Administrative Resolution No. (27) of 2023
Determining the Dubai Municipality Markets and Prescribing the Rules and
Requirements for Disposition of the Leased Property Therein[1]
ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
The Director General of the Dubai Municipality,
After perusal of:
Law No. (4) of 2013
Concerning Notaries Public in the Emirate of Dubai and its amendments;
Law No. (12) of 2020
Concerning Contracts and Warehouse Management in the Government of Dubai;
Law No. (27) of 2021
Concerning the Dubai Electricity and Water Authority;
Decree No. (34) of 2022
Establishing the Agencies Affiliated to the Dubai Municipality and Determining
their Functions;
Executive Council
Resolution No. (50) of 2016 Regulating Dubai Municipality Markets and its
amendments;
Executive Council Resolution
No. (43) of 2022 Approving the Organisational Structure of the Dubai
Municipality;
Administrative
Resolution No. (411) of 2016 Requiring the Tenants of Dubai Municipality's Real Property
to Pay the Consumption Fees for Electricity and Water;
Administrative
Resolution No. (104) of 2021 Forming the Committee for Disposition of the
Dubai Municipality Assets by Auction;
Administrative
Resolution No. (110) of 2021 Forming the Committee for Disposition of the
Dubai Municipality Assets by Negotiation and Direct Agreement; and
The letter of His
Excellency the Director General of the Department of Finance Ref.
(DOF-OUT-2021-0000696), dated 12 April 2021, stating
the DOF approval of the
charges and fees to be collected within the Dubai Municipality Markets,
Does hereby issue this
Resolution.
The words and expressions mentioned in this
Resolution will have the same meaning assigned to them in the above-mentioned
Executive Council Resolution No. (50) of 2016. Additionally, the following words and
expressions, wherever mentioned in this Resolution, will have the meaning
indicated opposite each of them unless the context implies otherwise:
|
Department: |
The Markets Department at the
Public Facilities Agency of the DM. |
|
Competent Committee: |
The Committee for Disposition of the
Dubai Municipality Assets by Auction formed pursuant to the above-mentioned
Administrative Resolution No. (104) of 2021, or the Committee for Disposition of the
Dubai Municipality Assets by Negotiation and Direct Agreement formed pursuant
to the above-mentioned Administrative Resolution No. (110) of 2021. |
a.
The
Markets to which the above-mentioned Executive Council Resolution No. (50) of
2016 applies are as follows:
1.
Central
Fruit and Vegetable Market;
2.
Auto
Market;
3.
Trucks
and Heavy Equipment Market;
4.
Birds
and Pets Market;
5.
Al
Hamriya Central Market;
6.
Al
Rashidiya Central Market;
7.
Naif
Souk;
8.
Al
Fahidi Souk;
9.
Livestock
and Feed Market;
10.
Hatta
Market;
11.
Al
Tay Livestock Yards;
12.
Building
Materials Market;
13.
Al
Ayas Market;
14.
Traditional
Souq;
15.
Furniture
Market; and
16.
any
other Market affiliated to the DM, as determined pursuant to a resolution
of the Director General.
b.
The
geographical locations and respective areas of the Markets referred to in
paragraph (a) of this Article will be demarcated on the relevant maps approved
by the DM.
The types of permitted dispositions of Leased
Property, and the requirements and rules governing these dispositions, are as
follows:
I. Assignment of a Leased Property Tenancy
Contract to a Third Party
a.
The assignment of a tenancy
Contract of Leased
Property to a third party will be subject to the following conditions:
1.
The
Leased Property tenancy Contract to be assigned must be valid.
2.
At
least one (1) year must have passed since the lease of the Leased Property to the
assignor. Throughout this period, the Leased Property must have been actively occupied and must not have been closed down without a
valid reason acceptable
to the DM.
3.
The
assignor, the assignee, and the Leased Property subject to the assignment must
be free from any legal obligations or financial liabilities towards the DM.
4.
Unless otherwise decided by the
Competent Committee, the
assignee must meet the same requirements initially prescribed for applicants to the DM for
leasing the Leased Property.
5.
An
assignment document duly attested by a Notary Public must be provided.
6.
The
activity which the assignee intends to conduct at the Leased Property must be
one which is permitted by the DM in the Market where the Leased Property is located.
7.
Ten
percent (10%) of the annual rent specified in the tenancy
Contract of the Leased
Property to be assigned, or of the annual rent of similar real property in
the Market, whichever is higher, must be paid to the DM.
b.
Rules for Assignment of Leased
Property Tenancy Contracts
1.
