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‘Free zones governed by rent laws in Dubai’

DUBAI — The rent laws and the recent rent cap of 16 per cent are applicable to properties located in Dubai free zones as they fall under the jurisdiction of Dubai Rent Committee, a Rent Committee official said.

The remark came following the ongoing Knowledge Village rent hike controversy. However, the official clarified that landlords who have properties in the free zones cannot increase rents according to their whims and fancies. The Dubai Rent Law applies to all landlords within and outside the free zone areas, he pointed out.

The clarification may have brought some relief to people who had little or no information about the free zone properties, but Knowledge Village officials were not available for comments despite repeated efforts by this reporter.

Some educational institutions at the Knowledge Village, following advice of the Rent Committee, had recently written to the management asking them to explain the 20 per cent hike.

"The Knowledge Village management remains tightlipped on the issue and has failed to give any answer," representatives of educational institutions said. These institutions are the ones which have not paid up the increased rent. They are now planning to take up the matter with the Rent Committee for launching of legal proceedings.

According to them, they had a talk with officials of the Dubai Rent Committee, who asked them to resolve the matter through discussions with the landlords. According to them, the Rent Committee had advised them to write a letter to the authorities asking for an explanation.

"We do have the proof which clearly shows a huge hike. We have no idea as to why the Knowledge Village management is denying the facts. We had gone to the Rent Committee who first asked us to have a talk with them. It was based on their advise that we have given a letter to the management seeking an explanation. We have also asked them to revert the new rent hike. And now we are waiting for an answer from them. The letter was sent last week to them. But then there has been no answer till late," said institution's representative who requested anonymity.

They added that the answer was expected to be a positive one. "We hope that they would give us a positive answer. How can they just hike the rent when we opened up just a year back?" they ask.

"According to committee norms, the rent cannot go up on contracts that have been signed in 2006 with new tenants. Till now they have been telling us that the regulations do not apply to free zone properties," they added.

• UAE