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Licence Tenancy for United Arab Emirates

Licence Tenancy Template for United Arab Emirates

A UAE License Tenancy agreement is a specialized legal document that combines elements of both property occupation rights and licensing arrangements, governed by UAE federal laws and specific emirate-level regulations. It establishes the terms under which a licensee may occupy and use a specific property for business purposes, while maintaining more flexibility than a traditional lease. The document addresses key aspects such as permitted use, duration, fees, obligations of both parties, and compliance with local licensing requirements, particularly relevant in the UAE's unique business environment where different free zones and mainland areas may have varying requirements.

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What is a Licence Tenancy?

The License Tenancy agreement is commonly used in the United Arab Emirates when businesses require flexible occupation rights for commercial premises without the full commitments of a traditional lease. This document type is particularly relevant in the UAE's dynamic business environment, where companies may need adaptable space solutions while complying with local licensing requirements. It's especially useful for businesses operating in free zones, shared workspaces, or when setting up temporary business locations. The agreement covers essential elements such as occupation rights, permitted use, duration, fees, and service provisions, while ensuring compliance with UAE federal laws and specific emirate-level regulations. This type of agreement offers greater flexibility than traditional leases while providing necessary legal protection for both licensors and licensees.

What sections should be included in a Licence Tenancy?

1. Parties: Identification of the licensor and licensee, including full legal names, registration details, and addresses

2. Background: Context of the agreement, nature of the property, and purpose of the license tenancy arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of License: Specific terms of the license grant, including purpose and scope of permitted use

5. Duration: Term of the license, including commencement date, duration, and any renewal provisions

6. License Fee: Amount, payment terms, method of payment, and review mechanisms for the license fee

7. Security Deposit: Details of security deposit requirements, maintenance, and return conditions

8. Permitted Use: Specific details of how the premises may be used and any restrictions

9. Licensee Obligations: Core responsibilities of the licensee including maintenance, compliance with laws, and conduct requirements

10. Licensor Obligations: Core responsibilities of the licensor including access, services, and maintenance obligations

11. Insurance: Required insurance coverage for both parties

12. Termination: Circumstances and procedures for termination by either party

13. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction for disputes

What sections are optional to include in a Licence Tenancy?

1. Utilities and Services: Details of utility provisions and payment responsibilities, used when utilities are not included in the license fee

2. Fit-out Works: Requirements for any modifications to the premises, included when initial fit-out work is required

3. Assignment and Sublicensing: Terms regarding transfer of rights, included when sublicensing might be permitted

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in light of recent global events

5. Environmental Matters: Environmental compliance requirements, included for properties with specific environmental concerns

6. Break Clause: Early termination options, included when parties want flexibility to end the agreement early

7. Service Level Agreement: Specific performance metrics and standards, included for managed office or serviced accommodation arrangements

What schedules should be included in a Licence Tenancy?

1. Property Description: Detailed description of the licensed premises including floor plans and measurements

2. License Fee Payment Schedule: Breakdown of payment amounts, dates, and escalation details

3. Permitted Use Details: Specific details of allowed activities and any restrictions

4. Building Rules and Regulations: Specific rules governing the use of the property and common areas

5. Service Specifications: Details of any included services such as cleaning, maintenance, or reception

6. Fit-out Guidelines: Technical specifications and requirements for any permitted modifications

7. Handover Condition Report: Documentation of the property condition at commencement

8. Insurance Requirements: Detailed specifications of required insurance coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions








































Clauses


































Relevant Industries

Real Estate

Retail

Commercial Office Space

Hospitality

Co-working Spaces

Healthcare

Education

Professional Services

Technology

Financial Services

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Administration

Corporate Services

Risk Management

Property Management

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Commercial Director

Operations Manager

Business Development Manager

Chief Financial Officer

Compliance Officer

Asset Manager

Leasing Manager

General Counsel

Corporate Services Manager

Administration Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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