This Law will be cited as "Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai".  

In implementing the provisions of this Law, the following words and expressions will have the meaning indicated opposite each of them unless the context implies otherwise:

The provisions of this Law will apply to land and Real Property leased out in the Emirate, excluding Real Property provided free of Rent by natural or legal persons as accommodation for their employees.

1.     The contractual relationship between a Landlord and a Tenant will be regulated by a Lease Contract which includes a description of the leased Real Property that leaves no room for uncertainty; the purpose of the lease; the term of the Lease Contract; the Rent and its payment method; and the name of the Real Property owner if the Landlord is not the owner.

2.     All Lease Contracts related to Real Property which is governed by the provisions of this Law, and any amendments thereto, will be registered with RERA.

The term of a Lease Contract must be specified. Where the term is not specified in the Lease Contract or where it is impossible to prove the alleged term, the Lease Contract will be deemed valid for the period specified for payment of the Rent.  

Where the term of a Lease Contract expires, but the Tenant continues to occupy the Real Property without any objection by the Landlord, the Lease Contract will be renewed for the same term or for a term of one year, whichever is shorter, and under the same terms as the previous Lease Contract.  

Where a Lease Contract is valid, it may not be unilaterally terminated during its term by the Landlord or the Tenant. It can only be terminated by mutual consent or in accordance with the provisions of this Law.  

The term of a sub-lease contract entered into between the Tenant and Sub-tenant will expire upon the expiry of the term of the Lease Contract entered into between the Landlord and Tenant, unless the Landlord expressly agrees to extend the term of the sublease contract.  

1.     Landlords and Tenants must specify Rent in Lease Contracts. Where the parties fail to specify the Rent and it is impossible to prove the Rent agreed upon by them, the Rent will be the rental value of similar Real Property.

2.     The Tribunal will determine the rental value of similar Real Property taking into account the criteria for determining the percentage of Rent increase prescribed by RERA; the prevailing economic situation in the Emirate; the condition of the Real Property; the prevailing rental value of similar Real Property in other similar Real Property markets within the same area; the provisions of any legislation in force in the Emirate regulating Real Property Rent, and any other factors which the Tribunal deems appropriate.

RERA will have the authority to establish criteria relating to percentages of Rent increase in the Emirate in line with the requirements of the prevailing economic situation in the Emirate.  

Unless otherwise agreed, the Rent will cover use of the Real Property amenities such as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other amenities. 

The Tenant will pay the Landlord the Rent on the dates mutually agreed upon. Where there is no agreement or where it is impossible to verify the payment dates, the Rent must be annually paid in four (4) equal instalments to be paid in advance. 

For the purposes of renewing a Lease Contract, the Landlord and Tenant may, prior to the expiry of the Lease Contract, amend any of its terms or reconsider increasing or reducing the Rent. If the Landlord and Tenant fail to reach an agreement in this regard, the Tribunal may determine the fair Rent, taking into account the criteria stipulated in Article (9) of this Law.

Unless otherwise agreed by the parties to a Lease Contract, where either party wishes to amend any of its terms pursuant to Article (13) of this Law, that party must notify the other party of this intent no less than ninety (90) days before the date on which the Lease Contract expires.

A Landlord will be bound to hand over the Real Property in a good condition which allows the Tenant to fully use it as stated in the Lease Contract.

Notwithstanding the foregoing, the parties may agree upon renting Real Property before completion of its construction, in which case the Tenant must complete the construction of the Real Property and make it suitable for its intended use. The agreement will determine the party liable to pay the costs of completion of the construction.

Unless otherwise agreed by the parties, the Landlord will, during the term of the Lease Contract, be responsible for the Real Property’ maintenance works and for repairing any defect or damage that may affect the Tenant's intended use of the Real Property.  

The Landlord may not make to the Real Property or any of its amenities or annexes any changes that would preclude the Tenant from full use of the Real Property as intended. The Landlord will be responsible for such changes whether made by him or any other person authorised by the Landlord. Further, the Landlord will be responsible for any defect, damage, deficiency, and wear and tear occurring to the Real Property for reasons not attributable to the fault of the Tenant. 

