I rent an apartment in the Dubai International Financial Centre and it is my first year of tenancy. I recently received an email from my landlord saying that he will not renew the tenancy contract and it will be deemed terminated on the lease expiry date of December 14, 2021. He said he would contact me close to the expiry of the lease to discuss the moving out process.
Can I ignore his email as I believe an official non-renewal notification must be sent in writing through notary public or registered mail? Once I receive the formal non-renewal notice, will that day will be considered the official date of being notified and will my vacating date be 12 months from the date of being served the notice?
Will my new lease have the same terms as my current tenancy contract for the final 12 months of my stay? Do I need to do anything official or simply state this as my legal right?
I am confident that my landlord does not need the apartment for his personal use. He recently listed the unit for sale. Given the recent steep increase in rental prices, I believe my landlord is being opportunistic and asking for a 10 per cent price increase after only 12 months of tenancy. SS, Dubai
With reference to the DIFC specifically, this area has always had its own jurisdiction. However, it mostly follows Dubai laws when it comes to rental issues.
A DIFC landlord can issue a non-renewal notice with three months' notice. As long as this is in writing, there is no need for the landlord to send the notice by notary public or registered mail. Your landlord is in the right to inform you in this way.
What this means is that your tenancy will come to a natural end at the end of your contract agreement.
Now, given what I have said about the DIFC in the most part following Dubai rules, you can test this by filing a case at the Rental Dispute Settlement Committee if you do not agree with your landlord and wish to renew your contract.
The judge will then decide if your landlord will have to abide by the 12-month notice rule from Dubai or if you need to leave at the end of your contract date.
Unfortunately, there is no guarantee of success. In this case, you will have to either accept the landlord’s decision or test the system by going to the Real Estate Regulatory Agency.
I live in Abu Dhabi. My landlord sold the apartment to another person. We have been asked to move out by November. What are the penalties for a landlord breaking the lease? KW, Abu Dhabi
When the landlord sells their property to someone else, the terms and conditions of your lease remain the same, irrespective of who the owner is.
The landlord is, however, entitled to request vacant possession after giving two months’ notice before the expiry of the lease.
Depending on when your landlord asked you to vacate, it will determine whether it is legal for him to request vacant possession or not.
When a tenant breaks the contract early, the penalty is usually from one to two months’ rent
Mario Volpi
If the buyer is an investor, the new landlord will presumably be interested in continuing with you as a tenant, subject to terms and conditions. However, if the buyer wishes to use the property, you will most likely have to vacate.
With reference to the landlord breaking the lease early, go through your rental contract and both parties must adhere to what is written in the agreement.
There is no legal amount mentioned in law for penalties when a lease is broken early, other than what is mentioned in your contract.
However, when a tenant breaks the contract early, the penalty is usually from one to two months’ rent. I would suggest that the same formula be used in your case and the landlord should compensate you financially for this.
Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com
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.”
JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
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Qualifying: Saturday, 10-11am
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Number of Laps: 53
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How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Indoor cricket in a nutshell
Indoor Cricket World Cup - Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
