Introduction

In the United Arab Emirates’ dynamic and competitive business environment, meticulous records management is the foundation of successful dispute resolution and legal compliance. As of 2025, recent updates in UAE law have increased the evidentiary significance of daily reports, Requests for Information (RFIs), and formal notices—especially within the construction, engineering, and commercial spheres. With greater regulatory scrutiny and sophisticated regulatory frameworks, organisations must elevate their approach to documentation to remain compliant and, most critically, to secure their position in the event of a legal claim.

This article delivers a comprehensive, consultancy-grade legal analysis for business leaders, compliance officers, project managers, HR executives, and in-house counsel in the UAE. We explore the core statutory regimes, practical applications, evolving requirements, and the risks and best practices associated with managing records that win claims under UAE law. Leveraging insights from the UAE Ministry of Justice, the Ministry of Human Resources and Emiratisation, and directives contained in the Federal Legal Gazette, this article equips decision-makers with the strategies needed for the year ahead.

Table of Contents

Understanding Records Management Law in the UAE

Statutory Foundation

Records management in the UAE is both a legal obligation and a compliance benchmark. Multiple provisions, including the Federal Law No. 6 of 2018 on Arbitration, Federal Decree-Law No. 32 of 2021 on Commercial Companies, and Federal Decree-Law No. 20 of 2016 on Pledge of Movables as Security for Debts (as amended by Decree-Law No. 23 of 2019), stipulate that documentary evidence, including electronic records, is central to establishing facts in arbitration and litigation.

The Federal Law No. 10 of 2022 on Electronic Transactions and Trust Services set a milestone by confirming that digital records, if properly maintained and validated, hold the same legal value as traditional paper documents.
Additionally, sectoral guidelines—such as the UAE Ministry of Human Resources and Emiratisation resolution on employment records, and construction contracts governed by the UAE Civil Code (Federal Law No. 5 of 1985)—affirm the necessity of comprehensive, up-to-date documentation. Failure to comply can result in severe consequences, ranging from adverse inference in court to regulatory penalties.

Why 2025 is a Landmark Year

Recent amendments and clarifications (as published in the UAE Federal Legal Gazette, 2024–2025) have raised the bar for documentation:

  • Evidentiary Shifts: Courts and arbitral tribunals now rely more heavily on contemporaneous daily records than mere witness testimony, especially in technical fields.
  • Electronic Evidence: Digitally managed daily reports, RFIs, and notices are recognized, provided they meet standards of accuracy, integrity, authenticity, and accessibility per Federal Law No. 10 of 2022.

Critical Role of Daily Reports in Legal Claims

Legal Requirements and Strategic Value

Daily reports are operational documents that chronicle day-to-day events, progress, resource allocations, workforce movements, incidents, delays, instructions given or received, and environmental conditions at project sites. Under the UAE Civil Code (Article 887 and related provisions), contractors are required to maintain clear records that support claims for extension of time (EOT), variations, cost recovery, and dispute resolution.

The UAE Courts and arbitral panels, including those under the Dubai International Arbitration Centre (DIAC), now consider properly completed daily reports as pivotal evidence that can determine the outcome of project-related disputes.

Executive Insight: Daily Reports as Your Safeguard

  • Proving Delays: Courts typically require evidence that attributes delays to uncontrollable external factors, such as force majeure or third-party acts. A daily report that logs weather events, supply disruptions, or authority instructions substantiates these claims.
  • Workforce and Equipment Records: Misreporting or absence of records about personnel and equipment typically precludes claims for cost recovery.

Case Example: Extension of Time Claim Secured by Daily Reporting

Consider a UAE-based construction company facing penalties for project delays. The company’s daily reports, maintained per FIDIC standards and aligned with Arabic-language requirements, evidenced adverse weather and late supply chain deliveries. The project owner contested, but the court, reviewing these detailed reports, ruled in the contractor’s favour for EOT.

Process Flow Suggestion

(Visual Placement Suggestion: Include a process flow diagram titled “From Daily Reporting to Successful Claim Submission” to elucidate the stepwise collection and escalation of daily data.)

