Health Checks and UAE Residency: What Every Expat Must Know

For those seeking to live or work in the United Arab Emirates, obtaining a residency visa involves more than administrative paperwork. One critical requirement is proving medical fitness, as mandated by UAE federal law.

This mandatory health screening is a legal prerequisite, governed by Cabinet Resolution No. 7 of 2008, which outlines the Medical Examination System for Expats Coming to the UAE for Work or Residency. It applies across all Emirates, although practical implementation may vary slightly from one Emirate to another.

Below is an overview of what every expatriate must understand before undergoing the medical examination process.

Legal Basis for Health Screening

Residency approval in the UAE is conditional upon passing specific medical tests. These screenings are intended to protect public health and ensure that individuals entering the country for long-term residence do not pose a health risk to the wider population.

According to Article 2 of the Resolution, the following conditions are routinely screened:

  • HIV/AIDS
  • Pulmonary Tuberculosis (TB)
  • Hepatitis B and C (for specific job categories)
  • Leprosy
  • Syphilis (for certain professions)
  • Pregnancy (only for domestic workers)

Each condition is treated differently under the law, depending on the associated public health risk and the applicant’s occupational category.

HIV/AIDS: Absolute Grounds for Ineligibility

All applicants must undergo HIV testing. If the result is positive, the individual is deemed medically unfit. Residency will not be granted or renewed under any circumstances. There are no exemptions or treatment-based appeals within the UAE immigration framework for HIV-positive applicants.

Tuberculosis: Treatment-Conditional Approval

The case of Tuberculosis is more nuanced. Individuals diagnosed with old or active pulmonary TB are initially considered unfit. However, if the individual complies with supervised treatment under the government’s Directly Observed Treatment, Short-course (DOTS) program, they may be granted a one-year visa labeled “subject to treatment.”

Failure to attend three consecutive follow-up appointments during treatment will result in disqualification and non-renewal of residency.

TB Exemptions

Certain individuals may be exempt from the TB disqualification criteria, including:

  • Diplomats (upon recommendation from the Ministry of Foreign Affairs)
  • Immediate family members of UAE residents (spouse, children, parents)
  • Major investors (subject to local authority approval)
  • Other individuals designated by a joint committee under the Ministry of Health

Even in exempt cases, ongoing medical monitoring is mandatory.

Hepatitis B and C: Role-Based Screening

Testing for Hepatitis B and C is only required for specific professions. These include:

  • Domestic workers
  • Babysitters
  • Kindergarten and nursery staff
  • Salon and health club employees
  • Medical professionals

If the test is positive, residency will not be granted or renewed unless the applicant changes their job category within 30 days.

Those who test negative must complete a full three-dose Hepatitis B vaccination course and provide a vaccination certificate during renewal. Failure to comply will require re-vaccination or may result in residency denial.

Leprosy and Syphilis

A positive test for leprosy results in immediate disqualification, with no exceptions allowed.

Testing for syphilis is only conducted for the same job categories mentioned above. If the result is positive, the applicant must complete treatment before being declared medically fit.

Pregnancy Screening: Domestic Workers Only

Pregnancy testing applies solely to domestic workers such as nannies, cleaners, and drivers. If a domestic worker is found to be pregnant, the employer will be notified and may decide whether to proceed or withdraw the application. The law does not prohibit employment but places the final decision with the sponsor.

Approved Testing Facilities

All tests must be carried out at government-authorized preventive medicine centers. Tests conducted abroad or at private clinics within the UAE will not be accepted.

As the residency visa process is handled by individual Emirates, the enforcement of medical standards, such as follow-ups or documentation, may vary slightly depending on the local health authority.

Certificate Validity and Data Reporting

Medical fitness certificates are valid for three months. If not submitted for visa processing within that period, the applicant must retake the tests.

Additionally, all medical results are recorded in a centralized system. The UAE government maintains detailed statistical records of disqualified applicants, categorized by nationality, gender, age, and type of illness.

Conclusion

Residency in the UAE is not solely a bureaucratic procedure. It is a regulated process underpinned by public health considerations and legal obligations. Understanding the medical screening process is essential for anyone planning to live and work in the country. The outcome may depend on the applicant’s health condition, profession, and the Emirate in which the application is processed.

For further legal insight into UAE residency requirements or to explore related immigration matters, visit our website at www.lylawyers.com.

Хранение каннабиса в ОАЭ

The UAE has historically upheld a zero-tolerance approach to drug-related offenses, including cannabis. Until recently, even small quantities of cannabis could lead to immediate imprisonment and mandatory deportation, especially for non-citizens. However, the legal framework has shifted in recent years, offering more measured and rehabilitative responses, particularly for first-time offenders and tourists.

Cabinet Resolution No. 43 of 2024, together with Federal Decree-Law No. 30 of 2021, now governs the possession and importation of narcotic and psychotropic substances, including THC and cannabis-based products, at UAE entry points.

Legal Framework: What Remains Illegal

Cannabis and its derivatives remain prohibited substances in the UAE. They are classified under various schedules of Federal Decree-Law No. 30 of 2021, including:

  • Schedule 1, Clause 29 – Cannabis, resin, and extracts
  • Schedule 4, Part 2, Clause 8 – Cannabis sativa
  • Schedule 5, Clause 34 – Tetrahydrocannabinol (THC)
  • Schedule 6, Clause 4 – Delta-9-THC and variants

This means possession, use, or distribution remains illegal—but enforcement and penalties have evolved significantly.

Cabinet Resolution No. 43 of 2024: Targeting Non-Residents at Entry Points

Cabinet Resolution No. 43 introduces a procedural framework for non-residents carrying personal-use quantities of controlled substances at UAE ports of entry (e.g., airports). It expands upon Article 96 of the 2021 law and provides a more structured, administrative handling of such cases.

Key features include:

  • Fines ranging from AED 5,000 to AED 20,000 for first-time offenders
  • Entry into the UAE permitted only after fine payment
  • Repeat violations may trigger a 2-year entry ban
  • Seizure of the substances and administrative reporting

This resolution offers a more predictable and lenient process for tourists, while maintaining strict prohibitions on use within the country.

Article 96 of the 2021 Law: Decriminalization at the Border

Article 96 marked a pivotal change – it decriminalized possession of cannabis-based products at UAE entry points, under the following conditions:

  • The items must be for personal use
  • It must be a first-time offense
  • The person must not consume the substance in the UAE

Upon detection, authorities seize the product, file an administrative report, and block entry of the substance—without criminal charges.

This applies to both tourists and residents, although Resolution 43 has added further procedural clarity for non-resident foreigners.

Quantities Table: New in 2024

Resolution 43 introduces a substance quantity table, which provides defined thresholds for permissible personal-use quantities of certain substances (e.g., CBD, low-THC items). This is a major development, especially for travelers carrying:

  • CBD lip balm
  • Oils labeled as “non-psychoactive”
  • Personal-use edibles or creams

However, any quantity exceeding the permitted limit—or mislabeled products—can still result in confiscation or investigation.

Practical Enforcement Trends (2023–2024)

Recent legal practice reveals heightened scrutiny at ports of entry:

  • Product labeling and branding are carefully examined
  • Chemical composition is tested regardless of label claims
  • Even “CBD-only” products may be seized if trace THC is present

Travelers should understand that intent is irrelevant – only the substance’s actual content matters.

