Ejari lease must for DED licence

New law to apply to commercial licences from July

Lease contracts registered with Ejari, the official online registration system in Dubai, will be mandatory for renewing, amending and receiving commercial licenses issued by Dubai Economic Development Department (DED).

The Real Estate Regulatory Agency (Rera) and Dubai Economic Development Department (DED), on Wednesday, said the condition would apply to commercial licenses subject to renewal or amendment as of July.

Marwan bin Ghalita, CEO, Rera, said linking the approval of commercial licenses with the registration and documentation of lease contracts in Rera is for the “benefit of the country’s business sector and an advantage that helps it rank higher in the global competitiveness index issued by the World Bank.”

Mohammed Shael, CEO, Business Registration & Licensing Division at DED, said that the department will generalise the procedure to become a prerequisite for all licenses issued by the department.

The pilot six-month phase focused only in new commercial licenses as a trial period to ensure that the commercial registration system at the department and Rera’s electronic system, are compatible with the process.

In March, DED said it was planning to issue instant trade licences to investors under a new “120 days hassle-free licence” initiative.

The department said the scheme is aimed to give businesses in Dubai a head start and promote the emirate's competitiveness.

The UAE, earlier this year, improved its rank in “Ease of Doing Business” to 33 this year from 35 in 2011, according to the World Bank's annual Doing Business report.

According to Rera, attesting lease contracts for businessmen and companies through Ejari is a very easy process that can be accomplished by accessing the website in accordance with the access authorizations granted by the agency.

They can alternatively assign real estate management companies or owners or their representatives and some typing service offices authorized by Rera to finalise the process to save their time and effort.

Registration on Ejari protects rental rights for all parties in order to avoid potential lease disputes. It also has a positive impact on updating the rental index and fair lease value in the market.

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