The DIFC Leasing Law No.1 is expected to enhance the financial center’s property market/Bloombergby Kudakwashe Muzoriwa
The Dubai International Financial Centre (DIFC) has enacted a new DIFC Leasing Law No. 1 of 2020 that specifies requirements and provides a protection framework for owners and tenants in the financial centre.
DIFC stated that the newly enacted law introduces areas of protection and assurance to lessors and lessees entering into leases at properties based on the dynamic financial ecosystem of the financial hub.
The law outlines the general requirements for leases and general obligations for lessees and lessors as well as a tenancy deposit scheme for residential leases to be administered by the Registrar of Real Property.
The DIFC Leasing Law No.1 also requires the production of condition reports in the format required by the leasing law by residential lessors.
Enacted by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the introduction of the new law is expected to enhance the center’s property market and reflects the DIFC’s commitment to maintaining a legal framework that is aligned with international best practice.
HE Essa Kazim, the Governor of DIFC, said, “Enacting the new DIFC Leasing Law will not only provide clearer guidance for thousands of landlords and tenants in 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.”
Additionally, the newly enacted law imposes a maximum limit on security deposits collected by residential lessors and introduces clearer provisions relating to the termination of leases.