Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 731
Section Two: Contracts of Usufruct > Chapter One: Lease Contract > Part Four: Termination and Rescission of the Lease Contract
English translation
1. If the lease contract expires and the lessee continues to enjoy the leased property with the lessor's knowledge and without their objection, the lease shall be deemed to have been renewed under its original terms for a period of one year, unless the lease term was shorter than that.
2. This renewal shall be deemed a new lease, not merely an extension of the original lease. However, the real (in rem) securities that the lessee provided in the old lease shall transfer to the new lease. As for personal or real suretyship, it shall not transfer to the new lease unless the surety agrees thereto.
Official translation, as published by the portal.
Official Arabic text
.1 إذا انتهى عقد الإيجار وبقي المستأجر منتفعًا بالعين المؤجرة بعلم المؤجر ودون اعتراض منه عد الإيجار قد تجدد بشروطه الأولى لمدة سنة واحدة، ما لم تكن مدة الإيجار أقل من ذلك.
.2 يُعد هذا التجديد إيجارًا جديدًا، لا مجرد امتداد للإيجار الأصلي، ومع ذلك تنتقل إلى الإيجار الجديد التأمينات العينية التي كان المستأجر قد قدمها في الإيجار القديم، أما الكفالة شخصية كانت أو عينيّة فلا تنتقل إلى الإيجار الجديد إلا إذا وافق الكفيل على ذلك.
What it means when you sign
If a lease expires and the tenant keeps enjoying the property with the landlord's knowledge and without objection, the lease is treated as renewed on its original terms for one year, unless the original lease term was shorter than that. The renewal is treated as a new lease, not merely an extension of the old one. Security over specific property that the tenant gave in the old lease carries over to the new lease. A personal or property guarantee given by a surety does not carry over unless the surety agrees.
For a contract about to be signed, this article is relevant to clauses on renewal, holding over, guarantees and security deposits. It means a lease can renew without new signatures, and that a guarantor of the original lease is not automatically bound by the renewed one. A person asked to act as guarantor may want to see whether the guarantee covers renewals, since the article requires the surety's agreement for that.
In Fahm reports this article usually sits under: Hidden wording
Related articles
- Article 730A lease ends when the period fixed in the contract expires.
- Article 732Cited in Fahm reportsThis article covers what happens when the landlord tells the tenant to leave and the tenant stays on after the lease has expired.
- Article 733A lease does not end when the landlord dies, and it does not end when the tenant dies.
- Article 18This article says which country's law governs property.
- Article 19Cited in Fahm reportsThis article says which country's law governs a contract's obligations, both its form and its substance.
- Article 20This article says which country's law governs obligations that do not come from a contract, such as those arising from an act that causes harm.