Law No. (6) of 2009
Amending Certain Provisions of Law No. (20) of 2006
Concerning the Rent of Premises and the Regulation of the Tenancy Relationship between Lessors and Lessees
in the Emirate of Abu Dhabi
We, Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi,
- Having reviewed Law No. (1) of 1974 on the Reorganization of the Governmental Apparatus in the Emirate of Abu Dhabi and its amendments.
- And Law No. (2) of 1971 concerning the National Consultative Council and its amendments.
- And Law No. (20) of 2006 concerning the Rent of Premises and the Regulation of the Tenancy Relationship between Lessors and Lessees in the Emirate of Abu Dhabi.
- And based on what was presented to the Executive Council, and its approval thereof.
Have promulgated the following Law:
Article (1)
The text of Article (2) of the aforementioned Law No. (20) of 2006 shall be replaced by the following text:
The provisions of this Law shall apply to real estate, premises, and their parts of all kinds – leased for residential purposes or for the purpose of practicing an industrial, commercial, professional, or craft activity in the Emirate. They shall also apply to existing tenancy relationships or those that arise after its date of enforcement. The following shall be excluded from the application of the provisions of this Law:
- Agricultural lands and their associated buildings.
- Lands and properties owned by the government leased for residential purposes.
- Lands and properties allocated to ADNOC company, which it leases for specific industrial purposes related to petroleum services.
- Properties leased for hotel and tourism purposes, including furnished apartments.
- Residences occupied due to work conditions.
A decision shall be issued by the Executive Council to regulate the relationship concerning the cases stipulated in clauses (1, 2, 3, and 4).
Article (2)
The texts of Articles (16) and (20) of the aforementioned Law No. (20) of 2006 shall be replaced by the following two texts:
Article (16)
- Without prejudice to the lessor's right to claim the legally stipulated annual increase, the rent agreed upon in the lease contract shall be binding on the contracting parties throughout the lease term specified in the contract.
- The lessor may not increase the rent specified in the contract except once every year by a percentage not exceeding five percent (5%) of that rent. The Chairman of the Executive Council may, by a decision, increase, decrease, or cancel this percentage as he deems appropriate. The interested party may resort to the Committee if the lessor exceeds the stipulated increase percentage.
- The preceding provision shall apply to lease contracts in effect at the time of the enforcement of this Law upon their renewal, with current tenants or upon their conclusion with new tenants.
- The calculation period for the aforementioned annual rent increase shall begin from the date of the last lease contract or from the date of the last rent increase, whichever is more recent.
- The Committee has the right to reduce the increase percentage to the legal limit and impose a fine on the lessor not exceeding one year's rent in case he exceeds the stipulated increase percentage, or in case of his non-compliance with its decision to correct this violation. The Committee may impose this fine on its own initiative, even if not requested by the interested party.
Article (20)
- The lease contract shall be valid until the end of the period specified therein and shall be renewed for a similar period or periods, unless one of the parties notifies the other in writing of its desire to vacate the leased property or amend the contract's terms, before the end of the current term, as follows:
a. For premises leased for residential purposes, the notification shall be two months before the end of the contract.
b. For premises leased for non-residential purposes, the notification shall be three months before the end of the contract.
- The lessor may not request the eviction of the leased property until after the lapse of four years.
- The lessee shall have the right to renew the lease contract concluded with the lessor, whose lease term is less than four years, for another period or periods, under the same terms and conditions.
- The Committee may decide to evict the leased property before the expiry of the period stipulated in this Article, provided that the lessee is granted a grace period not exceeding six months to vacate the leased property, starting from the date determined by the Committee, and provided that the lessee has utilized the leased property for a period of not less than two years, if the lessee's continued occupation of the leased property would cause serious harm to the lessor.
- Taking into account the preceding clauses, the Chairman of the Executive Council may, by a decision, when necessary, amend the term of the lease contract, whether by increasing or decreasing it.
- The calculation of the aforementioned four-year period shall begin from the start date of the last contractual year for contracts concluded before the entry into force of the aforementioned Law No. (20) of 2006, and from the contract date for contracts concluded after its entry into force.
- A decision by the Chairman of the Executive Council shall be issued concerning the rules and procedures for registering active lease contracts in the Emirate.
Article (3)
This Law shall be published in the Official Gazette and shall come into force from the date of its issuance.
Khalifa bin Zayed Al Nahyan
Ruler of Abu Dhabi
Issued by us in Abu Dhabi
On: April 14, 2009 AD
Corresponding to: 18 Rabi' al-Thani 1430 H