Consumption and Court Penalties

Article 42 of the 2021 law sets out penalties for cannabis consumption, even in personal-use scenarios:

  • First-time offense: Jail (minimum 3 months) or fine (AED 10,000–100,000)
  • Second-time offense (within 3 years): Jail (minimum 6 months) or fine (AED 20,000–100,000)
  • Third-time or more: Jail (minimum 6 months) or fine (AED 50,000–200,000)

Importantly, courts now have discretion to issue fines instead of mandatory jail time – a significant shift from prior legislation.

Deportation: No Longer Automatic

Article 75 now allows for judicial discretion regarding deportation of non-citizens in personal-use drug cases. Specifically:

  • First-time offenses
  • Personal possession or consumption

Deportation is no longer mandatory. Courts can now waive deportation, particularly in cases of non-trafficking offenses.

Case Example: Acquittal at Dubai Airport on March 2024

A Syrian national was detained at Dubai International Airport with THC-laced vape products. Authorities charged him with possession and consumption.

  • The court cited Article 96 and found no intent to distribute.
  • It was his first offense.
  • The court acquitted him of possession, citing constitutional rights and lack of evidence beyond reasonable doubt.

This case exemplifies how the reformed legal framework is being applied in real-world cases, offering more protection for non-residents who meet the conditions of the law.

Critical Warning: Medical Cannabis Remains Prohibited

Regardless of legal prescription in one’s home country, medical cannabis is not recognized in the UAE. This includes:

  • Prescription oils or capsules
  • Inhalers or edibles
  • Cannabis-infused creams or tinctures

Travelers – especially from countries like the US, Canada, or EU – should refrain from bringing any such products into the UAE. Doing so may result in confiscation, fines, or prosecution.

Strategic Takeaways

  • Tourists: Avoid carrying THC or cannabis products, even if legal in your country.
  • Residents: Possession or consumption still carries serious penalties and potential visa implications.
  • First-time offenses: May be treated leniently, but do not rely on this.
  • Labeling matters: Even trace THC or ambiguous labeling can trigger legal action.
  • Legal counsel: Seek qualified legal representation if facing any charges.

Conclusion

Cannabis remains illegal in the UAE – but the legal landscape has evolved. There is now greater leniency, legal structure, and discretion in how the law is applied, especially for first-time offenders at UAE borders.

That said, this is not a license to take risks. If you are traveling to the UAE, leave your cannabis products at home – medical or otherwise. The consequences are real, and the legal relief now available is narrow and conditional.

Payment Orders in the UAE

Introduction
UAE creditors have a swift and effective judicial recourse to recover debts known as a payment order. In the right circumstance, a payment order allows creditors to obtain immediate court decisions to recover debts without having to go through lengthy litigation. This court tool is designed to provide a short-term solution for sure commercial creditors and preserve time and cost in pursuing debt recovery by normal court remedies.

Payment orders are most useful where there is a clear, undisputed debt supported by commercial documentation. However, they can be used only in specific legal situations and scenarios as outlined within UAE legislation and as interpreted from Dubai court rulings. This blog examines the jurisdiction, requirements, and realities around issuing payment orders under UAE legislation.

Legal Framework for Payment Orders
Payment orders are governed by Articles 143 to 150 of the UAE Civil Procedures Law No. 42 of 2022. This is a swift means of recovery of debt, but only if the debt meets strict legal criteria. The purpose of payment orders is to enable creditors to obtain an enforceable judgment speedily in cases where the debt is not in dispute and clearly ascertainable.

Conditions for a Payment Order
To make a successful payment order application, the following requirements under Article 143 of the Civil Procedures Law must be satisfied:

  • The creditor’s right must be evidenced in writing – This comprises paper documents and electronic documents.
  • The debt must be due – The payment obligation must already have matured and be payable.
  • The debt must be a determinate money or movable property – The character or value of the debt must be certain and not subject to construction.
  • The debt must be admitted in a commercial document – The document must establish a clear commercial relationship and settled debt obligation.

Judicial Interpretation and Limitations
The Dubai Courts have applied the jurisdiction of payment orders strictly, stressing that payment orders are an exceptional judicial procedure that should not be interpreted expansively to all debt disputes. The following Dubai court judgment principles are pivotal:

  • Payment orders do not apply to debts claimed or debts pending dispute regarding their validity, nature, or amount.
  • A distinction is made between commercial documents that represent a payment obligation and those that are issued as a guarantee. Payment orders only have effect where the document represents an actual debt payment obligation and not a guarantee.
  • The nature of the debt and money amount should be certain and clear and supported by clear documentation.

Court Fees for Payment Orders
In Dubai, issuing a payment order is accompanied by a court fee equivalent to 6% of the amount of the claim, payable on a minimum basis of AED 500 and a maximum of AED 40,000. This follows the customary court fees for civil claims to the Dubai Courts. There are also serious monetary implications of issuing a payment order:

  • Where a request for payment order is rejected, the court fee is non-refundable.
  • Requests for payment orders are often decided very quickly, and rejection may occur without extensive substantive adjudication.
  • It is therefore important for creditors to carefully assess whether the debt meets statutory and judicial requirements before applying for a payment order in order to avoid unnecessary spending.

That means that creditors can lose the court fee even where the court’s refusal is procedural rather than substantive. Proper scrutiny of documents and the nature of debt will minimize the risk of rejection.

Additional Judicial Clarifications
In addition to the legislation, Dubai court judgments have provided additional clarifications on procedural and substantive aspects of payment orders:

  • A creditor seeking a payment order for a confirmed commercial debt may simultaneously seek precautionary measures (e.g., freezing of assets) to safeguard the creditor’s position until the payment order is processed. This is under Articles 143(3) and 147(5) of the Civil Procedures Law.
  • When making a ruling on a payment order, the court can have three options:
    • Acceptance – Where the debt is properly documented and meets the requirements under the law.
    • Rejection – Where the debt is not properly defined or does not meet the requirements in law.
    • Partial acceptance/rejection – Where some of the conditions of the debt are met while others are not.
  • Where a court rejects a payment order request, it must issue a reasoned decision indicating the grounds of refusal. Similarly, where the court gives a decision regarding the enforceability of a commercial contract that is annexed to a payment order, it must issue a detailed explanation. The latter is required by Article 145 of the Civil Procedures Law.

Strategic Value of Payment Orders
Payment orders are an effective tool for creditors to effect speedy recovery of debts in circumstances where debts are uncontested and well-documented commercial debts. The reason payment orders are effective is that they can bypass prolonged legal procedures and achieve speedy enforcement. However, the creditors need to carefully decide on the character of the debt and follow all statutory requirements in order to avoid rejection by the court.

Also, the susceptibility to orders for precautionary measures in addition to an order of payment further safeguards the creditors against the liquidation of assets by the debtor, leaving them within reach for enforcement.

Conclusion
Short of it, payment orders are an extremely good debt recovery tool in the UAE — provided it is applied appropriately. The success formula is to submit an uncontested commercial debt under good documentation. While the courts in Dubai do take a stern view to enforcing the regulations, creditors who adhere to these guidelines are entitled to a speedy fix for debt recovery.

