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3. Commercial Leases: Publication of the New Law in the Official Gazette

It is high time for the disputes between property owners and tenants regarding commercial leases to come to an end. For decades, this issue has led to uprisings, disagreements and endless lawsuits.

The new law on commercial leases has been published on Thursday in the first edition of the Official Gazette following the Eid al-Fitr holiday. This sets a precedent in Lebanon’s legislative history, as no law has ever been published in the Official Gazette a year after its promulgation.

Prime Minister Nawaf Salam stated that its publication is merely an administrative procedure, especially since the Council of State’s decision on April 5, 2023, suspended Decree-Law No. 12835. This decree-law pertained to the previous government’s decision, under then-Prime Minister Najib Mikati, to return the law to Parliament for further review.

However, the Council of State’s preliminary ruling affirmed its authority to rule on the matter, dismissing the claim that the prime minister’s referral of the decree-law back to Parliament for a second reading constituted a “government act.” To clarify, a government act is an executive decision that cannot be challenged in court, as it is considered a political matter rather than a legal one.

Two Deadlines for Lease Termination

Under the new law on commercial leases (or non-residential premises), two deadlines are set for contract termination:

• Four years from the law’s enactment, provided the landlord requests a gradual rent increase in accordance with legal provisions.

• Two years if the landlord waives the right to increase the rent. This waiver is considered implicit if the landlord does not submit a request for rent adjustment.


To ensure fairness for both business owners and landlords, the law stipulates that rents will be progressively adjusted to reach 8% of the rental property’s value by the end of the four-year period. Additionally, it allows landlords to reclaim their property before the deadline under certain conditions, provided they compensate the tenant with an indemnity of up to 15% of the property’s sale price.

Possibility of Appeals

Following the law’s publication in the Official Gazette, an appeal may be filed within 15 days. The president of the Republic, the speaker of Parliament, the prime minister or at least ten Members of Parliament can petition the Constitutional Council within this timeframe to challenge the constitutionality of the law, as per Article 19 of Law No. 250/93. Upon receiving an appeal, the Constitutional Council may suspend the implementation of the contested provisions if it deems them urgent. However, in all cases, a law can only be repealed by another law.