Dubai's rental disputes process gets tightened up

Dubai’s tenants – and even landlords - had better keep their accounts in perfect order… a new agreement between the Rental Disputes Centre and UAE Central Bank has made sure of it.

Under the terms of the MoU, there will be “prompt” information exchange with local banks on the outcomes of rental disputes heard by the Rental Disputes Centre. This then will facilitate an “electronic framework of cooperation” between banks and the Centre to help with the carrying out of the latter’s judgments. 

Through this process, the time taken will be cut down from an average of six months earlier to two working days flat. 

What all of this means is that the person – or entity – against whom a judgment falls has to have sufficient funds maintained in their account. If those funds are not there to cover for any compensation mentioned in the outcome, it will be easily flagged by the individual’s bank accounts. If that is indeed the case, the dispute redress process can be taken to the next level.  

‬Under the MoU, the Central Bank will direct queries submitted by the Rental Disputes Center, to enable the “efficient execution of judicial committee decisions and judgments”, according to a statement issued by Dubai Land Department. 

“These verdicts will be directly implemented by the banks, which will also provide immediate responses to enquiries as appropriate," the statement added. 

“It is expected that this MoU (memorandum of understanding) will pave the way towards promoting transparency for all property transactions and procedures, benefiting all parties and guaranteeing the protection of their rights," said Abdulqader Musa Mohammad, Director of RDC.

"This move is consistent with our ongoing efforts to improve upon existing frameworks of cooperation with official bodies, with the aim of improving government procedures and promoting co-operation between all institutions.”

Industry sources said the reduction in time span to get all of the banking account details is what makes this agreement so decisive in framing tenant-landlord relations. If within 48 hours it can be proved – or otherwise – that a financial compensation awarded can or cannot be paid, it makes for a more transparent process. 

No longer will people involved in the dispute have to wait for a cheque to be accepted – or bounced – to know the financial status.  

The new agreement will have immediate consequences - “The number of Rental Dispute Center judgments to be implemented for 2016 stands at 2630, all of which will all now be rapidly implemented by the effective system set in motion as an outcome of this MoU.”

The agreement was signed by Mohammad with the Central Bank’s Assistant Governor for Banking Supervision, Saeed Abdullah Al Hamiz. The proposals will also achieve the desired transition from paper-based to electronic systems.

For the Central Bank, this represents an extension of a platform that has already been put to use in other sectors. “The CIR System at the Central Bank has safeguarded stability across many of Dubai’s industry sectors and we are certain that this will also be the case for our cooperation with the RDC and DLD. 

“Our plan will help the Emirate’s real estate sector by maintaining the rights of all parties, ensuring justice through the fair and efficient application of the provisions of UAE law."‬

How the new information sharing works

The Dubai Rental Disputes Centre and UAE Central Bank will set up an online platform utilising the latter’s existing "Customer Information Request System". This will facilitate prompt communication between the RDC and banks operating in the UAE in relation to rental disputes and their management. 

This will speed the up process towards a smooth and effective clearing of debts or compensations.




Source: Manoj Nair, Associate Editor, GN


For Rent


View more properties

For Sale


View more properties