If you plan to rent an office or shop in Sharjah for a mainland business, the lease does three jobs. It is a property contract, a licensing document for the Sharjah Economic Development Department (SEDD), and since 2024 a contract governed by a new Sharjah leasing law. This guide covers what the law says about commercial leases, how the lease feeds into your licence, and which costs and tax points to check before you sign.
Why does the lease come first?
For a standard premises-based licence, you need premises. The UAE government portal says all UAE businesses must have a physical address and that a lease agreement must be provided (u.ae, updated 16 July 2026). SEDD’s licensing FAQ lists a certified copy of the lease contract and title deed, “if required” for issuance and renewal, and a technical evaluation report for new licences (SEDD website, read 3 October 2026).
SEDD also states that the licence issuance and renewal fee is a percentage of the lease or site value: 8% for partners who are all UAE nationals and 13% for partners of other nationalities, “depending on activity”. A higher rent can therefore raise your licence fee too. If you have not chosen a licence route yet, read Sharjah trade licence types first. For businesses that do not need premises, SEDD lists an electronic trading licence for online trading.
What does Law No. 5 of 2024 say about commercial leases?
Sharjah Law No. 5 of 2024 on leasing real estate was issued on 19 September 2024. It applies to property rented for residential, commercial, industrial or professional purposes (Article 2), and excludes properties inside free zones that have their own rental dispute bodies. These points matter most to business tenants, from the official Arabic text on the Sharjah legislation portal (Law No. 5 of 2024):
- Attestation: the landlord must have the lease, and any renewal, attested and pay the municipality’s fees within 15 days of drafting it (Article 4). If the landlord does not, an administrative fine applies, set by the executive regulations. Government bodies in the emirate do not accept an unattested lease in any transaction or service, apart from the Rental Disputes Centre.
- Eviction protection: a landlord cannot ask a tenant to leave before three years from the start of a residential tenancy, or five years for commercial, industrial or professional use, unless a listed reason applies (Article 13). Reasons include non-payment within 15 days of the due date, an uncorrected breach after 30 days’ notice, unlawful subletting, use outside the contract, and planned demolition or comprehensive maintenance.
- Rent increases: the landlord cannot raise the agreed rent before three years from the start unless the parties agree otherwise. If the tenant accepts an early increase, the next cannot come until two years later. After those periods, increases follow “fair rent” calculated under the executive regulations (Article 16).
- Sale of the building: the tenancy does not end because the property changes owner, and the new owner can seek eviction or an increase only under the law (Article 17).
- Subletting: assignment of the lease is not allowed; re-letting is allowed only under the conditions in the executive regulations (Article 12).
- No attested lease: either party can file a case at the Rental Disputes Centre to prove the tenancy (Article 7).
Khaleej Times summarised the law when it was issued (Khaleej Times). For the residential side, see renting in Sharjah: tenancy contracts, attestation and disputes.
Before you rely on this: Executive regulations decide key details, such as how “fair rent” is calculated and the administrative fine for unattested leases. We did not review those regulations. Have a lawyer read your specific lease, particularly for fit-out, break clauses and subletting.
Go deeper: read Sharjah signboard and advertising permits. Plain-English steps, with dates.
What government costs come with the premises?
SEDD’s mainland service guide lists several government fees connected to premises and licensing. As listed:
| Item | Fee shown by SEDD |
|---|---|
| Joint account with Sharjah Electricity, Water and Gas Authority | Insurance fees depending on electrical loads |
Before you rely on this: The fee list on SEDD’s service guide is a layout of linked boxes, and we matched each fee to its service by order of appearance. Use SEDD’s fee calculator, and ask the municipality which party pays which fee under your lease.
How does VAT apply to commercial rent?
The Federal Tax Authority’s Real Estate VAT Guide (VATGRE1, April 2021) says supplies of commercial real estate, including leases, are subject to VAT at the standard rate of 5% (FTA, Real Estate VAT Guide). Ask whether the quoted rent includes VAT, and see VAT registration for Sharjah businesses.
What should a business tenant check in the lease?
- Permitted use. Does the lease allow your licensed activity and signage? See Sharjah signboard and advertising permits.
- Term and renewal. Aim for a term and renewal right that matches your licence plans.
- Rent and increases. Understand the first three years and what applies afterwards.
- Who pays what. Utilities, service charges, maintenance, attestation fees and VAT.
- Fit-out and handback. Who approves works and what must be restored.
- Subletting and assignment. The law restricts both.
- Attestation. Ask for the attested copy within the 15-day window.
- Landlord documents. Title deed and authority to lease.
- Exit. Early termination terms and any deposit.
Where should the business be based?
SEDD’s site includes an “Economic Map” tool showing the distribution of business activities and economic areas across Sharjah, a useful first look at where similar businesses cluster. If you also need a home nearby, compare neighbourhoods in our best areas to live in Sharjah, or read the Al Khan and Muwaileh guides.
Frequently asked questions
Can a landlord raise my commercial rent every year?
Under Law No. 5 of 2024, the landlord cannot increase the agreed rent before three years from the start unless the parties agree otherwise. After that, increases follow fair rent under the executive regulations.
How long is a commercial tenant protected from eviction?
Five years from the start for commercial, industrial or professional use, unless a legal reason in Article 13 applies.
Do I need an attested lease for my licence?
SEDD lists a certified lease copy and title deed “if required” for licensing, and Law No. 5 of 2024 says government bodies, other than the Rental Disputes Centre, do not accept an unattested lease. Ask SEDD what applies to your activity and location.
What if my landlord does not attest the lease?
The law obliges the landlord to attest it within 15 days, and either party can bring a case to the Rental Disputes Centre to prove the tenancy.
General information only, not legal or tax advice. Rules and fees change, so confirm with the relevant authority (such as SEDD, FTA or SRERD) or a licensed adviser before you act. Last checked: 5 October 2026.
Next step: compare premises before you commit.