Rent Cap in Abu Dhabi remains 5% until November 2012

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Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces HH General Sheikh Mohammed bin Zayed Al Nahyan, in his capacity as the Chairman of the Executive Council has issued an ordinance on the extension of contracts of leasing premises.

The ordinance extends the deadline specified in the Law concerning the Lease of Premises and Regulation of Relationship between Lessors and Lessees until 9th November 2012, according to the official news agency WAM.

The ordinance also capped the amount of annual increase in the rental value at 5 percent of the original rent, specifying that the increase, if any, should be between zero and five percent.

‘Law No. (20) of 2006 concerning the Lease of Premises and Regulation of Relationship between Lessors and Lessees’ had prevented landlords from asking their tenants to vacate the leased premises on the basis of the lapse of tenancy before 9th November 2010.

The Law also authorized the Chairman of the Executive Council to extend this date as he deems appropriate and in line with the provisions of the law.

The ordinance is issued in furtherance of the spirit of social stability for the tenants in the Emirate of Abu Dhabi and to ensure that they can remain in their residences until November 9, 2012.

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