Dubai Rental Law — Full Official Text

Article (1) — Title

This Law will be cited as “Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai “.

Article (2) — Definitions and Scope of Applicationamended by Law No. (33) of 2008

In implementing the provisions of this Law, the following words and expressions will have the meaning indicated opposite each of them, unless the context implies otherwise: Emirate: The Emirate of Dubai. Tribunal: The Special Tribunal for the Settlement of Disputes between Landlords and Tenants. RERA: The Real Estate Regulatory Agency. Real Property: Immovable property and everything affixed or annexed to it, and which is leased out for purposes of accommodation or conducting a business activity, trade, profession, or any other lawful activity. Tenancy Contract: A contract by virtue of which the Landlord is bound to allow the Tenant use of the Real Property for a specific purpose, over a specific term, and in return for a specific consideration. Landlord: A natural or legal person who is entitled by law or agreement to dispose of Real Property. This also includes a person to whom ownership of the Real Property is transferred during the term of a Tenancy Contract, an agent or legal representative of the Landlord, or a Tenant who is permitted by the Landlord to sub-let the Real Property. Tenant: A natural or legal person who is entitled use of the Real Property by virtue of a Tenancy Contract, or any person to whom the tenancy is legally transferred from the Tenant. Sub-Tenant: A natural or legal person who is entitled use of the Real Property or any part thereof by virtue of a Tenancy Contract entered into with the Tenant. Rent: The specified consideration which the Tenant must be bound to pay by virtue of the Tenancy Contract. Notice: A written notification sent by either party to the Lease Contract to the other through the Notary Public, or delivered by registered post, by hand, or by any other technological means approved by law.

Article (3)amended by Law No. (33) of 2008

The provisions of this Law will apply to lands and Real Property leased out in the Emirate excluding Real Property provided free of Rent by natural or legal persons to accommodate their employees.

Article (4) — Lease Contractamended by Law No. (33) of 2008

1. The contractual relationship between Landlord and Tenant will be regulated by a Tenancy Contract detailing, in a manner allowing no room for uncertainty, a description of the leased Real Property, the purpose of the tenancy, the term of the Tenancy Contract, the Rent and payment method, and the name of the owner of the Real Property, if the Landlord is not the owner.

2. All Tenancy Contracts or any amendments to such Tenancy Contracts related to Real Property which are subject to the provisions of this Law will be registered with RERA.

Article (5) — Term of Lease Contract

The term of a Lease Contract must be specified. Where the term is not specified in the Lease Contract or where it is impossible to prove the alleged term, the Lease Contract will be deemed valid for the period specified for payment of the Rent.

Article (6)

Where the term of a Lease Contract expires, but the Tenant continues to occupy the Real Property without any objection by the Landlord, the Lease Contract will be renewed for the same term or for a term of one year, whichever is shorter, and under the same terms as the previous Lease Contract.

Article (7)

Where a Lease Contract is valid, it may not be unilaterally terminated during its term by the Landlord or the Tenant. It can only be terminated by mutual consent or in accordance with the provisions of this Law.

Article (8)

The term of a sub-lease contract entered into between the Tenant and Sub-tenant will expire upon the expiry of the term of the Lease Contract entered into between the Landlord and Tenant, unless the Landlord expressly agrees to extend the term of the sub-lease contract.

Article (9) — The Rentamended by Law No. (33) of 2008

1. The Landlord and Tenant must specify the Rent in the Tenancy Contract. Should the parties omit or fail to specify the agreed Rent, the Rent must be the same as that of similar Real Property.

2. The Tribunal will determine the Rent of similar Real Property taking into account the criteria determining the percentage of Rent increase set by RERA, the overall economic situation in the Emirate, the condition of the Real Property, and the average Rent of similar Real Property in similar Real Property markets within the same area and in accordance with any applicable legislation in the Emirate concerning Real Property Rent, or any other factors which the Tribunal deems appropriate.

Article (10)

RERA will have the authority to establish criteria relating to percentages of Rent increase in the Emirate in line with the requirements of the prevailing economic situation in the Emirate.

Article (11)

Unless otherwise agreed, the Rent will cover use of the Real Property amenities such as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other amenities.

