Updated August 2026. The UAE property management and facility services sector generated over AED 25 billion in annual revenue in 2025, driven by a real estate portfolio exceeding 900,000 registered units in Dubai alone. Whether you are establishing a property management company, a facility management (FM) operation, or an owners association management firm, navigating the regulatory landscape — from RERA licenses to DED activity codes and MOLLAK compliance — is essential for lawful operation and competitive credibility.
- RERA Property Management Broker License costs AED 10,000–30,000 with a 2-year renewal cycle
- DED Facility Management activity bundles HVAC, cleaning, security, and MEP under one license
- MOLLAK system governs service charge collection for jointly owned properties under RERA
- Owners Association Manager requires a separate RERA OA Manager License distinct from the PM Broker license
- Establishing a full FM company requires AED 200,000–600,000 in initial capital
- Dubai (DLD/RERA) and Abu Dhabi (ADREC) have separate regulatory frameworks requiring independent registration
The UAE Property Management Regulatory Framework
Property management in the UAE is governed by a dual regulatory structure. The Dubai Land Department (DLD) and its Real Estate Regulatory Agency (RERA) oversee all real estate activities within Dubai, mandating licensing for every property manager. Abu Dhabi operates under the Abu Dhabi Real Estate Centre (ADREC), formerly ADRA and TDIC, with its own registration requirements for property management professionals operating in the capital emirate.
The federal framework is complemented by emirate-specific regulations. In Dubai, Law No. 26 of 2007 (as amended by Law No. 33 of 2008) governs landlord-tenant relations, while RERA Regulation No. 6 of 2019 specifically addresses registration and conduct of property management companies. Any entity collecting rent, managing maintenance, or representing property owners as agent must hold a valid RERA Property Management Broker License. Operating without one exposes firms to fines of AED 50,000–250,000 and potential blacklisting from the DLD registry.
The preventive maintenance scheduling requirement — often overlooked by newcomers — mandates that professional property managers submit annual planned preventive maintenance (PPM) schedules to building owners and, for jointly owned properties, to the RERA-registered Owners Association. Non-compliance with PPM schedules is among the top causes of OA management contract terminations in Dubai.
RERA Property Management Broker License: Requirements and Costs
The RERA Property Management Broker License is administered through the Dubai Real Estate Institute (DREI), the training and certification arm of DLD. To qualify, the company’s responsible manager must complete the Certified Real Estate Broker (CREB) program (AED 2,500 examination fee) or the Real Estate Management Course (REMC), both delivered through DREI’s accredited curriculum. Failure to maintain at least one DREI-certified manager on staff can trigger license suspension.
License costs break down as follows: the initial DED commercial license for a property management company runs AED 10,000–15,000 depending on legal structure (LLC vs. sole establishment); the RERA Property Management registration adds AED 5,000–15,000; and annual professional indemnity insurance (a mandatory RERA requirement) adds AED 3,000–8,000. Total first-year establishment costs typically land between AED 18,000 and AED 38,000, with 2-year license renewal cycles adding ongoing compliance costs.
Property managers must maintain a dedicated client account for rental funds, entirely separate from operating accounts. RERA auditors conduct quarterly spot-checks on these accounts across licensed PM firms. Commingling of client funds with operating funds is a Category 1 violation carrying immediate license suspension. Leading international firms such as CBRE UAE, JLL, Savills, and Knight Frank all operate under these same requirements and typically charge management fees of 2–8% of gross annual rent for residential portfolios in Dubai.
DED Facility Management Activity: Scope and Licensing
The Dubai Department of Economy and Tourism (DET, formerly DED) offers a bundled “Facility Management Services” business activity that covers hard services (HVAC installation and maintenance, mechanical, electrical, plumbing — MEP), soft services (building cleaning, janitorial, pest control, landscaping, security guarding), and general building maintenance under a single commercial license code.
Registering as a facility management company with DED requires a commercial license (LLC structure is strongly recommended for contracts exceeding AED 1 million in value) at AED 8,000–18,000 annually, plus Municipality approval from Dubai Municipality’s Building and Infrastructure Sector. For companies delivering critical MEP services, additional approvals from DEWA (Dubai Electricity and Water Authority) are required for electrical contractor registration — a process that adds 4–8 weeks to the setup timeline.
Internationally benchmarked FM software platforms are increasingly a commercial necessity rather than optional. IBM Maximo and ServiceNow’s Field Service Management module are standard in Grade A commercial buildings, while locally developed enterprise solutions serve the mid-market. Grade A commercial property clients — particularly those on DIFC or Dubai South — routinely require ISO 41001:2018 Facility Management System certification as a pre-qualification criterion, adding AED 15,000–40,000 in third-party certification costs.
MOLLAK System and Owners Association Management
For jointly owned properties (strata title developments) in Dubai, RERA’s MOLLAK system is the mandatory platform for service charge collection, annual budget approval, and OA financial governance. All Owners Associations in Dubai must process service charge payments exclusively through MOLLAK, and the OA management company must hold a separate RERA Owner Association Manager License — fully distinct from the Property Management Broker License — to operate within the MOLLAK framework.
