Municipality fees in Abu Dhabi are charged based on residential rental contract values. Victor Besa / The National
Municipality fees in Abu Dhabi are charged based on residential rental contract values. Victor Besa / The National
Municipality fees in Abu Dhabi are charged based on residential rental contract values. Victor Besa / The National
Municipality fees in Abu Dhabi are charged based on residential rental contract values. Victor Besa / The National

ADDC website reveals new rates for municipality fees in Abu Dhabi - more than doubling in some cases


Gillian Duncan
  • English
  • Arabic

Municipality fees in Abu Dhabi will rise to up to 7.5 per cent in the case of residential villas, according to the website of the emirate's utility the Abu Dhabi Distribution Company (ADDC), which is responsible for collecting the charge.

The fee, which was previously 3 per cent of the value of an annual rental contract, is now detailed on ADDC's website as being 5 per cent for “all premises” other than residential villas, which are subject to a 7.5 per cent charge.

As previously reported by The National, the law related to changes in the fees is already in effect. The fee will be applied to bills as of May 17, 2018, almost one month before the details were announced.

The indicated level of increase more than doubles the fee for residential villas – meaning tenants paying Dh200,000 for an annual rental contract for a villa will now pay Dh1,250 a month, as opposed to Dh500 a month previously.

Emiratis, homeowners and government employees whose rent is paid by the department or agency for which they work are exempt.

ADDC, which collects municipality fees on behalf of the Department of Municipal Affairs and Transport, said on its website that the charges are "calculated as 5 per cent for all premises other than Residential Villas, and 7.5 per cent for Residential Villas of your rental contract’s value, with a minimum amount to pay of AED 450”.

“Although the total fee applies from the first day of the rental contract, the annual fees are broken down into monthly instalments to make your payments easier. You’ll receive a municipality fees bill each month, in addition to your water and electricity bills,” according to ADDC.

The move follows the introduction of the 3 per cent charge to the value of an annual rental contract for tenants in Abu Dhabi last year.

The municipality fee was originally announced in February 2016.

Funds gathered through the fee go towards the municipality authority's use.

It is the latest in a series of charges that have been introduced as the country seeks to diversify from oil and gas to a knowledge-based economy.

VAT at 5 per cent was imposed from January 1, while a 100 per cent tax on cigarettes and 50 per cent charge on energy drinks was brought in last October.

Some experts have said that the rise in municipality fees could lead to a further reduction in rents over the short term and possibly boost property sales.

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Read more on the municipality fee:

Abu Dhabi tenants face municipality fee increase under new plan

Q&A: What Abu Dhabi’s 3 per cent municipality fee means for you

Homeowners off the hook for Abu Dhabi’s three per cent municipality fee

Abu Dhabi cost of living increase leaves residents feeling the squeeze

Abu Dhabi homeowners told to alter value of homes to avoid municipality fee

Abu Dhabi property owners wrongly billed for municipality fees

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It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
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In an October survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus. 58 per cent). They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all these good ‘first’ measures, they are investing and saving less than young men – falling early into the financial gender gap.

While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a nearly 60 per cent difference.

In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (though most young adults do not invest at all). 

“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”

Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.

"Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap," she said. "Teach kids about the importance of investing – especially girls, who as we see in this study, aren’t investing as much. Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently."

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Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

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