Article (12)

The Tenant will pay the Landlord the Rent on the dates mutually agreed upon. Where there is no agreement or where it is impossible to verify the payment dates, the Rent must be annually paid in four (4) equal instalments to be paid in advance.

Article (13)amended by Law No. (33) of 2008

For the purposes of renewing the Tenancy Contract, the Landlord and Tenant may, prior to the expiry of the Tenancy Contract, amend any of the terms of the Tenancy Contract or review the Rent, whether increasing or decreasing it. Should the Landlord and Tenant fail to reach an agreement, then the Tribunal may determine the fair Rent, taking into account the criteria stipulated in Article (9) of this Law.

Article (14)amended by Law No. (33) of 2008

Unless otherwise agreed by the parties, if either party to the Tenancy Contract wishes to amend any of its terms in accordance with Article (13) of this Law, that party must notify the other party of same no less than ninety (90) days prior to the date on which the Tenancy Contract expires.

Article (15) — Landlord’s Obligationsamended by Law No. (33) of 2008

The Landlord will be bound to hand over the Real Property in good condition, which allows the Tenant full use as stated in the Tenancy Contract. However, the parties may agree upon renting an unfinished Real Property provided that the Tenant agrees to complete the construction of the Real Property in a manner to render it suitable for use as intended. The identity of the party who will incur the costs of completing the construction will be determined in the Tenancy Contract.

Article (16)

Unless otherwise agreed by the parties, the Landlord will, during the term of the Lease Contract, be responsible for the Real Property’ maintenance works and for repairing any defect or damage that may affect the Tenant’s intended use of the Real Property.

Article (17)

The Landlord may not make to the Real Property or any of its amenities or annexes any changes that would preclude the Tenant from full use of the Real Property as intended. The Landlord will be responsible for such changes whether made by him or any other person authorised by the Landlord. Further, the Landlord will be responsible for any defect, damage, deficiency, and wear and tear occurring to the Real Property for reasons not attributable to the fault of the Tenant.

Article (18)

The Landlord must provide the Tenant with the approvals required to be submitted to the competent official entities in the Emirate whenever the Tenant wishes to carry out decoration works or any other works that require such approvals, provided that such works do not affect the structure of the Real Property and that the Tenant has the official documents requesting such approvals.

Article (19) — Tenant’s Obligations

The Tenant must pay the Rent on due dates and maintain the Real Property in such a manner as an ordinary person would maintain his own property. Without prejudice to the Tenant’s obligation to carry out the restorations that have been agreed upon or which are customary for Tenants to undertake, the Tenant may not make any changes or carry out any restoration or maintenance works to the Real Property unless so permitted by the Landlord and after obtaining required licences from the competent official entities.

Article (20)

When entering into a Lease Contract, the Landlord may obtain from the Tenant a security deposit to ensure maintenance of the Real Property upon the expiry of the Lease Contract, provided that the Landlord undertakes to refund such deposit or remainder thereof to the Tenant upon the expiry of the Lease Contract.

Article (21)

Upon the expiry of the term of the Lease Contract, the Tenant must surrender possession of the Real Property to the Landlord in the same condition in which the Tenant received it at the time of entering into the Lease Contract except for ordinary wear and tear or for damage due to reasons beyond the Tenant’s control. In the event of dispute between the two parties, the matter must be referred to the Tribunal to issue an award in this regard.

Article (22)

Unless the Lease Contract states otherwise, the Tenant must pay all fees and taxes due to Government entities and departments for use of the Real Property as well as any fees or taxes prescribed for any sub-lease.

Article (23)

Unless otherwise agreed by the parties, upon vacating and surrendering possession of the Real Property, the Tenant may not remove any leasehold improvements made by the Tenant.

Article (24)

Unless otherwise agreed by the parties to the Lease Contract, the Tenant may not assign the use of or sub-lease the Real Property to third parties unless written consent of the Landlord is obtained.