RFIs: Requests for Information in Regulatory and Contractual Context

Understanding the RFI Mechanism

Requests for Information, or RFIs, are structured communications submitted by contractors, consultants, or vendors seeking clarification or additional information regarding contract documents, technical details, or project requirements.

Though the RFI process is often governed at the contract level, UAE Civil Code Articles 246 (good faith), 258 (interpretation of ambiguous terms), and 880-896 (Liability of Contractors and Engineers) collectively underpin the necessity for parties to seek and respond to clarifications promptly and in writing.

Legal Recognition and Evidentiary Role

  • Dispute Resolution: Courts and arbitral forums examine RFIs and responses to determine whether parties acted in good faith and whether delays or extra costs resulted from misunderstandings not addressed in a timely manner.
  • Electronic RFIs: In line with Federal Law No. 10 of 2022, electronic logs of RFIs are admissible if stored within a system that ensures traceability and authenticity.

Consultancy Insight: The Art of Drafting and Responding to RFIs

  • Always state the exact drawing reference, specification, or clause in question.
  • Keep language clear and neutral—avoid accusatory or emotive phrasing.
  • Maintain an RFI register with submission dates, responses, and escalation steps.

Case Example: RFI Logs Overturned Unjustified Variations

A UAE MEP contractor was accused of failing to install specified equipment on time. RFI logs revealed repeated, unanswered clarifications sent to the project consultant. The DIAC Tribunal found the contractor’s delay excusable based on these documented efforts.

Table: Best Practice Comparison—RFIs Under Old vs. New Law

Aspect Pre-2022 UAE Law Post-2022 (Federal Law No. 10 of 2022)
Form of RFI Paper-based, email with limited recognition Electronic systems recognized, digital signatures valid
Evidentiary Status Primary, subject to corroboration Admissible if integrity and authenticity are ensured
Response Tracking No obligation to maintain register Structured registers encouraged; traceability key

Issuing Effective Legal Notices in the UAE

Notice Requirements in UAE Law

Legal and contractual notices are formal communications that inform a counterparty of an event, breach, intention, or claim. Under the UAE Civil Code (Article 267 regarding notification for rescission or repudiation), Construction Contract Law, and Federal Decree-Law No. 6 of 2018, proper serving and recording of notices are required steps before escalating to litigation or arbitration.

In regulated sectors, such as employment, Cabinet Resolution No. 1 of 2022 specifies strict timing and delivery mandates—missed deadlines often invalidate subsequent claims.

Key Legal Elements of Valid Notices

  • Clearly identify the basis of the notice (e.g. clause invoked, event triggering the right to notify).
  • Ensure timely delivery via contractual or statutory means (registered post, courier, official email).
  • Retain delivery receipts and acknowledgements.

Case Study: Formal Notice Averted Breach of Contract Claim

A UAE developer failed to issue formal written notice of a subcontractor’s repeated delays. As per contract and Civil Code requirements, the subsequent termination was declared unlawful—exposing the developer to financial liabilities. Proper notice observance is therefore paramount.

Suggested Visual/Table Placement

(Visual/Table Suggestion: Compliance Checklist—”Legal Notice Requirements Under UAE Law” summarising form, content, recipient, timing, and proof of service.)

Table: Evolution of Records Compliance in the UAE

Area Pre-2022 (Old Regime) 2022-2025 (Current Updates)
Daily Reports Encouraged, not always enforced Frequently mandated; non-compliance prejudices claims
Electronic Records Limited legal value, subject to approval Full evidentiary status (Federal Law No. 10 of 2022)
RFI Practices Contractual, inconsistent across projects Anchored in statute, structured approaches required
Notice Requirements Flexible, less formalized Strict statutory timelines, mandatory formats

Impact Assessment

The above transformations create clarity but also heighten liability for organisations that neglect documentary rigor. Adherence to updated law is no longer a procedural formality—it is a substantive right and defence mechanism.

