General UAE Legal Questions LawLaw No. (10) of 2026

Article (76) a. If a Supplier delays in supplying, or fails to supply, all or part of the required materials beyond the deadlines stipulated in the Contract; or if the supplied materials are rejected by the receiving Committee, the Director General may, pursuant to a resolution he issues in this respect, extend the deadline for an additional period of up to thirty (30) days, without charging any delay penalty, if such extension is in the interest of the Government Entity. b. Where a Supplier fails to supply the materials by the prescribed deadlines or within the extension period granted to him in accordance with the provisions of paragraph (a) of this Article, the Supplier will be charged a delay penalty of zero point five per cent (0.5%) of the value of the contracted materials for each day of delay or part thereof. The total amount ©2026 The Supreme Legislation Committee in the Emirate of Dubai 1 Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail.

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Law No. (10) of 2026 Amending Law No. (12) of 2020 Concerning Contracts and Warehouse Management in the Government of Dubai Page 2 of 2 of a delay penalty may not exceed twenty per cent (20%) of the value of the contracted materials where the delay in supply does not preclude the use of all required materials. Where the delay in supply precludes the use of all materials, the delay penalty will be calculated based on the total value of the materials purchased under the Contract. c. Where the Supplier continues to delay in supplying the materials until the delay penalty reaches the maximum limit specified in paragraph (b) of this Article, the Government Entity may, without the need for a notice or court judgment, take either of the following measures against the Supplier: 1. purchase the materials at the expense of the Supplier and hold the Supplier liable for the difference in prices, in addition to ten per cent (10%) of the value of the contracted materials as administrative fees; or 2. revoke the Contract, confiscate the Performance Bond, and claim compensation for damage from the Supplier. Commencement and Publication