Article (25) — Eviction Casesamended by Law No. (33) of 2008

The Landlord may seek eviction of the Tenant from the Real Property prior to the expiry of the term of the Tenancy only in the following cases:

1. where the Tenant fails to pay the Rent or any part thereof within thirty (30) days after the date a Notice to pay is given to the Tenant by the Landlord unless otherwise agreed by the parties;

a. where the Tenant sub-lets the Real Property or any part thereof without obtaining the Landlord’s approval in writing. In this case, the eviction will apply to both the Tenant and Sub-Tenant. However, the Sub-Tenant’s right to claim a compensation from the Tenant will be preserved;

b. where the Tenant uses the Real Property or allows others to use it for any illegal purpose or for a purpose which breaches public order or morals;

c. where the Tenant of commercial Real Property leaves the Real Property unoccupied for no valid reason for thirty (30) consecutive days or ninety (90) non-consecutive days within the same year, unless agreed otherwise by both parties;

d. where the Tenant makes a change to the Real Property that renders it unsafe in a manner that makes it impossible to restore the Real Property to its original state, or damages the Real Property willfully or through gross negligence, by failing to exercise due diligence, or by allowing others to cause such damage;

e. where the Tenant uses the Real Property for a purpose other than that for which the Real Property was leased, or uses the Real Property in a manner that violates planning, construction, and use-of-land regulations in force in the Emirate;

f. where the Real Property is condemned, provided that the Landlord must prove this by a technical report issued by or attested to by Dubai Municipality;

g. where the Tenant fails to observe any obligation imposed on him by this Law or any of the terms of the Tenancy Contract within thirty (30) days from the date a Notice to perform such obligation or term is served upon him by the Landlord; or

h. where competent Government entities requires demolition or reconstruction of the Real Property as per urban development requirements in the Emirate. For the purposes of paragraph (1) of this Article, the Landlord will give Notice to the Tenant through a Notary Public or registered post.

2. Upon expiry of the Tenancy Contract the Landlord may request eviction of the Tenant from the Real Property only in any of the following cases:

a. where the owner of the Real Property wishes to demolish the Real Property to reconstruct it, or to add any new constructions that will prevent the Tenant from using the Real Property, provided that the required permits are obtained from the competent entities;

b. where the Real Property is in a condition that requires restoration or comprehensive maintenance that cannot be carried out in the presence of the Tenant in the Real Property, provided that the condition of the Real Property is verified by a technical report issued by or attested to by Dubai Municipality;

c. where the owner of the Real Property wishes to take possession of it for his personal use or for use by any of his first-degree relatives, provided that the owner proves that he does not own another Real Property appropriate for such purpose; or

d. where the owner of the Real Property wishes to sell the leased Real Property. For the purposes of paragraph (2) of this Article, the Landlord must notify the Tenant of the eviction reasons twelve (12) months prior to the date set for eviction, provided that this notice is given through a Notary Public or registered post.

Article (26)amended by Law No. (33) of 2008

If the Tribunal awards the Landlord possession of the Real Property for his personal use or for use by any of his first-degree relatives in accordance with sub-paragraph (c) of paragraph (2) of Article (25) of this Law, the Landlord may not rent the Real Property to a third party before the lapse of at least two (2) years from the date of possession of the Real Property by the Landlord in case of residential Real Property and three (3) years in case of non-residential Real Property, unless the Tribunal, in its discretion, sets a shorter period. Otherwise, the Tenant may request the Tribunal to award him a fair compensation.

Article (27) — General Provisions

The Lease Contract does not expire upon the death of the Landlord or the Tenant. The contractual relationship continues with the heirs, unless the heirs of the Tenant wish to terminate such relationship, provided that termination comes into effect no less than thirty

(30) days from the date of notifying the Landlord of such intent or the expiry date of the Lease Contract, whichever comes first.

Article (28)

Transferring the ownership of Real Property to a new owner does not affect the Tenant’s right to continue to occupy the Real Property by virtue of the Lease Contract entered into with the previous owner, provided that such Lease Contract has a fixed term.

Article (29)amended by Law No. (33) of 2008

1. The Tenant has the right of first refusal to rent the Real Property after it has been demolished and reconstructed or renovated and refurbished by the Landlord, provided that the Rent is determined in accordance with the provisions of Article (9) of this Law.

2. The Tenant must exercise the right of first refusal referred to in the preceding paragraph within a period not exceeding thirty (30) days from the date the Tenant is notified by the Landlord.

Article (30)

If the Tribunal issues an award terminating the Lease Contract and the Real Property is occupied by a Sub-tenant under a contract entered into with the Tenant and approved by the Landlord, the Sub-tenant may continue to occupy the Real Property under the terms of the sub-lease contract.

