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UAE Tenancy Law and its Amendments

The topic of rentals and their laws is of interest to every expatriate in the UAE, as the foreign workforce in the UAE needs suitable housing to continue working.

Therefore, the rental law is considered one of the most important societal aspects, as it defines the rights and duties of individuals, and it also establishes the guiding principle for the rental relationship between the landlord and the tenant in general, and for resolving disputes in particular. The rental law is considered the cornerstone of daily life for all individuals, serving as a regulatory tool between tenants and landlords (referred to as the parties), through which transactions are conducted. The rental law is amended from time to time to align with current circumstances as well as the demands of the labor market and social needs.

What is the rental law and what does it include?

The rental law is a set of rules and regulations that govern the lease between the parties to the lease contract, namely the landlord and the tenant. The lease contract includes complete information about the property and its specifications, the identity information of the tenant and the landlord, the rent and its duration, and the special conditions agreed upon by both parties. The contract specifies the reason for the rental, whether it is for residential, commercial, or real estate purposes. The contract and the rental law ensure the rights of both parties in case of a dispute, as the law adjudicates based on the contract’s provisions and the case’s circumstances.

In 2006, Abu Dhabi Law No. 20 was issued to regulate the relationship between the landlord and the tenant in the case of rent increase or eviction of the tenant from the property. And before Amendment No. 4 of 2010, the landlord did not have the authority to request the tenant to vacate the property upon the expiration of the contract, but circumstances changed after this amendment.

The most important amendments to Law No. 20 of 2006 (Rent Law)

Abu Dhabi Law No. 4 of 2010:

The UAE law granted the landlord (property owner) the right to request the eviction of the tenant from the property upon the expiration of the contract, as well as the right to refuse the renewal of the contract.

A rent cap of 5% was also applied, but tenants were subjected to a 5% increase upon renewing the lease without prior notice. This percentage has been removed in this amendment.

Decision of the President of the Judicial Department No. 10 of 2002 regarding the Rental Dispute Settlement Committees and the procedures followed before these committees:

Under the provisions of the law, rental dispute settlement committees are formed, chaired by a judge. The committee has the authority to expedite the decision-making process for issues arising between the landlord and the tenant, and to settle interim procedures by either party.

Arabic is also the language used in the committee for hearing pleadings, claims, and witnesses, and a translator must be provided for anyone who does not speak Arabic.

Abu Dhabi Executive Council Decision No. 4 of 2011, regarding the procedures for issuing lease contracts in the Emirate of Abu Dhabi:

The Executive Council of the Emirate of Abu Dhabi issued Decision No. 4 of 2011, which includes the introduction of rules and procedures followed by landlords and tenants to register their rental contracts with the Abu Dhabi Municipality. The decision established a system called the “Abu Dhabi Municipality Documentation System,” which includes an asset management and rental contract registration system, covering all data related to the rented properties. Additionally, existing or newly concluded rental contracts between parties after the implementation of this decision must be registered with the Abu Dhabi Municipality.

And lease contracts are in Arabic and English, or in Arabic if registered in the Abu Dhabi Municipality documentation system.

According to the previous provisions, the Abu Dhabi Municipality will consider the lease contract documented in accordance with the provisions of this decision, and any amendment to the lease contract will not be recognized and the contract will be considered canceled if this amendment is not registered in the documentation system of the Abu Dhabi Municipality.

Decision No. 12 of 2013, which set regulations for the occupancy of residential units in the Emirate of Abu Dhabi:

Residential property is defined by law as the property or part of it that is prepared to be rented and used as a residence, providing the person with basic daily needs such as a kitchen, at least one bedroom, and a bathroom. The decision prohibits accommodating two families in one residential unit.

Administrative Decision No. 1 of 2012 regarding Executive Decision No. 1 of 2011, concerning the regulation of housing occupancy and the use of properties designated for citizens in the Emirate of Abu Dhabi.

The decision does not allow the rental of the following buildings:

The buildings constructed on the farms.

Public housing and other additional residential units.

The public housing that was demolished and rebuilt based on a license issued by the government.

The residential units that were built on land licensed by the owner for special social cases.

The council decided to abolish the 5% rent cap and grant landlords the freedom to raise the price according to market rates for their benefit.

However, the rental law stipulates rules regarding the required notice periods if the landlord intends to evict the tenant, seeks to raise the rent amount, or make any amendments to the contract.

The landlord must send a notice to the tenant giving a two-month notice for eviction or any memorandum proposing an amendment to the contract indicating the specific change the landlord wishes to implement. The landlord is not entitled to surprise the tenant with any decision regarding the eviction of the property or raising the rent before notifying them and giving them a grace period to vacate.

