General UAE Legal Questions LawDecree No. (41) of 2013

Article (1) The following words and expressions, wherever mentioned in this Decree, will have the meaning indicated opposite each of them unless the context implies otherwise: Emirate: The Emirate of Dubai. Executive Council: The Executive Council of the Emirate of Dubai. DTCM: The Department of Tourism and Commerce Marketing. Director General: The director general of the DTCM. Licensing Authority: The entity legally authorised to issue tourist licences to Establishments operating in the Emirate, in Special Development Zones, and in free zones, including the Dubai International Financial Centre. Holiday Homes: Furnished real property units designated to conduct the Activity in accordance with the conditions and criteria adopted by the DTCM in this regard. Activity: Regularly, and on an ongoing basis, engaging in leasing out Holiday Homes, or renting Holiday Homes for the purpose of subletting them to Guests. Establishment: A corporation or company licensed to conduct the Activity in the Emirate. Licensee: An individual or Establishment licensed to conduct the Activity in the Emirate. Licence: A document issued by the DTCM stating that the DTCM authorises a Licensee to conduct the Activity in the Emirate after verifying that all conditions and requirements adopted by the DTCM in this regard are met by the Licensee. Register: The paper or electronic record maintained by the DTCM for the purpose of recording all information related to Licensees. Guest: A natural person who stays in a Holiday Home in return for payment with the intention of using it as overnight accommodation.

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Decree No. (41) of 2013 Regulating the Activity of Leasing out Holiday Homes in the Emirate of Dubai Page 3 of 8 Scope of Application

Article (4) The DTCM is the competent entity in the Emirate in charge of regulating the Activity. For this purpose, the DTCM will have the duties and powers to: 1. set the technical conditions, requirements, and criteria that must be met to conduct the Activity in accordance with the best international practices in this regard, and determine the procedures that must be followed to grant a Licence; 2. determine applications for Licences, renewal of Licences, and variation of the details of individuals and Establishments; 3. determine the tasks, duties, and obligations of Licensees; 4. supervise and monitor Licensees in accordance with the provisions of this Decree and the resolutions issued in pursuance hereof; 5. supervise and inspect Holiday Homes to verify their compliance with the criteria, conditions, and requirements determined by the DTCM;

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Decree No. (41) of 2013 Regulating the Activity of Leasing out Holiday Homes in the Emirate of Dubai Page 4 of 8 6. receive, investigate, and take the necessary action in respect of complaints filed against Licensees, or against any individual or entity conducting the Activity in the Emirate without a Licence from the DTCM; 7. impose the penalties stipulated in this Decree on violators of the provisions of this Decree and the resolutions issued in pursuance hereof; 8. create a database of the names of Licensees and Holiday Homes in the Emirate; 9. maintain the Register and determine its form and the basic information that must be entered in it; and 10. perform any other duties required for regulating the Activity in the Emirate. Licensing Individuals and Establishments

Article (8) A Licensee must: 1. comply with the legislation in force in the Emirate, including the resolutions issued by the DTCM; 2. keep paper and electronic records of all information relating to Holiday Homes, maintain these for the period determined by the DTCM, and make them accessible to the DTCM employees; 3. provide an insurance policy issued by a licensed insurance company in accordance with the conditions adopted by the DTCM in this regard, with a view to ensuring that Guests are indemnified for any damage they may sustain. The insurance policy must be valid for the entire term of the Licence; 4. subscribe to the e-Programme for Hotel and Tourism Establishments in accordance with the above- mentioned Decree No. (13) of 2011, and enter the required information in this programme; 5. provide Guests with accurate and complete information on Holiday Homes and their classification categories; 6. respond to the complaints referred to it by the DTCM within the prescribed period; 7. maintain a notice board, which displays the information of the Licensee in the Arabic and English languages and the classification category of the Holiday Home, in a prominent place in each Holiday Home; 8. regularly provide maintenance services of Holiday Homes; 9. provide Holiday Homes with electricity and water services without charging Guests additional costs; 10. lease Holiday Homes to Guests on a daily, weekly, monthly, or annual basis; 11. lease out Holiday Homes in whole rather than in part as separate rooms or bed spaces; 12. abstain from acting as a broker between Guests and any entity which is not licensed by the DTCM to conduct the Activity; 13. provide the DTCM with the information, documents, papers, and statistics requested by it, and fully cooperate with it; 14. notify the DTCM of any variation of the details of the Licensee; and

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Decree No. (41) of 2013 Regulating the Activity of Leasing out Holiday Homes in the Emirate of Dubai Page 6 of 8 15. comply with any other obligations determined by the DTCM pursuant to the resolutions issued by it in this regard. Classification Criteria of Holiday Homes

Article (11) a. Without prejudice to any stricter penalty stipulated in any other legislation, any person who violates the provisions of this Decree or the resolutions issued in pursuance hereof will be punished by a fine of not less than two hundred Dirhams (AED 200.00) and not more than twenty thousand Dirhams (AED 20,000.00). Upon repetition of the same violation within one (1) year from the date of the previous violation, the amount of the fine will be doubled, provided that a fine does not exceed one hundred thousand Dirhams (AED 100,000.00). The Chairman of the Executive Council will determine, pursuant to a resolution issued by him in this regard, the prohibited acts and the fines to be imposed on the perpetrators of these acts. b. In addition to the penalty of a fine referred to in paragraph (a) of this Article, the DTCM may take one or more of the following measures against violators:

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Decree No. (41) of 2013 Regulating the Activity of Leasing out Holiday Homes in the Emirate of Dubai Page 7 of 8 1. warning; 2. suspending the Activity for a period not exceeding six (6) months; and/ or 3. cancelling the Licence. c. Upon a written request submitted by a Licensee whose Licence has been cancelled, the DTCM may reinstate the Licence one (1) year after the date of cancellation of the Licence in accordance with the procedures and rules adopted by the DTCM in this regard. Law Enforcement