Local Business

Sheikh Mohammed issues law to enhance, protect DIFC property sector

Filed on January 12, 2020 | Last updated on January 12, 2020 at 07.22 am
he new DIFC Leasing Law will provide better guidance for thousands of landlords and tenants at the financial hub.

(File photo)

Move a key step for delivering on landmark expansion plan that will transform future of finance

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai has issued Law No.1 of 2020 pertaining to leasing in the Dubai International Financial Centre (DIFC).

The law will enhance the DIFC's property market and reflects the centre's commitment to maintaining a legal and regulatory framework aligned with international best practices.

It introduces areas 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 specific factors relating to real property within the DIFC, including the requirement to provide an appropriate 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:

1. Introducing general requirements for leases and general obligations for lessees and lessors;

2. Introducing a tenancy deposit scheme for residential leases to be administered by the Registrar of Real Property;

3. Requiring the production of condition reports in the format required by the Leasing Law by residential lessors;

4. Imposing a maximum limit on security deposits collected by residential lessors and further specific provisions for residential leases; and,

5. Introducing clearer provisions relating to the termination of leases and the disposal of goods and chattels at the property following the termination or liquidation of the lessee.

Essa Kazim, governor of the DIFC, said, "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."

ERROR: Macro /ads/dfp-ad-article-new is missing!
MORE FROM Business
MORE FROM Khaleej Times
CurrentRequestUnmodified: /20160525/1009/no-title macro_action: article, macro_profile: , macro_adspot:
KT App Download
khaleejtimes app

All new KT app
is available
for download:

khaleejtimes - android khaleejtimes - ios