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Comparison

Tenancy Renewal vs New Contract in Dubai

One of the most important and least understood aspects of Dubai tenancy law is the auto-renewal provision: if neither party gives proper 90-day notice, the tenancy continues automatically on the same terms. This is not a courtesy — it is a legal right. Understanding the difference between auto-renewal and a new contract determines your rights at the critical point when your current contract expires.

A

Automatic Renewal (Auto-Renewal)

The tenancy continues on the same terms at the end of the contract period without formal action by either party, as provided under Article 14 of Law No. 26 of 2007.

B

New Contract

A fresh tenancy contract signed by both parties, which may include different terms, a new rent amount, and a new Ejari registration.

Feature-by-Feature Comparison

Feature
A — Automatic Renewal
B — New Contract
Trigger
Automatic — triggered by neither party giving valid 90-day notice before expiry
Voluntary — both parties agree to sign a new contract (often at a new rent)
Rent
Continues at current rent (subject to Decree 43 permitted increase if landlord properly notifies)
Negotiated — typically new market rent, subject to Decree 43 limits on increase
Term
Continues for the same term as the original contract (or 1 year if shorter)
Fresh term as agreed — often 1 year
Security Deposit
Same deposit remains held — no top-up required unless agreed
Landlord may request a top-up deposit if rent increases (not mandatory)
Ejari
Existing Ejari must be renewed to reflect the new term
New Ejari registration required for the new contract
Tenant Protection Level
High — tenant continues with full statutory protections under existing terms
Depends on new terms — signing a new contract means you accept any changes agreed
Landlord's Ability to Change Terms
Limited — cannot change fundamental terms during auto-renewal; rent change requires proper Decree 43 process
May negotiate new terms, but statutory protections still apply to the new contract

Which to Choose — By Scenario

Tenant wants to stay but avoid a rent increase

Auto-renewal continues at the current rent unless the landlord has followed the proper Decree 43 process. The tenant benefits from continuity without signing a new higher-rent contract.

A wins

Tenant wants to change contract terms (e.g. add subletting permission)

A new contract allows both parties to renegotiate terms. This is the appropriate mechanism for agreed changes.

B wins

Landlord wants to reset rent to market level

Auto-renewal limits the landlord to Decree 43-capped increases — not a jump to market rates.

A wins

Verdict

Auto-renewal is one of the most powerful tenant protections in Dubai tenancy law. If your landlord has not given valid 90-day notice and you haven't received a proper eviction notice, your tenancy continues — on your existing terms. You are not obligated to sign a new contract at any rent proposed by the landlord. Signing a new contract should be a conscious decision made after verifying the new terms against your legal rights under the RERA Index and Decree 43.

Frequently Asked Questions

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