5 Things to Check Before You Sign a Commercial Lease in Dubai

Signing a commercial lease in Dubai is often treated as a formality — a few signatures after the rent and location are agreed. In practice, the clauses that get the least attention at signing are usually the ones that cause the most disputes later. Before you sign, these five are worth a second read.

1. How the Rent Escalation Is Calculated

Many commercial leases include an automatic rent increase at renewal, tied to a fixed percentage or an index. Check whether the clause specifies a cap, and whether the increase compounds annually. A 5% annual increase sounds modest until it's compounded over a five-year term.

2. Who Pays for Fit-Out and Reinstatement

Tenants fitting out a retail unit or office often assume the landlord will cover base infrastructure — but many leases push cabling, partitioning, and even air-conditioning upgrades onto the tenant. Just as important: the reinstatement clause, which can require you to strip the unit back to shell-and-core at your own cost when you leave, even if the landlord's next tenant wants the same layout.

3. The Exit and Early Termination Terms

Business plans change. Check whether the lease allows early termination, what notice period applies, and whether there's a penalty — commonly a forfeiture of the security deposit or several months' rent. A lease with no exit mechanism at all can leave you locked in even if the location stops working for your business.

4. Ejari Registration and What It Actually Covers

Ejari registration is a legal requirement for tenancy contracts in Dubai, and it's what gives a lease its enforceability before the Rental Dispute Settlement Centre. Confirm the registered term and rent match what you actually signed — discrepancies between the physical contract and the Ejari record are a common source of disputes at renewal.

5. Maintenance Responsibilities, Clause by Clause

"Maintenance" is rarely defined as one item in a lease — it's usually split across several clauses covering structural repairs, HVAC servicing, and day-to-day upkeep. Landlords and tenants often assume the other side is responsible for a given repair simply because the lease doesn't say clearly. Get this allocated in writing before something breaks, not after.

None of these clauses are unusual on their own — the risk is in signing without knowing which way each one is written. A short legal review before signing is far cheaper than a dispute after.