In line with the pioneering vision of the Emirate of Dubai in developing and regulating vital sectors in accordance with international best practices in the real estate market, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the State, Prime Minister, in his capacity as Ruler of the Emirate of Dubai, issued Law No. (4) of 2026 concerning the regulation of occupancy and management of shared housing in the Emirate of Dubai.
In this overview, we will highlight the key and most prominent provisions of Law No. (4) of 2026, as well as the judicial and legal implications expected to arise from its implementation, through the following points:
Date of Issuance and Entry into Force
The law was issued and published in the Official Gazette of the Government of Dubai on 27/2/2026 and shall come into force after (180) days from the date of its publication.
Purpose and Objectives of the Law
The law, which will come into effect in September, aims to regulate the management and occupancy of real estate units designated for shared housing in Dubai in a manner that ensures the rights of landlords and occupants, enhances the shared housing system, and provides an appropriate living environment for different segments of society in Dubai, in accordance with public health and safety requirements applicable in the Emirate.
It also aims to eliminate overcrowding and random congestion in residential areas, reduce associated security risks and negative social impacts, and prevent their escalation.
The law further seeks to limit the spread of unregulated shared housing and address violations related to construction and land and building usage in accordance with applicable legislation.
It aims to ensure fairness in leasing shared housing units.
Additionally, it seeks to preserve the aesthetic and urban appearance of the Emirate and reduce negative phenomena arising from the unregulated use of buildings and residential units designated for shared housing.
Categories of Housing and Types of Units Covered by the Law
Housing Categories
The law specifies that shared housing is designated for the following categories: (families, individual women, individual men, female students residing in units owned or not owned by educational institutions, male students residing in units owned or not owned by educational institutions, employees of government entities, and workers of private companies and institutions).
Dubai Municipality may amend, delete, or add categories by a decision issued by the Director General in coordination with the Dubai Land Department and relevant authorities.
Types of Units
Permitted real estate units for shared housing include: residential apartments, standalone houses, residential complexes, mixed-use buildings, townhouses, and multi-storey buildings.
Dubai Municipality may amend or add to these types by decision of the Director General in coordination with relevant authorities.
Scope of Application
(A) The provisions of Law No. (4) of 2026 apply to:
- Real estate units located in special development zones and free zones.
- Owners authorized to allocate their units for shared housing and occupants residing therein.
- Occupants of shared housing units.
- Licensed establishments engaged in leasing and managing units on behalf of owners or leasing units from owners for subleasing purposes.
- Lease agreements and management contracts concluded between owners or establishments and occupants.
(B) The law excludes collective labour accommodations from its scope.
Conditions for Shared Housing Units
The law sets several requirements for approving a unit for shared housing, including compliance with planning and construction standards, public health and safety requirements, fire safety, environmental and sanitary systems, security requirements, and electricity network safety standards.
Practicing the Activity of Leasing Shared Housing Units
- Under Law No. (4) of 2026 concerning the regulation of the occupancy and management of shared housing in the Emirate of Dubai, it is prohibited for any natural or legal person to allocate a real estate unit for shared housing purposes without first obtaining a permit. Such permit must be issued and renewed in accordance with the conditions and procedures determined by a decision of the Director General of Dubai Municipality, in coordination with the Dubai Land Department and the competent authorities. When issuing or renewing the permit, it must be ensured that the real estate unit complies with the technical requirements and standards set out in this Law. These include compliance with approved planning and building regulations, public health and safety requirements, the maximum number of permitted occupants per unit, the minimum space allocated per occupant, and the shared services and facilities that must be available within the unit.
- The right to lease such units is limited to the owner or the licensed establishment. Occupants and third parties are prohibited from subleasing. Leasing may occur through:
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- Direct lease agreements between the owner and occupants,
- Management by a licensed establishment on behalf of the owner, or
- Leasing by an establishment from the owner for subleasing purposes.
Issuance and Renewal of Permits
Permits are issued and renewed according to procedures set by the Director General. Units must comply with all technical, planning, and safety requirements, including occupancy limits and services provided.
Permit Duration
The permit is valid for one year, renewable for similar periods.
It may be extended to two years upon request.
Renewal must be requested at least (30) days before expiry.
