A new property law in the capital maintains the existing five per cent rent cap

A new property law in the capital maintains the existing five per cent rent cap and restrictions on the eviction of tenants, according to new legislation signed by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, in his capacity as Ruler of Abu Dhabi.

Changes were made only to certain articles of the law, No 20 of 2006, but article 23 that specifically spells out reasons for eviction was left unchanged.

Under the law, landlords cannot ask tenants to vacate except in specific cases, like approved demolition, for personal use, if tenants fail to pay rent, if tenants sublet the property without the approval of the landlord or violate public norms.

Complaints

In the case of demolition of the building, tenants must be given a grace period of not less than six months to vacate. If the landlord fails to live in the property, he had asked to be vacated for personal use, for three months or re-lets it to another party, the tenant can complain to the Rent Disputes Resolution Committee.

The new legislation, which took effect from February 10, gives landlords and tenants the right to end the tenancy contract or change its terms, after giving two months' notice for residential property and three months for commercial and industrial property as well as professional offices.

"The new law removes a five year moratorium on the eviction of tenants, but it does not give a free hand to landlords to evict tenants," said lawyer Osama Abdul Aziz of the law firm Tarik Al Serkal.

The new law also creates a cassation committee and brings the existing Abu Dhabi Rental Disputes Resolution Committee, its appeal arm and the cassation panel under the authority of the Abu Dhabi Judicial Department.

The chairmen of the rent, appeal and cassation panels, who used to be officers appointed by the Executive Council, will now be judges, according to the law.

Rulings by the rent committee on leases of up to Dh100,000 are final. Rulings on leases above Dh100,000 can be appealed within 15 days from the date of the ruling and cases related to leases worth more than Dh500,000 may be looked into by the cassation committee. Tenants have 30 days from the date of the ruling of the appeals committee to file with the cassation committee.

Tenants who are about to reach the end of their contracts still enjoy protection until November 9.

A landlord may ask to evict a tenant before the November 9 deadline provided the Rental Disputes Resolution Committee agrees on the grounds that "the occupancy causes serious harm to the landlord and provided the tenant had already been living there for not less than two years," according to the law. A grace period of not less than six months from the date of the committee's decision is granted.

Dubai's real estate regulatory agency (RERA)eyes new laws on property valuations

Dubai's real estate watchdog is looking to bring in new legislation to regulate how house valuations are conducted, following the slump in prices which saw well over $100bn wiped off the emirate's property market assets.

Dubai's real estate regulatory agency (RERA) is planning to publish new guidelines for the industry by mid 2010 in a bid to create a more professional real estate valuation system, a senior official has said.

Mohammed Khodr Al-Dah, head of RERA's Land Department Real Estate Appraisal Centre (Taqyeem), said: "Having recognised the increasing importance of accurate evaluation of real estate assets, RERA is currently working with the Dubai Land Department and other interested parties to draft appropriate legal guidelines to regulate how valuations are conducted."

His comments, published in the latest MENA House View report by Jones Lang Lasalle, come as property prices in the emirate have seen declines of more than 50 percent from 2008 peaks.

In the report, Jones Lang Lasalle said that the introduction of more professional valuation standards was "an essential precondition for rebuilding the trust and confidence required for the recovery of real estate markets across MENA".

"Accurate and regular valuations comprise an integral part of the sound investment and risk mitigation strategies that investors need to adopt as the real estate market faces continued uncertainties and only selected stability in 2010," the report added.

Jones Lang Lasalle said that while valuations were not the sole answer to reversing a trend of falling transaction volumes, they could "provide a catalyst for the improvement in certainty and transparency required for the markets to recover".

Transit visa procedure to exit airports in Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah

Airline transit passengers travelling with a stopover at Dubai Airport (or other UAE airport) who do not leave the terminal building not needed a UAE visa since they are not entering the UAE. Citizens of UAE free arrival visa countries do not need to pre-arrange any visa whether they are in transit or travelling to Dubai as a destination.

Any other passenger who does want to exit the airport will need a UAE entry permit. By exit, we mean anyone who wants to go through passport control. A 96 hour transit visa is available to visitors to the UAE. Remember also that different emirates in the UAE might have different ways of implementing immigration rules. You can obtain a 96 hour transit visa in one of the following ways:

Pre-apply through the airline, travel agent, or UAE hotel that you are booked with. None of them are likely to arrange a transit visa for you unless you are a customer.

Obtain one on arrival in Dubai at the Marhaba services counter in Terminal 1, or the Emirates Hotels and Visas for Dubai desk in Terminal 3. This is not guaranteed, as the granting of the visa is subject to Dubai immigration department approval. You will need to buy at least one night in a Dubai hotel from Marhaba or Emirates to be issued a transit visa.

Citizens of the following countries are not eligible for the 96 hours visa on arrival: Somalia, Afghanistan, Iraq, Niger, and Yemen.

The UAE's new companies law, expected to come out in 2010

The UAE's new companies law, which is expected to come out in 2010, will relax foreign ownership restrictions but will stop short of allowing 100 percent ownership, an Abu Dhabi government official said on Tuesday.

Mohammed Omar Abdulla, undersecretary of Abu Dhabi's department of economic development, made the remarks at a panel discussion.

"The new companies law in the UAE will make a relaxation in foreign ownership," he said. "It will not be up to 100 percent, it will be more than 49 percent."

Abdullah added that Abu Dhabi plans to set up a dedicated investment agency to attract foreign investment.

"In line with our five-year strategic plan, the department is working towards setting up a dedicated investment agency to serve the needs of international investors," said Abdullah .

The new agency will begin operations by the end of 2010 and will identify areas of opportunities to attract foreign investments, he added.

"International investors have a crucial role to play bringing in expertise, technology and best global practices," he told the conference.

Abdullah also said the Ministry of Economy was preparing the final draft of a new UAE companies law which will come out this year. The law will relax foreign ownership rules but stops short of allowing 100 percent ownership, he said. (Reuters)

The UAE Ministry of Labor has reduced the deposit expatriates pay to bring in domestic help to AED2,000

The fee for expatriates to sponsor domestic workers in Dubai has been reduced to from AED5,000 to AED2,000 - matching the deposit Emiratis pay for sponsoring domestic help, Gulf News reported.

According to a senior official from the Ministry of Interior, expatriates used to pay a AED5,000 deposit plus an additional AED5,000 to cover medical and visa costs.

“The deposit will now be refunded only when the domestic helper visa is cancelled and when she leaves the country,” Major General Mohammad Ahmad Al Merri, Director General of the Dubai Department for Residency and Foreigners Affairs told Gulf News.

These government incentives could be an attempt to maintain the number of domestic workers in the country, amid the financial crisis.

At the same time, the changes include an amendment that would see expatriates being refunded only when domestic workers were issued their residency visa, which is valid for one year only.

This could be problematic for sponsors since it is not uncommon for workers to run away. Both Emirati and expatriate sponsors stand to lose a lot of money if their domestic workers run away.Housemaids abscond for a variety of reasons; the most-often cited being abuse and mistreatment.

Interestingly, domestic workers in the emirates are not covered under the provisions of the labor law like other workers; their problems are considered as either immigration or police matters. And when there’s a conflict between a housekeeper and his or her employer, most workers are convinced the law is on the sponsors’ side.

It is unsurprising, then, that most domestic workers choose to runaway, in spite of losing their employment rights as a result of absconding.

It seems to Kipp the system needs more than mere fee adjustments