UAE Civil Transactions Law

Article 774

Book Two: Nominate Contracts · Section Two: Contracts of Usufruct · Chapter One: Lease Contract · Part Six: Certain Types of Leases · 1. Definition and Conditions of a Mugharasah Contract

For a Mugharasah contract to be valid, the following conditions shall be required: 1. The Mugharasah shall be in respect of permanent trees, not for crops planted annually. 2. The type of trees to be planted in the land shall be specified at the time of the contract. 3. The partnership in both the land and trees together shall be in a specific proportion. 4. The commencement of the partnership in the trees and land shall be determined by the tree reaching a certain degree of growth before bearing fruit.

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