The Landlord must provide the Tenant with the approvals required to be submitted to the competent official entities in the Emirate whenever the Tenant wishes to carry out decoration works or any other works that require such approvals, provided that such works do not affect the structure of the Real Property and that the Tenant has the official documents requesting such approvals.  

The Tenant must pay the Rent on due dates and maintain the Real Property in such a manner as an ordinary person would maintain his own property. Without prejudice to the Tenant's obligation to carry out the restorations that have been agreed upon or which are customary for Tenants to undertake, the Tenant may not make any changes or carry out any restoration or maintenance works to the Real Property unless so permitted by the Landlord and after obtaining required licences from the competent official entities. 

When entering into a Lease Contract, the Landlord may obtain from the Tenant a security deposit to ensure maintenance of the Real Property upon the expiry of the Lease Contract, provided that the Landlord undertakes to refund such deposit or remainder thereof to the Tenant upon the expiry of the Lease Contract.  

Upon the expiry of the term of the Lease Contract, the Tenant will must surrender possession of the Real Property to the Landlord in the same condition in which the Tenant received it at the time of entering into the Lease Contract except for ordinary wear and tear or for damage due to reasons beyond the Tenant's control. In the event of dispute between the two parties, the matter must be referred to the Tribunal to issue an award in this regard. 

Unless the Lease Contract states otherwise, the Tenant must pay all fees and taxes due to Government entities and departments for use of the Real Property as well as any fees or taxes prescribed for any sub-lease.  

Unless otherwise agreed by the parties, upon vacating and surrendering possession of the Real Property, the Tenant may not remove any leasehold improvements made by the Tenant.  

Unless otherwise agreed by the parties to the Lease Contract, the Tenant may not assign the use of or sub-lease the Real Property to third parties unless written consent of the Landlord is obtained.  

1.     A Landlord may request eviction of the Tenant from the Real Property before expiry of the Lease Contract only in the following cases:

a.      unless otherwise agreed by the parties, where the Tenant fails to pay the Rent or any part thereof within thirty (30) days from the date of service of a Notice on the Tenant by the Landlord requesting the payment;

b.     where the Tenant sublets the Real Property or any part thereof without obtaining the Landlord's written approval, in which case the eviction will apply to the Tenant and to the Subtenant, who will reserve the right to claim compensation from the Tenant;

c.      where the Tenant uses the Real Property or allows others to use it for any illegal purpose or for a purpose which conflicts with public order or morals;

d.     unless otherwise agreed by the parties, where the leased Real Property is used as business premises and the Tenant leaves it unoccupied without a valid reason for a period of thirty (30) consecutive days or ninety (90) non-consecutive days in a year;

e.      where the Tenant makes any change to the Real Property that endangers its safety in a manner that makes it impossible to restore the Real Property to its original state; or causes damage to the Real Property as a result of his deliberate act, or his gross negligence by failing to exercise due caution and care or allowing others to cause that damage;

f.       where the Tenant uses the Real Property for a purpose other than that for which it is leased, or otherwise uses the Real Property in a manner that violates the planning, construction, and land use regulations in force in the Emirate;

g.     where the Real Property is likely to collapse, provided that the Landlord proves this by a technical report issued by or certified by the Dubai Municipality;

h.     where the Tenant fails to comply with any of his obligations under this Law or any of the Lease Contract terms within thirty (30) days from the date on which a Notice requesting him to comply with that obligation or term is served upon him by the Landlord; or

i.       where the competent Government entities decide that the demolition and reconstruction of the Real Property are mandated in accordance with urban development requirements in the Emirate.

For the purposes of paragraph (1) of this Article, the Landlord will serve a Notice on the Tenant through a Notary Public or by registered mail.

