Dubai launches strict shared-housing regime with permits and Dh1m maximum fine for repeat breaches

A new Dubai law governing shared housing became effective on Wednesday, introducing mandatory permits and penalties that can reach Dh1 million for repeat offences as authorities clamp down on unauthorised accommodation. Law No. 4 of 2026, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, sets standards for the management, occupation and leasing of shared housing across private development zones and free zones, while excluding units designated for collective labour accommodation. The statute entered into force 180 days after its publication in the Official Gazette on February 27 and applies across Dubai, including special development zones and free zones. It defines shared housing as properties where individuals or families occupy designated spaces while sharing kitchens, dining rooms, bathrooms and outdoor areas, and it details which properties may be used, who may operate them and which categories of people may reside there. No person or company may designate a property for shared housing without a permit. Property owners and licensed establishments may rent approved units, occupants and third parties may not sublet, and owners may either lease directly or appoint licensed managers; licensed operators may also lease from owners for onward letting. Fines range from Dh500 to Dh500,000 and, if the same offence recurs within one year, may be doubled up to Dh1 million. Authorities may suspend operators for up to six months, revoke permits, cancel trade licences, disconnect utilities, refuse contract registrations and order evacuation by an execution judge. Suspension or permit cancellation does not automatically force immediate eviction; occupants may be allowed time to relocate. Existing owners and businesses have one year from August 26, 2026 to comply, extendable once by the municipality's director-general. The law permits shared housing by government entities, private companies for staff and educational institutions for students, provided accommodation is licensed and meets standards. Six property types may be designated: apartments, detached houses, residential complexes, mixed-use buildings, townhouses and multi-storey buildings. Permitted resident categories include families, women, men, female and male students, government employees and workers employed by private companies and institutions.