But with potential cost implications of rejection — including the threat of losing a court fee up to AED 40,000 — creditors have to balance with care the strength of their claim before instituting a payment order application. There has to be a wise judgment of the validity of the debt, supporting documents, and case for dispute, so that payment order process can be the optimum method of recovery.

Ликвидация компаний в ОАЭ

Introduction

Establishing a company in the UAE is relatively straightforward. The country’s business-friendly environment, strategic location, and various free zones make setting up a business a streamlined process. However, closing down a company is a different story. Business owners often discover that winding up a company involves a complex and multi-step process that requires careful planning, compliance with legal formalities, and significant costs.

In the UAE, simply letting a company’s license expire does not automatically close down the business. Instead, a formal liquidation process is required, which includes appointing a liquidator, conducting an audit, and settling all outstanding financial and regulatory obligations. This blog outlines the key steps involved in liquidating a business in the UAE and highlights why a strategic approach is essential to avoid prolonged complications.

Legal Framework for Liquidation

The liquidation of companies in the UAE is governed by the following key laws and regulations:

  • Federal Decree-Law No. 32 of 2021 on Commercial Companies – This law sets out the legal framework for corporate dissolution and liquidation of companies established onshore and in free zones.
  • Cabinet Resolution No. 58 of 2020 on the Regulation of Procedures Related to Real Beneficiaries – This law mandates that companies undergoing liquidation must disclose their ultimate beneficial owners (UBOs) and provide a final report on their shareholding structure.
  • Federal Law No. 6 of 2018 on Arbitration – If disputes arise during the liquidation process, arbitration may be pursued under the provisions of this law.
  • Free Zone Regulations – Free zones such as JAFZA, DMCC, and DIFC have their own specific rules and procedures for company liquidation.

Why Liquidation Is Necessary

When a business owner decides to close down a company in the UAE, they are legally required to go through the liquidation process. A company’s legal existence does not automatically end when its trade license expires or operations cease. Instead, the company remains liable for regulatory filings, fines, and penalties until the liquidation process is formally completed.

Failing to liquidate a company properly can result in:

  • Accumulation of fines and penalties from licensing and regulatory authorities under Article 312 of Federal Decree-Law No. 32 of 2021.
  • Legal liability for outstanding debts, contracts, and employee dues under Article 314 of Federal Decree-Law No. 32 of 2021.
  • Restrictions on the business owner’s ability to open future companies or secure new licenses in the UAE.
  • Negative impact on the company’s shareholders and directors, including potential travel bans or financial penalties.

Key Steps in the Liquidation Process

Liquidation in the UAE involves a structured process that requires compliance with both federal and free zone regulations. The key steps are outlined below:

1. Appointment of a Liquidator

  • A licensed and registered liquidator must be appointed to oversee the liquidation process, as required under Article 326 of Federal Decree-Law No. 32 of 2021.
  • The appointment requires a formal resolution by the company’s shareholders, which must be notarized and submitted to the relevant authority (e.g., JAFZA, DMCC, DED).
  • The liquidator’s role includes preparing the final audit report, confirming that all debts and liabilities have been settled, and issuing a liquidation certificate.

2. Financial Audit and Final Accounts

  • The appointed liquidator must prepare a financial audit report, confirming the company’s financial position and that all outstanding debts have been settled.
  • The audit report should confirm that the company holds no liabilities, including employee end-of-service benefits, taxes, and contractual obligations.
  • The audit must be submitted to the licensing authority as part of the liquidation application, as required by Article 327 of Federal Decree-Law No. 32 of 2021.

3. Clearance from Government Authorities

Before submitting the final liquidation request, the company must secure clearance from various government bodies, which may include:

  • Federal Tax Authority (FTA) – Ensuring that VAT and corporate tax obligations are settled under Federal Decree-Law No. 8 of 2017 on VAT and Federal Decree-Law No. 47 of 2022 on Corporate Tax.
  • Ministry of Human Resources and Emiratisation (MOHRE) – Confirming that all employee contracts have been terminated and dues have been paid under Federal Decree-Law No. 33 of 2021 on Labour Relations.
  • General Directorate of Residency and Foreigners Affairs (GDRFA) – Cancelling visas for employees and dependents.
  • Free zone or mainland licensing authority – Ensuring that all annual fees, licensing costs, and other charges have been settled.

4. Liquidation Resolution and Cover Letter

  • A formal resolution to liquidate the company must be drafted and approved by the shareholders, as required by Article 328 of Federal Decree-Law No. 32 of 2021.
  • The resolution should authorize the appointment of the liquidator and confirm the company’s intent to close.
  • A cover letter addressed to the licensing authority (e.g., JAFZA) must accompany the resolution, explaining the reason for the liquidation and the steps taken to comply with legal requirements.

5. Submission of Original Documents

  • The company must provide original incorporation documents, including the trade license, memorandum of association (MOA), and any amendments.
  • Scanned copies of these documents should be prepared for submission through the licensing authority’s online portal.

6. Letter from the Liquidator

  • Once appointed, the liquidator should issue a formal letter confirming that they have been engaged and are working on the liquidation report.
  • This letter can help expedite the processing of the liquidation request with the licensing authority.

7. Filing the Liquidation Request

  • After completing the above steps, the company can file the liquidation request with the relevant licensing authority.
  • The request should include the audit report, clearance certificates, liquidator appointment letter, and resolution to liquidate.
  • The authority will review the request and either approve or request additional documentation.

8. Response to Compliance Requirements

  • Once the liquidation request is submitted, the company should respond to any additional compliance inquiries from the licensing authority.
  • This includes providing clarification on any outstanding liabilities, employee settlements, or regulatory filings.
  • The licensing authority will issue a final decision confirming the company’s status.

Court Fees and Costs Involved

Liquidation of a company in the UAE is not only time-consuming but also costly. Business owners should be prepared for the following expenses:

  • Liquidator Fees – Professional fees for the liquidator’s appointment and preparation of the audit report.
  • Audit Fees – Fees for preparing the financial audit report.
  • Government Clearance Fees – Fees for securing clearance from the FTA, MOHRE, and other authorities.
  • Licensing Authority Fees – Fees for processing the liquidation request and issuing the final liquidation certificate.

Why Letting a Trade License Expire Is Not Enough

A common misconception is that allowing a company’s trade license to expire will automatically close down the business. In reality:

  • The company remains legally active until it is formally liquidated.
  • Regulatory authorities will continue to impose penalties for non-compliance, including failure to renew the trade license.
  • The company’s directors and shareholders remain liable for outstanding debts and legal claims until the liquidation process is finalized under Article 330 of Federal Decree-Law No. 32 of 2021.

Conclusion

Liquidation of a company in the UAE is far more complex than setting one up. While establishing a business is often promoted as a seamless process, winding it down requires careful legal and financial planning. The involvement of a licensed liquidator, the preparation of final accounts, securing government clearance, and the payment of substantial fees are all necessary steps to formally close a company.

Business owners should take a strategic approach to liquidation, ensuring that they meet all legal requirements to avoid ongoing liabilities and penalties. Simply allowing a trade license to expire is not enough — without proper liquidation, the company’s legal existence and financial obligations will continue to accrue. With the right planning and legal support, business owners can navigate the liquidation process efficiently and minimize risks associated with business closure in the UAE.

