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Dubai: Rents for Dubai tenants whose contracts were signed in 2008 cannot be raised this year so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate, according to a decree issued on Monday.

According to decree No 1 for 2009 issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, rents for both residential and non-residential properties in Dubai whose contracts were signed in 2008 cannot be increased in 2009 so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate.

The new decree includes a mechanism to deal with low rents, where rents for the current year can be raised as long as the rent for 2008 was up to 25 per cent less than the average market rate.

Mohammad Ebrahim Al Shaibani, Director of the Dubai Ruler's Court, said Shaikh Mohammad's decree aims to curb the soaring rents in Dubai and bring them to reasonable levels.

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