A commercial lease in the UAE is not only a property matter. **Registration — Ejari in Dubai, Tawtheeq in Abu Dhabi, equivalents elsewhere — is what the trade licence depends on**, and the visa quota depends on the space. A lease problem becomes a licensing problem, then a hiring problem, faster than tenants expect.
Commercial Tenancy
Lease, registration and the licence connection
A commercial lease in the UAE is not only a property matter. Registration — Ejari in Dubai, Tawtheeq in Abu Dhabi, equivalents elsewhere — is what the trade licence depends on, and the visa quota depends on the space. A lease problem becomes a licensing problem, then a hiring problem, faster than tenants expect.
| Item | Detail |
|---|---|
| Landlord | [NAME] |
| Tenant | [COMPANY NAME], licence [NUMBER] |
| Premises | [UNIT, BUILDING, AREA, EMIRATE] |
| Approximate area | [NUMBER] sq ft |
| Permitted use | [DESCRIBE] — must match the licensed activity |
| Term | [DATE] to [DATE] |
| Annual rent | AED [AMOUNT] |
| Payment | [Number] cheques — see the notes on post-dated cheques |
| Security deposit | AED [AMOUNT] |
| Registration | [Ejari / Tawtheeq / other] — certificate [NUMBER], dated [DATE] |
| Visa quota supported | [NUMBER] |
| Fit-out and reinstatement | [See Section 5] |
1. Before Signing
| # | Check | Why | Done |
|---|---|---|---|
| 1 | Landlord is the registered owner or has authority to lease | Leasing from someone without title creates a real problem | [Y/N] |
| 2 | Permitted use matches the licensed activity | The licence depends on it | [Y/N] |
| 3 | Premises are approved for the intended use by the authority | Planning and municipality approvals | [Y/N] |
| 4 | Space supports the visa quota needed | Quota is linked to area and type | [Y/N] |
| 5 | Registration will be completed and by whom | Licence renewal depends on it | [Y/N] |
| 6 | Service charges and who pays them | Frequently a large additional cost | [Y/N] |
| 7 | Chiller or air conditioning charges — included or separate | A common and substantial extra | [Y/N] |
| 8 | Utilities connection and deposits | Connection in the tenant’s name | [Y/N] |
| 9 | Fit-out permissions and landlord approval process | Delay here delays opening | [Y/N] |
| 10 | Reinstatement obligation at the end | Frequently expensive and unbudgeted | [Y/N] |
| 11 | Rent increase mechanism and any statutory cap | Emirate-specific rules may apply | [Y/N] |
| 12 | Renewal rights and notice periods | [Y/N] |
5 more pages in the Word file
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These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.
Ejari, Tawtheeq or the local equivalent is required for trade licence issuance and renewal, utility connections and visa quota. An unregistered lease blocks the licence renewal, which blocks visa renewals, which stops hiring. Treat it as a completion step.
The use permitted under the lease, the approved use of the premises, and the activity on the trade licence must all correspond. A mismatch is discovered at licence renewal or at a municipality inspection, and it is expensive to fix from a signed lease.
Mainland visa quota is linked to the area and type of premises. A company that takes minimal space to control cost and then needs to hire finds the quota unavailable. Model headcount for the lease term before signing, not after.
Paying rent by post-dated cheque is market convention. The treatment of dishonoured cheques was substantially reformed in 2022, with much of the enforcement now running through civil routes and the cheque capable of being treated as an instrument of execution. Confirm the current position rather than relying on either the old criminal assumption or a vague sense that it no longer matters — and never issue cheques you are not confident will clear.
Unpresented post-dated cheques left with a former landlord are a continuing liability. Retrieve every one at exit and get written confirmation that none remain outstanding. This is forgotten routinely and surfaces badly.
Stripping out a fit-out and restoring the premises can run to a substantial sum that tenants have not provided for across a three-year term. Photograph the premises at handover, agree the record with the landlord, and price the reinstatement before signing.
Two months before expiry, ask the landlord to state in writing what they require. Verbal assurances that the fit-out can stay have a way of evaporating at handover, and by then there is no time to negotiate.
Rent is rarely the whole occupancy cost. Service charges, chilled water or air conditioning charges, utilities, insurance and parking can add materially. Model total occupancy cost, not headline rent.
Confirm the person leasing to you owns the property or is authorised to lease it. Taking a lease from a head tenant whose own lease prohibits subletting, or expires first, leaves you without security and without the registration the licence needs.
Some emirates operate rent index frameworks limiting increases on renewal, and notice requirements for changing terms can be statutory rather than contractual. Check the position for the specific emirate before agreeing a review mechanism.
Several emirates route rental disputes through a dedicated rental dispute centre rather than the general courts, with its own procedure and timelines. Know which applies before a dispute arises.
Commercial leases attract 5% VAT where the landlord is registered, and the tenant needs a valid tax invoice to recover input tax. Confirm the treatment and the invoicing arrangement at signing rather than at the first payment.
New premises must be leased and registered before the licence can be updated, and the licence must be current for visa renewals. A gap between leases can cascade into a licensing problem. Overlap the leases if necessary.
An absolute prohibition on assignment or subletting leaves the tenant with the lease whatever happens to the business. A qualified covenant, with consent not to be unreasonably withheld, is the normal compromise and is worth asking for.
Reflects UAE law and practice current as of {{DATE OF USE}}. Registration systems, rent frameworks, notice requirements, dispute forums and the treatment of dishonoured cheques differ by emirate and change — confirm the position for the relevant emirate and take legal advice before signing a material lease.
This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, corporate secretary, or accountant as relevant) before you rely on it.