Percentage rent For many years, percentage rent has been a core element in the shopping malls’ business model. Shopping malls’ operators often include in their leases a percentage rent clause that requires tenants to pay them a percentage of gross sales, subject to a minimum payment in the form of a base rent. The viability of this clause is contingent…
In the world of mergers and acquisitions (M&A), due-diligence is a critical component that is implemented more and more in the UAE due to the growing number of businesses and which may determine the future of transactions. Due-diligence refers to the comprehensive audit and analysis conducted by acquiring companies to assess the financial, legal, operational, and strategic aspects of a…
Time to assess your situation in light of these guidelines The long-awaited Explanatory Guide (Guide) was just released by the Ministry of Finance (MoF). The Guide provides an article-by-article explanation of the meaning and intended effect of the provisions of the Corporate Tax Law and its implementing decisions (issued as of 30 April 2023). The Guide may be used to…
When your lease contract is due for renewal, it is important to know your legal rights as a tenant. Dubai has defined clear parameters that determine whether a landlord can request an increase in the annual rental and if applicable, the permitted percentage of increase. It has also defined certain notification requirements that a landlord should follow if he wishes…
On February 7, 2023, the Dubai Virtual Assets Regulatory Authority (VARA) issued its much-anticipated Virtual Assets and Related Activities Regulations 2023 (VARA Regulations), which sets out a comprehensive framework for the regulation of all virtual assets (Virtual Assets Framework) in the Emirate of Dubai in the United Arab Emirates (UAE). VARA’s regulations were issued pursuant to Law No. (4) of…
The nomination of subcontractors by an employer is a fairly common practice in the construction sector in the UAE and is often dictated by commercial considerations. Nomination of subcontractors can for example occur in one of the following circumstances: The legal repercussions of the nomination are complex and are often not sufficiently understood by the parties when they engage in…
Introduction Will registration is not something that many people deal with and value the importance of due to the simple fact that it may feel uncomfortable for testators when planning death-related matters. However, registering a will can actually safeguard against any issues, complications, and expenses that may arise following someone’s death, especially in the UAE. According to Article 240 of…
Introduction Arbitration is one of the most popular methods of alternative dispute resolution around the world, particularly as we are seeing more and more disputes as the global economy is intertwined, with businesses conducting cross border trade making international commercial transactions and contracts a crucial component of this interaction, and therefore the need to have a streamlined process to resolve…
On February 28, 2022, the Government of Dubai took a leap forward by delving into the increasingly growing sector of virtual assets, with the Ruler of Dubai approval of the first legislation which regulates all kinds of activities, operations, and services related to virtual assets by virtue of Law No. 4 of 2022. This Law entered into force on 11…
