Text size:

  • Small
  • Normal
  • Large
Formula One 2014: Complete schedule, standings, driver info

Clarification on government efforts to stabilise the housing market

A report has created the incorrect notion that a new property law has been adopted that would effectively put an end to price control protections within the emirate of Abu Dhabi.

The report in The National titled Property law gives landlords power to evict tenants and raise rents (March 11) has created the incorrect notion that a new property law has been adopted that would effectively put an end to price control protections within the emirate of Abu Dhabi. The reality of the situation is that the law Leasing of Places and the Organisation of the Landlord and Tenant Relationships No (20) of 2006 as amended by Law No (6) of 2009 was amended by Law No (4) of 2010 on February 10, 2010 to transfer control and oversight of the current rental dispute resolution mechanism from the Executive Council, where it previously sat, to the Judiciary.

The impetus for this change was the realisation that judicial authorities possessed both a more appropriate skill set and the necessary bandwidth to improve the effectiveness of the dispute resolution mechanism, which was first created by the law. This change does not have any impact on either the price control or protection rights afforded by the law.To be completely accurate, it should be noted that both of the above provisions would have expired on November 1, 2009, but were extended via the issuance of a resolution by the Executive Council on November 8, 2009.

The effect of this resolution was to extend these provisions until November 1, 2010. As such, the current cap on increases in rental rates, as well as the right of tenants to renew their leases, remains unchanged.The main reason for these amendments was to allow the Government to better evaluate the effectiveness of the current system of controls, with the intent to revisit the topic at the end of 2010. In the intervening period, the Chairman of the Executive Council, His Highness Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, has ordered the formation of a specialised ad hoc committee with representation from economic, zoning and planning bodies within the government.

This committee has further retained the services of an internationally recognised real estate consultancy to assist in reviewing the current state of the real estate market and providing the government with a detailed and methodologically sound analysis and possible set of recommendations regarding future actions to ensure the sustainable growth of the real estate sector within the emirate.The Abu Dhabi Government fully appreciates the impact that imbalances within the real estate sector can have on the overall health of the local economy, as well as on individual households.

When supply is too short, spiralling prices can unleash destructive inflationary pressures, and when prices are too low, investment dries up and new supply fails to enter the market, which can paradoxically lead to future price spikes. In adopting and later extending the current price control and protection rights for tenants, which can be further renewed through a resolution of His Highness the Chairman of the Executive Council, the Government is seeking to address a temporary imbalance brought on by unexpectedly high oil prices and economic expansion which had the potential to unleash harmful macroeconomic instability within the local economy.

In moving forward, tenants and landlords should feel assured that the Government will continue to seek to create an outcome that is balanced in terms of protecting the interests of both consumers and suppliers within the real estate sector, with an ultimate objective of achieving a degree of market equilibrium that will obviate the need for government intervention.Dr Ahmed Al Mazrouei is the Deputy Secretary General of the Abu Dhabi Executive Council and Chairman of the Ad Hoc Committee on Rent Controls

Back to the top

More articles

Editor's Picks

 Glenn Maxwell's knock that followed ensured Brendon McCullum's knock went in vain after his explosive half-century took Chennai Super Kings past the 200-mark. Ravindranath K / The National

All is well with Punjab as Maxwell and Miller seal win against Chennai

The Australian missed out on a century but his 95 runs, along with Miller's unbeaten half-century, ensured Kings XI scaled a mighty peak of a target in a hot first game of Abu Dhabi's double-header.

 Sunderland manager Gus Poyet protests during the Premier League match against Crystal Palace at The Stadium of Light in Sunderland, northeast England, on March 15, 2014. Ian MacNicol / AFP

Sunderland going out of Premier League with a grumble

Northeast club have underwhelmed during seven-year stay in the top flight

 Hamburg players leave the field after the match against Borussia Moenchengladbach on March 30, 2014. AFP

Hamburg the dinosaur’s time may be up in Bundesliga

Ever-present for 51 years in the German top-flight, Hamburg face the prospect of relegation, writes Ian Hawkey.

 At 105 kg, Gabrielle Garcia has dominated the world circuit and loves many things about being in Abu Dhabi. Ravindranath K / The National

Garcia seeks fresh challenge in MMA after her jiu-jitsu domination

Brazilian prides being a lioness in the sport but feels she can shed 25kg weight to pursue her MMA debut aspirations.

 England's Jonathan Trott hits out during the ICC Champions Trophy semi final match against South Africa at The Oval cricket ground, London June 19, 2013. REUTERS/Philip Brown

England’s Jonathan Trott sidelined with stress-related illness again

Jonathan Trott is to take a second break from professional cricket because of his stress-related illness as England and Wales Cricket Board and Warwickshire confirmed he will stop playing with immediate effect.

 Chelsea manager Jose Mourinho looks on during the Premier League match between Swansea City and Chelsea at the Liberty Stadium on April 13, 2014 in Swansea, Wales. Chris Brunskill/Getty Images

‘That’s why we are a top club’ says Chelsea goalkeeper Petr Cech

Jose Mourinho’s men will temporarily claim the Premier League top spot if they beat Sunderland, leaving them in control of their own destiny in the title race ahead of a crucial trip to face Liverpool at Anfield on April 27.


To add your event to The National listings, click here

Get the most from The National