Most business tenants in Dubai can stay on when their lease ends. Under the Dubai tenancy law (Law No. 26 of 2007, as amended), a lease that simply runs out renews on the same terms, and a landlord can only end it on limited grounds, such as selling the property, moving in themselves or demolishing and rebuilding.
The trouble is timing. Almost everything that matters is decided by notices, and the notices run on deadlines. Tenants who wait for the expiry date often find the useful decisions have already been made for them.
First, check which rules apply
If your premises are in the DIFC, the DIFC Leasing Law applies instead, with its own notice rules. Elsewhere in Dubai, check that your lease is registered with Ejari: you need that registration for your trade licence, and for any case at the Rental Disputes Centre.
The notices
- Either side that wants to change the terms on renewal, including the rent, must tell the other at least 90 days before the lease ends.
- A rent increase must fit the RERA rental index: if your rent is already close to the average for similar premises, the landlord may not be able to raise it at all.
- A landlord who wants the premises back must give 12 months’ notice, through a notary public or by registered post, and only for one of the reasons the law allows.
Diary the date four months before your lease ends. That’s when you should start thinking, not when you should start panicking.
Should you move first?
Sometimes. If rents for similar premises have fallen, a tenant who proposes new terms early can lock in a lower rent sooner. If rents have risen, it may pay to let the lease renew on its current terms. We look at the rent, the index, the building and your plans before advising either way.
Most renewals never see the Rental Disputes Centre
The Centre is a safety net. In practice, nearly all our renewals are agreed by negotiation, on a fixed fee of AED 4,000 plus VAT. If you have a lease ending in the next 12 months, call David or Hannah for a free 20-minute review.
