If a renovation contractor in Dubai took your deposit and stopped work, act in this order: stop further payments, collect your evidence, send a written notice with a final deadline, get a technical report comparing work done with money paid, then take the claim to the Dubai Courts’ settlement centre if it is not resolved. Do not simply hire someone new and demolish the evidence first. Here is how each step works.
This is one of the most common fears in Dubai renovation forums, and it does happen. The National reported that one Dubai renovation firm closed in December 2024 with 84 active projects, leaving more than 80 homeowners out of pocket. This guide is general information, not legal advice, so speak to a Dubai lawyer before you end a contract.
Contractor took your deposit in Dubai? What to do, step by step
- Stop paying, and stay calm in writing. Do not sign anything new, and do not hand over post-dated cheques. Keep all contact in writing from now on.
- Collect your evidence. Contract or signed quotation, BOQ, payment proofs, invoices, WhatsApp and email threads, dated photos and videos of the site, and any approvals or NOCs. UAE evidence law treats electronic evidence as equal to written evidence, and witnesses generally cannot prove a transaction above AED 50,000.
- Record the site. Before anything changes, photograph every room with the date, and list what has been done and what has not.
- Send a written notice. State what was agreed, what is wrong, what you require and a final deadline. Lawyers advise raising problems formally with the original contractor before hiring another. A lawyer’s notice carries more weight.
- Get the value of work assessed. A quantity surveyor or engineer can report on the value of work done against the money you paid. That report is usually the heart of the claim.
- End the contract properly. For contracts signed since 1 June 2026, see the new rule below. For older ones, the older Civil Code rules may apply. Ask your lawyer which applies.
- Take the claim to the right place. See the dispute routes below. Do not assume consumer protection will take it.
- Then finish the home. Bring in a new contractor after the facts are recorded. Check the NOC and permits too: they may be in the old contractor’s name, and your new contractor will need to take them over.
What the law gives you
A new UAE Civil Code, Federal Decree-Law 25 of 2025, took effect on 1 June 2026. According to Mayer Brown and Galadari:
- Article 818: the contractor must finish within the agreed period, or a reasonable time if none was agreed. After notice and a reasonable remedy period, you may rescind or have the work corrected at the contractor’s expense, after establishing the facts, without needing court permission first. Galadari has also warned that an owner may still need an expedited court application to establish the defect, so take advice.
- Article 836: if you simply withdraw without the contractor being at fault, you owe expenses, work done and lost profit, which a court may reduce. So do not call it “cancelling” lightly. The reason matters.
- Article 340: agreed delay penalties remain subject to the court, which may reduce them.
Contracts signed earlier may stay under the 1985 Code, although lawyers do not fully agree on how some rules carry over. These article numbers come from legal commentary, so your lawyer should check them against the official text.
A real example: Dubai Commercial Court ended a villa contract where the owner paid the advance and the contractor never started. A court-appointed expert blamed the contractor, and the court ordered a refund of AED 34,000 plus AED 10,000 in compensation, with fees and costs on the contractor.
Where to complain: the dispute routes
| Route | What it is for | What to know |
|---|---|---|
| Centre for Amicable Settlement of Disputes (Dubai Courts) | Claims up to AED 500,000 go here first. It can also appoint experts before litigation and ratify settlements | Half the court fee is paid on registering |
| Dubai Courts | Larger claims, or if settlement fails | Partial circuit up to AED 1,000,000, and plenary above. Fee is 6% of the claim, capped by band, minimum AED 500 |
| Payment order | A debt the contractor has acknowledged in writing | Can be cheaper than a full claim. Ask your lawyer |
| DET consumer complaints | Goods and services generally | Gulf News reports that it does not cover construction and contracting disputes. Check before relying on it |
| Police | Bounced cheques, or suspected fraud or breach of trust | Lawyers on legal Q&A sites say police may treat the matter as civil and redirect it |
A judgment only helps if the contractor has money or assets, so ask your lawyer to look at that early. In a collapse with many creditors, recovery can be slow or partial. That is why the steps in the next section matter more than any court route.