Передача недвижимости в Дубае

Overview

The transfer of property in Dubai is a systemized legal process overseen by the Dubai Land Department (DLD). It comprises a list of steps consisting of legal papers, financial clearance, and government registration. There are certain papers the buyer and the seller both have to give, pay for the government charges, and receive the approvals so as to facilitate the transaction with ease.

Below are the step-by-step and legal aspects associated with property transfer in Dubai:

1. Agreeing on Terms

The transfer of property begins with the signing of the sale terms by the buyer and seller, which are thereafter recorded in a Memorandum of Understanding (MOU).

Essential Terms to Incorporate in the MOU:

  • Purchase price
  • Payment terms (down payment and balance)
  • Details of the property (size, parking, specifications)
  • Withdrawal and penalty terms
  • Dispute jurisdiction
  • Timeline of transfer and penalty for delay

The MOU is a legally binding agreement, so both parties should have legal scrutiny before signing.

2. Document Preparation

To proceed with the transfer of the property, both the buyer and the seller need to provide a set of official documents. The correctness of these documents directly affects the transfer duration.

Documents Required from the Seller:

  • Original title deed
  • Passport copy, visa, and Emirates ID
  • Utility clearance certificates (from DEWA, Empower, DU)
  • Developer NOC (guaranteeing no pending service charges)
  • Property Sales Agreement (Form F)
  • Manager’s cheque (in case of mortgage)

Documents Required from the Buyer:

  • Copy of passport, visa, and Emirates ID
  • Proof of funds and deposit cheques
  • POA (in case of transacting through a third party)
  • DLD registration fees (4% of property value)
  • Trustee’s Office administration fees

Documents Required from the Broker (if involved):

  • Copy of passport, visa, and Emirates ID
  • RERA registration card
  • Broker’s commission charge (usually 2% of the property cost)

If the property is not owned by an individual but a company, corporate papers are required, including the trade license, company stamp, and letterhead.

3. Settle Outstanding Financial Obligations

Before transfer can occur, the seller must settle all outstanding payments:

Service Charges:

  • Settle all outstanding service charges with the developer (e.g., Emaar, Damac).
  • Obtain a clearance certificate from the developer.

Utility Bills:

  • Clear all outstanding bills from DEWA, Empower, DU, and other services.
  • Take utility disconnection letters and clearance certificates.

Mortgage (if applicable):

  • If the property is under mortgage, the seller will have to settle the due loan amount.
  • A manager’s cheque for the remaining amount of the mortgage has to be lodged with the bank.

Failure to clear service charges or bills can delay the transfer.

4. No Objection Certificate (NOC)

The seller must get an NOC from the developer.

Key Steps:

  • The seller asks for an NOC from the developer.
  • The developer verifies the status of the property (outstanding charges).
  • If approved, the developer issues an NOC, confirming that the property is free for sale.
  • In some cases, multiple NOCs can be issued by other developers.

Whereas some builders will only accept a personal visit for the NOC, others allow a POA-holder to visit in the seller’s place.

5. Registration at the Trustee Office

Once all is settled and approvals are obtained, the transaction occurs at a licensed Trustee Office.

Documents to be Brought to the Trustee Office:

  • Original title deed
  • Original NOC from the builder
  • Signed MOU
  • Service charges and utility clearance certificates
  • Manager’s cheque for the outstanding balance
  • Proof of payment for DLD registration fees
  • Original IDs and passports of the buyer and seller

All documents will be vetted by The Trustee Office and payment verified. Satisfied, the office will then submit the transaction for the approval of the DLD.

6. Transfer and Issuance of Title Deed

Approved by the DLD, The Trustee Office will transfer a new title deed to the buyer’s name.

Fees and Costs:

  • 4% of property value – DLD registration fee (payable by the buyer)
  • 2% broker’s commission – Payable by the buyer (unless otherwise agreed)
  • Trustee’s Office administrative fees – Typically AED 2,000–5,000
  • Mortgage settlement fees (where applicable)

The entire transfer process, from registration to issuance of the new title deed, typically takes 1 business day once documents are in position.

7. Transferability of Eviction Notices

A recent Dubai Rental Dispute Center (RDC) ruling has sustained that eviction notices are transferable from seller to buyer.

What This Means:

  • If a tenant has already been served an eviction notice, the new owner can enforce it.
  • This differs from the past rulings where eviction notices had been attached to the landlord, not to the property.
  • The new regulation stipulates that eviction notices are posted on the property and are still valid even after a change of ownership.

This regulation was issued by the RDC’s First Instance, so it could be overturned on appeal. Also, RDC decisions are not necessarily binding precedents.

8. Property Ownership by Companies

  • The company must be registered with the DLD.
  • The sale can be done only after the company issues:
    • Trade license
    • Company stamp
    • Board resolution approving the sale
    • POA from signatories authorized

Property transfers owned by the company are likely to have longer processing times and higher administrative fees.

Key Takeaways

  • Negotiate all terms in writing in the MOU
  • Clear pending service charges and utility bills before making an application for an NOC
  • Use a trusted legal advisor to verify all documents and terms
  • Ensure eviction notices and tenants’ rights are stated clearly in the contract
  • Transfer via a registered Trustee Office

Helpful Tips

  • Ensure the sale conditions reflect the market value at the time and any resale restrictions.
  • Ensure the seller has a clear title, free from encumbrances or disputes.
  • If the property is being rented, clarify the tenant’s rights and notice period.
  • Make sure that the transaction broker is registered with RERA and authorized to act on behalf of the seller or buyer.

Conclusion

Dubai property transfer is quite straightforward when well managed. The delay causes are incomplete documents and unpaid charges. A legally compliant, smooth process is guaranteed when carried out with a seasoned legal professional.

Real Estate Developer Regulations in the UAE

The real estate industry in the UAE—and Dubai, in particular—is one of the most regulated business in the UAE. Real estate regulation for developers in the last 15 years has evolved significantly, with Dubai leading the charge in this evolution due to its historical reputation for having an active and vibrant real estate market.

Entry into the UAE real estate market as a developer is not straightforward. It is not as simple as registering a company and then starting to sell or raise money from investors. The developers are required to go through a set of stringent licensing, approval, and funding procedures before they can even begin to sell their developments. This regime of regulation came into existence following the financial crisis, whereby developers were relying entirely on upfront payments from buyers with no possession of land or enough funding to proceed with work—resulting in stalled developments and financial uncertainty.

Applicable Regulations and Key Laws

The legal framework governing property development in Dubai is based on a comprehensive set of laws and resolutions that are designed to ensure financial stability and protect investors. The most important regulations to developers are:

  • Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development – Governs the use of escrow accounts to protect investor funds and prevent misuse of off-plan sale proceeds.
  • Executive Council Resolution No. (6) of 2010 – Requires developers to be the owners or in control of the land and to secure approvals before starting construction or selling off-plan units.
  • Law No. (13) of 2008 Regulating the Interim Real Property Register – Prohibits registration of real estate developments and off-plan sales.
  • Law No. (19) of 2017 – Dictates the process for addressing non-compliance by purchasers and the rights of developers in the event of violation of contracts.
  • Executive Council Resolution No. (30) of 2013 – Sets the fees of property registration, ownership transfer, and other real estate transactions.
  • Decree No. (31) of 2016 on the Mortgage of Granted Land – Allows developers to mortgage or dispose of granted land on a freehold basis without limitation.
  • UAE Federal Tax Law (VAT and Corporate Tax) – Imposes corporate tax and VAT obligations on real estate developers, including registration with the Federal Tax Authority (FTA) and filing of tax returns.
  • UAE Anti-Money Laundering (AML) Laws – Supplies the compliance framework for developers, including customer due diligence (CDD), reporting of suspicious transactions, and record-keeping obligations.

