The tenancy law in Ajman in the UAE will be 'soon' amended, allowing landlords to increase rent by 7 percent a year rather than 20 per cent every three years, a UAE newspaper reported on Saturday, citing a government official.

The adjustment will apply to residential units, while the percentage of rent hikes for commercial space will be decided later, the head of the emirate's Rent Disputes Office, Othman Abu al-Shawarib, told Khaleej Times.

'The amendments will specify the percentage of rent increase, which was set by the existing law at 20 per cent every three years. Landlords will have the right to increase the rent by seven per cent every year for residential accommodation,' the paper reported, without providing a direct quote from Shawarib.

The amendments will grant landlords the authority to seek eviction of the tenant after a fixed number of years that has not been specified yet, it added.

Abu Dhabi and Dubai, however, both tightened the rent cap to 5 per cent from 7 per cent, to help curb inflation, which is to a large part driven by soaring rents.

Inflation in the UAE hit a 19-year high of 9.3 per cent in 2006 and probably reached 10.9 per cent last year, the National Bank of Abu Dhabi said last month.

In a bid to catch up with its neighbours, Ajman, the second-smallest member of the UAE by population, is preparing new freehold laws and regulations similar to those in Dubai, according to press reports.-Reuters