Leasing in the UAE: Key legal insights for landlords and tenants

The leasing landscape in the United Arab Emirates (UAE) is supported by a comprehensive legislative framework that governs the relationship between landlords and tenants. This framework outlines the respective rights and obligations of the parties, ensures market stability, and provides effective mechanisms for dispute resolution.

Governing Legislative Framework

The UAE has established a robust legislative structure regulating key aspects of leasing, including contract formation, rent payments, maintenance obligations, eviction procedures, and dispute resolution. These matters are governed by several key legislations across the Emirates, including:

• Dubai: Law No. 33 of 2008 (Amending Law No. 26 of 2007), Decree No. 26 of 2013 (Establishing the Rental Disputes Center), and Decree No. 43 of 2013 (Determining Permissible Rent Increases).
• Abu Dhabi: Law No. 4 of 2010 on the Lease of Premises.
• Sharjah: Law No. 5 of 2024 Governing the Relationship between Landlords and Tenants.
• Other Emirates: Ajman Emiri Decree No. 2 of 2017, Ras Al Khaimah (RAK) Law No. 5 of 2010, Umm Al Quwain (UAQ) Law No. 2 of 2011, and Fujairah Law No. 1 of 2011.

Together, these laws form a regulatory framework that promotes transparency, fairness, and legal certainty within the dynamic UAE leasing market.

Lease Types and Standard Provisions

Lease arrangements in the UAE vary by type and location, with specific rules tailored for residential, commercial, and free-zone properties. Residential leases are intended for daily living and are typically granted for one-year renewable terms. Commercial leases, which define permitted business activities, usually range from three to five years for retail and office spaces, and longer for industrial properties.

For a lease to be legally valid, it must clearly identify the parties, specify the leased property, and outline the governing terms and conditions. Standard lease provisions typically include:

• Confirmation by the tenant of the property’s inspection and acceptance in its current condition.
• Restrictions limiting the property’s use to its designated purpose, with prohibitions on assigning, subleasing, or transferring the lease without the landlord’s written consent.
• Prohibitions on making alterations or additions without the landlord’s written approval.
• Tenant responsibility for utility charges (electricity, water, cooling, gas) unless agreed otherwise in writing.
• Obligations to pay rent in the agreed amount, method, and timeframe.
• The landlord’s obligation to ensure the peaceful use of the property and handle maintenance, unless otherwise agreed.
• A clause referring any disputes to the relevant Rental Disputes Center.

Breach of Contract and Early Termination

Tenants are strictly obligated to pay rent as stipulated. Failure to do so constitutes a material breach and serves as grounds for early termination. Other grounds for early termination include unauthorized subleasing, using the property for illegal purposes or in violation of public order, making unauthorized alterations, or situations where the property is at risk of collapse (provided the landlord substantiates this with an accredited expert’s report).

Importantly, a landlord is prohibited from disconnecting utilities in the event of a breach. If this occurs, the tenant may petition the competent authority to restore services and seek compensation for damages suffered. Upon termination, the tenant must return the property in the condition it was received, subject to normal wear and tear. If the tenant has made improvements that the landlord wishes to retain, the tenant may not remove them.

Maintenance, Repairs, and Habitability

Throughout the lease term, landlords have a legal duty to maintain the property in a habitable and safe condition. This includes maintaining structural integrity, ensuring essential systems (plumbing, electrical, HVAC) are functional, and preventing health hazards.

Article 16 of Dubai Law No. 26 of 2007 stipulates that, unless otherwise agreed, the landlord is responsible for maintenance works and repairing any defects that affect the tenant’s intended use of the property. Landlords may issue formal repair notices to tenants outlining necessary repairs and completion timelines.

For urgent repairs requiring immediate attention (e.g., burst pipes, gas leaks, or severe electrical failures), tenants must promptly notify the landlord. If the landlord fails to respond timely, the tenant may pursue legal remedies or, in certain cases, arrange the repairs themselves and deduct the costs from the rent, subject to the lease agreement and applicable law.

Continuity of Lease Upon Death

Dubai Law No. 26 of 2007 specifically addresses the continuity of a lease upon the death of a party. Under Article 27, a lease contract does not expire upon the death of either the landlord or the tenant.   The contractual relationship continues with the heirs, unless the tenant’s heirs elect to terminate the lease, provided they give the landlord at least thirty (30) days’ notice.

Nuisance, Privacy, and Landlord Access

Nuisance—such as excessive noise, illegal activities, or severe neglect causing health risks—disrupts the peaceful enjoyment of the property. A tenant causing a nuisance may be in breach of the lease and subject to legal action, while a landlord failing to remedy nuisance conditions may face claims from affected tenants.

Tenants have a fundamental right to privacy and peaceful enjoyment. Under UAE law, landlords must obtain the tenant’s prior consent before entering the property for routine inspections, maintenance, or viewings, except in urgent emergencies. Unauthorized entry resulting in damage may entitle the tenant to file a criminal complaint and pursue civil compensation.

Financial Obligations, Deposits, and Eviction

In Dubai, payments commonly known as “key money” or “goodwill payments” (inducements paid to an existing tenant to vacate) are strictly prohibited. However, security deposits are standard practice. If a tenant pays a deposit but fails to execute the formal lease contract, the deposit is generally considered non-refundable.

If a tenant vacates without returning the keys, the landlord must issue a 30-day formal notice instructing the tenant to vacate, surrender the keys, and settle pending payments. Following this, the landlord may approach the Rental Disputes Center to recover outstanding rent and regain unencumbered possession of the property. Tenants facing financial hardship may petition the Center for an installment plan.

In cases where a tenant abandons the property leaving belongings and unpaid rent, the landlord is legally entitled to seek a court order for eviction or repossession. The landlord may also invoke an “enforcement seizure” over the abandoned possessions, which are then evaluated by competent authorities and deducted from the outstanding rental obligations.

Conclusion

Leasing property in the UAE is governed by a clear legal framework designed to balance the rights and responsibilities of both landlords and tenants. By covering habitability, privacy, financial obligations, and dispute resolution, the law protects all parties involved and ensures a fair, transparent, and secure tenancy.

To learn more, please contact our Essa Galadari, Director and Deputy Head of Litigation, and Manish Narayan, Partner.

	Essa Galadari Director & Deputy Head of Litigation essa@galadarilaw.com
	Manish Narayan Partner manish@galadarilaw.com