1. Licensing and Approval Requirements

Prior to any developer’s ability to market or sell a real estate development in Dubai, they must secure various levels of authorization from both commercial and real estate regulatory authorities.

A. Commercial License

First of all, the developers have to obtain a commercial license from the Department of Economic Development (DED), which comprises:

  • Application under Activity Code: 6499004
  • Providing a legally registered company name and business form
  • Documentary proof of a valid tenancy agreement for office space
  • Title deed for the land upon which the project will be built (or partial ownership confirmation)

B. RERA and DLD Approval

Following the issuance of a commercial license, the developer will acquire the approvals of the Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD). This entails:

  • Registration of the project with the DLD
  • Acquisition of an NOC (No Objection Certificate) from the master developer
  • The filing of architecture and engineering plans approved by the relevant authorities
  • Registration of the underlying purchase and sale agreement for the specific project with RERA
  • Opening a RERA-approved escrow account before any advertising or marketing

Developers are not allowed to advertise off-plan sales or participate in real estate exhibitions without RERA and DLD approval.

2. Financial and Operational Requirements

Developers must demonstrate financial stability and operational capability before they can launch a project. This includes:

A. Escrow Account and Construction Guarantees

Under Law No. (8) of 2007 (the Escrow Law), developers are required to establish an escrow account with a local bank and deposit at least 20% of the cost of construction of the project before proceeding with sales. In cases where the developer lacks the ability to raise the amount, the deficiency should be financed through direct payment to the Dubai Land Department. The escrow account ensures that:

  • Funds obtained from off-plan sales are only used for the construction of the project.
  • 5% of the total value of the escrow account is withheld by the escrow agent until one year after the project is completed to cover potential liabilities (Escrow Law, Article 14).

If, for whatever reason, the project is not completed, the escrow agent will have a reasonable obligation to safeguard the rights of the depositors and to cause either the project to be completed or the depositors to be reimbursed (as per Escrow Law, Article 15).

3. Freehold Ownership by Foreign Developers

One of the largest benefits of property development in Dubai is the ability for developers, both foreign companies, to own property on a freehold basis within designated areas. Foreign developers and investors can purchase and hold property as freehold in designated areas for foreign ownership, some of which are key locations such as:

  • Palm Jumeirah
  • Downtown Dubai
  • Dubai Marina
  • Jumeirah Lakes Towers (JLT)
  • Business Bay

This is a big attraction for foreign developers, as they can invest in long-term developments and secure finance against the land. Having the ability to own land as freehold places Dubai among the biggest real estate markets in the world to be accessible to foreign investors.

4. UAE Golden Visa for Real Estate Developers

A further big attraction for real estate developers is the possibility of being eligible for the UAE Golden Visa.

  • Developers who invest in real estate developments—off-plan or completed—can qualify for a renewable 10-year visa under the UAE Golden Visa program.
  • Individual and corporate investors can access the Golden Visa.
  • Developers are also able to sponsor the Golden Visa for senior employees and relatives.

This represents a key strategic benefit to developers because the Golden Visa includes long-term residence, capacity to run a business, and better access to the UAE market.

5. Other Forms of Payment (Such as Cryptocurrency)

Accepting payments using other payment options like cryptocurrency is another trending feature of the real estate sector in Dubai.

  • Some of the developers in Dubai are beginning to accept Bitcoin, Ethereum, and other types of cryptocurrencies for payments.
  • Although the regulatory framework for crypto payments is still developing, the government of Dubai has published guidelines via the Dubai Virtual Asset Regulatory Authority (VARA) to oversee and enable crypto transactions.
  • Crypto payments offer more flexibility for international investors and buyers, especially those looking to sidestep currency exchange volatility and global transfer charges.

Developers considering crypto payment options should seek the advice of legal specialists to guide them through VARA compliance and addressing potential issues around volatility, security of payments, and taxation.

6. UAE Anti-Money Laundering (AML) Compliance

The UAE real estate developers are categorized as Designated Non-Financial Businesses and Professions (DNFBPs) within the UAE AML framework. The developers therefore are subject to rigorous anti-money laundering compliance guidelines, including:

  • Customer Due Diligence (CDD): Obtaining the identity of customers and ultimate beneficial owners (UBOs).
  • Suspicious Transaction Reporting (STR): Reporting suspicious transactions to the UAE Financial Intelligence Unit (FIU).
  • Record-Keeping: Maintaining records of transactions and identification of customers for five (5) years.

7. Tax Regulations (VAT and Corporate Tax)

A. VAT (Value-Added Tax)

  • The VAT is levied at a standard rate of 5% on sales and leases of real estate.
  • Initial sales of residential units within three years of completion are VAT zero-rated.

B. Corporate Tax

  • From 1 June 2023, corporate tax is imposed at 9% on profits over AED 375,000.
  • Developers are required to:
    • Register with the Federal Tax Authority (FTA)
    • File tax returns annually
    • Maintain proper books of accounts

8. Why Legal Guidance is Crucial

At HPL Yamalova & Plewka, we possess experience in advising real estate developers in licensing, registration, compliance, and strategic market entry. If you are keen on starting a real estate development venture in Dubai, contact us for expert legal consultation that aligns with your business needs.

UAE Pass: The Key to Accessing Government and Private Sector Services in the UAE

The UAE Pass has become one of the most valuable tools for the residents as well as visitors of the UAE in a short span of time. It serves as a unified, safe digital identity that gives users convenient access to the government, semi-government, and even private sector services across the UAE.

In today’s rapidly digitalized world, UAE Pass is not just a convenience—it is virtually a necessity. The UAE has positioned itself as a global frontrunner in leveraging digitalization and artificial intelligence (AI), with other countries to soon follow suit. From smart government services to AI-powered administrative platforms, the UAE’s technology infrastructure is the most advanced in the world.

For UAE residents, UAE Pass activation is a must—it’s an obligation to keep work and life in the UAE flowing. If you have not yet activated your UAE Pass, you may already be falling behind on utilizing key government services and opportunities.

What is the UAE Pass?
UAE Pass is a connected digital identity allowing users to access government as well as private sector services using a single login. It does not involve remembering passwords for many of them or registering multiple accounts on platforms.

UAE Pass can function as:

  • A single-login credential for most UAE government services
  • A digital locker to securely store and use official documents
  • A digital signatory tool for e-signature on documents

Why UAE Pass is a Must for All Who Reside in UAE
The UAE Pass is becoming more and more the gateway to almost all government services in UAE. Without it, you are basically excluded from many important services.

Example: Managing Your Own Court Filings
A good example of how much the UAE Pass has become a necessity is managing your own court filings.

  • Now, you can log in using UAE Pass on the Dubai Court portal and access your case details directly.
  • You can file, track, receive updates, and communicate with court officials—all from the court’s online portal, using UAE Pass as the login ID.
  • This eliminates the need for physical visits to the court and allows you to manage complex legal procedures from the comfort of your phone or laptop.