How to pay a contractor safely
No law we found caps renovation deposits. Published advice ranges widely, from 10 to 30%, and The National reports that the failed firm’s clients typically paid a 30% deposit. What protects you is less about the percentage than whether each payment buys something you can see:
- Tie every payment to a defined scope. “Design and drawings”, “materials delivered”, “first fix inspected” are clear. “Second payment” is not.
- Ask for proof of materials. For a large payment on materials, ask for supplier invoices or see the goods.
- Keep the last part until snags are closed. Retention is not legally required but common in UAE construction, often around 10%.
- Pay the company, not a person. Match the bank account or receipt to the licence and contract. Ask for a dated tax invoice: consumer law requires suppliers to issue dated invoices in Arabic, and missing invoices often weaken an owner’s position.
- Get the warranty in writing, on the invoice or contract. One owner told a legal Q&A site that a complaint was closed because the invoice did not mention the promised warranty.
At M&A, payments are stage by stage and tied to a scope of work, and the handover payment is due only after you sign off every item. Read how we run a project.
Warning signs before it goes wrong
- Demolition starts fast, then nothing happens for weeks.
- Workers say they have not been paid. In one forum account, the workers turned out to be unpaid subcontractors.
- The office address on the website turns out to be a residential building.
- Requests for more money before the next stage is done.
- No tax invoice, or receipts in a different name.
- Permits and NOCs that keep “coming next week”: ask to see them.
Before hiring anyone, run the checks in how to choose a fit out contractor, and search the licence page. Dubai’s Law No. 7 of 2025 now requires contractors to hold a licence and a register entry, and its penalties include fines and removal from the register.
Finishing a half-done renovation
A new contractor can usually take over, but expect some careful steps, and possibly a higher price than the original quote:
- Survey what is hidden. Waterproofing, pipes and cables done by the first contractor may have no records. Some may need to be opened and tested.
- Sort the paperwork. The NOC, deposit, permits and contractor registration usually have to change to the new firm. DDA, for example, charges AED 500 to replace a contractor with the old contractor’s NOC, or AED 2,000 with the owner’s undertaking.
- Agree who answers for old work. A new contractor may not warrant what they did not build, so agree this in writing.
- Get a fresh BOQ for what remains. Then compare it with what you have already paid.
Our project management and site supervision service can assess a stalled site, and our renovation team can finish it.
Frequently asked questions
Can I get my deposit back from a renovation contractor in Dubai?
You can claim for money paid above the value of work done, plus losses you can prove. Start with a written notice and a technical report. Claims up to AED 500,000 go to the Centre for Amicable Settlement of Disputes first. Recovery depends on the evidence and on whether the contractor has assets.
Can I complain to Dubai consumer protection about a contractor?
Gulf News reports that the DET consumer service does not cover construction and contracting disputes or cases that need technical expertise. Check the current position with DET, and be ready to use the courts’ settlement route.
Can I file a police case if a contractor takes payment and disappears?
You can raise it, especially with a bounced cheque or signs of fraud, but police may decide it is a civil matter. Speak to a lawyer about which route fits your facts.
Is a WhatsApp agreement valid in the UAE?
Electronic evidence has the same weight as written evidence under the Evidence Law, and lawyers on legal Q&A sites say WhatsApp messages and signed quotations can serve as proof. A clear contract is still far stronger.
How much deposit should I pay a renovation contractor in Dubai?
No law sets a limit. Published advice varies. Rather than fixing on one percentage, make sure each payment is tied to a defined scope you can check, and keep the last payment until the snag list is closed.
Can I hire another contractor to finish the work?
Yes, but record the site first and give notice. For contracts since June 2026, the new Civil Code lets an owner have the work corrected at the contractor’s expense after notice and establishing the facts. Ask a lawyer before you do it, so you keep your claim.
Checked in November 2026. General information only, not legal advice. Article numbers come from law-firm commentary on the new Civil Code. Press reports are attributed to their publishers.
Stuck with a half-finished renovation?
We can visit, tell you honestly what state the work is in and what it would take to finish, and give you a written price for the remaining work. Book a free site visit or call +971 58 530 0230.
