This expansive scope reflects a deliberate effort to harmonise building safety standards across all jurisdictions within the Emirate.
The Law is intended to achieve several core objectives, including in respect of ensuring the structural integrity and sustainable operation of all buildings, enhancing occupant safety and comfort while reducing accidents and protecting property, and preserving Dubai’s urban identity through modern, sustainable development practices.
Building owners, contractors, and engineering offices must achieve full compliance within one year of the Law’s effective date. The Chairman of the TEC retains discretion to grant extensions where warranted. The Law will enter into force 60 days following its publication in the Official Gazette.
The Law has significant implications for all real estate stakeholders in Dubai. It removes previous distinctions between mainland and free zone regimes by requiring private developers and free zone entities to align building safety protocols with Dubai Municipality standards. Building owners face increased liability, with clear duties to appoint licensed engineering offices, remedy defects, and maintain ongoing compliance, supported by new digital systems and centralised databases that enhance transparency and data‑driven oversight.
For investors, Law No. (3) of 2026 creates a clearer quality benchmark by mandating independent technical inspections and long-term Quality and Safety Certificates for all buildings, including those in private developments and free zones such as the DIFC. This is expected to strengthen risk management, support tenant demand, and help distinguish compliant, well‑maintained assets in terms of pricing and liquidity, while robust enforcement powers should further boost confidence and due diligence.
Al Tamimi & Company’s Construction and Corporate teams are monitoring the forthcoming executive regulations that will detail certification, renewal, inspection, and enforcement procedures. Market participants are encouraged to review existing inspection and maintenance practices now, and our team is available to support with targeted compliance reviews and regulatory guidance and tailored solutions as the new framework is implemented.
For further details or assistance, please feel free to contact the key contacts.
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