Article (31)

Filing a claim to evict the Tenant does not exempt the Tenant from paying the Rent for the whole period during which the claim is considered, and until an award is rendered and executed.

Article (32)

If the Landlord and Tenant agree in the Lease Contract or in any other subsequent agreement to refer any dispute arising between them out of the Lease Contract performance to arbitration, neither party may take any action that would affect the Real Property or the parties’ rights and obligations as set out in the Lease Contract. The Tribunal may, upon the request of the Landlord or the Tenant, issue any interim awards it deems appropriate to preserve such rights and legal position until the arbitration award is rendered.

Article (33) — Final Provisions

Where a dispute arises and the Landlord and Tenant have not agreed on the arbitrators or if one or more of the agreed on arbitrators refrains from doing the work, resigns, is removed, or disqualified, or if an issue arises preventing the arbitrator from doing his work, and there was no agreement between the parties in this regard, the Tribunal, upon the request of either party, will appoint the arbitrator(s). The number of arbitrators appointed by the Tribunal must be equal to or complete the number of arbitrators agreed on.

Article (34)

The Landlord may not disconnect services from the Real Property or disturb the Tenant in his use of the Real Property in any manner. If this happens, the Tenant may have recourse to the police station under whose jurisdiction the Real Property falls to seek a remedy for the violation or to file a police report regarding the violation. He also may have recourse to the Tribunal by filing a claim for damages for any loss he may have suffered, supported by official reports that support the existence of such violation.

Article (35)

The awards relating to vacating the Real Property will be executed through the Tribunal and pursuant to the rules and procedures issued in this respect. Apart from such awards, other awards issued by the Tribunal will be executed by the Execution Section of Dubai Courts.

Article (36)amended by Law No. (33) of 2008

The Chairman of the Executive Council will issue the regulations, bylaws, and resolutions required for the implementation of the provisions of this Law.

Article (37)

This Law will be published in the Official Gazette and will come into force after sixty (60) days from the date of publication.

Article (1)

Articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai will be superseded by the following provisions:

Article (2)

This Law will be published in the Official Gazette and will come into force on the day on which it is published.

Article (1) — Percentages of Increase

When renewing real property lease contracts, the maximum percentage of rent increase for real property in the Emirate of Dubai will be as follows:

a. no rent increase, where the rent of the real property unit is up to ten percent (10%) less than the average rental value of similar units;

b. five percent (5%) of the rent of the real property unit, where the rent is eleven percent (11%) to twenty percent (20%) less than the average rental value of similar units;

c. ten percent (10%) of the rent of the real property unit, where the rent is twenty one percent (21%) to thirty percent (30%) less than the average rental value of similar units;

d. fifteen percent (15%) of the rent of the real property unit, where the rent is thirty one percent (31%) to forty percent (40%) less than the average rental value of similar units; or

e. twenty percent (20%) of the rent of the real property unit, where the rent is more than forty percent (40%) less than the average rental value of similar units.

Article (2) — Scope of Application

This Decree will apply to landlords, whether private or public entities, in the Emirate of Dubai, including those in special development zones and free zones such as Dubai International Financial Centre.

Article (3) — Average Rental Value

For the purposes of application of Article (1) of this Decree, the average rental value of similar units will be determined in accordance with the “Rent Index of the Emirate of Dubai” approved by the Real Estate Regulatory Agency.

Article (4) — Publication and Commencement

This Decree comes into force on the day on which it is issued, and will be published in the Official Gazette.

Article (1) — Title of the Decree

This Decree will be cited as “Decree No. (26) of 2013 Concerning the Rent Disputes Settlement Centre in the Emirate of Dubai”.

Article (2) — Definitions

The following words and expressions, wherever mentioned in this Decree, will have the meaning indicated opposite each of them unless the context implies otherwise: Emirate: The Emirate of Dubai. Ruler: His Highness the Ruler of Dubai. Executive Council: The Executive Council of the Emirate. Council: The Judicial Council. Department: The Land Department. Centre: The Rent Disputes Settlement Centre in the Emirate. Tribunal: The tribunal formed at the First Instance Division or Appellate Division of the Centre. Rent Dispute: A dispute that arises between the landlord and tenant in relation to leasing and renting immovable property.

