I have rented an apartment in Dubai since 2009. When originally signing the lease, I was a resident in Dubai (on an employment visa). Subsequently I lost my job, but have been staying on in Dubai as a “long-term tourist” while maintaining my bank account. Initially I had no problems extending my lease, but now the Landlord has refused to extend my lease by another year unless I submit a visa copy to him. Under the given circumstances, does he have the right to do so? PM, Dubai
When any new resident decides to rent a property the question of the visa status is of paramount importance and needs to be in place before moving in. Without it, the tenant cannot get services connected such as DEWA or registering for Ejari and so on. In your case you obviously had the visa but unfortunately lost your job some time later. You are not allowed to rent property without a proper visa and a tourist visa would not be regarded as permanent despite you having, I assume, a European passport and therefore being able to service this “long term tourist” situation. Without a proper visa you cannot buy a car for the same reason. It is the permanence of an employment visa that gives it credence. Your landlord is right to insist on seeing this document before issuing you with a renewal.
I have had the same tenant in my apartment for five years and we are due to renew by the end of this month. The contract we have both signed is a non-standard contract. Some of the points we agreed include the below:
• Renewal of the tenancy will be at the discretion of the landlord.
• The tenant has to submit 60 days’ written notice, prior to the end of the contract period to the landlord before vacating the premises or before renewing the contract.
• The landlord has to submit 30 days’ written notice, prior to the end of the contract period to the tenant to inform him of any changes in the rent and / or terms and conditions of the tenancy contract.
• Should the landlord decide to terminate the contract prior to the end of the period of tenancy, he/she must notify the tenant in writing at least 30 days prior to the required evacuation date. Rental fees paid by the tenant will be reimbursed by the landlord, pro-rata.
After some negotiation, we agreed to renew for Dh35,000 from June 1 this year and were due to sign this week. I mentioned to my tenant that I am also planning to sell the apartment so that this would be the final renewal between him and I. He then completely changed his mind about the renewal and has said now he will only pay the 15 per cent rise stated in the RERA calculator.
Does my contract mean anything? I thought it was legally binding between him and I. CL, Dubai
You are right that a contract is legally binding between two people that have agreed upon the terms as set out within it. Problems arise however when one party changes their mind in line with current legislation as is the case here.
I read your terms and conditions on your contract and have to say that while your tenant had (I assume) agreed to these terms, they do contravene the current Dubai rental laws.
Your first point is not correct, as the renewal of a tenancy is automatic unless the tenant does not wish to renew. I should clarify that the landlord can also not wish to renew for a few reasons, namely moving in himself or selling the property but then a 12-month notice period has to be served in the proper manner i.e. via notary public or registered mail. Your next two points are also not right as the law states that either party has to give the other 90 days’ notice to alter the contract in any way. Your final point is also misleading as the landlord can only terminate the contract prior to the end of the tenancy in only certain cases. For example, if the tenant fails to pay the rent within 30 days of the landlord’s notification, if the tenant subleases the property without your notification, if the tenant uses the property for purposes other than the purpose it was leased for or if the tenant uses the property for illegal or immoral activities. These clauses are all found under article 25 of law 33 of 2008.
To conclude, your contract ought to be respected, as it has been agreed between two parties but problems arise when one party realises it will suit them to stick to the letter of the law.
Mario Volpi is the managing director of Prestige Real Estate in Dubai (prestigedubai.com). He has 30 years of property industry experience in the emirate and London. Send any questions to mario@prestigedubai.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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A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
More on Quran memorisation:
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.”
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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Profile Periscope Media
Founder: Smeetha Ghosh, one co-founder (anonymous)
Launch year: 2020
Employees: four – plans to add another 10 by July 2021
Financing stage: $250,000 bootstrap funding, approaching VC firms this year
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Building boom turning to bust as Turkey's economy slows
Deep in a provincial region of northwestern Turkey, it looks like a mirage - hundreds of luxury houses built in neat rows, their pointed towers somewhere between French chateau and Disney castle.
Meant to provide luxurious accommodations for foreign buyers, the houses are however standing empty in what is anything but a fairytale for their investors.
The ambitious development has been hit by regional turmoil as well as the slump in the Turkish construction industry - a key sector - as the country's economy heads towards what could be a hard landing in an intensifying downturn.
After a long period of solid growth, Turkey's economy contracted 1.1 per cent in the third quarter, and many economists expect it will enter into recession this year.
The country has been hit by high inflation and a currency crisis in August. The lira lost 28 per cent of its value against the dollar in 2018 and markets are still unconvinced by the readiness of the government under President Recep Tayyip Erdogan to tackle underlying economic issues.
The villas close to the town centre of Mudurnu in the Bolu region are intended to resemble European architecture and are part of the Sarot Group's Burj Al Babas project.
But the development of 732 villas and a shopping centre - which began in 2014 - is now in limbo as Sarot Group has sought bankruptcy protection.
It is one of hundreds of Turkish companies that have done so as they seek cover from creditors and to restructure their debts.
UK%20-%20UAE%20Trade
%3Cp%3ETotal%20trade%20in%20goods%20and%20services%20(exports%20plus%20imports)%20between%20the%20UK%20and%20the%20UAE%20in%202022%20was%20%C2%A321.6%20billion%20(Dh98%20billion).%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3C%2Fp%3E%0A%3Cp%3EThis%20is%20an%20increase%20of%2063.0%20per%20cent%20or%20%C2%A38.3%20billion%20in%20current%20prices%20from%20the%20four%20quarters%20to%20the%20end%20of%202021.%3C%2Fp%3E%0A%3Cp%3E%C2%A0%3C%2Fp%3E%0A%3Cp%3EThe%20UAE%20was%20the%20UK%E2%80%99s%2019th%20largest%20trading%20partner%20in%20the%20four%20quarters%20to%20the%20end%20of%20Q4%202022%20accounting%20for%201.3%20per%20cent%20of%20total%20UK%20trade.%3C%2Fp%3E%0A
New Zealand 57-0 South Africa
Tries: Rieko Ioane, Nehe Milner-Skudder (2), Scott Barrett, Brodie Retallick, Ofa Tu'ungfasi, Lima Sopoaga, Codie Taylor. Conversions: Beauden Barrett (7). Penalty: Beauden Barrett