As for commercial properties, the notice period is considered to be no less than 3 months.

And if the landlord does not request eviction or increase the rent during the notice period before the contract renewal period, the contract is considered automatically renewed under the same terms and with the same rent.

Decision No. 32 of 2012 by the Chairman of the Executive Council regarding building lease contracts

The decision states that the annual rent increase specified in the lease agreement, as mentioned in Article 16 of Law No. 20 of 2006, should not exceed 5%, provided that the rent is evaluated from November 10, 2013, as agreed upon by the parties.

Administrative Decision No. 97 of 2012 regarding the mechanism for registering rental contracts in the Emirate of Abu Dhabi

The administrative decision included provisions related to the mechanism for registering rental contracts in Abu Dhabi. The decision allows the Abu Dhabi Municipality to prepare a special register for recording rental contracts, which must include data related to properties used for residential, commercial, or industrial purposes, as well as records of residential property occupants in addition to the owner and tenant’s information. The municipality also prepares unified guide for the required registration procedures, which can be amended when deemed necessary, and it is also entitled to collect rental contract registration fees as follows:

In the process of changing the tenant for the same land property, the parties must enter into a new contract according to the following fees:

Fees for registering the property and residential unit in a single payment as follows:

1000 AED per building on the same plot, 5000 AED to rent the unit.

Lease contracts issued before this decision are exempt from registration fees, which will only be collected upon renewal.

Abu Dhabi Council Resolution No. 13 of 2016 regarding housing fees

Where 3% of the housing will be calculated on 13 of the residential units in Abu Dhabi, in addition to paying the annual rent, the fees will be imposed on everyone. They are the responsibility of the tenant but are considered service fees because they are the responsibility of the property owner.

Abu Dhabi Council Decision No. 14 of 2016 regarding building lease agreements related to the reintroduction of a 5% annual rent cap.

The rental law considered a 5% increase in the annual rent ceiling, but this ceiling was abolished on November 9, 2013, only to be reinstated again by Abu Dhabi Council Decision No. 14 of 2016, effective from December 13, 2016. Under this decision, both parties can adjust the rent for the lease agreement by mutual consent. However, if the lease has not yet been signed, the landlord has the right to increase the annual rent.

Amendment No. 20 of 2017 to the Rent Law

The decision stipulates that the ruling of the Rental Dispute Settlement Committee in Abu Dhabi is final and binding on both parties if the value of the claim in the dispute is less than 50,000 AED. However, if the value of the claim exceeds 50,000 AED, the parties may appeal the ruling within 15 days from the issuance of the ruling or the next day if the ruling was in absentia.

The parties also have the right to appeal the appellate judgment within 30 days from the day following the judgment or from the day following their notification of the judgment if it was in absentia. If the value of the claim exceeds 300,000 UAE Dirhams.

Laws governing the rental period:

The lease agreement is valid until the end of the specified term in the contract, and the contract can be renewed for additional periods as agreed upon by both parties.

At the end of the contract period, if the tenant continues to benefit from the rented buildings without objection from the owner, it is considered a renewal of the contract for the same period and under the same conditions.

If both parties do not wish to renew the contract, either party may notify the other in writing two months before the expiration date of the lease for both the residential and commercial and professional contracts.

The landlord is not entitled to request the tenant to vacate the property due to the expiration of the contract before November 9, 2012, and this date can be renewed based on a decision by the Chairman of the Executive Council as deemed appropriate.

The committee has the right to request the eviction of the tenant before the specified date if it deems that the tenant is causing significant damage to the property, provided that the tenant has used the property for no less than two years. In this case, the owner may not grant more than 6 months for the eviction of the rented property by the committee’s decision.

Based on the decision of the Chairman of the Executive Council, rules and procedures for registering lease contracts related to properties in the Emirate of Abu Dhabi are being established.

The following procedures must be followed:

Ensuring that the owner has registered their ownership with the Abu Dhabi Municipality by reviewing the registration certificate.

Seeking to review the lease agreement and examine all terms and conditions, especially those related to the lease duration, maintenance, and other fees.

It is necessary for both the landlord and the tenant to be aware that in the event of a dispute between the owner and the tenant, it will not be possible to submit a dispute request to the Rental Dispute Settlement Committee unless the rental contract is registered in the Abu Dhabi Municipality’s documentation system.

Accordingly, it is better to ensure that the lease contract is signed and registered to obtain a permit, as the rental law guarantees the rights of both parties, whether the landlord or the tenant.