2.     Upon expiry of the Lease Contract, the Landlord may seek eviction of the Tenant from the Real Property only if:

a.      the Real Property owner wishes to demolish and reconstruct it or to add any new structures that would prevent the Tenant from using the Real Property, provided that the owner obtains the required permits from the competent entities; or

b.      the Real Property is in a condition that requires restoration or comprehensive maintenance that cannot be carried out while the Tenant occupies the Real Property, provided that this condition of the Real Property is verified by a technical report issued or certified by the Dubai Municipality;

c.       the Real Property owner wishes to retake possession of the Real Property for his own use or for use by any of his first-degree relatives, provided that the owner proves that he does not own any alternative Real Property that is suitable for this purpose; or

d.      the leased Real Property owner wishes to sell it.

For the purposes of paragraph (2) of this Article, the Landlord must notify the Tenant of the eviction reasons at least twelve (12) months before the date of eviction, and the notice must be served through a Notary Public or by registered mail.

Where the Tribunal rules in favour of the Landlord retaking possession of the Real Property for his own use or for use by any of his first-degree relatives, in accordance with sub-paragraph (2)(c) of Article (25) of this Law, the Landlord may not rent the Real Property to a third party before the lapse of at least two (2) years in case of residential Real Property, or three (3) years in case of non-residential Real Property, from the date of retaking possession of the same. Otherwise, the Tenant may request the Tribunal to award him fair compensation.

The Lease Contract does not expire upon the death of the Landlord or the Tenant. The contractual relationship continues with the heirs, unless the heirs of the Tenant wish to terminate such relationship, provided that termination comes into effect no less than thirty (30) days from the date of notifying the Landlord of such intent or the expiry date of the Lease Contract, whichever comes first.  

Transferring the ownership of Real Property to a new owner does not affect the Tenant's right to continue to occupy the Real Property by virtue of the Lease Contract entered into with the previous owner, provided that such Lease Contract has a fixed term.  

1.     A Tenant will have the right of first refusal to return to the Real Property where it is demolished and reconstructed, or renovated and restored, by the Landlord, in which case the Rent must be determined in accordance with the provisions of Article (9) of this Law.

2.     The Tenant must exercise the right of first refusal referred to in the preceding paragraph within a period not exceeding thirty (30) days from the date on which the Tenant is notified of the same by the Landlord.

If the Tribunal issues an award terminating the Lease Contract and the Real Property is occupied by a Sub-tenant under a contract entered into with the Tenant and approved by the Landlord, the Sub-tenant may continue to occupy the Real Property under the terms of the sub-lease contract.  

Filing a claim to evict the Tenant does not exempt the Tenant from paying the Rent for the whole period during which the claim is considered, and until an award is rendered and executed.  

If the Landlord and Tenant agree in the Lease Contract or in any other subsequent agreement to refer any dispute arising between them out of the Lease Contract performance to arbitration, neither party may take any action that would affect the Real Property or the parties' rights and obligations as set out in the Lease Contract. The Tribunal may, upon the request of the Landlord or the Tenant, issue any interim awards it deems appropriate to preserve such rights and legal position until the arbitration award is rendered. 

Where a dispute arises and the Landlord and Tenant have not agreed on the arbitrators or if one or more of the agreed on arbitrators refrains from doing the work, resigns, is removed, or disqualified, or if an issue arises preventing the arbitrator from doing his work, and there was no agreement between the parties in this regard, the Tribunal, upon the request of either party, will appoint the arbitrator(s). The number of arbitrators appointed by the Tribunal must be equal to or complete the number of arbitrators agreed on.  

The Landlord may not disconnect services from the Real Property or disturb the Tenant in his use of the Real Property in any manner. If this happens, the Tenant may have recourse to the police station under whose jurisdiction the Real Property falls to seek a remedy for the violation or to file a police report regarding the violation. He also may have recourse to the Tribunal by filing a claim for damages for any loss he may have suffered, supported by official reports that support the existence of such violation. 

The awards relating to vacating the Real Property will be executed through the Tribunal and pursuant to the rules and procedures issued in this respect. Apart from such awards, other awards issued by the Tribunal will be executed by the Execution Section of Dubai Courts.  

The Chairman of the Executive Council will issue the regulations, bylaws, and resolutions required for the implementation of the provisions of this Law.

This Law will be published in the Official Gazette and will come into force after sixty (60) days from the date of publication.