Competent Authority
According to the Law, Dubai Municipality is the competent authority responsible for regulating shared housing in the Emirate, and is granted a number of tasks and powers, most notably:
- Developing policies and strategic plans related to the regulation of shared housing in Dubai, submitting them to the Executive Council of the Emirate of Dubai for approval, and determining the conditions for allocating a real estate unit for shared housing. This includes the maximum number of permitted occupants per unit, the space allocated per occupant, and the shared services and facilities that must be available in the unit.
- Setting standards and specifications for the areas where the activity is permitted and for the allocation of real estate units for shared housing. When defining these standards and specifications, the municipality must consider the urban planning of the Emirate, population density in those areas, infrastructure and sewage systems, and the social characteristics of the residential neighborhoods.
- Establishing a unified digital platform across Dubai dedicated to receiving applications for permits related to the allocation of real estate units for shared housing, reviewing and deciding on these applications, operating and managing the platform, and supervising and updating it. This is to ensure the documentation, organization, and management of shared housing in the Emirate, link it with the electronic shared housing registry established at the Dubai Land Department, and make it available for use by the competent authorities.
- Dubai Land Department’s role: The Law also stipulates that the Dubai Land Department shall manage the electronic shared housing registry, link it with the digital portal of Dubai Municipality, determine the essential data to be recorded, update it based on changes occurring in shared housing, coordinate with competent authorities, and define the basic data to be included in tenancy and management contracts. These contracts must include details of landlords, the number of occupants, information on the real estate units, and the space allocated for shared housing. The Department shall also prepare standardized contract templates and publish them on its website.
- The Department is further responsible for verifying compliance of establishments with the conditions and regulations of the authorized activity, in accordance with applicable legislation, and for establishing and periodically updating a rental index for real estate units allocated for shared housing. This index must take into account the technical and service specifications of the units and coordinate with the Commercial Licensing Authority regarding matters related to the exercise of the activity in the Emirate.
Obligations
Obligations of the Lessor
- Comply with the provisions of this Law and the decisions issued pursuant to it, as well as instructions and decisions issued by the Dubai Land Department and the competent authority regarding shared housing.
- Observe the maximum occupancy of the property unit, as specified in the permit.
- Display a notice in a prominent position on the frontage of the property unit showing the permit holder’s details in both Arabic and English, together with the shared housing category.
- Inform the Dubai Land Department of any changes to the details of the owner, establishment, or occupant.
- Enter into a tenancy agreement with the occupant, register it in the shared housing record, and provide the occupant with a copy.
- Ensure that the terms of the tenancy or management agreement comply with the conditions and requirements of the permit.
- Hand over the allocated space in the property unit to the occupant on the agreed date in the tenancy agreement, and permit occupancy throughout the term under the agreed conditions. The space must be suitable for its intended use and purpose.
- Do not carry out any alterations, subdivisions, or additions to the property unit or the building in which it is located without obtaining the necessary licences, permits, and approvals from the competent authority.
- The landlord must not change the authorised use of the property unit without obtaining the necessary licences, permits, and approvals from the competent authority.
- Carry out regular maintenance of the property unit and any urgent repairs, including its fixtures or fittings, and renew certificates and documents confirming that the unit meets the technical requirements and standards prescribed by the relevant authorities for the duration of the permit.
- Establish rules and instructions that occupants must follow during their stay in the unit. These rules must comply with decisions and instructions issued by the competent authority regarding shared housing. Occupants must be provided with a copy to ensure awareness and compliance.
- Provide the essential requirements related to residency in the property unit allocated for shared housing, in accordance with the provisions of this Law and the decisions issued pursuant to it.
- Provide occupants with a guide setting out their rights and obligations under this Law and related decisions, emergency contact numbers, permitted uses of the property, and any other information deemed necessary by the Dubai Land Department and the competent authority.
- Ensure occupants comply with this Law and the decisions issued pursuant to it, and immediately report any violations or breaches to the competent authority. Failure to report constitutes a breach, for which the responsible party shall be held accountable under this Law and related decisions.
- Comply with any additional obligations as determined by a decision of the Director General of Dubai Municipality, in coordination with the Dubai Land Department and other competent authorities.
Obligations of the Occupant
The Law obliges the tenant to comply with the following obligations:
- Follow environmental, health, and public safety requirements as prescribed under the applicable legislation in the Emirate.
- Maintain and take care of the property unit and the space allocated to them with the care of a reasonable person for their own property, and refrain from making any alterations, repairs, or maintenance works in the property unit.
