In 2024, the Emirate of Sharjah undertook significant legal reforms to modernize its real estate and tenancy framework through the enactment of three key instruments: Sharjah Law No. (5) of 2024, Law No. (6) of 2024, and Executive Council Resolution No. (37) of 2024. Collectively, these regulations establish a robust and coherent legal infrastructure aimed at enhancing tenant protections, streamlining dispute resolution, and reinforcing regulatory oversight in real estate development. Law No. (5) of 2024 codifies the rights and duties of lessors and lessees, while introducing measures such as rent control and formalized contract enforcement. Complementing this, Law No. (6) of 2024 establishes the Rental Disputes Resolution Centre (RDRC), a specialized judicial body designed to expedite rental dispute adjudication and improve procedural efficiency. Finally, Executive Council Resolution No. (37) of 2024 governs real estate project registration, escrow management, and financial transparency, signalling a shift toward investor-focused regulation and market discipline. This analysis examines the key features of each law, with a focus on their legal, institutional, and policy implications for the Sharjah real estate sector.
Sharjah Law No. (5) of 2024: A Codified Legal Framework for Real Estate Leasing
This law introduced a regulatory update to the Emirates rental framework, which officially repealed the earlier Law No. 2 of 2007 Furthermore the new law sets forth comprehensive legal provisions which governs the rental relationship across four sectors: Residential, Commercial, industrial and Professional sectors
Formalization and Certification of Lease Agreements
The mandatory certification of rental contracts has been reformed as seen in the new law; the lessor is obligated to certify the lease contract or any renewal thereof at the relevant municipality or its delegated authority within 15 days from the date of issuance consequently, failure to do so may result in administrative fines and enforcement through the magistrate of summary justice Moreover, the law permits contracts to be concluded electronically, provided that the format is approved by a decision of the Executive Council Once certified, the rental contract becomes a writ of execution which makes it directly enforceable before the Rental Disputes Centre in cases such as eviction or rental default This legal infrastructure enhances contract reliability, reinforces enforcement procedures, and ensures that all tenancies operate under a unified municipal registration system,
Unified Municipal Registration System to Streamline Services
The Sharjah Digital Department (SDD) has partnered with ADRES Real Estate Services to launch a unified municipal registration system designed to support and enhance all municipal and real estate services in the emirate of Sharjah. This strategic agreement, signed in the presence of officials from the Ruler's Office, Sharjah Digital Department, and Aldar Properties Group, was announced during GITEX 2024 alongside the introduction of the integrated platform "Aqari," which is set to revolutionize the way municipal and real estate services are delivered across the emirate. As part of Sharjah's broader digital transformation initiatives, this system will facilitate easy access to services through an electronic portal and mobile applications compatible with iOS and Android, thereby ensuring seamless interaction for all users.
Moreover, the unified system aims to digitize and simplify municipal registration and real estate transactions by providing a centralized, reliable database for all properties within Sharjah. In doing so, it will enhance transparency, improve service delivery, and foster economic growth by integrating services such as lease contract management, property ownership registration, agency oversight, dispute resolution, as well as buying, selling, mortgaging, and issuance of property certificates. By developing this comprehensive municipal ecosystem, the platform is expected to significantly improve the customer experience and provide decision-makers with a holistic market overview. Scheduled for launch in December 2024, the system will initially focus on property leasing services, including lease endorsement and renewal, clearance certificate issuance, and dispute resolution, while future phases will gradually incorporate all remaining municipal and real estate services.
Defined Rights and Obligations of the Contracting Parties
Law No. (5) of 2024 explicitly codifies the duties and responsibilities of both lessors and lessees:
- The lessor is required to:
- Deliver the leased premises in a condition suitable for use
- Perform necessary maintenance unless otherwise agreed
- Avoid disrupting the lessee's use or access to the property
- The lessee must:
- Use the property in accordance with the purpose agreed in the contract
- Pay the rental fee on time
- Maintain the leased premises and cover regular maintenance costs unless otherwise agreed
- Obtain permission before making modifications to the premises
These provisions offer clarity and legal predictability by outlining the exact nature of the contractual relationship and reducing reliance on interpretive case law.
Rent Regulation and Eviction Conditions
The law introduces rent control measures to ensure market stability. Whereby the lessor may not increase the rent for three years from the start of the rental relationship however if the lessee accepts a rent increase within this period, then there will be no further increase may be imposed until after two years have passed from the first increase; moreover after the freeze period, any proposed adjustment must be based on the rental value of a similar property, with the method and controls to be defined by the Implementing Regulation
In terms of eviction, the law strictly sets the limits of the grounds under which a lessor may seek termination of the tenancy before the statutory minimum period of three years for residential leases and five years for commercial, industrial, or professional leases permissible grounds include:
- Non-payment of rent beyond 15 days of its due date
- Breach of contractual obligations
- Unauthorised re-rental or abandonment of the property
- Improper use or use contrary to public morals or order
- Planned demolition or major renovation of the property
- Personal use by the landlord or first-degree relatives provided that the following conditions are found which is mentioned in the following text:
- The lessor does not alternative residence, that is suitable for accommodation.
