Officials in GCC countries started to set rent caps in the last couple of years in order to curb the skyrocketing inflation hitting the real estate sector and their economies in general. In the UAE, Qatar and Bahrain, rent caps were set to deter greedy landlords who were increasing rents at excessive rates without restriction. In the UAE, the rent cap for 2008 was five percent for both Dubai and Abu Dhabi, and ten percent in Bahrain. In Qatar, the cabinet decided in March 2008 to freeze rents for two years on contracts signed after January 1, 2005. No clear statement said how much landlords can increase prices after the two year freeze expires, but contracts signed before January 2005 can increase between five and 20 percent. Experts agree that the rent caps are not very effective, since most landlords have been ignoring the law and adopting a ‘take it
