My wife and I have had our business in a small commercial complex in Dubai (not in a free zone) for the last 10 years. Over this period, the major business tenant in the complex, with the landlord’s approval, has carried out major structural and expansion of his premises. This tenant now wishes to expand further and has verbally asked us if we will consider moving out to make room for his expansion. He has hinted that he has the landlord’s blessing for this, and has not suggested any compensation. Our response is that we cannot consider moving our business out since it is the mainstay of our livelihood, and furthermore we have not been approached by the landlord with any offer of alternative premises. We would appreciate your guidance on what protections are in place for commercial tenants in such cases and on which of the authorities would have jurisdiction. AH Dubai
The rules that relate to residential properties essentially apply to commercial buildings and also tenants. The relevant law is Law No 26 of 2007, “Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai”, as amended by Law No 33 of 2008, “Landlord and Tenant Law”, and this applies to both landlords and tenants for all residential and commercial leases and tenancy arrangements. The other tenant has no rights over your tenancy and your agreement is solely with your landlord. If the landlord wishes you to vacate, he cannot simply ask you to leave. Twelve months’ notice in the prescribed format (written notice either through a public notary or sent by registered mail) from your renewal date is required. And there must be an acceptable reason for being asked to leave, although if he locates you to new suitable premises you can choose to leave by mutual agreement. The relevant authority is the Real Estate Regulatory Agency and the Rent Committee of the Land Department.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com