The UAE has always been a country that seeks to address the needs and concerns of its citizens. As a people, we fully support and trust the policies made by our government, knowing that many a time they see what many of us do not: a vision a greatness for the future.
But even though the recent decision to remove the rent cap may fit perfectly into the complex puzzle that is the future of Abu Dhabi – and make complete sense on a strategic level – it leaves many renters concerned about landlords who could abuse this rule for profit.
A shockwave swept through Abu Dhabi’s renters late last year when the cap was removed.
Emiratis and residents who were in the country at the time the rent cap was introduced some years ago, recall how much of a positive impact that decision had on life here.
It represented a strong statement by the authorities, who clearly showed their understanding of the unacceptable rises being applied by landlords.
We rejoiced when opportunist landlords were put in their place and they were forced to return to a more sensible level of rents, which eventually brought people back to Abu Dhabi after being forced by high rents to find alternative housing elsewhere.
Later, a new regulation was implemented, stating that all employees who worked for Abu Dhabi entities would have to provide proof of renting within the capital or forfeit their housing allowance.
Personally, this decision made absolute sense to me.
To live in Abu Dhabi is to invest in its future. Such is the condition of living not only in the one of most safest, cleanest and most developed cities around the globe but also the generous financial security Abu Dhabi offers to all who work within its borders. If a person works in the capital or any place in the UAE for that matter, and is does not have even the slightest interest in the growth and the development of the country, then they have undoubtedly come to the wrong place. We have always opened our doors to the world, encouraging a partnership of all nationalities and cultures, to stand strongly by each other’s side, combining experience, work ethics and talent for the good of the country. Afterall, we are a growing city with great ambitions to become one of the best places in the world to live in.
Yet, the removal of the rent cap seems to contradict this.
We have always opened our doors to the world, encouraging a partnership of all nationalities and cultures to stand side by side. And yet, we have implemented a policy that would not only turn people away from moving to Abu Dhabi in the first place, but will more importantly affect the standard of living for many long-term residents.
There is a misconception that only expatriates are affected by the recent change in rents. That could not be further from the truth.
A good portion of Emiratis are renters, myself included, who either choose to rent or still have many years ahead of them before they are able to use the lands that have been generously provided to them by the government of Abu Dhabi.
Without a doubt, these Emiratis will be forced to lower the standard of living than previously, alongside many expatriates who will also suffer the same fate.
The decision to remove the rent cap was taken for many reasons, one of which was the expectancy or hope that most landlords would be sensible in the amount they decided to increase rents by.
Overall, this has so far been the case, with many rent increases being between five and 10 per cent – which is still significant – especially keeping in mind that this will have a profound effect on those on lower incomes.
But reports have started to pop up that rents are going up by more than 45 per cent in some areas. We know from previous experience that for some landlords out there, the sky is the limit.
The removal of the rent cap may be crucial to the balance of the Abu Dhabi economy, but for average renters, further justification is required.
Perhaps a solution to all this is to reinstate the rent cap and raise the percentage of acceptable increases – albeit to a reasonable level. Regardless, confusion still lives on in the hearts and minds of many renters. It will continue to do so until more is done to ease our concerns..
Taryam Al Subaihi is a political and social commentator who specialises in media and communications
On Twitter: @TaryamAlSubaihi
