UAE Commercial Transactions Law

Article 494 — Article (494)

Book Three: Banking Transactions · Part Six: Commercial Transactions of Islamic Financial Institutions · Chapter Two: Special Provisions for Certain Types of Contracts and Obligations to which Islamic Financial Institutions are a Party: Section One: Promise to Contract: Article (475) · Section Six: Ijarah [LEASE]: Article (491)

The rent shall be variable for each lease term set out in the contract; however, the first lease term rent shall be specified in the contract in a specific sum. The rent of every subsequent term shall be calculated before the commencement thereof according to a certain indicator or criterion that the parties to the contract have no influence over the determination of its price. Such indicator or criterion shall be based on a maximum and minimum limit to be stipulated in the contract. Where a lease term begins, the rent thereof shall not be variable.

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