- Advance 3-month notice, given to the lessee.
- The lessor shall occupy the premises within 2 months of evacuation and continuous residence for 1 year
Consequently, in cases where these conditions are not fulfilled in good faith, the lessee may claim compensation.
Law No. (6) of 2024: Establishing the Rental Disputes Resolution Centre in Sharjah
The issuance of Law No. (6) of 2024 represents a critical development in Sharjah's real estate legal framework through the creation of the Rental Disputes Resolution Centre (RDRC); moreover this law provides for a specialized judicial entity tasked with adjudicating rental disputes, and making the case management more effective and enhancing the enforcement, and procedural efficiency and legal clarity the RDRC addresses the shortcomings of prior reliance on the general court system by offering a dedicated and subject specific venue for resolving landlord-tenant conflicts.
Legal Basis and Institutional Mandate
The Centre is established under as a judicial entity with legal personality and financial and administrative independence. However, it operates under the administrative umbrella of Sharjah City Municipality its judicial functions are exercised through judges seconded by the UAE Ministry of Justice, ensuring conformity with federal judicial standards
The objectives of the Centre as set out in Article 4 which include:
- Developing a specialized system for rental dispute adjudication.
- Delivering swift, high-quality judicial decisions.
- Supporting the continuity and stability of the real estate market in Sharjah.
Scope of Disputes Within the Competence of the Rental Disputes Resolution Centre
The Centre is competent to hear disputes arising from rental contracts across residential, commercial, industrial, and professional properties, including associated claims such as:
- Hear and resolve rental disputes, including related claims examples include:
- Bounced checks
- Compensation
- Brokerage
- Unless reserved for other judicial bodies.
- Issue, enforce, and decide on judgments and urgent applications.
- Exercise additional powers assigned by the Ruler or Council.
It also hears cases arising from within free zones unless those zones are governed by special laws that confer jurisdiction elsewhere
Organizational Structure
As seen in Figure 1.1 the Rental Disputes Resolution Centre (RDRC) is composed of three main divisions:
- The Circuits of First Instance
- Circuits of Appeal
- Execution Department.
The Circuits of First Instance are responsible for hearing original rental disputes, with their judgments deemed final if the amount in question is under AED 100,000, except in specific cases outlined in Article 18, such as eviction claims or procedural violations; moving on, the Circuits of Appeal review eligible decisions from the First Instance; whereby the appeal circuits are composed of three judges and issue final, binding rulings; lastly, the Execution Department enforces final judgments, including those related to eviction and monetary claims; this department operates under judicial oversight and is supported by execution officers to ensure enforcement efficiency.
Moreover, Article 16 establishes a Case Management Office tasked with registering and verifying rental disputes, preparing cases procedurally, and facilitating the exchange of documents between parties this structure allows judges to focus solely on adjudicating disputes, while administrative personnel manage procedural compliance to maintain judicial oversight, furthermore the law provides for a Judicial Supervisor whereby a judge seconded from the Ministry of Justice and appointed by the Ruler; this Supervisor is empowered to issue internal decisions, assign judges, recommend legislative amendments, and ensure the effective operation of the Centre's judicial functions.
Procedural Rules and Dispute Resolution Process
The procedural rules governing dispute resolution at the Rental Disputes Resolution Centre are laid out As per Article 11-15, whereby hearings are generally public unless a judge orders confidentiality. Furthermore it is established that Arabic as the official language of proceedings, requiring the provision of interpreters for parties who do not speak Arabic. In terms of representation, the law allows parties to represent themselves or be represented by lawyers, relatives up to the fourth degree, or authorized company employees. additionally, all rulings by the First Instance Circuit must be issued within 30 to 100 days from the first hearing, except in justified cases where delays are warranted.
The overall procedural flow begins with the filing of a complaint at the Centre, once a case is filed, the Case Management Office established under Article 16 verifies documentation, facilitates document exchange, and sets hearing dates then the First Instance Circuit then hears the case and issues a ruling, with judgments below AED 100,000 considered final unless exceptions apply. Furthermore the law allows parties to appeal within 15 days of a judgment, with appeals reviewed by a panel of three judges. Lastly the Enforcement of final decisions is handled by the Execution Department which can execute evictions, asset attachments, and payment orders. Moreover, the law permits the issuance of urgent or provisional measures, while Articles 23 to 25 allow petitions for review in exceptional cases such as fraud or the emergence of new evidence.
