Vice-President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, has issued Law No.1 of 2020 refering to leasing in the Dubai International Financial Centre (DIFC).
This newly implemented law will boost the DIFC’s property market and shows the centre’s commitment to maintaining a legal and regulatory framework ranged with globally best practices.
Law introduces fields of protection and assurance to lessors and lessees entering into leases at properties based in the dynamic financial ecosystem of the DIFC.
The law will address certain factors regarding to real property within the DIFC, including the needs to provide an apt regulatory environment aligned with common law jurisdictions and onshore Dubai practices due to the DIFC’s status as an offshore jurisdiction within the UAE by:
Introducing common needs for leases and general obligations for lessees and lessors.
Introducing a tenancy deposit plan for residential leases to be governed by the Registrar of Real Property
Requiring the production of condition reports in the way needed by the Leasing Law by residential lessors;
Implementing a maximum limit on security deposits collected by residential lessors and certain provisions for residential leases
Introducing clearer provisions regarding the termination of leases and the disposal of goods and chattels at the property following the termination or liquidation of the lessee.
“Enacting the new DIFC Leasing Law will not only provide clearer guidance for thousands of landlords and tenants at the DIFC, but advancing our legislation also represents a key step for delivering on our landmark expansion plan that will transform the future of finance.” Said Essa Kazim, governor of the DIFC.