Article (3) — Objectives of the Decree

With a view to supporting sustainable development in the Emirate, this Decree aims to establish a specialised judicial system to hear Rent Disputes, and to develop the procedure for determination of such disputes through an expeditious and simple process for the purpose of realising social and economic stability for all persons involved with the real property rental sector and other related sectors.

Article (4) — Scope of Application

a. The provisions of this Decree will apply to the Special Tribunal to Determine Disputes between Landlords and Tenants established by virtue of the above mentioned Decree No. (2) of 1993.

b. The name “Rent Disputes Settlement Centre in the Emirate of Dubai” will replace the name “Special Tribunal to Determine Disputes between Landlords and Tenants”.

Article (5) — Head Office of the Centre

The Centre will have its head office in the Department, and may establish other offices in the Emirate.

Article (6) — Jurisdiction of the Centre

a. The Centre will have the exclusive jurisdiction to:

1. determine all Rent Disputes that arise between landlords and tenants of real property situated in the Emirate or in free zones, including counterclaims arising therefrom, as well as determine applications for interim or urgent relief filed by any of the parties to a lease contract;

2. determine appeals from the decisions and judgments that are subject to appeal in accordance with the provisions of this Decree and the regulations and resolutions issued in pursuance thereof; and

3. enforce the decisions and judgments issued by the Centre in the Rent Disputes that fall within its jurisdiction.

b. The Centre will have no jurisdiction to hear the following Rent Disputes:

1. Rent Disputes that arise within the free zones which have tribunals or special courts having jurisdiction to determine the Rent Disputes that arise within their boundaries;

2. Rent Disputes that arise from a lease finance contract; and

3. disputes that arise from long-term lease contracts covered by the above mentioned Law No. (7) of 2006.

Article (7) — Organisational Structure of the Centre

a. The organisational structure of the Centre will consist of two sectors: a judicial sector and an administrative sector.

b. The judicial sector will comprise the following divisions and organisational units:

1. the Mediation and Conciliation Directorate;

2. the First Instance Division;

3. the Appellate Division; and

4. the Judgment Enforcement Directorate.

c. The administrative sector of the Centre will comprise a number of organisational units charged with the duty of providing technical and administrative support to the judicial sector.

Article (8) — Chairman of the Centre

A chairman, who must be a judge whose grade is not be lower than the grade of an appellate court judge, will be appointed to the Centre pursuant to a decree issued by the Ruler. The chairman will undertake the supervision of the judicial sector of the Centre and will, in particular, have the powers to:

1. supervise the distribution of claims at the First Instance Division and the Appellate Division;

2. propose the regulations and resolutions necessary for the regulation of the work in the judicial sector of the Centre, including the fees and the charges for services provided by the Centre; and

3. coordinate with all judicial and government entities with respect to all matters relating to the work of the Centre in the judicial sector.

Article (9) — Secretary General of the Centre

A secretary general will be appointed to the Centre pursuant to a resolution issued by the director general of the Department to undertake the supervision of the administrative sector of the Centre and any other duties assigned or delegated to him by the chairman of the Centre.

Article (10) — Mediation and Conciliation Directorate

a. A Mediation and Conciliation Directorate will be established in the Centre with the power to amicably settle Rent Disputes in accordance with the rules adopted in this respect by the chairman of the Centre, with the exception of the following:

1. orders, applications, and claims which are urgent or interim; and

2. claims that have been registered before the effective date of this Decree.

b. The Mediation and Conciliation Directorate will be comprised of a number of lawyers and experts to be appointed by the Department.

c. Rent Disputes submitted to the Mediation and Conciliation Directorate will be heard and settled by a number of specialists working under the supervision of a judge assigned to work with the Centre for this purpose.

d. The Mediation and Conciliation Directorate will hear a Rent Dispute submitted to it by summoning the parties or their representatives, reviewing the documents and related evidence, proposing a settlement to the parties, and reconciling their points of view for the purpose of reaching amicable settlement of the Rent Dispute.

e. The time bar periods and limitation periods stipulated by the legislation in force will be suspended from the date of registering the Rent Dispute with the Mediation and Conciliation Directorate.

