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
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.
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.
Landlord wants to reset rent to market level
Auto-renewal limits the landlord to Decree 43-capped increases — not a jump to market rates.
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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