His Highness Dr. Shaikh Sultan Bin Mohammad Al Qasimi, Supreme Council member and Ruler of Sharjah issued law No.2 of 2007 effective 6th of June, 2007. This new law regulates the relation between landlords and tenants.

The new law states that all rental contracts must be attested by the Sharjah Municipality, and tenants shall bear the cost and responsibility for the attestation of the contract within 15 days from its date of issuance. Failure on the tenants end to attest their contract shall result to a penalty of three times the amount of the attestation fee. Federal and local government establishments are exempt from attestation fees. According to the new law, landlords should carry out maintenance of the leased properties, unless both parties agree otherwise. Landlords are not allowed to evacuate tenants for three years following the commencement of the tenancy contract without valid reasons and unless the tenant fails to pay the rent within 15 days from its due date for residential tenants and 30 days for commercial tenants. A three-month notice must be given before evacuation. The law also specifies that landlords shall not increase the rent before the lapse of three years since the commencement of the contract, and every two years afterwards. Rent increase must not exceed the rent of the comparable-value properties, and if the value is not agreed upon by both sides, the matter will be referred to the rent committee to settle the dispute.