The built environment contributes substantially to global energy consumption and material waste, creating urgent need for sustainable retrofit strategies. While Digital Twin (DT) technologies and Circular Economy (CE) principles have gained considerable research attention, integrated frameworks tailored to the UAE context remain absent. This systematic literature review synthesized 85 peer-reviewed studies published between 2014 and 2026 using the PRISMA 2020 protocol, achieving strong inter-rater reliability. Six thematic clusters were identified and analyzed across four dimensions: retrofit decision support, circularity assessment, UAE contextualization, and predictive simulation. The review confirmed a persistent four-dimensional capability gap. To address this, a Digital Twin-ready framework is proposed comprising four layers: UAE exposure-context calibration, Circularity Readiness Index (CRI) computation, rule-based decision support, and predictive simulation. The framework provides a rigorous foundation for future validation and operational implementation of circular retrofit decision-support systems in the UAE.