Legislative and Policy Functions
In addition to adjudication, the RDRC plays a legislative advisory role. It may submit proposals and studies to the Executive Council or competent authorities, particularly on issues related to rental regulations
Executive Council Resolution No. (37) of 2024: Reforming Real Estate Development Regulation in Sharjah
Executive Council Resolution No. (37) of 2024 introduces a comprehensive regulatory framework that governs the registration, financial conduct, and operational oversight of real estate development projects in the Emirate of Sharjah this law marks a strategic shift from a permissive environment to a compliance-driven regime, with particular emphasis on investor protection, escrow regulation, and institutional transparency the Resolution draws inspiration from best practices implemented in Dubai (Law No. 8 of 2007) and Abu Dhabi (Law No. 3 of 2015), reflecting Sharjah's alignment with leading regional standards.
Mandatory Registration and Developer Vetting
A foundational element of the Resolution is the compulsory registration of all real estate development projects with the Real Estate Development Register maintained by the Real Estate Registration Department.
Per Article 3, registration is contingent upon:
- Submission of a feasibility study.
- Proof of developer solvency and liquidity
- Confirmation of technical competence and prior experience
- Deposit of a financial guarantee where required
No developer may offer or market real estate units before completing registration this vetting process acts as a gatekeeping function to ensure that only credible and capable entities can participate in off-plan development activities.
Escrow Account Requirements: Financial Integrity in Off-Plan Sales
Articles 6 to 8 of the Resolution establish strict financial safeguards to protect purchasers' funds by requiring developers to create a dedicated Escrow Account for each real estate project, which is governed by an Escrow Agreement with a department-approved financial trustee. Thus all payments made by buyers must be deposited into individual sub-accounts linked to their specific units furthermore; disbursement of these funds is tightly regulated and allowed only in proportion to certified construction progress, and are based on approvals from licensed engineering consultants Consequently; the misuse of escrow funds such as diverting them to unrelated projects or making premature withdrawals is strictly prohibited and subject to serious administrative penalties, including license revocation and legal action
Oversight, Compliance, and Enforcement
The Resolution grants the Real Estate Registration Department wide-ranging supervisory powers to ensure project compliance and protect investor interests, the Department may freeze disbursements from escrow accounts if violations are suspected or if developers fail to meet construction obligations. Developers are also required to submit regular progress reports, audited financial statements, and engineering certifications; consequently failure to comply with these requirements can result in administrative sanctions, including fines, suspension or cancellation of project registration, or referral for criminal prosecution, furthermore, In cases of serious default, Article 23 authorizes the Department to cancel the project, liquidate the escrow account, and refund purchasers in collaboration with relevant authorities.
Conclusion.
Sharjah's 2024 legislative reforms represent a major step forward in the regulation of real estate leasing, dispute resolution, and development oversight. Law No. (5) of 2024 enhances contractual clarity and strengthens tenant protections by codifying obligations and limiting arbitrary evictions; furthermore Law No. (6) of 2024 institutionalizes a specialized and independent Rental Disputes Resolution Centre, ensuring timely and expert adjudication of landlord-tenant conflicts. Meanwhile, Executive Council Resolution No. (37) of 2024 imposes stringent controls on developers through mandatory registration, escrow safeguards, and comprehensive compliance requirements, these initiatives not only align Sharjah's legal framework with regional best practices but also establish a more transparent, accountable, and investor-friendly real estate environment. Together, they contribute to greater legal certainty, market confidence, and long-term sectoral stability in the Emirate.
Bibliography
Primary Resources.
Legislation.
Sharjah law no. (5) of 2024: a codified legal framework for real estate leasing [Accessed on 26th of June 2025.] Available at: https://www.lexismiddleeast.com/law/Sharjah/Law_5_2024
Law no. (6) of 2024: establishing the rental disputes resolution centre in Sharjah [Accessed on 26th of June 2025.] Available at: https://www.lexismiddleeast.com/law/Sharjah/Law_6_2024
Executive council resolution no. (37) of 2024: reforming real estate development regulation in Sharjah [Accessed on 26th of June 2025.] Available at: https://www.lexismiddleeast.com/law/Sharjah/ExecutiveCouncilDecision_37_2024
Secondary Resources.
Websites.
Hannah. G, "Sharjah: Digital Department Creates Platform for Real Estate Services" (2023) LexisNexis. [Accessed 26th of June 2025.] Available at : https://www.lexis.ae/2024/10/24/sharjah-digital-platform-for-real-estate-services-created/
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