The Statutory Basis of Commercial Tenancies
Commercial lease agreements in the UAE are primarily governed by Federal Law No. 5 of 1985 (Civil Transactions Law), supplemented by local decrees in specific Emirates, such as Law No. 26 of 2007 in Dubai. While the Civil Code provides a broad framework for property rights, commercial leases often grant parties significant latitude to define their respective obligations, particularly regarding the operational use of the premises.
Maintenance Liabilities and Repair Obligations
A critical point of contention in commercial leases is the allocation of maintenance duties. Under general principles, the landlord is responsible for major structural repairs unless otherwise agreed. However, in the commercial sector, it is standard practice to shift preventative and minor maintenance responsibilities to the tenant. These clauses must be drafted with absolute clarity to avoid disputes before the Rental Dispute Center (RDC).
Termination and Dispute Resolution
The legal grounds for terminating a commercial lease are strictly defined. Non-payment of rent, unauthorized subletting, or using the property for purposes other than those agreed upon are common triggers for eviction. Parties are encouraged to include robust arbitration clauses or specify the jurisdiction of local rental committees to ensure a streamlined resolution process in the event of a breach of contract.