f. The Mediation and Conciliation Directorate will seek to amicably settle the Rent Dispute within a period not exceeding fifteen (15) days from the date of appearance of the parties before it. This period may be extended for the same period or periods by a decision of the judge supervising the Mediation and Conciliation Directorate.

g. Where settlement between the parties to the Rent Dispute is reached, this settlement will be documented in a settlement agreement to be signed by the parties and approved by the judge supervising the Mediation and Conciliation Directorate. This agreement will have the force of a writ of execution.

h. The Mediation and Conciliation Directorate may, as it deems appropriate, seek assistance from experts and specialists to provide technical expertise in the matters submitted to it. The decision to seek assistance from an expert will specify the scope of his assignment, the period required for completion of this assignment, his remuneration, and the party responsible for payment of such remuneration.

i. A fee will be charged for the registration of a Rent Dispute submitted to the Mediation and Conciliation Directorate in accordance with the fees prescribed for the registration of claims at the Centre. One-half of the fee will be refunded if amicable settlement is reached between the parties to the Rent Dispute.

Article (11) — Appointment of Chairs and Members of Tribunals

The chairs and members of the Tribunals that comprise the First Instance Division and Appellate Division will be appointed pursuant to a resolution of the chairman of the Council.

Article (12) — Taking the Oath

Before assuming their duties, members of Tribunals who are not judges will take the following oath before the chairman of the Council: “I swear by Allah the Almighty that I will administer justice, respect the laws, and discharge my duties with integrity and honesty”.

Article (13) — The First Instance Division

a. The First Instance Division will be comprised of a sufficient number of Tribunals, each of which is formed of a chair and two (2) competent and experienced members specialised in law and real property. These Tribunals will have the jurisdiction to determine the Rent Disputes referred to in Article (6) of this Decree, and the chair of each Tribunal must be a judge. Notwithstanding the foregoing, the chairman of the Council may appoint an experienced and specialised lawyer as chair of any of these Tribunals.

b. The chairman of the Centre may designate one or more Tribunals within the First Instance Division to hear certain types of Rent Disputes depending on the nature of the claim, or the location or nature of use of the leased real property unit.

Article (14) — The Appellate Division

The Appellate Division will be comprised of a sufficient number of Tribunals, each of which is formed of two (2) judges and one (1) experienced member specialised in real property. The chair of each Tribunal must be a judge. These Tribunals will have jurisdiction to determine the appeals from decisions and judgments issued by the First Instance Division. Judgments of the Appellate Division will be final and not subject to any form of appeal, and will be enforced in accordance with the procedures and rules adopted by the Centre.

Article (15) — Meetings of Tribunals

Meetings of Tribunals will be valid if attended by all their members, and decisions will be issued in the name of the Ruler, unanimously or by majority vote.

Article (16) — Determining Claims

The Tribunals formed under the provisions of this Decree must determine the rent claims referred to them within a period not exceeding thirty (30) days from the date of referral of the claim file to them. This period may be extended for the same period in accordance with the rules and procedures adopted in this respect by the chairman of the Council.

Article (17) — Appeals from Decisions of the First Instance Division

a. Judgments of the First Instance Division will be appealed to the Appellate Division, with the exception of judgments issued for rent claims whose value is less than one hundred thousand Dirhams (AED 100,000), which will be final and not subject to any form of appeal.

b. Judgments issued by the First Instance Division for claims whose value is less than the value mentioned in paragraph (a) of this Article may be appealed in any of the following cases:

1. where an eviction judgment is issued;

2. where the judgment issued breaches the rules of jurisdiction;

3. where the judgment grants relief that has not been requested by the parties, which exceeds that which they requested, or where the judgment fails to address relief requested by the parties;

4. where the judgment is issued against a person who was not duly represented in the claim, or where the service of the summons was invalid;

5. where the judgment is based on documents which are acknowledged as or judicially declared to be false after the judgment has been issued, or where the judgment is based upon testimony that is judicially declared to be false after the judgment has been issued; or

6. where a party to a contract concealed from the First Instance Division evidence or documents that would have changed the judgment.

