Dubai court allows a private school to continue and renew lease contract for next 10 years

A Dubai court has mandated the renewal of a private school's lease contract for an additional decade, ensuring its continued operation. The Dubai Civil Court ruled that the lease, originally signed in July 2002 for 25 years, will be automatically renewed from June 2027 until May 31, 2037.

The annual rent for the renewed period is set at Dhs2.073 million. Crucially, the court has ordered the property owner not to interfere with the school's activities or create any obstacles to its functioning with the relevant authorities. This decision stems from a lawsuit filed by the school, which sought to enforce its right to renew the lease.

The school's legal filing explained that the contract included provisions for automatic renewal in 10-year increments, with a rent increase cap of 25% of the final year's value. The tenant highlighted that the property ownership had changed hands, but they continued to fulfill their rental obligations diligently. The case arose after the lessor initiated legal action to increase the rent, prompting the school to seek judicial confirmation of its lease renewal rights.