I own an apartment in Dubai, in which I currently live. I plan to leave the city and wish to rent out my property.
However, I want the option of returning in a year and moving back into the flat. Because the duration of a tenancy contract is one year, I thought this would be simple by serving the tenant three months’ notice prior to the lease expiry.
However, I hear that if I want my tenant to leave when the 12-month lease ends, I need to provide a 12-month eviction notice. Therefore, to abide by the law and keep my options open, am I required to simultaneously sign a 12-month lease and serve a 12-month eviction notice? ES, Dubai
Under normal circumstances and due to different interpretations of the law, you can either sign up a tenant and immediately serve them with a 12-month eviction notice or find a tenant and serve them the 12-month notice upon expiry of the tenancy agreement one year later, thus giving them two years in your property.
While the second option may not suit you, that is how the law is written. However, some judges at the Rental Dispute Settlement Committee are allowing the 12-month eviction notice to be served at any time during the contract, so your first option could still work.
The law is not set on precedent and it is up to a judge at the RDSC at the time of a hearing to decide whether the 12-month notice served at any time can be upheld.
If your tenant files a case, you will have to wait for the judge’s decision for the outcome.
I suggest that you be transparent with your tenant to guarantee that they stay only for the initial 12-month period. This way, you can rent out the property for one year and move in for the second year.
However, if your plans change and you do not want to return to Dubai, you can always give the tenant the option of renewing the lease.
It is up to a judge at the RDSC at the time of a hearing to decide whether the 12-month notice served at any time can be upheld
Mario Volpi,
sales and leasing manager at Engel & Volkers
I have been renting a property in Dubai since May 10, 2021, with my family. On September 20 last year, I received an eviction notice from my landlord because he wants to sell the property.
However, I believe I am legally entitled to remain in the property until September 20, 2022, which is one year from the date of the eviction notice, although my lease expires on May 10, 2022.
My landlord suggested that I can renew the contract for four months if I wish to continue staying in the property until September 20, 2022. However, he warned of a rent increase for the renewal period.
Is the landlord allowed to increase rent during the notice period? LR, Dubai
A landlord can serve the 12-month written notice asking the tenant to vacate only upon expiry of the tenancy agreement, according to Law 33 of 2008.
However, some judges at the RDSC allow this notice to be served at any time during the lease. It’s up to the judge present at the hearing to decide if the 12-month eviction notice you received is valid or not.
You have a tenancy contract until May this year. If you want to stay on, you must challenge the eviction notice, which was sent only four months into the first year’s rental contract.
Rather than renewing the lease for the extra months as your landlord suggested, file a case at the RDSC and hope for the presiding judge to rule in your favour.
The landlord agreed to let you stay on if you pay more rent. This shows that he’s clearly after more money. This may work in your favour during the RDSC hearing.
Alternatively, you can wait for the property to be sold and negotiate favourable terms with the new owner, who will most likely send you a new 12-month eviction notice.
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
UAE currency: the story behind the money in your pockets
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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.”
Mohammed bin Zayed Majlis
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
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MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
CREW
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Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Favourite things
Luxury: Enjoys window shopping for high-end bags and jewellery
Discount: She works in luxury retail, but is careful about spending, waits for sales, festivals and only buys on discount
University: The only person in her family to go to college, Jiang secured a bachelor’s degree in business management in China
Masters: Studying part-time for a master’s degree in international business marketing in Dubai
Vacation: Heads back home to see family in China
Community work: Member of the Chinese Business Women’s Association of the UAE to encourage other women entrepreneurs
Seemar’s top six for the Dubai World Cup Carnival:
1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition
The%20specs
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Blonde
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The Light of the Moon
Director: Jessica M Thompson
Starring: Stephanie Beatriz, Michael Stahl-David
Three stars