New law coming to regulate rentals in Dubai

By Rajive Singh

DUBAI 18 March 2018: The coming rental law in Dubai will help reduce disputes and save time, money and effort on litigation, according to Dubai Land Department (DLD).

The number of rent lawsuits between landlords and tenants will be reduced, as well as the time required for litigation, it said.

DLD hosted a workshop with representatives from  shopping malls and retail outlets to discuss the new rental draft law.

The three-day workshop, which ran from 13th to 15th March, was attended by Sultan Butti bin Mejren, Director General of DLD; Judge Abdulqader Mousa, Director of the Rental Disputes Center (RDC), the judicial arm of DLD; Marwan bin Ghalita, CEO of the Real Estate Regulatory Agency (Rera), the regulatory arm of DLD; a number of DLD directors; and owners and representatives from commercial shopping malls and retail outlets, said Wam.

Mejren said: “The aim of the workshop was to allow representatives from shopping malls, traders and retailers in Dubai to express their views and collaborate as part of our constant efforts to establish a transparent and clear real estate environment for all parties. Through our discussions, we explored methods for achieving balance and preserving the rights of all parties, and generated recommendations that will be submitted to the relevant legislative bodies for consideration and implementation.”

Transparency

DLD aimed to achieve a number of objectives via the workshop, including stabilising Dubai’s real estate market, defining the responsibilities and rights of all parties, and establishing integrity and transparency as key values in dealing with all parties.

Judge Abdulqader Mousa stressed the importance of such meetings, which allow DLD to listen to the views of the participants and answer a variety of important questions.

Mousa added: “During the workshop, we clarified the laws and provisions between landlords and tenants within the framework of extensive discussions about the new rental law. The workshop was an opportunity for them to ask questions and clarify articles of the new rental law, thereby contributing to reducing the potential for disagreements that may arise between the parties.”

Culture of Dialogue

The workshop on the first day began with an explanatory presentation that compared the existing situations with the proposed new rental law and focused on promoting a culture of dialogue, encouraging everyone’s participation in drafting the new rental law in order to enhance transparency in Dubai’s real estate market and protect the rights of all parties.

During the second day of the workshop, Sultan Butti bin Mejren listened to the suggestions of the owners of retail outlets in Dubai concerning the implementation of the new rental law.

Sultan and Abdulqader Mousa also discussed the new rental law draft with retailers in the presence of the Dubai Chamber and the Supreme Legislation Committee.

The third day of the workshop was attended by the Director General of DLD, the Supreme Legislation Committee and DLD’s directors, who discussed all the points raised by the representatives of commercial shopping malls and retail outlets, as well as the requirements and needs of the Landlords and tenants. The meeting generated several initial amendments and recommendations concerning some elements of the new law.

Recommendations

The recommendations will be drafted and submitted to the Supreme Legislation Committee to be discussed within the framework of the provisions of the new rent law to satisfy the interests of all parties, regulating the contractual relationship between them and achieving a qualitative leap to establish transparency and stability in Dubai’s real estate market.

Meetings of this type began in 2015. They aim to review information and requirements, and discuss the pillars of lawsuits filed with the Rental Disputes Center. This helps to draft laws that serve all parties and solve the largest number of lawsuits, reducing their number in order to create a secure real estate environment.