Commercial lease in the UAE: Template, Key Clauses and Local Law (2026)

What a UAE commercial lease is, and what local law requires A commercial lease in the United Arab Emirates lets a business occupy a shop, office, warehouse or industrial unit in return for rent. The UAE has no single federal tenancy law. Each emirate sets its own rules, and the free zones add a layer on top of that. The one rule that holds everywhere is the federal Civil Transactions Law (Federal Law No. 5 of 1985 and its later amendments), which governs the contract itself where no local tenancy law overrides it. The two emirates most businesses deal with are Dubai and Abu Dhabi. - Dubai. The main statute is Law No. 26 of 2007, as amended by Law No. 33 of 2008. It governs the landlord and tenant relationship, including renewal, rent increases and eviction. Every lease must be registered on Ejari, the system run under the Dubai Land Department and RERA. Without Ejari registration a lease has little standing, and the Rental Disputes Centre will not hear a dispute on it. Rent increases at renewal are capped by Decree No. 43 of 2013 on a sliding scale tied to how far the current rent sits below the RERA rental index.

• Abu Dhabi. Leases are registered on Tawtheeq through the Abu Dhabi Real Estate Centre. The emirate has its own tenancy rules and its own rent cap position, which has changed over time, so confirm the current cap before you rely on it.
• Free zones. The DIFC and ADGM run their own property regimes, closer to common law (for example the DIFC Real Property Law No. 4 of 2007). Other free zones such as DMCC and JAFZA layer their own authority terms on top of the emirate framework. Always check which regime your unit sits in. Commercial rent is subject to 5 percent VAT under Federal Decree-Law No. 8 of 2017, unlike residential rent, which is exempt or zero rated. This is general guidance, not legal advice. Confirm the current position with the Dubai Land Department, the Abu Dhabi Real Estate Centre or your free zone authority before you sign. Last verified October 2026. ## UAE commercial lease template Copy the block below and fill the bracketed fields. This is a starting point for a standard unit outside a free zone; a free zone unit will also use the authority's own form. ``` COMMERCIAL LEASE AGREEMENT This Lease is made on [DATE] BETWEEN: [LANDLORD NAME], holder of [trade licence / Emirates ID / title deed no.], of [address] ("Landlord") AND [TENANT NAME], [trade licence no. and issuing authority], of [address] ("Tenant") 1. PREMISES The Landlord leases to the Tenant the unit at [full address, plot and unit number, area in sq m] ("Premises"), for use only as [permitted use matching the Tenant's trade licence activity]. 2. TERM The term is [N] years from [START DATE] to [END DATE]. [Renewal terms.] 3. RENT AND PAYMENT Annual rent is AED [AMOUNT], plus 5 percent VAT, payable by [N] cheques of AED [AMOUNT] dated [dates]. Rent covers [what is included]. 4. SECURITY DEPOSIT The Tenant pays a refundable deposit of AED [AMOUNT], returned within [N] days of handover less the cost of any damage beyond fair wear. 5. REGISTRATION The parties will register this Lease on [Ejari / Tawtheeq] within [N] days of signing. [State who pays the fee.] 6. USE, FIT-OUT AND ALTERATIONS The Tenant will use the Premises only for the permitted use and will not alter the structure without the Landlord's written consent. [Fit-out period, rent-free period, make-good on exit.] 7. MAINTENANCE AND SERVICE CHARGES The Landlord maintains [structure, main systems]. The Tenant maintains [interior, fittings] and pays [service charges, utilities, chiller]. 8. ASSIGNMENT AND SUBLETTING The Tenant may not assign or sublet without the Landlord's written consent. 9. RENEWAL AND RENT REVIEW Any change to rent or terms at renewal requires [90] days written notice before the end of the term, and any increase is within the statutory cap for the emirate. 10. TERMINATION AND EVICTION Either party may act on the grounds and notice the local tenancy law allows. [Early exit, break option, penalty.] 11. GOVERNING LAW AND DISPUTES This Lease is governed by the law of [Emirate] and the UAE Civil Transactions Law, and disputes go to the [Rental Disputes Centre / competent court / free zone body]. Signed: Landlord: __________ Tenant: __________ Name / date Name / trade licence / date

- **Rent and cheques (clause 3).** Rent in the UAE is usually paid by a small number of post dated cheques. A bounced cheque is a serious matter, so agree a realistic cheque count and dates.
- **Registration (clause 5).** In Dubai, Ejari is mandatory and is the gateway to the Rental Disputes Centre, utilities and licence renewal. In Abu Dhabi, Tawtheeq plays the same role. Name who registers and who pays.
- **Rent review (clause 9).** In Dubai, Decree No. 43 of 2013 sets the cap: no increase where rent is up to 10 percent below the RERA index, up to 5 percent where it is 11 to 20 percent below, up to 10 percent where it is 21 to 30 percent below, up to 15 percent where it is 31 to 40 percent below, and up to 20 percent above that. A landlord who wants any change must give 90 days notice before renewal. Abu Dhabi runs its own cap, so confirm it. Last verified October 2026.
- **Eviction (clause 10).** In Dubai, eviction during a term is limited to set grounds, and eviction for the landlord's own use or sale generally needs 12 months notice through a notary or registered mail. Do not rely on a plain contractual right to evict that the law does not support. ## Red flags to check before you sign - No Ejari or Tawtheeq registration, which leaves you without access to the Rental Disputes Centre.
- A permitted use that does not match your trade licence activity.
- A rent increase clause that ignores the statutory cap for the emirate.
- Service charges and chiller or cooling costs left vague, which can add a large sum each year.
- A free zone unit treated as if the emirate tenancy law applies, when the free zone authority's own terms control.
- An eviction or early exit clause that promises more than the local law allows. ## A note on jurisdiction and Adira's coverage UAE commercial leasing is emirate specific and changes often, so the safe path is to confirm the current rule for your emirate and free zone with the relevant authority or a local lawyer. Adira is India first in its depth today, and uses an international setting for other jurisdictions. Deep, verified UAE coverage, including Arabic language drafting, is on Adira's roadmap rather than established today, so treat any UAE specific output as a draft to check with UAE counsel. ## Where a contract workspace helps A template gets you a sound UAE commercial lease. The ongoing work is keeping every lease consistent across units and emirates, tracking each registration, rent review date and renewal notice window, and holding signed versions in one place so nothing lapses. When drafting, review and tracking live in one AI workspace tuned to how your company leases, the renewal notice dates and rent caps stay visible instead of sitting in a folder. [Adira](https://adiralaw.com) is one workspace built to work this way, with UAE depth on its roadmap. This template alone is enough to put a fair lease in place today.