Tenancy agreements for those living abroad in Abu Dhabi will be extended to a maximum of five years under a change to current law.

General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi’s Crown Prince made the decision to change Article 20 of Law 6 2009 which controlled how long a contract could last between a tenant and landlord.

Previously the maximum tenancy period was four years. Sheik Mohammed Bin Zayed also made the decision to cap rent increases at five per cent.

As one of the world’s largest suppliers of oil Abu Dhabi has long attracted foreign workers moving abroad and looking for rental properties.

The new proposals are part of a plan to stimulate the Abu Dhabi property market which had been struggling following issues with financing.

Figures from Jones Lang LaSalle revealed that construction on half of the 90,000 new homes in the city which were due to be finished by 2013 has stalled. They predict that the city is due to see an emergence as a world centre for culture and business in the next 20 years.

Written by Tom Britten.

Tags: living abroad, moving abroad