REALWorld Law

Commercial leases

Security of tenure

Does a tenant have a right to continue to occupy the relevant real estate after the expiry of a commercial lease?

United Arab Emirates - Abu Dhabi

United Arab Emirates - Abu Dhabi

Within Abu Dhabi and outside the Abu Dhabi Global Market free zone

As of November 2013 (provided the relevant new law is published – which it had not been at the time of writing), leases no longer automatically renew at the end of the term for the same length as the initial term (as they did up until then). If a party does not wish to renew or wishes to re-negotiate the terms of the lease, three months’ notice is required for commercial property and two months’ notice is required for residential property.

During the term of a lease, the only grounds for removing the lessee are:

  • Non-payment of rent
  • Unauthorized assignment
  • Excessive occupation
  • Unauthorized or unlawful use
  • Redevelopment, or lessor’s own need or wish to occupy

Within the Abu Dhabi Global Market free zone

In the Abu Dhabi Global Market free zone, there is no security of tenure – meaning that a tenant does not have a statutory right to renew their lease at the end of the term. There are no provisions in ADGM law regarding eviction.