A cap of was recently placed on Abu Dhabi rents by President Shaikh Khalifa Bin Zayed Al Nahyan under law No. 20 of 2006. Another resolution, No. 41 of 2006, was also issued in order to simplify procedures to settle tenancy dispute.
The rent cap law was issued in order to regulate the landlord-tenant relationship, and covers properties leased for housing, industrial, trade or professional activities, according to WAM. The cap will be applicable to existing contracts as well as to those signed after the law takes effect.
If the contract duration is three years or less, a rent increase of no more than 7 per cent is allowed once every year.
The law stipulates a written tenancy contract and lays down obligations of the landlord and tenant.
A special committee will be formed to settle tenancy disputes. The committee is to be formed by a resolution by the Abu Dhabi Executive Council chairman.
General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, has issued resolution No. 42 of 2006 on the formation of the tenancy dispute settlement committee. He issued resolution No. 43 of 2006 on the appeals committee.
