Understanding Utility Deposits and Connection Fees in UAE Rentals
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Understanding Utility Deposits and Connection Fees in UAE Rentals

Daria Butorina The author of the article, the Broker
#Blog DDA
23 November 18963 view

When renting a home in the UAE, setting up utilities is one of the first administrative steps tenants must complete. Electricity, water, cooling, gas, and internet connections operate through different providers across the emirates, each with its own deposit requirements, activation fees, and billing structure. Understanding these costs in advance helps tenants avoid unexpected expenses and plan their relocation with clarity.

What Are Utility Deposits in the UAE

A utility deposit is a refundable amount paid to the service provider when activating utilities such as electricity, water, gas, or district cooling. Providers hold this deposit as financial security for unpaid bills and return it once the tenant closes the account and settles the final invoice.

Deposit amounts vary depending on:

  • emirate
  • provider
  • apartment versus villa
  • residential versus commercial use
  • whether the account is opened by an individual or company

See also: "Buying vs renting: what is better?"

DEWA (Dubai Electricity & Water Authority)

DEWA provides electricity and water for all Dubai residential properties.

DEWA Deposits

  • AED 2,000 for apartments
  • AED 4,000 for villas

Deposits are fully refundable during account closure.

Connection Fees

  • AED 110-200 for activation
  • Knowledge and Innovation fees may apply

Required Documents

  • Ejari (mandatory tenancy registration in Dubai)
  • Emirates ID
  • Passport copy
  • Tenancy contract
  • DEWA Premise Number

DEWA does not include cooling. Most Dubai communities use separate district cooling providers such as Empower or Emicool.

District Cooling Providers (Empower, Tabreed, Emicool)

District cooling is a centralized cooling system widely used in Dubai's high-rise and waterfront communities. It is often a significant part of monthly utility expenses.

Deposit

  • Typically AED 1,500-2,500

Activation Fees

  • Approximately AED 100-250

Cooling bills include:

  • consumption charges (based on usage)
  • fixed capacity charges (AED 300-700 monthly on average)

District cooling is one of the largest recurring costs for Dubai residents.

ADDC / AADC (Abu Dhabi)

Abu Dhabi operates its own electricity and water authority.

Deposit

  • AED 1,000-2,000 for apartments
  • AED 2,000-4,000 for villas

Activation Fees

  • AED 100-150

Required System

Abu Dhabi requires Tawtheeq tenancy registration prior to utility activation.

SEWA (Sharjah Electricity, Water & Gas Authority)

Sharjah maintains a unified utilities framework.

Deposit

  • AED 1,500-2,500 for apartments
  • AED 3,000-5,000 for villas

Activation Fees

  • AED 150-250

Sharjah may require clearance of outstanding bills from previous tenants. In most cases, landlords arrange this before handover.

Internet and TV Providers (Etisalat and Du)

Internet and telecom services are separate from utility bills.

Deposits

Most residential packages do not require a deposit. In some cases, a small refundable amount of AED 100-200 may apply.

Monthly Plans

  • Fiber packages: AED 250-350
  • High-speed bundles: AED 400-600
  • TV packages: AED 30-100 additional

Both providers allow tenants to transfer services when changing addresses.

Gas Supply in UAE Properties

Gas services depend on the building's infrastructure.

Central Gas Systems

  • Deposit: AED 500-1,000

Gas Cylinders

  • Deposit: AED 200-300

Gas is generally inexpensive compared to electricity and district cooling.

Air Conditioning and Cooling Charges Explained

Cooling systems vary depending on the building:

  1. District Cooling


    Charged separately from DEWA through providers such as Empower, Tabreed, and Emicool.


  2. Central Chiller System


    Cooling costs are included in the electricity bill.


  3. Chiller-Free Apartments


    Cooling is included in rent. These units offer significant savings and are highly sought after.

Refund Process for Utility Deposits

When moving out, tenants must:

  1. Request account closure or disconnection
  2. Pay outstanding bills
  3. Submit bank details for refund
  4. Return access devices or gas meters if required

Refund timelines range from 5 to 20 working days, depending on the provider.

Tips to Avoid Unexpected Utility Costs

  • Confirm whether the unit is chiller-free
  • Ask district cooling providers about fixed monthly capacity charges
  • Check if any previous dues exist before activation
  • Retain all deposit receipts
  • Compare internet packages to avoid outdated fees
  • Monitor cooling usage through provider apps
  • Clean AC filters monthly to reduce energy consumption
  • Maintain indoor temperatures at 24-26°C for optimal efficiency

Find out more in the article: "Dubai Rent Prices 2025: Average Apartment Rental Costs in Dubai"

Utility Deposit Comparison Across UAE Emirates

Emirate Electricity & Water Deposit** Cooling Deposit** Gas Deposit** Internet Deposit** Notes
Dubai AED 2,000 (apt) / 4,000 (villa) 1,500-2,500 500-1,000 None District cooling widely used
Abu Dhabi 1,000-2,000 / 2,000-4,000 Lower, central systems 300-800 None Tawtheeq required
Sharjah 1,500-2,500 / 3,000-5,000 Rare 200-500 None Clearance of previous dues may be required
Ajman 1,500-2,000 Varies 200-500 None Fast activation
RAK 1,000-1,500 Limited 300-500 None Lower overall fees
Fujairah/UAQ 1,000-1,500 Minimal 200-400 None Smaller-scale utility networks

FAQ

Do I get my deposit back when I move out?

Yes. Once the final bill is paid and the account is closed, the provider issues a refund.

How long does the refund take?

Between 5 and 20 working days, depending on the provider.

Is cooling included in DEWA bills?

No. District cooling is billed separately.

Are chiller-free apartments truly free of cooling charges?

Yes. Cooling is included in the rent, but electricity consumption for fans and AC units may still appear in small amounts.

Can I activate utilities without Emirates ID?

Most providers require either Emirates ID or the Emirates ID application form.

Do internet providers require a deposit?

Usually not, but some packages charge a small refundable fee.

Who pays previous tenant dues?

Landlords typically clear outstanding balances before the new tenant moves in.

Utility deposits and connection fees are standard components of the UAE rental process. Understanding how these systems operate helps tenants budget effectively and avoid unexpected expenses when moving into a new home. Whether renting an apartment in Dubai or a villa in Abu Dhabi, clarity on electricity, water, cooling, gas, and internet charges streamlines relocation and reduces administrative complications.

DDA Real Estate helps tenants and relocating families navigate every aspect of the rental process, including:

  • understanding utility deposits and activation fees
  • verifying cooling systems and monthly cost expectations
  • comparing utility charges across different communities
  • selecting chiller-free or low-cost buildings
  • coordinating move-in procedures with landlords and property managers

If you want tailored advice on renting in Dubai, Abu Dhabi, or Sharjah, or need help choosing communities with manageable utility costs, DDA Real Estate will prepare a personalized consultation and property selection based on your criteria.

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