Without UAE Pass, you would need to travel to the court or utilize third-party legal representatives to process even the simplest court-related functions.

Why the UAE Pass is a Global Benchmark
The UAE government has been at the forefront of AI and digital transformation for years.

  • The UAE was one of the first countries to have a dedicated Ministry of Artificial Intelligence (in 2017).
  • The country’s digital backbone is going to make all public services easier, and the UAE Pass is at its forefront.
  • In comparison, few countries have approached full-service digital integration as close as the UAE has with the UAE Pass.

This visionary use of AI and digital identity embodies the vision of the UAE as one of the most innovative and efficient governments in the world.

Key Services that Can be Accessed through UAE Pass
You can utilize a very wide range of services provided by government and private organizations using UAE Pass. They include:

  • Immigration and Labor Services
    • General Directorate of Residency and Foreigners Affairs (GDRFA)
    • Ministry of Human Resources and Emiratisation (MOHRE)
    • Federal Authority for Identity and Citizenship (ICA)
  • Judicial and Legal Services
    • Ministry of Justice
    • Notaries
    • Courts (filing and dealing with court cases)
    • Public Prosecution
  • Security and Law Enforcement
    • Dubai Police
    • Abu Dhabi Police
  • Real Estate and Property Services
    • Dubai Land Department (DLD)
    • EJARI (tenancy registration)
  • Municipal and Utility Services
    • Dubai Municipality
    • DEWA (Dubai Electricity and Water Authority)
  • Health Services
    • Dubai Health Authority (DHA)
    • Ministry of Health
  • Education Services
    • Ministry of Education
    • Local educational authorities
  • Financial and Banking Services
    • Central Bank of the UAE
    • UAE financial markets
    • Certain local and international banks
  • Business and Licensing Services
    • Department of Economic Development (DED)
    • Free Zones (e.g., DMCC, DIFC)

How UAE Pass Serves as a Safe Document Vault
One of the most useful features of the UAE Pass is that it is also a secure document safe.

  • Any document that is registered with UAE government authorities (your Emirates ID, visa, property title deeds, marriage certificate, etc.) can be stored and accessed directly through the UAE Pass app.
  • You can download, share, and sign documents electronically directly from the app.
  • This reduces the need for keeping paper documents or visits to government departments.

UAE Pass is essentially a virtual file cabinet in which you can store all your important documents at one secure place.

How to Activate UAE Pass (for Residents)
Setting up UAE Pass is simple and can be done in a few minutes.

Step-by-Step Process for UAE Residents

  1. Download the UAE Pass app from Google Play or the App Store.
  2. Register using your:
    • Emirates ID
    • Email address
    • Mobile number
  3. Verify your account by scanning your face using the biometric feature in the app.
  4. Set a PIN for secure access.
  5. Activate your account and start using the UAE Pass to access services.

Biometric authentication ensures that your identity is secure and only you have access to your UAE Pass account.

UAE Pass for Visitors
The UAE Pass is no longer the preserve of residents—it can also be had by visitors these days.

Activation of UAE Pass for Visitors

  1. Download the UAE Pass app.
  2. Select the “Visitor” option on registration.
  3. Register with:
    • Passport number (for visitors who are not from the GCC)
    • National ID (for GCC citizens)
  4. Input personal details.
  5. Generate a PIN.
  6. Biometric face scan for verification.

Benefits for Visitors
Although there are restrictions in the UAE Pass for tourists compared to residents, it is still available for key services including:

  • Government websites and portals
  • Immigration services (tracking of visas, etc.)
  • Banking and financial services
  • Health services
  • Transport and municipality services

Signing Documents with UAE Pass
One of the most helpful and convenient features of the UAE Pass is electronic document signing.

  • You can sign contracts, applications, and other documents from the app.
  • The electronic signature generated by UAE Pass is recognized as legally valid in the UAE.
  • This eliminates the need to physically visit offices or send documents for signing through courier.

Why Every UAE Resident Must Activate UAE Pass
If you are a UAE resident and have not activated UAE Pass yet, you are already behind.

  • You won’t be able to use essential services such as filing at court, notarizations, or registering property if you don’t have UAE Pass.
  • More government and private services will be added to UAE Pass—making it increasingly impractical not to have it.
  • The UAE is creating a global model for AI-based governance, and UAE Pass is at the heart of it.

The message is clear: If you live in the UAE, make use of your UAE Pass today—before you cannot make basic services available.

Why Legal Expertise Is Important
While there are numerous advantages of the UAE Pass, gaining access to legal, property, and finance services via its use requires an understanding of the legal framework underlying its provisions.

At HPL Yamalova & Plewka, we provide experience in guiding clients through government service legal and procedural requirements, real estate transactions, and regulatory compliance. For more detailed legal counsel, visit our website at www.lylawyers.com.

UAE Government Apps: A Guide to Streamlined Access to Services

The UAE has positioned itself as a global leader in digital transformation and artificial intelligence (AI), offering a comprehensive range of government apps that have simplified access to services, reduced administrative burdens, and improved the efficiency of government procedures. From work permits and labor contracts to legal filings and real estate registration, the UAE’s digital platforms have made complex administrative processes more accessible and efficient.

The introduction of smart government apps reflects the UAE’s broader strategy to increase government efficiency and provide a more seamless user experience for residents, businesses, and visitors. This blog outlines the most important UAE government apps, their key functions, and why they are essential for managing personal and business affairs in the UAE.

Why UAE Government Apps Matter

The UAE government’s shift toward digitization is part of a larger strategic plan to reduce bureaucracy and enhance the customer experience. According to official representations, the objectives of this transformation include:

  • Reducing bureaucracy – Simplifying administrative processes and eliminating redundant steps.
  • Enhancing convenience – Providing access to services anytime, anywhere.
  • Increasing efficiency – Reducing processing times from days to minutes.
  • Improving customer experience – Centralizing services into user-friendly platforms.
  • Boosting security – Ensuring that data and transactions are protected through biometric and encrypted authentication.

This strategy reflects the UAE’s long-term vision of becoming one of the most efficient and technologically advanced governments globally.

1. UAE Pass – The Central Hub for Government Services

The UAE Pass is the foundation of the UAE’s digital transformation strategy. It serves as a centralized digital identity for accessing most government and private sector services in the UAE.

Key Features:

  • Single Login – No need for multiple accounts or passwords.
  • Digital Vault – Securely store and access official documents (e.g., Emirates ID, property title deeds, visas).
  • Electronic Signature – Sign contracts and official documents directly through the app.
  • Court Access – Manage your Dubai Court portal, file cases, and track court proceedings.

According to available information, the UAE Pass is now integrated into most government platforms. Without it, accessing key services such as renewing a visa, applying for a trade license, or filing court documents may be difficult.

2. Dubai Now – The Unified Platform for Dubai Government Services

The Dubai Now app is an integrated platform that consolidates over 120 government and private sector services from more than 30 government entities into a single app.

Key Features:

  • Pay traffic fines, utility bills, and school fees.
  • Renew trade licenses and visas.
  • Track court cases and property registrations.
  • Apply for driving licenses and vehicle renewals.
  • Access Ejari (tenancy registration) and RERA (real estate) services.

