Dubai's Rent Cap Decree' for 2011

Analysis

H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai, issued Decree No. 2 of 2011 Regarding Rentals in the Emirate of Dubai on 10 January 2011 (the “2011 Decree”).

The 2011 Decree defines the maximum rent increase for properties leased in the Emirate of Dubai during 2011 and is applicable to all types of property.

In each of the last four years, rent cap decrees have been issued to control rent increases in the Emirate of Dubai to ensure stability in the rental market and to encourage investment. The decrees are:

Decree No. 42 of 2006

Decree No. 27 of 2007

Decree No. 1 of 2009

Decree No. 62 of 2009