His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in his capacity as Ruler of Dubai, issued DIFC Law No. 1 of 2020 regarding rents in the center.
The new law aims to raise the foundations of the real estate market within the limits of the authority of the center, and affirms the commitment of the Dubai International Financial Center to provide an integrated regulatory and legal framework consistent with the highest international standards and practices.
The new law, with its regulatory annexes, contributes to providing additional protection and guarantees for real estate owners and tenants who are associated with real estate rental contracts within the financial system of the center. It is expected that the law and its legislation will support the Center's commitment to creating an integrated regulatory environment that will ensure more growth and prosperity for international companies and businesses.
The new law and its regulations will address specific provisions related to existing real estate properties in the Dubai International Financial Center, to cover the basic conditions and requirements supporting the provision of a regulatory environment in line with the practices of the public law authorities and regulatory authorities in Dubai, in line with the prominent position of the Dubai International Financial Center as a free and independent financial area In the Emirates.
The law will achieve these goals through:
1. Ensure the implementation of the general and specific requirements and conditions of lease contracts and secure general obligations for tenants and lessors;
2. Apply the rental deposit system to residential property rental contracts, under the management of the real estate registrar;
3. Receive reports of residential property renters, according to the formula specified in the Tenancy Law;
4. Imposing a maximum limit on the insurance and security deposits offered to residential real estate lenders, as well as specifying terms and conditions for renting these properties;
5. Add clear clauses regarding termination of the lease and transfer of belongings and properties after termination of the contract or the exit of the tenant from the property.
“The new lease law will provide a clearer approach to thousands of landlords and tenants in the financial center, rather than representing it as a key step in implementing the expansion plan that will transform the future of the financial sector,” said Issa Kazim, Governor of the Dubai International Financial Center. In order to give our current and potential customers greater confidence within our strict legal standards, we have full confidence that this new law will enhance protection for real estate owners and tenants alike while emphasizing the position of the Dubai International Financial Center as a stable environment and Provide opportunities of development and prosperity. "