Dubai Now allows residents and businesses to manage various administrative tasks efficiently without needing to visit multiple government offices.

3. MOHRE App – Employment and Labor Market Services

The Ministry of Human Resources and Emiratisation (MOHRE) app facilitates the management of employment-related services.

Key Features:

  • Apply for work permits and employment contracts.
  • Renew labor contracts.
  • Track work permit status.
  • Submit and track labor complaints.
  • Access employer and employee records.

According to representations by the Ministry, the MOHRE app has reduced processing times for labor-related services by over 80% in certain cases, streamlining the employment process for both employers and employees.

4. Dubai Courts App – Legal Filings and Case Management

The Dubai Courts app allows individuals and legal representatives to directly manage court cases and legal filings.

Key Features:

  • Track case progress in real time.
  • Submit legal filings and appeals.
  • Receive court notifications.
  • Access court records and judgments.

The app facilitates greater transparency and efficiency in managing legal proceedings, reducing the need for physical court visits.

5. RTA Dubai – Transportation and Licensing

The Roads and Transport Authority (RTA) app provides a wide range of transportation and licensing services.

Key Features:

  • Pay for parking and Salik (toll) charges.
  • Renew vehicle registration and driving licenses.
  • Book taxis and check public transport schedules.
  • Access metro and tram maps.
  • Pay traffic fines.

According to official sources, the RTA app has improved the efficiency of transportation-related services and reduced the need for in-person visits.

6. GDRFA Dubai – Immigration and Residency Services

The General Directorate of Residency and Foreigners Affairs (GDRFA) app manages all immigration and residency services for Dubai.

Key Features:

  • Apply for and renew residence visas.
  • Check visa status and validity.
  • Sponsor family members.
  • Track immigration case status.

The GDRFA app allows residents to handle immigration-related matters without needing to visit service centers in person.

7. ICP App – Federal Residency and Identity

The UAE ICP (Identity and Citizenship) app handles immigration, identity, and residency services at the federal level (outside Dubai).

Key Features:

  • Apply for Emirates ID.
  • Renew and track visa status.
  • Manage family sponsorships.
  • Update identity information.

According to publicly available information, the ICP app has enhanced the consistency and efficiency of residency and identity management across the UAE.

8. SmartPass – Federal Digital Identity

SmartPass is the federal equivalent of UAE Pass, providing centralized access to federal government services.

Key Features:

  • Register and manage identity details.
  • Access federal government services (e.g., tax filings, health services).
  • Link to banking and financial services.

SmartPass supports uniform access to government services across all emirates.

9. DHA App – Health Records and Medical Appointments

The Dubai Health Authority (DHA) app allows users to access their health records and manage healthcare services.

Key Features:

  • Schedule and manage medical appointments.
  • Access vaccination records and test results.
  • Manage health insurance details.
  • Locate nearby hospitals and pharmacies.

According to DHA, the app has significantly improved access to healthcare services and reduced wait times.

10. Dubai Police App – Public Safety and Security

The Dubai Police app provides access to a range of public safety services.

Key Features:

  • Report traffic accidents.
  • Pay traffic fines.
  • Report lost or stolen items.
  • Access emergency assistance.
  • File complaints and track case status.

11. Invest in Dubai – Business and Licensing Services

The Invest in Dubai platform facilitates business registration and licensing for investors.

Key Features:

  • Register a business in minutes.
  • Apply for trade licenses and permits.
  • Track business approvals and renewals.
  • Access market data and industry insights.

According to available information, the app has streamlined the business registration process and reduced licensing approval times.

Why UAE Government Apps Reflect a Strategic Shift

The UAE government’s digital transformation strategy is based on a clear and consistent policy framework to enhance government efficiency and improve customer experience. According to official representations, key achievements of this shift include:

  • Reduced processing times from days to minutes in some cases.
  • Decreased document requirements by over 75% for some services.
  • Reduced in-person visits for certain services by up to 80%.

This level of efficiency reflects the UAE’s broader goal of becoming one of the most advanced and efficient governments in the world.

Legal Considerations and Guidance

While UAE government apps offer significant convenience, understanding the legal framework behind these services is essential. This includes compliance with labor laws, real estate regulations, immigration requirements, and business registration processes.  At HPL Yamalova & Plewka, we specialize in guiding clients through UAE government procedures, business setups, and regulatory compliance. If you need assistance with any UAE government platform or related legal services, contact our team for expert guidance tailored to your needs.

Dubai’s New Building Star Rating System

Dubai’s real estate sector has introduced the Smart Rental Index 2025, featuring a star rating system for buildings to enhance transparency in rental valuations. Importantly, this initiative does not involve changes to existing rental laws or the legislative framework governing landlord-tenant relationships. The foundational laws, such as Law No. (26) of 2007 and its amendment, Law No. (33) of 2008, remain unchanged.

Unchanged Rental Legislation and Rent Caps

Dubai’s rental laws continue to be governed by:

  • Law No. (26) of 2007: Regulates the relationship between landlords and tenants in the Emirate of Dubai.
  • Law No. (33) of 2008: Amends certain articles of the previous law to further define and regulate landlord-tenant interactions.

Additionally, Decree No. (43) of 2013 establishes the rent increase framework, detailing permissible rent hikes based on how current rents compare to the average market rate:

Market Value Increase vs Contract Value Permitted Rent Increase: Example Scenario

0% – 10% increase No increase allowed If current rent is AED 100,000 and market value is AED 110,000 – No increase permitted.
11% – 20% increase Maximum 5% increase If current rent is AED 100,000 and market value is AED 120,000 – Maximum increase allowed = AED 5,000. New rent = AED 105,000.
21% – 30% increase Maximum 10% increase If current rent is AED 100,000 and market value is AED 130,000 – Maximum increase allowed = AED 10,000. New rent = AED 110,000.
31% – 40% increase Maximum 15% increase If current rent is AED 100,000 and market value is AED 140,000 – Maximum increase allowed = AED 15,000. New rent = AED 115,000.
Over 40% increase Maximum 20% increase If current rent is AED 100,000 and market value is AED 150,000 – Maximum increase allowed = AED 20,000. New rent = AED 120,000.

Maximum Rent Increase Limited to 20%

Importantly, Dubai’s rental cap limits the maximum rent increase to 20% of the existing contract value — regardless of how much higher the landlord believes the market value has become. This is regulated under Decree No. 43 of 2013, specifically under Article 1 – Percentages of Increase.

For example:

  • If your current rent is AED 100,000 and the property value has increased to AED 300,000 (a 300% increase), the landlord can only increase the rent by a maximum of 20% — or AED 20,000 — making the new rent AED 120,000 per year.

This ensures that even when the market value increases significantly, tenants are protected from excessive rent increases.

Introduction of the Star Rating System

The Smart Rental Index 2025, launched by the Dubai Land Department (DLD) in January 2025, introduces a star rating system for residential buildings, ranging from one to five stars. This system assesses properties based on over 60 criteria, including:

  • Structural quality
  • Maintenance standards
  • Available amenities
  • Facility management
  • Energy efficiency

The objective is to align rental values more closely with the actual quality and condition of individual buildings, moving beyond the previous area-based assessments.

According to the authorities, the star rating applies to the building as a whole — not individual units. This means that a poorly maintained building in a high-demand area will not automatically command high rents. Conversely, a highly rated building in a less prestigious area may achieve higher rental values.