Real-World Case Studies

1. Construction Dispute: Daily Reports as Decisive Evidence

A multinational contractor, engaged on a government infrastructure project in Abu Dhabi, faced deductions for delayed completion. The party’s contemporaneous daily logs captured weather disruptions, client instruction delays, and force majeure events. The dispute adjudicator favored the contractor, reinforcing that “events not recorded contemporaneously are presumed not to have occurred” under the new legal paradigm.

2. RFI Trail: Successfully Resisting an Employer’s Claim

An engineering supplier documented all technical queries via a digital RFI protocol. When an employer asserted defective supply, the contractor produced the RFI chain showing ambiguity in employer-provided drawings and the employer’s failure to respond. The court dismissed the employer’s claim, finding the contractor’s actions diligent and in compliance with Article 246 of the Civil Code (good faith).

3. Employment Law Context: Notice Management

A UAE company terminated an expatriate manager, citing redundancy. The employee challenged the termination, alleging absence of prescribed notice under Cabinet Resolution No. 1 of 2022. The company produced the original notice, delivery proof, and acknowledgment, resulting in successful defence against unlawful termination claims.

Risks of Non-Compliance

Evidentiary Risks

Failure to maintain appropriate records undermines legal claims and exposes organizations to adverse inferences. UAE courts generally disfavor parties unable to substantiate positions with timely, authentic, and complete documentation.

Regulatory and Operational Sanctions

  • Monetary penalties for breach of statutory reporting mandates (e.g., under Ministry of Human Resources regulations).
  • Reputational harm, regulatory investigations, and loss of business licenses.

Case Insight: Adverse Inference in Action

In a high-profile arbitration, a UAE contractor’s claims were largely dismissed due to failure to maintain daily logs, while its adversary, who archived all correspondence, prevailed on liability and quantum.

Winning Strategies: Best Practices for Record Management

Building a Robust Compliance Framework

  1. Digital Recordkeeping Systems: Implement systems compliant with Federal Law No. 10 of 2022, ensuring all records are timestamped, unalterable, and easily retrievable.
  2. Training & Awareness: Regularly train staff on documentation protocols—clarify the legal and operational imperative.
  3. Standardized Templates: Apply standard templates for daily reports, RFIs, and notices tailored to each project’s legal and contractual context.
  4. Audit & Review: Conduct periodic audits to verify compliance and address gaps.
  5. Legal Oversight: Ensure regular legal review of recordkeeping policies by UAE-qualified legal professionals.

Practical Compliance Checklist

(Table/Visual Suggestion: Compliance Checklist for winning claims—”Are your daily reports, RFIs, and notices complete, accurate, timely, and properly stored?”)

Executive Recommendations

  • Do not rely solely on memory or oral agreements—UAE law prioritizes documentary evidence.
  • Leverage e-signature and digital document technologies compliant with UAE law.
  • Immediately rectify lapses in recordkeeping upon discovery—proactive remedial action is viewed favourably by authorities.

Conclusion: Next Steps for UAE Businesses

Recent legal updates in the UAE have transformed documentation, daily reporting, and formal notice practices from best practice into imperative legal requirements. Federal Law No. 10 of 2022 firmly establishes the primacy of electronic records, while sector-specific statutes impose detailed protocols and timelines that leave little margin for error.

For UAE businesses and professionals, robust records management is no longer simply a matter of operational efficiency—it is the cornerstone of risk mitigation, regulatory compliance, and claim success in dispute resolution. The ability to rely on authentic, complete, and timely documentation will often determine which party prevails in court, arbitration, or regulatory investigations.

Looking forward, organizations are advised to:

  • Conduct an immediate gap analysis of current documentation practices.
  • Invest in digital transformation solutions that meet Federal Law standards.
  • Foster a culture of compliance, reinforced by regular training and oversight.
  • Seek ongoing legal consultancy to adapt processes to evolving statutory demands.

Ultimately, in the UAE’s rapidly advancing legal landscape, businesses that master modern records management will not only win more claims—they will thrive as trusted and resilient market leaders.