Article (18) — Time Limit for Appeal of Judgments

a. The time limit for appeal of a judgment issued by the First Instance Division is fifteen

(15) days from the day following the date of the hearing in which the judgment was issued. Where the party against whom the judgment is issued has failed to appear in all hearings of the claim and failed to submit a defence, the time limit for appeal will commence from the date upon which he is served with the judgment.

b. To admit an appeal of a judgment issued by the First Instance Division in claims involving financial claims, the party against whom the judgment was issued must deposit half of the judgment amount with the Centre until the appeal is determined. Notwithstanding the foregoing, the chairman of the Centre may decide to admit the appeal without deposit of that amount or upon payment of a part thereof.

Article (19) — Applicable Sources

The Tribunals will determine Rent Disputes and appeals submitted to it by reference to:

1. the legislation in force in the Emirate;

2. the provisions of Islamic Sharia;

3. principles of natural justice and rules of truth and fairness; and

4. custom, provided that such custom does not contradict the laws, public order, or public morals.

Article (20) — Operating Procedures of the Centre

The Chairman of the Centre will issue regulations concerning the procedures and rules to be adopted by the Centre in all matters relating to the registration, determination, and enforcement of claims and applications by the First Instance Division, the Appellate Division, the Mediation and Conciliation Directorate, or the Judgment Enforcement Directorate. Until such regulations are issued, the Centre may be guided by the provisions of the procedural rules adopted by the Special Tribunal to Determine Disputes between Landlords and Tenants.

Article (21) — Enforcement of Judicial Judgments

All final and irrevocable judgments issued by the First Instance Division and the Appellate Division will be enforced by the Judgment Enforcement Directorate of the Centre. The chairman of the Centre may seek assistance from the Execution Department of Dubai Courts to enforce the judgments issued by the Centre.

Article (22) — Appeals from Decisions and Judgments Issued before the Effective Date of this Decree

Subject to the provisions of Article (17) of this Decree, the decisions and judgments that were not enforced before the effective date of this Decree may be appealed within thirty

(30) days from such effective date.

Article (23) — Fees

a. In return for registering the claims and applications submitted to the Centre and other services provided by it, the Centre will charge fees as determined pursuant to a resolution of the Chairman of the Executive Council.

b. The fees stipulated in the above mentioned Local Order No. (1) of 2004 will continue to apply until the Executive Council resolution referred to in paragraph (a) of this Article is issued.

Article (24) — Remuneration of the Members of Tribunals

The chairman of the Council will issue regulations concerning the financial remuneration that may be paid to chairs and members of Tribunals.

Article (25) — Automation and Use of Technology

The activities of the Centre in the judicial and administrative sectors will be automated to ensure simplification of procedure and expeditious determination of Rent Disputes.

Article (26) — Providing Support to the Centre

The Department will provide all necessary support to the Centre to enable it to perform the functions assigned to it by virtue of this Decree, including providing office premises and administrative, financial, and technical support.

Article (27) — Financial Resources of the Centre

The financial resources of the Centre will consist of:

1. support allocated to the Centre in the budget of the Department; and

2. fees and charges for the services collected by the Centre with respect to claims, applications, transactions, and the services provided by the Centre.

Article (28) — Transitional Provisions

a. The Centre will hear and determine all claims and applications being heard by the Special Tribunal to Determine Disputes between Landlords and Tenants on the effective date of this Decree. These claims and applications will be referred at their current status unless the case is reserved for judgment.

b. All employees of the Special Tribunal to Determine Disputes between Landlords and Tenants will be transferred to the Department as of the effective date of this Decree without prejudice to their existing rights. The Government of Dubai Human Resources Management Law No. (27) of 2006 and its amendments will apply to these employees.

Article (29) — Repeals

a. This Decree will supersede Law No. (15) of 2009 Concerning Hearing Rent Disputes in Free Zones and Decree No. (2) of 1993 Forming a Special Tribunal to Determine Disputes between Landlords and Tenants.

b. Any provision in any other legislation will be repealed to the extent that it contradicts the provisions of this Decree.

Article (30) — Issuing Implementing Resolutions

The chairman of the Council will issue the resolutions required for the implementation of the provisions of this Decree.

Article (31) — Publication and Commencement

This Decree will be published in the Official Gazette and will come into force sixty (60) days after the date of its publication.