Leasing in the Jebel Ali Free Zone

Analysis

The Jebel Ali Free Zone (“JAFZ”) was established under Decree No. (1) of 1985 and is an economic zone located in the Jebel Ali area of Dubai, United Arab Emirates administered by the JAFZ Authority.

Laws applicable to JAFZ Leases

Anyone working or operating in JAFZ, whether an entity permitted to operate within JAFZ or a contractor working for such entity, is governed by the Jebel Ali Free Zone laws, rules and circulars published from time to time. With regards the question of whether Dubai tenancy laws and any other Dubai laws and regulations apply to property leased in JAFZ, the Jebel Ali Free Zone Rules, fourth edition 2005 (the “JAFZ Rules”), Rule 1.6 provides that “UAE Local Decrees, Regulations and Practices are applicable within the Free Zone unless otherwise prescribed in these rules.”

Therefore Law No. (26) of 2007 (Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai) as amended by Law No. (33) of 2008 applies to all property leased within JAFZ, unless the JAFZ Rules prescribe otherwise. 

Tenancy Disputes