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Crackdown on Illegal paying guests: Dubai’s new shared housing law takes effect with fines up to Dh1m

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Dubai’s new legislation governing shared accommodation officially came into effect on August 26. Applying across the entire emirate, including free zones and special development zones, the comprehensive framework is designed to eliminate dangerous, overcrowded, and unauthorised partition rentals while establishing formal licensing standards for communal living.

What qualifies as shared housing?

Under the law, shared housing is defined as any residential property where individuals or families occupy private designated living spaces while sharing common facilities like kitchens, bathrooms, and dining areas.

Who is permitted to rent out shared units?

The new framework strictly bans unauthorised subletting by tenants. A primary tenant can no longer rent out individual bedrooms, partitioned spaces, or bed spaces directly to roommates or third parties.

Only the following entities can legally offer shared housing:

  • Registered Property Owners: Leasing spaces directly to occupants under formal contracts. 
  • Licensed Management Companies: Authorised operators contracted by the owner to run and lease the property. 
  • Licensed Operators Subletting Master Leases: Approved commercial entities leasing an entire property from the owner to sublet authorised units to tenants. 

Penalties for violations

Authorities have introduced strict financial and operational consequences for non-compliance:

  • Initial Fines: Dh500 up to Dh500,000, depending on the severity of the violation.
  • Repeat Violations: Fines double for repeat offences committed within one year, capped at Dh1,000,000.
  • Operational Sanctions: Authorities may suspend operations for up to 6 months, revoke commercial licenses, cancel permits, disconnect utilities, seize equipment, or order the direct evacuation of non-compliant properties.

Grace period & tenant protection

  • Compliance deadline: Existing shared housing operators and property owners have until August 26, 2027, to obtain permits and bring their properties into full compliance. 
  • Protection from sudden eviction: If an operator’s permit is suspended or cancelled, authorities can grant occupants an interim stay period to secure alternative accommodation rather than facing immediate eviction. 

Approved property/resident categories

The regulation permits shared accommodation across six distinct property types:

  • Residential apartments
  • Detached/standalone houses
  • Residential complexes
  • Mixed-use buildings
  • Attached / adjoining houses
  • Multi-storey buildings

Permitted occupant groups include families, single men, single women, university students, government personnel, and private sector corporate employees. Corporate and student housing provided directly by employers or educational institutions does not require individual tenancy contracts.

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Bank fraud in UAE: New measures in place to protect residents from money scams

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From convincing phone calls by fake bank officials to bogus shopping websites designed to steal credit card details, financial scams are growing increasingly sophisticated across the UAE.

In response, federal authorities, the Central Bank, and police forces are rolling out a multi-layered defence strategy designed to intercept fraud before it reaches consumers.

The approach focuses on three core pillars: making scams harder to execute, speeding up real-time detection, and providing direct avenues for victims to report crimes and recover losses.

Central Bank mandates

The Central Bank of the UAE (CBUAE) has significantly increased compliance requirements for all licensed financial institutions, shifting the burden of fraud detection directly onto banks.

  • Phasing Out SMS OTPs: The CBUAE is pushing institutions away from single-factor, SMS-based one-time passwords, favouring biometric verification and dynamic app-based authentications to combat SIM-swap and phishing attacks.
  • Anti-Fraud Hub: The regulator established the Central Bank Anti-Fraud Operations Centre (CAFOC) to enable real-time threat monitoring, rapid incident response, and instant data sharing across UAE financial entities.
  • Strict monitoring: Banks are legally required to maintain continuous monitoring systems to flag suspicious transactions, combat social engineering, and immediately report unauthorised activities.

Safety for online shoppers

With cybercriminals increasingly targeting online shoppers, the UAE’s consumer protection framework now treats digital storefronts with the same legal scrutiny as physical retail.

  • E-Commerce Regulations: Federal Decree-Law No. 14 of 2023 sets clear technical standards, legal liabilities, and data protection rules for digital trading platforms operating in the country.
  • Tougher Anti-Counterfeit Penalties: Federal Decree-Law No. 42 of 2023 on Combating Commercial Fraud equips authorities to crack down on fraudulent sellers, corrupt goods, and misleading online commercial practices.
  • Statutory Rights: Federal Law No. 15 of 2020 guarantees data privacy, fair dispute settlement, and monetary compensation for consumers facing fraudulent domestic transactions.

Where residents can report scams 

Authorities urge residents never to absorb financial losses quietly. Several official channels provide dispute resolution and criminal reporting:

  • Ministry of Economy and Tourism: Handles formal consumer disputes, misleading sales complaints, and requests for product recalls, facilitating amicable settlements or judicial referrals.
  • Dubai Police e-Crime Platform: Provides a dedicated portal for reporting cybercrime, identity theft, and electronic banking fraud.
  • Local Consumer Protection Departments: Each emirate maintains direct channels to investigate deceptive trade practices and unauthorised merchant activity.

Scam warning: Dubai Police recently warned against fraudulent Consumer Protection websites that lure users into downloading remote-access apps, allowing criminals to hijack devices and drain linked bank accounts.

Do’s and Don’ts to keep your accounts safe

While state-level defences continue to tighten, personal vigilance remains essential:

  1. Don’t share details: No bank or government entity will ever ask for your password, PIN, or multi-factor authentication code via phone, email, or WhatsApp.
  2. Don’t give remote access: Never download third-party software (such as AnyDesk or TeamViewer) at the request of an unsolicited caller.
  3. Do URL check: Check domain spellings carefully and ensure e-commerce platforms use verified, secure payment gateways before entering card numbers.
  4. Don’t wait, act immediately: If you suspect compromised details or notice an unauthorised charge, freeze your card via your banking app and notify your bank’s fraud unit without delay.

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Dubai’s iconic Toyota Building to be demolished in 2027

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One of Dubai’s most recognisable landmarks on Sheikh Zayed Road is set to disappear, with the Toyota Building scheduled for demolition in 2027.

The confirmation comes from the real estate division managing the property, following recent social media videos showing residents moving out and sharing memories of their time in the building.

Tenants with existing rental contracts are understood to be able to remain in the property until December 2026. However, a specified timeline for the demolition has yet to be set according to reports.

A Sheikh Zayed Road landmark since the 1970s

Officially known as the Nasser Rashid Lootah Building, the 15-storey residential building was completed in 1974, at a time when Sheikh Zayed Road looked dramatically different from the densely developed skyline seen today.

Standing at around 65 metres tall, the building was among the first three structures to rise in the area around what was then known as the First Roundabout.

Over the decades, it became an unmistakable part of Dubai’s cityscape.

Why was it called the Toyota Building?

The building earned its famous nickname thanks to the large Toyota sign that once illuminated its rooftop.

The bright red Toyota logo was installed in 1981 and remained a familiar sight above Sheikh Zayed Road for almost four decades.

The sign was eventually removed in 2018 after the advertising agreement ended, briefly changing the appearance of the landmark.

But Dubai residents got a nostalgic surprise in June 2022, when Toyota UAE brought the iconic logo back, restoring one of the building’s most recognisable features after nearly four years.

A piece of old Dubai

The building has housed generations of residents in its one-, two- and three-bedroom apartments and has watched Dubai transform from a relatively low-rise city into the global metropolis it is today.

For many people who have lived in or travelled along Sheikh Zayed Road over the years, the Toyota Building has been more than just a residential property — its rooftop sign became part of the visual identity of the road.

With residents preparing to leave by the end of 2026 and demolition planned for 2027, another piece of old Dubai is set to make way for the city’s next chapter.

The demolition will mark the end of more than five decades for a building that became an unlikely icon of Dubai’s rapidly changing skyline.

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