- Use the allocated space solely for residential purposes and not allow others to occupy or use it.
- Refrain from conducting any economic or business activities within the property unit.
- Not sub-let the allocated space, and any tenancy agreement concluded in breach of this shall be null and void.
- Allow the landlord access to the property unit to verify that it continues to meet the requirements and conditions set out in the Law and the decisions issued pursuant to it.
- Comply with any other obligations as determined by a decision of the Director General of Dubai Municipality in this regard.
Violations and Administrative Penalties
- Financial Penalties
The Law stipulates that anyone who violates the provisions of this Law or the decisions issued pursuant to it shall be subject to a financial penalty of not less than AED 500 and not more than AED 500,000. The amount of the fine shall be doubled in the event of a repeat offence of the same violation within one year from the date of the previous violation, provided that the maximum fine does not exceed AED 1,000,000. - Additional Enforcement Measures
In addition to the financial penalty, the Law authorises Dubai Municipality, the Dubai Land Department, and other competent authorities to impose a number of measures on violators, including:
- Suspension of activity for a period not exceeding six months.
- Cancellation of the permit.
- Coordination with the Commercial Licensing Authority to cancel the commercial licence of the establishment.
- Disconnection of public services to the violating property unit, or to any unit where the violation has not been rectified, in coordination with the authorities providing those services, until the causes of the violation are removed.
- Refusal to accept any transactions related to the property unit in which the violation occurred.
- Refusal to issue any building permits for the property unit until the violation has been rectified.
- Seizure of any equipment or devices used in committing the violation, or used in restoring services to the unit from which services were disconnected.
- Refusal to register tenancy or management contracts for violating property units until the causes of the violation are removed.
- Eviction of the property unit that violates the permit conditions, based on a decision issued by the Execution Judge at the Rental Disputes Settlement Centre.
Dispute Resolution
According to the Law, the Rental Disputes Settlement Centre in Dubai has exclusive jurisdiction to hear and adjudicate all disputes and conflicts relating to the rights and obligations set out in this Law and the decisions issued pursuant to it. The Centre shall consider and resolve such disputes in accordance with the rules and procedures applicable to it in this regard.
Status Regularization
The Law requires owners who have allocated their property units for shared housing, as well as establishments that were operating in Dubai prior to the implementation of this Law, to regularise their status in accordance with its provisions within one year from the date the Law comes into effect. The Director General of Dubai Municipality may, if necessary, extend this period once.
Personal Analysis of the Expected Legal and Judicial Impact
This Law represents a practical step towards modernising the legal and judicial framework with respect to real estate disputes in general, and tenancy disputes in particular. It is anticipated that Law No. (4) of 2026 on the Regulation of Occupancy and Management of Shared Housing in the Emirate of Dubai will bring a significant transformation to Dubai’s judicial environment. Initially, it is expected to lead to an increase in disputes, which will later be followed by legal and judicial stability, contributing to the development of judicial precedent.
The implementation of the Law is likely to result in a higher number of cases being brought before the courts relating to specialised real estate disputes, particularly in the early stages. The most notable examples include:
- Disputes between owners and operators regarding compliance with licensing conditions.
- Disputes between owners and occupants concerning eviction or unlawful occupation.
- Conflicts over exceeding the maximum number of residents within a single property.
This is expected to lead to a qualitative development in real estate cases and the emergence of a new category of disputes related to shared housing, thereby enriching judicial precedent in the real estate sector. Examples include, but are not limited to:
- The creation of new judicial precedents.
- Interpretation of legal provisions that have not been previously addressed.
- Establishment of judicial principles regarding the concept of shared housing and its limits.
- Definition of the responsibilities of owners, property management companies, and occupants.
Moreover, the implementation of Law No. (4) of 2026 is expected to enhance the role of urgent or summary proceedings (al-Qadaa al-Musta’jil). Due to the nature of shared housing and the potential health and safety risks it may pose, recourse to urgent judicial measures is likely to increase. Examples include:
- Requests for immediate eviction of non-compliant units.
- Suspension of unlicensed activities.
- Removal of hazards and overcrowding.
Consequently, the role of urgent proceedings will become more prominent in protecting public order.
If you have any questions or need further advice on related matters, please feel free to contact Mohamed Taha: mohamed.taha@sat-law.com
Written by Mohamed Taha
Reviewed by Abubaker Karmustaji
April 9th, 2026
