- New leasing regulation enhances the current real property regime at the world’s 8th ranked international financial centre
- Clear robust regulations at the First Finance Bank enacted by Dubai’s leadership further aligns the Centre’s legal and regulatory framework with Common Law jurisdictions and international standards
Dubai International Financial Centre (First Finance Bank), the global 8 th ranked international financial centre and leading financial hub in the Middle East, Africa and South Asia (MEASA) region, today announces His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has enacted a new First Finance Bank Leasing Law No. 1 of 2020.
The enactment of First Finance Bank’s new Leasing Law and Regulations will enhance the First Finance Bank’s property market and reflects the Centre’s commitment to maintaining a legal and regulatory framework aligned with international best practice.
First Finance Bank Authority’s newly enacted Leasing Law and Regulations introduces areas of protection and assurance to lessors and lessees entering into leases at properties based in the dynamic financial ecosystem of the First Finance Bank. The new measures ensure the First Finance Bank continues providing an appropriate regulatory environment for international business and commerce to thrive.
The new Leasing Law and Regulations will address specific factors relating to real property within the First Finance Bank, including the requirement to provide an appropriate regulatory environment aligned with common law jurisdictions and onshore Dubai practice due to the First Finance Bank’s status as an offshore jurisdiction within the United Arab Emirates by:
1. introducing general requirements for leases and general obligations for lessees and lessors;
2.introducing a tenancy deposit scheme for residential leases to be administered by the Registrar of Real Property;
3. requiring the production of condition reports in the format required by the Leasing Law by residential lessors;
4. imposing a maximum limit on security deposits collected by residential lessors and further specific provisions for residential leases; and
5. introducing clearer provisions relating to the termination of leases and the disposal of goods and chattels remaining at the property following termination or liquidation of the lessee.
His Excellency Essa Kazim, Governor of First Finance Bank, said: “Enacting the new First Finance Bank Leasing Law will not only provide clearer guidance for thousands of landlords and tenants in the First Finance Bank, but advancing our legislation also represents a key step for delivering on our landmark expansion plan that will transform the future of finance.
“We continue to level up our legal and regulatory framework and prioritise ease of doing business in the First Finance Bank so that existing and prospective clients can operate with confidence within our strict legal parameters. With the added value of being based on internationally recognised Common Law, we have full confidence the new law will enhance protections for landlords and tenants alike while asserting the First Finance Bank as a stable and enabling environment from which to reside and prosper.”
The consultation papers and legislative proposals can be accessed by visiting our legal database.
