The Abu Dhabi Global Market (ADGM) Courts recently launched a dedicated Real Property Division, introducing a streamlined mechanism for handling Short-Term Residential Lease Claims (STRLC). This move could reshape how landlords, tenants, and property managers resolve rental disputes on Al Reem and Al Maryah Islands.
Why This Matters
The new ADGM Real Estate Division offers a fast-track court process specifically designed to resolve short-term residential lease cases, typically within two months of filing. This is part of ADGM’s broader goal to deliver modern, efficient, and transparent dispute resolution aligned with international best practices while remaining accessible to both individuals and professionals in the UAE’s property market.
This blog is a part of our ADGM’s Expansion to Al Reem Island Blogpost.
What Is a Short-Term Residential Lease Claim (STRLC)?
Under the relevant rules, a short-term residential lease means a lease of residential property for a term of less than four years. STRLCs cover disputes arising from these leases, including common rental issues such as:
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- Unpaid rent
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- Maintenance and repair obligations
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- Security deposit refunds
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- Lease renewal or rent increase disputes
In short, if the dispute relates to a residential tenancy of under four years in Al Reem or Al Maryah Islands, it now falls under this new fast-track process.
How the Ultra-Fast Process Works
The STRLC process is carefully structured to eliminate delays and reduce unnecessary steps. Everything, from filing to judgment, happens on a compressed timetable:
- Claim Filing:
The claimant files the claim, attaching all relevant documents such as the lease agreement, correspondence, and evidence (for example, rent arrears statements or repair invoices). - Service:
The ADGM Court Registry serves the claim on the defendant if they are in the UAE. If the defendant is abroad, the claimant must arrange service. - Defence and Reply:
The defendant has 7 days from service to file a Defence or jurisdiction challenge. No separate acknowledgment of service is required. The claimant then has 7 days to reply. Both parties can mutually agree to an extension of up to seven days or request it from the Court. - Case Management:
The Court then holds a Case Management Conference (CMC) within 10 days often the stage where the matter may be resolved entirely. - Decision Without Hearing:
The Court can decide the matter on the papers without an oral hearing if it believes the case is clear enough. This paper-based approach saves time and cost, while still allowing the judge full discretion to call witnesses or order expert evidence if necessary.
What Orders Can the Court Make?
The ADGM Courts have the power to issue a wide range of bespoke property orders under this regime, including:
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- Termination of a lease
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- Possession orders (for landlords reclaiming apartments)
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- Relief against forfeiture
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- Writs of possession
These orders are designed to bring practical, enforceable outcomes without prolonged litigation.
Costs, Representation, and Appeals
Another attractive feature is cost control. Court fees are capped at 3% of the claim value, with a minimum of USD 100 for monetary and USD 500 for non-monetary claims, making the process affordable even for individual landlords and tenants.
Legal representation is optional. Parties can appear on their own or through a lawyer, making the process accessible to those who prefer to handle simple disputes independently.
Appeals are extremely limited. Any appeal can only be made to the Commercial and Civil Division of the Court of First Instance, and only on questions of law. There are no appeals allowed for case management or interim orders, and once decided, the judgment is final. This ensures the process remains fast and conclusive.
Why This Is a Game-Changer for the UAE Rental Market
The Real Property Division and the STRLC track represent one of the most forward-thinking reforms in the UAE’s rental dispute framework. It introduces:
- Certainty and predictability for landlords and tenants
- Access to justice through simplified forms and low fees
- Speed and efficiency with strict timelines and minimal procedural steps
- Finality of decisions, encouraging quick settlements
For property investors and developers in Al Reem and Al Maryah Islands, this new division enhances confidence in ADGM’s property ecosystem. By setting a clear and predictable path for resolving lease disputes, ADGM has reaffirmed its position as a world-class legal jurisdiction rooted in fairness and efficiency.