The latest amendments to the rental law in the UAE

Currently, in the year 2026, substantial updates have been made to the digital system and the rental fee structure, and they have been completely overhauled to become more flexible and suitable for the modern real estate system as follows:

Launch of the DARI digital platform

There is a genuine trend in the UAE toward digitizing transactions, where paper-based and old systems for contract registration have been abolished. All rental transactions in Abu Dhabi are now managed digitally through the DARI system, which is part of the Abu Dhabi Real Estate Issuance Center – Abu Dhabi Municipality.

Amendment to the fees for contract registration and documentation

The current fees for registering and renewing residential lease contracts when changing tenants are as follows:

The fee for registering a new contract or renewing a contract: Only 50 UAE dirhams as a fixed service fee for the residential contract (if the lease term is less than 4 years).

Municipal fees (Documentation): The large fixed fees have been replaced with a percentage of 5% of the annual rent value for residential units (and are divided for the tenant over 12 months to be automatically added to the water and electricity bill “ADDC”).

Citizens: UAE citizens are exempt from paying the municipal fee (5%) for their residential lease contracts.

Mechanism for changing the tenant or modifying the contract

If the parties want to amend the contract or change the tenant, the “Dari” platform offers the option to modify an existing rental contract for electronically rented units without the need to cancel the entire contract and draft a new one from scratch with hefty fees, as long as there is an agreement between the landlord, the new tenant, and the owner.

The old exemptions

The old rental contracts that preceded the regulatory decisions have been fully absorbed and gradually documented over the past years. The current digital system requires the immediate registration of any rental transaction to be legally recognized before the dispute resolution committees.

Frequently asked questions from FHS office clients about rental laws

Q: Is the owner allowed to suddenly raise the rent by any amount he wants? Is the owner allowed to suddenly raise the rent by any amount he wants?

A: No, UAE law protects the tenant from arbitrary increases. In Dubai, there is a calculator called RERA that determines whether there has been an increase in rents in the area where you reside and by what percentage based on market prices.

As for Abu Dhabi, the percentage is capped by a legal ceiling of 5% annually.

In both cases, the landlord cannot increase the rent at their whim; they must notify you officially at least 90 days before the contract ends, otherwise, the contract will be renewed at the old price, and this is guaranteed by law.

Q: When can the landlord evict the tenant before the contract ends? When can the landlord evict the tenant before the contract ends?

A: There are certain and very strong cases that make the law stand on the side of the landlord and evict the tenant, the most important of which are:

Delay in rent: If 30 days have passed since the due date and the tenant has refrained from paying the rent (unless there is another agreement in the contract).

Renting the property to another party without the owner’s knowledge (subletting):

(When the tenant rents the house to someone else without the written consent of the property owner).

Using the property for activities that violate the law or public morals.

Vandalism: If the tenant made modifications that altered the structure of the house or caused damage that jeopardized the safety of the building.

Q: If the contract is over and neither of us has contacted the other, what happens? If the contract is over and neither of us has contacted the other, what happens?

A: The contract automatically renews by itself. Where the law considers the silence of both parties, along with the tenant’s continued residence in the house, as an implicit agreement to renew under the same terms and for the same duration as before (usually one year). And if either party wants to change any term or does not want to renew the contract at all, they must send a written notice to the other party 90 days before the end.

Q: Repairing household faults… Fixing the household repairs… Who pays for it?

A: The issue is divided according to the size of the damage:

Basics of the house:

The repair is the owner’s responsibility. It means that if there is a malfunction in the central air conditioning, or if there is a strong water leak in the walls, or a problem with the main electricity, the landlord is the one obligated to fix it to keep the house habitable.

Small consumable items:

These are fixed by the tenant, such as changing light bulbs, repairing a faucet that broke due to daily use. And we often include a clause in the contracts stating that any repair under 500 dirhams is the tenant’s responsibility, while anything over 500 dirhams is the landlord’s responsibility.

Conclusion

Many amendments have been made to rental laws in the UAE, as the UAE legislator is keen on drafting binding laws that fully and effectively guarantee the rights of tenants and landlords.

And prevent exploitation and the loss of rights.

Digital platforms specializing in registering rental contracts have facilitated transactions and expedited their processes for the benefit of both parties in the rental relationship (the landlord and the tenant).

For more information, contact the experts at FHS Solutions Office, who guarantee you the best precise legal consultations and protection of your interests due to their extensive experience in real estate laws in the UAE, company formation, legal contract drafting, judicial representation, and other legal matters.

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