The answer as to whether a non-renewable contract is legal is NO. This verbiage and contract is currently not recognized by Dubai law, therefore not enforceable.
Non-Renewable Contracts are very popular in Dubai now as landlords are trying everything to evict their tenants to charge higher rents. Some are putting it in the first year contract which directly contradicts Dubai law that a tenant has the right to live in a property for at least two years with no exception.
Article 25(2) of the Tenancy Law provides four grounds whereby a landlord may evict a tenant upon expiry of the tenancy contract provided that a prior written notice of termination is served to the tenant at least 12 months beforehand by Notary Public or by registered mail. The four grounds are as follows:
- If the owner wishes to demolish the property for reconstruction or add new constructions that prevent tenant from benefiting from the leased property, provided that necessary licences are obtained;
- If the property requires renovation or comprehensive maintenance which cannot be executed while tenant is occupying the property, provided that a technical report issued by Dubai Municipality or accredited by it is submitted to this effect;
- If the owner of the property wishes to recover the property for use by him personally or by his next of kin of first degree provided that he proves that he does not own a suitable alternative property for that purpose; and
- If the owner of the property wishes to sell the leased property.