Determining and Updating Star Ratings

The star rating of a building is determined through a comprehensive evaluation by the DLD, considering both technical and service-related aspects. The system leverages artificial intelligence to ensure consistent and accurate assessments across all residential areas, including free zones and special development zones.

How the Star Rating System Works:

  • Ratings are conducted based on specific criteria established by the DLD.
  • A building owner with a low rating can bring on upgrades to his/her asset.
  • Once improvements are verified and approved by the DLD, the star rating can be immediately adjusted.
  • The system is updated frequently — not just once a year — allowing rental values to reflect building improvements in real time.

How the Star Rating System Differs from the RERA Index

1. Previous Model:

  • The RERA Rental Index was based on broad geographical zones or districts.
  • Rental caps were determined according to market averages within those zones, regardless of the specific condition or quality of the building.

2. New Model:

  • The star rating system focuses on individual buildings rather than zones.
  • Rental rates are determined by the building’s specific quality and amenities, not just the broader area.
  • A high-end building in a less prestigious area may now command higher rents based on its star rating, while an older or poorly maintained building in a prime location may face rental limits due to its lower rating.

Accessing the Rental Index via the Dubai REST App

Tenants and landlords can utilize the Dubai REST App to access the updated rental index and determine permissible rent increases.

How to Use the Dubai REST App:

  1. Download and Open the App: Access the Dubai REST App on your smartphone or tablet.
  2. Navigate to Rental Index: Select the ‘Rental Index’ option within the app.
  3. Enter Property Details: Input the necessary information, such as the property type, contract end date, and specific location details.
  4. View Rental Index Result: The app will display the current rental value for the property, considering its star rating and other relevant factors.
  5. Download Report: Users have the option to download the rental index result as a PDF for their records.

Implications for Tenants and Landlords

1. For Tenants:

  • The star rating system provides greater clarity on what tenants are paying for.
  • Rental costs will now reflect the quality and amenities of the building, not just the area.
  • If a tenant lives in an older or lower-rated building, they are less likely to experience substantial rent increases compared to higher-rated properties.

2. For Landlords:

  • Property owners are incentivized to maintain and upgrade their buildings to achieve higher star ratings.
  • A higher star rating allows landlords to command higher rents and improve tenant retention.

Conclusion

The implementation of the star rating system within the existing legal framework signifies Dubai’s commitment to a more transparent and equitable rental market. By focusing on individual building assessments, the DLD ensures that rental values accurately reflect property quality, benefiting both tenants and landlords without necessitating changes to established rental laws.

Telemarketing Regulations in the UAE

The United Arab Emirates (UAE) recently introduced Cabinet Resolutions No. 56 and No. 57 of 2024, aimed at regulating telemarketing activities to enhance consumer protection. These regulations significantly impact how businesses, including those in free zones, conduct telephone marketing campaigns.

Key Obligations Under the Telemarketing Regulations

  • Prior Approval: Businesses must secure explicit approval from relevant authorities before initiating telemarketing.
  • Employee Training: Mandatory training for telemarketers on ethical conduct and adherence to the “Do Not Call” registry.
  • Local Number Usage: All marketing calls must originate from locally registered numbers.
  • Recording Calls: Calls must be recorded, and consumers must be informed at the outset of each call.
  • Consumer Preferences: Businesses must respect consumers listed in the “Do Not Call” registry and those opting out during calls.
  • Operational Hours: Telemarketing calls permitted only between 9 AM and 6 PM.

Integration with UAE Data Protection Law

The Federal Decree-Law No. 45 of 2021 (PDPL) reinforces these regulations by setting standards for handling personal data, aligning with international data protection practices such as GDPR.

  • Consent Requirements: Explicit consent is required for data processing and telemarketing calls.
  • Data Subject Rights: Consumers have the right to access, correct, and request deletion of their personal data.
  • Cross-Border Transfers: Businesses must ensure adequate safeguards when transferring data internationally.
  • Security and Compliance: Mandatory data security measures, appointment of Data Protection Officers, and breach reporting.

Telemarketing Practices in the UAE Real Estate Industry

The real estate sector, known for its heavy reliance on direct marketing, faces significant adjustments under the new telemarketing regulations. Real estate agencies and agents have long depended on cold calling and direct outreach to market properties. The new framework imposes stricter controls on these practices, requiring greater accountability and transparency.

Specific Compliance Requirements for Real Estate Agencies

  • Authorization: Real estate agencies must obtain clear prior authorization before starting telemarketing campaigns.
  • Transparency: Real estate agents must disclose the source of consumer contact details upon request.
  • Ethical Marketing: Strict prohibition on misleading or pressurized sales tactics.
  • Use of Registered Local Numbers: All calls must be made from locally registered phone numbers.
  • Do Not Call Registry: Agents must regularly update their contact lists against the registry to avoid calling consumers who have opted out.
  • Timing of Calls: Real estate agents are restricted to contacting consumers between 9 AM and 6 PM.

Recent Enforcement Actions in the Real Estate Sector

The Dubai Corporation for Consumer Protection and Fair Trade (DCCPFT) has already begun enforcing these regulations within the real estate industry. Several real estate agencies have been fined for non-compliance:

  • In February 2024, 30 real estate companies in Dubai were fined AED 50,000 each for unauthorized telemarketing practices, including calling consumers listed in the Do Not Call Registry (Dubai Land Department)
  • In a broader enforcement action, 159 companies in Dubai, including real estate firms, were collectively fined AED 50,000 each for violating telemarketing rules, amounting to a total of AED 3.8 million in fines (Khaleej Times).
  • The total fines imposed on violating telemarketers across the UAE have now reached AED 3.8 million, highlighting the strict regulatory environment and the seriousness of non-compliance (Khaleej Times).

This swift enforcement signals a strong commitment by UAE authorities to regulate telemarketing within the real estate sector, where consumer complaints about intrusive calls have historically been high.

Penalties for Non-Compliance

Penalties include significant fines, suspension or cancellation of licenses, removal from commercial registries, and potential disruption of communication services. Specific financial penalties include:

Violation First Offense Second Offense Third Offense
Failure to obtain prior approval to engage in telemarketing activities AED 75,000 AED 100,000 AED 150,000
Failure to provide employee training on telemarketing ethics AED 10,000 AED 25,000 AED 50,000
Unauthorized disclosure of personal data AED 50,000 AED 75,000 AED 150,000

Recommendations for Compliance

  • Conduct comprehensive internal audits to ensure compliance.
  • Regularly update databases against the “Do Not Call” registry.
  • Implement rigorous staff training and robust data management protocols.
  • Develop clear guidelines for disclosing the source of consumer contact details.
  • Ensure that real estate agencies and agents fully understand the boundaries of ethical telemarketing.
  • Review data collection and processing practices to ensure alignment with the PDPL.

Conclusion

The convergence of telemarketing regulations and the UAE PDPL represents a major shift towards consumer protection and ethical marketing standards. Businesses must proactively comply to avoid serious legal and financial repercussions. The real estate sector, in particular, faces increased scrutiny and enforcement due to its historically aggressive marketing practices.

To ensure your business remains compliant and protected, consult LYLAW for expert legal guidance tailored to your industry.