UAE papers hail establishment of Rental Dispute Settlement Centre in Dubai

WAM ABU DHABI, 23rd September, 2013 (WAM) — UAE’s English language dailies have lauded establishment of ” Rental Dispute Settlement Centre” in Dubai, terming it as a significant move in the right direction at the right time.

Khaleej Times in its editorial, ” A boost for property market” said, the decree by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to establish the Rental Disputes Settlement Centre as part of Dubai’s Land Department has been widely welcomed by the industry and public.

According to the paper, the decision underlines the focus of the Dubai Government to further strengthen market confidence in the property and real estate sector, one of the key contributors to the city’s economy.

Today, led by its fundamental growth sectors of tourism, hospitality, aviation and retail – all of which have achieved impressive growth credentials- Dubai is firmly back on the growth track. The city is also a clear favourite to host the World Expo 2020.

“The establishment of the Rental Disputes Settlement Centre, thus, comes as a significant move in the right direction at the right time. Prolonged disputes involving landlords and tenants will now be a thing of the past as procedures become more transparent and streamlined. The pleas and concerns of both parties will now be further assured of balanced hearing and, wherever possible, quickly resolved,” the paper remarked.

Similarly, another English language daily, ” Gulf News” in its editorial titled, “Making rent issues less of a headache” said, “If there was a sign needed that the property market in Dubai is robust, growing and returning to levels that existed before the global financial crisis, then the latest move to establish a new centre to resolve rent disputes in the emirate is a harbinger of good times and good governance. Rents are increasing, leading to a realisation that there needs to be a quick and effective mechanism for resolving rental disputes.” “The creation of the new rent settlement agency brings together legal representatives from real estate, consumers and Dubai Courts of First Instance, creating an effective pool to ensure that the strict deadlines for resolving the disputes will be met.” The paper noted that there will be a win-win situation, for consumers, the new agency should provide a quick and easy method to resolve rental disputes, which under the RERA rules, proved cumbersome. For landlords, having a quick resolution also enables them to spend less time and resources on rental disputes.

“The new settlement mechanism is a welcome step. Returning to a maximum annual rent increase decree would also be effective, replacing RERA’s cumbersome system of averaging increases based on local and community market conditions,” the GN concluded.

WAM/AM

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