His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, has introduced a new law aimed at overseeing the management and occupancy of shared housing in Dubai. This initiative, known as Law No. (4) of 2026, establishes a framework to ensure that both owners and tenants have their rights protected while maintaining high living standards in the emirate.

Scope and Objective of the Law

This legislation applies to both private development areas and free zones, covering owners who are authorized to provide their properties for shared housing, as well as the tenants residing in these designated units. The primary aim of the law is to regulate shared housing in Dubai, ensuring the rights of all parties involved while promoting a healthy and safe living environment. It specifically addresses issues related to overcrowding, informal housing, and violations regarding building and land use. Furthermore, it seeks to foster fair rental practices and bolster the stability of Dubai’s real estate market.

Permit Requirements and Issuance

A critical aspect of this new law is the requirement that no individual or organization can allocate a unit for shared housing without first obtaining a permit. The permits, which are issued and renewed under guidelines established by the Director General of Dubai Municipality in coordination with the Dubai Land Department and other relevant authorities, must adhere to specific technical standards. Compliance includes building specifications, occupancy limits, adequate space per resident, and the availability of shared amenities.

Permits are valid for a period of one year but can be extended or issued for two years upon request by the property owner. Applications for renewal must be submitted no less than 30 days before the expiration of the current permit. Only property owners or authorized entities have the right to lease shared housing units, prohibiting tenants or any other parties from subletting any part of the unit.

Safety Compliance and Violations

Moreover, the law stipulates that all units must conform to a range of technical and safety regulations. These encompass building integrity, health standards, fire safety, sanitation, security, and electrical norms. The legislation delineates the obligations borne by both landlords and tenants while also regulating the marketing and advertising of shared housing properties.

In terms of enforcement, individuals or entities contravening the provisions face monetary penalties that range from AED 500 to AED 500,000. If a violation occurs repeatedly within one year, fines may be escalated, potentially reaching AED 1 million. Additional sanctions may be enforced by the Dubai Land Department, such as suspending operations for up to six months, revoking permits, or disconnecting public utilities until compliance is achieved.

Implementation and Transition Period

The law not only extends to establishments authorized to lease and manage real estate on behalf of owners but also encompasses those leasing units intended for subletting. However, it notably excludes units designated for collective labor accommodation. Dubai Municipality is tasked with determining the conditions under which units can be allocated, including maximum occupancy limits and necessary shared facilities.

In conclusion, any existing legislation that contradicts this new law is considered void. The law will officially come into effect 180 days following its publication in the Official Gazette, marking a significant step toward enhancing the shared housing landscape in Dubai. This comprehensive approach aims to balance the needs of property owners and tenants alike, while ensuring that Dubai continues to thrive as a desirable place to live and invest.