REALWorld Law

Commercial leases

Costs of utilities

How are utilities and telecommunications which serve a property occupied by several tenants paid for?

United Arab Emirates - Abu Dhabi

United Arab Emirates - Abu Dhabi

Within Abu Dhabi and outside the Abu Dhabi Global Market free zone

Services such as electricity or water are normally purchased by the lessee directly from suppliers, although this may not be the case in a large development.

Within the Abu Dhabi Global Market free zone

In the Abu Dhabi Global Market free zone, there are no regulations governing which party is to pay utility and communication costs, which means the parties are free to contract as they wish. However, the ADGM Strata Title Regulations 2015 provide for unit owners to pay such utility and telecommunication costs.