Can landlords in UAE refuse tenants based on credit history? Legal expert explains

Legal Freedom for Landlords

UAE landlords are under no legal obligation to rent their properties to any applicant and may refuse tenants with poor credit history or financial risk indicators, according to a legal expert.

Asma Siddiqui, Senior Associate at BSA Law, stated, "UAE tenancy laws do not regulate how landlords select prospective tenants, nor do they impose any obligation to accept an applicant.

Accordingly, a landlord is legally free to decline a tenancy application based on a low credit score or any other financial risk indicator." This clarification follows the recent launch of a new Tenant Screening solution by Etihad Credit Bureau, which enables private landlords to request the credit scores of prospective tenants.

Tenant Screening Solution

The Tenant Screening solution allows landlords to access a tenant’s credit score only with the tenant's approval through UAE PASS.

Siddiqui emphasized that tenants are under no legal obligation to share their credit score with landlords.

The service is not based on a new law but operates under the existing legal framework, primarily Federal Law No. 6 of 2010 on Credit Information (as amended).

This law permits non-financial entities to access credit reports with an individual’s consent.

Cabinet Resolution No. 115 of 2021 operationalizes access to credit data for non-financial institutions.

Understanding Credit Scores

A credit score is a number that represents an individual’s credit history and ability to repay loans and financial obligations.

It acts as a rating that indicates a person’s overall creditworthiness.

A high credit score generally means faster approval for personal loans and other financial products.

Applicants with higher scores may also qualify for lower interest rates, which can help them save on loan repayments.