Mario Volpi advises a landlord who has had issues with a real estate company and a tenant. Jeff Topping / The National
Mario Volpi advises a landlord who has had issues with a real estate company and a tenant. Jeff Topping / The National
Mario Volpi advises a landlord who has had issues with a real estate company and a tenant. Jeff Topping / The National
Mario Volpi advises a landlord who has had issues with a real estate company and a tenant. Jeff Topping / The National

Can Dubai landlord evict tenant because he doesn’t like him?


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  • Arabic

I have an apartment in Ritaj, Dubai Investment Park. We rented it out via a real estate company last May. It then sublet the apartment to a tenant at a lesser rent than the market rate and charged the remaining amount to them as processing fees. The real estate company then closed down and the cheque issued to us bounced. We understand the tenant has the right to stay in the apartment until the end of the contract. My question is – is it mandatory for us to renew the tenancy contract with the same tenant for the second year? We do not wish to continue with the existing tenant as we do not like him. Can we give an eviction notice to him? SB, Dubai

a Unfortunately you cannot evict a tenant just because you don’t like him. You are in a difficult situation because presumably the rental figure on his agreement is much lower than the going rate. Your only recourse is to give 90 days’ notice that you will be increasing the rent (as per the Rera rental calculator). If he doesn’t agree, you can then open a case at the rental committee. There are a few reasons that you can request eviction of your tenant, but I do not believe any apply to your situation. Remember that the tenant has done nothing wrong.

I recently emailed my landlady to request she prepare the rental agreement for renewal. She replied saying she has sent me a notice through the notary public and wants to evict me. I emailed her stating that I had not received any notice. She emailed what transpires to be (after translation) a notice which is stamped by the notary public the day after I last renewed the contract, with a standard Aramex slip. However, the slip does not have my name or address on it, and nothing was delivered to me until now (by email one month prior to renewal). So is a notary public notice sufficient to evict me? RG, Dubai

For the 12 months’ notification notice to be legal, it has to be sent via notary public or registered mail. The fact that the notice did not contain your details and you never received it means this notice has to be contested. When the registered mail company is not able to hand the notice to the recipient, it normally pastes it on to the property door. My advice would be to insist the landlady renews the contract. If she insists on wanting to evict you, then either you or she should open a case at the rental committee. The outcome will be determined by the rental judges and while I cannot confirm what will happen, I believe you have enough going for you to be granted another year.

I am a landlord of an apartment in Dubai. My tenant failed to honour a rental cheque in February and his whereabouts is not known. Even his wife in India is not aware where he is. I understand my tenant's friends are staying in my apartment. What do I need to do to cancel the tenancy contract and evict my tenant? BS, Dubai

As per law 33 of 2008, you will be entitled to evict your tenant prior to the expiry of the tenancy agreement. Under article 25, section 1 (a), this states, if a tenant fails to pay rent value or part thereof within 30 days of the landlord’s notification for payment. Before you can legally evict him, you must request notarised documentation from the courts, addressed to the tenant. This needs to be delivered to the property. The courier company will most likely paste it on the door, as this is then deemed delivered. The notification has to state that you are giving him 30 days to pay his rent in cleared funds. If after 30 further days he has not paid, then you can file a case at the rental committee with the 30 days’ notification expired as proof you have abided by the law. It will then advise you as to the next steps.

Mario Volpi is the managing director of Ocean View Real Estate and has worked in the industry in the emirate and in London for the past 30 years. Send any questions to mario@oceanviewdubai.com

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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