Upon
approval of the assignment application, the Competent Committee may amend the tenancy Contract
assigned to the assignee in respect of the Leased Property. This includes
amending the rent.
2.
The
Department will notify the assignor and the assignee of the DM’s
approval of the assignment within ten (10) working days from the date of
issuance of the Competent Committee's approval of the application.
3.
Within
fifteen (15) days from the date of being notified as per the provisions of
sub-paragraph (b)(2) of this Article, the assignor and assignee must
complete the assignment procedures, including payment of the prescribed
assignment fee, and signing a document releasing the DM from any liabilities
arising from the tenancy Contract concluded between the DM and the
assignor.
II. Subleasing Leased Property
a.
Subleasing Leased Property will be subject to the following conditions:
1.
The
tenancy Contract of the Leased
Property to be
subleased must be valid.
2.
The
landlord, Tenant, and the Leased Property to be subleased must be free from any
legal obligations or financial liabilities towards the DM.
3.
Unless otherwise decided by the
Competent Committee, the
subtenant must meet the same requirements initially prescribed for applicants to the DM for
subleasing Leased Property.
4.
The
activity of the subtenant to be conducted at the Leased Property must be one which is
permitted by the DM in the Market where the Leased Property is located.
5.
Ten
percent (10%) of the annual rent specified in the tenancy
Contract of the Leased
Property to be subleased, or of the annual rent of similar real property in
the Market, whichever is higher, must be paid to the DM. This percentage
applies whether the Leased Property is to be subleased in whole or in
part.
b.
Rules for Subleasing Leased Property
1.
Upon
approval of a sublease application, the Competent Committee may amend the tenancy Contract
concluded with the original Tenant in respect of the Leased Property. This
includes amending the rent.
2.
The
Department will notify the Tenant and the subtenant of the DM’s
approval of the sublease within ten (10) working days from the date of issuance
of the Competent Committee's approval of the application.
3.
Within
fifteen (15) days from the date of being notified as per the provisions of
sub-paragraph (b)(2) of this Article, the Tenant and subtenant must complete
the sublease procedures, pay the prescribed fee, and sign a document releasing the
DM from any liability, towards them or towards
third parties, arising
from its approval of the sublease contract of the Leased Property.
4.
The
DM’s approval of the sublease does not prejudice the original Tenant's liability
towards the DM for all his obligations under the tenancy
Contract concluded with
him. Additionally, the approval does not preclude the DM from taking recourse
against the subtenant for the breach of any of
the obligations encumbering
the Leased Property or for any violations committed therein. The original
Tenant and the subtenant will be deemed jointly and
severally liable
towards the DM for these obligations and violations.
III. Exchange of Leased Property
The exchange of Leased Property will be subject to the following
conditions:
1.
The
Leased Property to be exchanged must be of the same kind and located within the same Market, unless
otherwise decided by the Competent Committee based on the
nature of the Market and the economic activities conducted
therein. For the purpose of this sub-paragraph, the phrase "of the same kind" means
that the Leased Property to be exchanged falls
in same planning use class. Therefore,
a commercial shop may not be exchanged for a warehouse, and a shop
designated and categorised as a retail outlet
may not be exchanged for a shop categorised as a wholesale outlet,
under the planning use classification.
2.
Both
parties to the exchange, and the Leased Property to be exchanged, must be free
from any legal obligations or financial liabilities towards the DM.
3.
Five
percent (5%) of the annual rent specified in the tenancy
Contract of the Leased
Property to be exchanged, or of the annual rent of similar real property in
the same area, whichever is higher, must be paid to the DM.
a.
A
permit to occupy a pavement, yard, or pathway within a Market will be issued
subject to the following conditions:
1.
The applicant for occupancy must be a Tenant at
the Market in which the space to be occupied is located.
2.
The
space to be occupied must not include emergency or public safety facilities.
3.
The occupancy of the required space must not
obstruct traffic flow; negatively affect the sight lines of drivers; violate
any health, safety, or environmental requirements; or affect the
urban planning and architectural character or the overall appearance of the
Market.
b.
Rules
for Occupancy of Pavements, Yards, and Pathways within Markets
1.
The
Department will determine the activities and occupancies to be permitted on
pavements, yards, and pathways within a Market based on the activities permitted
in that Market or based on the added value of the required occupancy to the Market's
activity.
2.
If
the required space is part of a pavement, a minimum distance of
one (1) metre of the pavement width must be left unoccupied for pedestrian
traffic, with the possibility of increasing this distance at any time during
the occupancy permit term as deemed appropriate by the Department
based on the pedestrian traffic volume.
