Law issued to regulate tenancy relationship in Abu Dhabi

Law issued to regulate tenancy relationship in Abu Dhabi
Abu Dhabi, Nov. 6th, 2006 (WAM) - President H.H. Sheikh Khalifa bin Zayed Al Nahyan has issued, in his capacity as Ruler of Abu Dhabi, law no. 20 for 2006 on property rent and regulation of landlord-tenant relationship in the emirate of Abu Dhabi.

Consistent with the common legislation currently in practice, the law take into consideration the social environment of Abu Dhabi.

The scope of law is limited to rented properties for residential, industrial, commercial, professional or vocational purposes and to the tenancy relationship established thereinafter.

The law stipulates a written tenancy contract and sets out in details the obligations of both the landlord and the tenant.

According to the law, both the landlord and tenants shall adhere to the rent value specified in the contract. However, if the contract duration is 3 years or less, a rent increase of no more than 7 percent is allowed once in every year.

By virtue of the law, a special committee shall be formed to settle tenancy disputes. The committee is to be formed by means of a resolution by the Chairman of Abu Dhabi Executive Council.

General Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince, Deputy Supreme Commander of the UAE Armed Forces and Chairman of Abu Dhabi executive Council has issued resolution no. 42 for 2006 on the formation of the tenancy dispute settlement committee. He also issued resolution no. 43 for 2006 on the appeals committee.

Both committees shall report to the General secretariat of Executive Council.

Sheikh Mohammed also issued resolution no. 41 for 2006 on the policy and procedure of the committee, aimed at simplifying procedure of tenancy dispute settlement.

WAM/MAB 20 55 CCCCQQE