Lease And License Agreement Template for the United Arab Emirates

When you're establishing a business in the United Arab Emirates, you'll often need more than just a standard lease agreement for your commercial premises. A Lease and License Agreement combines property occupation rights with the necessary operational permissions, creating a comprehensive framework for your business operations under UAE law.

When do you need this document?

You'll require a Lease and License Agreement when setting up retail stores, restaurants, manufacturing facilities, or service businesses where specific operational licenses are mandatory. This document is particularly crucial for businesses operating in Dubai's commercial districts, Abu Dhabi's business zones, or other emirate jurisdictions where both property leasing and commercial licensing must be legally synchronized. Foreign investors establishing UAE companies often use this agreement to ensure compliance with both federal and local regulations from day one of operations.

Key legal considerations

Your agreement must clearly define the relationship between the lessor and lessee while addressing licensing requirements specific to your business activities. The document should specify which party holds responsibility for obtaining and maintaining various licenses, including trade licenses, professional permits, and industry-specific authorizations. Payment structures must be clearly outlined, covering both lease payments and any license-related fees. Termination clauses should address what happens to both the lease and licenses if the agreement ends early. The agreement must also comply with UAE labor law requirements if the licensed activities involve employing staff on the premises.

Legal requirements in United Arab Emirates

Under UAE Civil Code Federal Law No. 5 of 1985, your Lease and License Agreement must meet specific contractual obligations and include mandatory disclosures. Dubai Law No. 26 of 2007 requires lease registration with the Dubai Land Department, while Abu Dhabi Law No. 20 of 2006 governs similar requirements in Abu Dhabi. Commercial aspects must comply with UAE Commercial Transactions Law Federal Law No. 18 of 1993, particularly regarding business licensing elements. RERA regulations in Dubai impose additional requirements for real estate transactions, including specific documentation and registration procedures. The agreement must also align with free zone regulations if your business operates within designated free zones, as these areas have distinct licensing and leasing requirements under federal and emirate-specific legislation.