Integrating AI and Blockchain for Payment Security and Variation Management in UAE Construction Contracts

Abstract

This dissertation examines the integration of artificial intelligence (AI) and blockchain technologies into UAE construction contracts, focusing on payment security and variation management under the Fédération Internationale des Ingénieurs-Conseils (FIDIC) 1999 Conditions of Contract. Using doctrinal and comparative legal methodology, the research evaluates compatibility between UAE Civil Transactions Law, the country's dual legal system (onshore civil law and offshore common law), and emerging digital contract technologies. The analysis identifies five critical integration gaps: uncertainty in blockchain evidence admissibility, absence of AI accountability frameworks, jurisdictional mismatches between DIFC/ADGM and UAE civil courts, procedural friction with FIDIC workflows, and ethical conflicts under the UAE's Personal Data Protection Law. These gaps are systematically analysed and addressed through a comprehensive Three-Pillar Implementation Framework comprising legal reform, technical standardisation, and institutional capacity building. A phased implementation roadmap (2025-2030) projects potential benefits including reduced disputes, accelerated payments, and enhanced administrative efficiency. The research provides the first integrated analysis of AI and blockchain applications in civil law construction systems, offering actionable frameworks for policymakers, regulators, and industry stakeholders. The findings position the UAE to lead regional transformation in construction legal technology while providing transferable models for other civil law jurisdictions pursuing digital modernisation.