3.
An occupancy permit issued by the Department will
be deemed temporary, and may be revoked by the Department at any time prior to its
expiry without any liability towards the permit holder or any third party.
4.
A permitted occupancy space must be used
exclusively by the permit holder and his staff and may only be used for the
purpose for which the permit is issued. The occupancy permit may not be
assigned to any third party; and no third party
may be allowed to use or occupy the permitted occupancy space, or any part thereof, without the relevant prior
approval of the Department.
5.
A permit holder will be fully responsible for
the occupancy and use of the permitted occupancy space.
This includes the
removal of any items, structures, or waste in
the space upon the end
of the occupancy period for any reason whatsoever; and reinstatement
of the space to its
original condition.
6.
A permit holder must maintain the cleanliness of
the permitted occupancy space, and must constantly and continuously meet the
public safety requirements within the same.
a. The Department will receive any application
submitted to it pursuant to this Resolution; consider the same; and submit its
recommendations to the Competent Committee to make the appropriate decision in
respect of that application, within no later than fifteen (15) working
days from the date of submission of the application.
b. The recommendations of the Department and decisions of the Competent Committee in respect
of the submitted applications will be issued in accordance with the provisions
of this Resolution, the above-mentioned Executive Council Resolution No. (50)
of 2016, and the resolutions and circulars issued in pursuance thereof.
c. The Competent Committee may delegate
any of its powers under this Resolution to the Department, provided that this
delegation is specific and in writing.
a.
In
return for providing guarding, cleaning, and maintenance services, the DM
will collect service charges from Tenants. These service charges will be calculated as a
percentage of the annual rent of the Leased Property, taking
into account the Market
where the Leased Property is located. The service charges will be as follows:
|
Percentage |
Market |
SN |
|
25% |
Central Fruit and
Vegetable Market |
1 |
|
10% |
Auto Market |
2 |
|
15% |
Trucks and Heavy
Equipment Market |
3 |
|
5% |
Birds and Pets
Market |
4 |
|
15% 2.5% |
Al Hamriya Central
Market -
(Old Shops) -
(New Shops) |
5 |
|
15% |
Al Rashidiya Central
Market |
6 |
|
7.5% |
Naif Souk |
7 |
|
7.5% |
Al Fahidi Souk |
8 |
|
10% |
Traditional Souq |
9 |
|
15% |
Livestock and Feed
Market |
10 |
|
15% |
Hatta Market |
11 |
|
10% |
Al Tay Livestock
Yards |
12 |
|
10% |
Building Materials
Market |
13 |
|
10% |
Al
Ayas Market |
14 |
|
10% |
Furniture
Market |
15 |
b.
The
Competent Committee will have the power to amend any tenancy
Contract, by increasing
or decreasing any of the percentages set out in the table included in
paragraph (a) of this Article, based on the actual cost of services and the
annual rent of the Leased Property. In any event, the service charges may not
exceed twenty-five percent (25%) of the annual rent of the Leased Property, and
the amendment must be made at the time of concluding or renewing the tenancy
Contract.
For Leased Property that is not equipped with
water and electricity meters, the water and electricity consumption charges
will be determined as follows:
1. Where the Leased
Property is not equipped with separate meters
or sub-meters, the consumption charges will be determined based on an estimate made by the General Maintenance Department of
the Public Facilities Agency of the DM upon conducting a technical inspection of the Leased
Property.
2.
Where the Leased Property is equipped with sub-meters measuring
electricity and water drawn from the main DM meter,
the consumption charges will be determined based on the highest consumption slab prescribed by
the Dubai Electricity and Water Authority PJSC upon taking
the meter reading.
3.
Where the Leased Property is
equipped with a shared
meter, the consumption charges will be determined based on the highest consumption
slab prescribed by the Dubai Electricity and Water Authority PJSC upon taking the meter
reading. In that case, the water and electricity consumption charges must be
divided among the Leased Property units sharing the same meter, and annual charges will be estimated
for each Leased Property unit based on its total area and nature of activity.
The above-mentioned Administrative Resolution
No. (411) of 2016 is hereby repealed. Any provision in any other administrative
resolution is also hereby repealed to the extent that it
contradicts the provisions of this Resolution.
This Resolution will be published in the
Official Gazette and will come into force on the day on which it is published.
Dawood Abdul Rahman Al Hajiri
Director General
Dubai Municipality
Issued
in Dubai on 25 January 2023
Corresponding to 3 Rajab 1444 A.H.
©2024 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the original
Arabic text. In case of conflict, the Arabic text will prevail.