Corporate Lease Agreement for United Arab Emirates

Corporate Lease Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions for leasing commercial property between a landlord and a corporate tenant. This document incorporates specific requirements under UAE federal laws and emirate-specific regulations, including mandatory registration requirements such as Ejari in Dubai or Tawtheeq in Abu Dhabi. It covers essential elements such as lease term, rent payments, maintenance obligations, service charges, and specific provisions for commercial use while ensuring compliance with local commercial property laws and regulations.

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What is a Corporate Lease Agreement?

The Corporate Lease Agreement is a fundamental document used in the United Arab Emirates for establishing commercial tenancy relationships between property owners and business entities. This agreement is essential when a company seeks to lease commercial space for business operations, whether for office use, retail, industrial, or other commercial purposes. The document must comply with UAE federal laws, including the UAE Civil Code and Commercial Transactions Law, as well as specific emirate-level regulations such as Dubai Law No. 26 of 2007 or Abu Dhabi Law No. 20 of 2006. It typically includes detailed provisions for rent, maintenance, service charges, and permitted use of the premises, while incorporating local commercial property requirements and registration obligations. The agreement serves as a comprehensive framework for managing the landlord-tenant relationship throughout the lease term.

What sections should be included in a Corporate Lease Agreement?

1. Parties: Identification of the landlord and tenant, including full corporate names, registration numbers, and registered addresses

2. Background: Context of the lease agreement, brief description of the property, and purpose of the lease

3. Definitions: Definitions of key terms used throughout the agreement

4. Demised Premises: Detailed description of the leased property, including location, size, and permitted use

5. Lease Term: Duration of the lease, commencement date, and any renewal options

6. Rent and Payment Terms: Rent amount, payment schedule, security deposit, and method of payment

7. Service Charges: Additional charges for building services, utilities, and maintenance

8. Tenant Obligations: Responsibilities of the tenant including maintenance, repairs, and compliance with regulations

9. Landlord Obligations: Responsibilities of the landlord including structural repairs and building insurance

10. Insurance Requirements: Insurance obligations for both parties

11. Assignment and Subletting: Conditions under which the tenant may assign or sublet the premises

12. Alterations and Improvements: Rules regarding modifications to the premises

13. Default and Remedies: Events of default and corresponding remedies available to either party

14. Termination: Conditions and procedures for early termination

15. Governing Law and Jurisdiction: Specification of UAE law application and dispute resolution procedures

16. Notices: Process for formal communications between parties

17. Execution: Signature blocks and execution formalities

What sections are optional to include in a Corporate Lease Agreement?

1. Fit-out Works: Details of any initial modifications or fit-out work to be performed, used when premises require renovation before occupancy

2. Break Clause: Provisions allowing early termination under specific circumstances, included when parties want flexibility

3. Force Majeure: Provisions for unforeseen circumstances preventing performance, particularly relevant post-COVID

4. Green Lease Provisions: Environmental and sustainability requirements, included for green buildings or when required by regulations

5. Sharing of Premises: Terms for sharing space with other tenants, used in multi-tenant buildings

6. Change of Control: Provisions dealing with change in tenant's corporate ownership, relevant for corporate tenants

7. Operating Hours: Specific provisions regarding business hours and access, relevant for retail or specific use properties

What schedules should be included in a Corporate Lease Agreement?

1. Schedule 1 - Property Plan: Detailed floor plans and measurements of the leased premises

2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Service Charge Budget: Breakdown of estimated service charges and calculation methodology

4. Schedule 4 - Building Rules and Regulations: Specific rules governing the use of the building and common areas

5. Schedule 5 - Fit-out Guidelines: Technical specifications and requirements for any tenant improvements

6. Schedule 6 - Handover Condition Report: Detailed description of the premises condition at lease commencement

7. Appendix A - Required Permits and Licenses: List of mandatory permits and licenses required for property use

8. Appendix B - Maintenance Schedule: Detailed breakdown of maintenance responsibilities between parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Lease Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Commercial Property

Retail

Manufacturing

Professional Services

Banking & Financial Services

Technology

Healthcare

Hospitality

Industrial

Logistics & Warehousing

Education

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Procurement

Risk & Compliance

Corporate Services

Administration

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Real Estate Manager

Facilities Manager

Legal Counsel

Property Manager

Operations Director

Commercial Director

Head of Real Estate

Finance Director

Corporate Services Manager

Procurement Manager

Risk Manager

Compliance Officer

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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