Unified UAE Legislation Database

FAQ: DEWA and Utility Accounts in Dubai Long-Term Residential Leases Lawfulness of Landlord-Name Accounts, Consequences for Government Fees, and Regulatory Practice

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

CONTEXT

In Dubai, long-term residential leases are typically accompanied by the transfer of DEWA (Dubai Electricity and Water Authority) and, where applicable, district cooling accounts to the tenant’s name. This transfer normally occurs after the tenancy contract is registered in the Ejari system, using the Ejari certificate as proof of lawful occupancy.

 

In practice, some landlords retain the utility accounts in their own name even when the tenancy is long-term and Ejari-registered, and the tenancy agreement provides for reimbursement of utility costs by the tenant to the landlord. The arrangement is sometimes structured this way intentionally, as opening a utility account in the tenant’s name requires payment of government connection fees, a security deposit, and — once a DEWA account is active — triggers the Dubai Municipality housing fee, assessed at 5% of the annual rent and collected through the DEWA billing system.

 

Three questions arise.

 

Question 1.  Is it lawful under Dubai legislation to keep DEWA and dist...