Liquidated Damages in the UAE Construction Industry

This dissertation examines the legal framework, enforceability, and judicial interpretation of Liquidated Damages (LDs) in the United Arab Emirates construction industry, a jurisdiction uniquely influenced by a combination of civil law principles, Sharia law, and international standards such as FIDI...

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Main Author: MOHAMED, AHMEDSHORA HASSAN AHMED (author)
Published: 2025
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Online Access:https://bspace.buid.ac.ae/handle/1234/3247
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author MOHAMED, AHMEDSHORA HASSAN AHMED
author_facet MOHAMED, AHMEDSHORA HASSAN AHMED
author_role author
dc.contributor.none.fl_str_mv Dr Derar AL Daboubi
dc.creator.none.fl_str_mv MOHAMED, AHMEDSHORA HASSAN AHMED
dc.date.none.fl_str_mv 2025-08-11T15:47:46Z
2025-06
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv 23002114
https://bspace.buid.ac.ae/handle/1234/3247
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv The British University in Dubai (BUiD)
dc.subject.none.fl_str_mv liquidated damages
UAE civil code
article 390
construction contracts
FIDIC
judicial interpretation
sharia principles
compensation
legal enforceability
dc.title.none.fl_str_mv Liquidated Damages in the UAE Construction Industry
dc.type.none.fl_str_mv Dissertation
description This dissertation examines the legal framework, enforceability, and judicial interpretation of Liquidated Damages (LDs) in the United Arab Emirates construction industry, a jurisdiction uniquely influenced by a combination of civil law principles, Sharia law, and international standards such as FIDIC. The study investigates the application and limits of Article 390 of the UAE Civil Transactions Code, which permits the pre-agreement of compensation for contractual breaches but allows judicial adjustment to ensure alignment with actual losses. The research adopts a doctrinal methodology, analysing statutory provisions, UAE Court judgments, and contractual practices to assess how LDs clauses are applied, challenged, and adjusted in practice. It distinguishes LDs from general damages and delay penalties, clarifying their respective legal consequences and enforceability. Emphasis is also placed on the judicial discretion allowed under UAE law and the ethical principles rooted in Sharia, especially the forbidden of unjust enrichment and excessive penalties “gharar or riba”. Moreover, the dissertation assesses FIDIC’s standard clauses through multiple editions, focusing on Sub-Clause 8.7 and its equivalents, and the procedural complexities for claiming LDs or refusing their enforcement, especially in the context of concurrent delays and Extension of Time (EOT) claims. By providing a comparative legal analysis and practical insights, this study aids legal practitioners, Employers, and Contractors in drafting balanced LDs provisions that align with both legal standards and equitable principles. The findings underscore the importance of clarity, fairness, and judicial oversight in the UAE’s evolving construction law landscape.
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publishDate 2025
publisher.none.fl_str_mv The British University in Dubai (BUiD)
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spelling Liquidated Damages in the UAE Construction IndustryMOHAMED, AHMEDSHORA HASSAN AHMEDliquidated damagesUAE civil codearticle 390construction contractsFIDICjudicial interpretationsharia principlescompensationlegal enforceabilityThis dissertation examines the legal framework, enforceability, and judicial interpretation of Liquidated Damages (LDs) in the United Arab Emirates construction industry, a jurisdiction uniquely influenced by a combination of civil law principles, Sharia law, and international standards such as FIDIC. The study investigates the application and limits of Article 390 of the UAE Civil Transactions Code, which permits the pre-agreement of compensation for contractual breaches but allows judicial adjustment to ensure alignment with actual losses. The research adopts a doctrinal methodology, analysing statutory provisions, UAE Court judgments, and contractual practices to assess how LDs clauses are applied, challenged, and adjusted in practice. It distinguishes LDs from general damages and delay penalties, clarifying their respective legal consequences and enforceability. Emphasis is also placed on the judicial discretion allowed under UAE law and the ethical principles rooted in Sharia, especially the forbidden of unjust enrichment and excessive penalties “gharar or riba”. Moreover, the dissertation assesses FIDIC’s standard clauses through multiple editions, focusing on Sub-Clause 8.7 and its equivalents, and the procedural complexities for claiming LDs or refusing their enforcement, especially in the context of concurrent delays and Extension of Time (EOT) claims. By providing a comparative legal analysis and practical insights, this study aids legal practitioners, Employers, and Contractors in drafting balanced LDs provisions that align with both legal standards and equitable principles. The findings underscore the importance of clarity, fairness, and judicial oversight in the UAE’s evolving construction law landscape.The British University in Dubai (BUiD)Dr Derar AL Daboubi2025-08-11T15:47:46Z2025-06Dissertationapplication/pdf23002114https://bspace.buid.ac.ae/handle/1234/3247enoai:bspace.buid.ac.ae:1234/32472025-08-11T15:48:12Z
spellingShingle Liquidated Damages in the UAE Construction Industry
MOHAMED, AHMEDSHORA HASSAN AHMED
liquidated damages
UAE civil code
article 390
construction contracts
FIDIC
judicial interpretation
sharia principles
compensation
legal enforceability
title Liquidated Damages in the UAE Construction Industry
title_full Liquidated Damages in the UAE Construction Industry
title_fullStr Liquidated Damages in the UAE Construction Industry
title_full_unstemmed Liquidated Damages in the UAE Construction Industry
title_short Liquidated Damages in the UAE Construction Industry
title_sort Liquidated Damages in the UAE Construction Industry
topic liquidated damages
UAE civil code
article 390
construction contracts
FIDIC
judicial interpretation
sharia principles
compensation
legal enforceability
url https://bspace.buid.ac.ae/handle/1234/3247