Dubai Tenant Ordered to Pay Dh20,000 for Threatening to Burn Warehouse

Dubai court has ordered a tenant to pay Dh20,000 in compensation after he threatened to set a warehouse on fire during a dispute over a rent increase, following his earlier criminal conviction in the case.

The Dubai Court of First Instance ruled in favour of the landlord after the tenant had already been fined Dh5,000 by the Misdemeanours Court for issuing the threat. The criminal judgment was later upheld on appeal, making it final.

According to court records, the dispute arose after the expiry of a commercial warehouse tenancy agreement, when the two parties met to discuss renewal terms. During the meeting, the landlord proposed a rent increase, which the tenant rejected, saying he could not afford the higher amount. The discussion soon escalated into a heated argument.

The tenant then allegedly threatened to burn down the factory and leave the country if the rent was not maintained at the same rate. The statement, originally made in English and later translated before the court, was treated as an explicit arson threat.

The landlord reported the matter to police, and the tenant later admitted making the statement during investigations. He was referred to the Public Prosecution on charges of criminal threat and intimidation before being convicted and fined.

Following the criminal ruling, the landlord filed a civil lawsuit seeking Dh20 million in compensation for material and moral damages, along with 12 per cent legal interest. He argued that the incident caused severe fear, anxiety and distress, particularly because he owns a large property portfolio that includes 120 warehouses and 18 labour accommodation buildings. He also claimed he expected to incur additional security-related expenses.

The tenant denied liability in the civil proceedings and requested the case be dismissed.

The court, however, found that the threat had caused moral harm to the landlord, including fear and emotional distress. It ruled that the claims relating to material losses and anticipated expenses were unsupported by sufficient evidence.

Accordingly, the court awarded Dh20,000 in compensation for moral damages, along with 5 per cent legal interest from the date the judgment becomes final until full payment is made. The tenant was also ordered to pay court fees and legal expenses.

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