Shaikh Zayed Road, Dubai’s business hub. The emirate’s strong recovery has enabled state-owned companies to secure bank financing even in these difficult times. Image Credit: Megan Hirons Mahon/Gulf News archive

Dubai: Registration of residential and commercial rental contracts with the Dubai Land Department through Ejari system is mandatory only for those living in Dubai, a senior government official said. Residents of Sharjah, Ajman and other emirates, who are sponsored by Dubai companies or other entities, do not have to register with the land department.

Marwan Bin Ghulaita, CEO of Dubai Real Estate Regulatory Authority (Rera), said Ejari registration is mandatory for all rentals in Dubai only. People who have Dubai labour permits and residence visas but live in other emirates are not obliged to register their tenancy contract with the land department, he added.

"A new regulation issued by Rera calls for the registration of tenancy agreements in Dubai through Ejari, an online portal, providing details of the property, the landlord and tenants," Bin Ghulaita said.

Residents who do not register their tenancy contracts will not be able to conduct transactions at some government departments and may lead to the imposition of penalties which will come into effect in 2012.

The Department of Residency and Foreigners Affairs said they will process transactions of people who run their businesses in Dubai but live in other emirates if their tenancy contracts are attested by the municipality in the emirate.