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Only 20pc increase will be permitted

The articles of the decree stated that an owner of a real estate is not allowed to raise the amount of rent by more than 20 per cent at the end of the agreement. He also cannot ask the tenants to vacate the premises until the tenant violates the condition of the tenancy contract signed at the time of leasing out the premises.

The decree also states that a tenant is responsible for paying bills of all utilities including water, electricity and gas and other services that is provided for good maintenance of the real estate.

The decree was issued due to increasing investments in the real estate field as there are many buildings and shopping malls under construction being taken by investors intending to rent out the premises It also aimed at organising the regulations of rents to protect the owners and the tenant’s rights to cope with the infrastructure development in the emirate.

The decree includes articles that help in settling disputes between owners and tenants who should refer their case to the dispute committee at the Department of Municipality and Planing. The dispute committee was also ordered to treat the disputed cases as urgent and legal complaints.

The articles of the decree which will be effective from July 1, 2005 will not be implemented on cases of renting out farms and farm houses, watchmen rooms, labour camps , rooms and suites of hotels, auditoriums and halls, as well as stalls and children amusement rides which is part of festival or activities.

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