Dubai Municipality's recent crackdown on residential units fitted with illegal partitions to cram in occupants has shone the spotlight on the dangers of living in shared accommodation that has not been approved by authorities.
Under Dubai law, tenants can be evicted for subletting without consent from the landlord in multi-storey buildings or villas. Owners can also be held responsible for modifying property without permission from Dubai Municipality.
Breaches of the law on unauthorised shared accommodation can result in fines of up to Dh50,000 ($13,610), according to law number 26 of 2007 and law number 33 of 2008 of the Dubai Rental Law.
The inspections by municipality officials in neighbourhoods including Satwa, Rigga, Barsha and Muraqqabat over the past month have been shared widely on social media with warnings from lawyers and management companies that both property owners and tenants can be held responsible for illegal modifications and overcrowding.
The National has reached out to Dubai Municipality for more information on the action being taken and is awaiting a response.
Here is a breakdown on why illegal partitions in residential apartments, villas and subletting without approval is not permitted in Dubai:
What are illegal partitions?
When a bedroom, living area or balcony within a residential unit is divided with wooden or non-fire rated gypsum boards without securing permits from Dubai Municipality this constitutes illegal partitions in an apartment or villa.
These makeshift barriers create multiple spaces within a residential unit and push more people in to the same space. People create partitions to accommodate more tenants or to create more additional office spaces.
Why is this dangerous?
The use of unauthorised material flouts building codes and fire safety regulations as the partitions could block ventilation units, emergency exits and can restrict quick evacuation in case of an emergency or fire.
Unapproved changes to the internal areas can compromise and weaken the structural integrity of a residential unit and adversely impact the overall safety of a building.
Safety campaigns
Authorities often conduct awareness drives to warn tenants that living without the necessary permission in multi-occupancy rooms is illegal. They issue notifications that unapproved partitions and unauthorised alterations in construction can restrict access for firefighters in emergencies.
An investigation into a fire that killed 16 people in a residential apartment building in 2023 in Deira found lack of compliance with safety standards and inadequate fire protection. Residents who spoke to The National said between eight to 12 people shared a room.
Inspection campaigns by authorities in multi-storey buildings and villas have often been conducted over the past several years in Dubai and other emirates.
What are the rules?
Property owners must take permission from Dubai Municipality’s buildings department, which passes approvals for repair work or additional extensions.
Any work in a building or villa that may “involve permanently or temporarily changing, whether in whole or in part, the features of any land or property”, cannot be conducted without a permit issued by Dubai Municipality as per local regulation.
Tenants cannot make any structural changes, unless written permission is granted by the landlord. A tenant cannot sublet or share an apartment without written permission from the landlord, as per law number 26 of 2007.
The new occupants must be added to the Ejari tenancy contract to be clearly recognised as living in the apartment. Failure to follow the rule can lead to eviction of both the tenant and the sub-lessor, regardless of the rent being paid.
Action you can you take
Even if the property owner has verbally agreed to additional people living in the apartment, the tenants should get the landlords approval in writing. If a property owner is illegally sub-leasing the apartment and the tenant has already paid the rent, this can be reported to Dubai Municipality.
Landlords should verify the maximum occupancy limit with Dubai Municipality. If a tenant has illegally partitioned or sublet the unit, the landlord should gather evidence of the changes, issue a formal notice, report to Dubai Municipality and file a case with the Rental Dispute Centre for eviction.
Concerned neighbours can also report any unauthorised modifications as these are a legal and safety issue that can affect the entire residential space.
The Dubai Land Department’s website has contacts to report tenancy-related complaints and reach Dubai Municipality on 800900.
Who will be held responsible?
Authorities can inspect a property to check the complaint and order the removal of all illegal partitions.
Fines may be levied on the property owner and the tenants can be evicted. A legal case can be filed against the landlord to enforce removal of partitions in case severe violations are detected.
Why is this important?
Dubai Municipality specifies that compliance with rules and laws is essential to maintain safety. The municipality’s technical guidelines on accommodation clearly state that inspections are required to “ensure and enhance a commitment to regulations,” and to achieve a high level of health and safety.
Inspections may be conducted on a request from the building management, it could be a random inspection or to follow up on complaints, as per updated Dubai Municipality guidelines issued in June last year.
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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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Family: I am happily married to my wife Liz and we have two children together.
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The chef's advice
Troy Payne, head chef at Abu Dhabi’s newest healthy eatery Sanderson’s in Al Seef Resort & Spa, says singles need to change their mindset about how they approach the supermarket.
“They feel like they can’t buy one cucumber,” he says. “But I can walk into a shop – I feed two people at home – and I’ll walk into a shop and I buy one cucumber, I’ll buy one onion.”
Mr Payne asks for the sticker to be placed directly on each item, rather than face the temptation of filling one of the two-kilogram capacity plastic bags on offer.
The chef also advises singletons not get too hung up on “organic”, particularly high-priced varieties that have been flown in from far-flung locales. Local produce is often grown sustainably, and far cheaper, he says.
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