Service charges in Dubai’s jointly owned properties typically range from AED 10–50 per square foot annually, calibrated to development quality and amenity provision. Premium developments in Downtown Dubai and Dubai Marina can reach AED 40–80 per square foot. OA managers prepare annual service charge budgets, submit them to RERA for approval within the MOLLAK portal, and conduct mandatory Annual General Meetings (AGMs) with registered owners. Any deviation from the RERA-approved budget by more than 10% requires a Special General Meeting (SGM) with owner approval.
Escrow account compliance is non-negotiable: service charge escrow accounts must be registered with RERA at an approved bank, and fund withdrawals require dual authorization — OA Manager plus DLD-appointed Trustee. Misappropriation of service charge funds has been prosecuted under UAE Federal Law No. 37 of 2021 (Anti-Money Laundering provisions as applied to real estate escrow accounts).
Ejari Tenancy Registration — the mandatory online lease registration system administered by DLD — charges AED 160–220 per contract and applies to all residential and commercial leases in Dubai. Property managers typically bundle Ejari fees into their management package or charge them as a disbursement to the landlord. DEWA utility account coordination (requiring a notarized Power of Attorney from the property owner at AED 500–1,500 per transfer) is another routine PM responsibility that newcomers often underestimate.
Dubai vs Abu Dhabi: Key Regulatory Differences
Property management firms planning to operate across emirates must register and comply with two entirely separate regulatory systems. In Abu Dhabi, the Abu Dhabi Real Estate Centre (ADREC) under the Department of Municipalities and Transport administers property management registration. The ADREC Broker License requires examination through ADREC-approved training providers and costs AED 5,000–12,000, with documentation requirements that differ materially from Dubai’s DREI pathway.
TDIC (Tourism Development and Investment Company) developments on Saadiyat Island and Yas Island impose additional community management requirements, often mandating appointment of pre-approved OA management companies from TDIC’s vetted panel. The Abu Dhabi strata law (Law No. 3 of 2015 as amended by Law No. 13 of 2022) governs jointly owned property management and uses the Abu Dhabi Community Management Portal — not MOLLAK — for service charge administration in the capital.
Building insurance coordination is another critical area of divergence. In Dubai, RERA mandates that buildings above a certain floor threshold carry comprehensive building insurance through DLD-approved insurers, and PM companies are typically responsible for procurement and annual renewal. In Abu Dhabi, ADREC’s insurance requirements follow a different matrix linked to building classification under the Abu Dhabi Building Code. PM firms must carry separate professional indemnity policies in each emirate.
Setting Up Your Property Management or FM Company: Costs and Timeline
A comprehensive PM or FM company establishment in Dubai involves layered costs: DED commercial license (AED 10,000–18,000), RERA registration (AED 5,000–15,000), professional indemnity insurance (AED 3,000–8,000 annually), office lease with Ejari registration (AED 40,000–80,000 per year in Business Bay or JLT), DREI certification for key managers (AED 5,000–10,000), ERP and FM software setup (AED 20,000–60,000 for initial deployment), and working capital buffer for the first 90 operating days (AED 100,000–400,000).
Total establishment cost for a credible PM/FM entity ranges from AED 200,000 to AED 600,000, with the higher end covering multi-service FM operations seeking ISO 41001:2018 certification and targeting Grade A commercial contracts. Setup timeline is typically 4–8 weeks for a basic PM company and 12–16 weeks for full FM operations requiring Dubai Municipality approvals and DEWA contractor registration.
DEWA utility account transfer coordination, building insurance policy management, preventive maintenance scheduling, owners association annual reporting, and MOLLAK escrow management all require dedicated staffing — typically one property manager per 50–80 residential units under management. FM companies servicing commercial buildings typically deploy a facilities manager per 20,000–50,000 square feet, depending on contract scope.
| Feature | Property Management (RERA) | Facility Management (DED/DM) | OA Management (RERA-MOLLAK) |
|---|---|---|---|
| Primary Regulator | RERA / DLD | DED + Dubai Municipality | RERA / DLD (MOLLAK) |
| License Cost | AED 10,000–30,000 | AED 8,000–18,000 | AED 5,000–15,000 |
| Renewal Cycle | 2 years | Annual | Annual |
| Mandatory Exam | DREI CREB (AED 2,500) | None required (ISO optional) | DREI OA Manager Course |
| Revenue Model | 2–8% of gross rent | AED per sq ft contract value | % of annual service charge budget |
| Estimated Setup Cost | AED 200,000–400,000 | AED 150,000–350,000 | AED 100,000–250,000 |
Frequently Asked Questions
Do I need a separate RERA license to manage properties in Dubai vs Abu Dhabi?
Yes. RERA licenses issued by DLD apply only within Dubai emirate. To manage properties in Abu Dhabi, you must obtain a separate registration with ADREC (Abu Dhabi Real Estate Centre). Firms operating across both emirates must maintain separate licenses, separate client escrow accounts, and separate professional indemnity insurance policies in each emirate. There is no reciprocal recognition between DLD and ADREC at present.
Can a property manager collect rent without registering the tenancy contract in Ejari?
No. Ejari registration is mandatory for all residential and commercial tenancy contracts in Dubai under Law No. 26 of 2007. Without Ejari, a tenancy contract is unenforceable before the RERA Rental Dispute Settlement Centre (RDSC), and DEWA will not transfer utilities into the tenant’s name. Property managers must register each contract (AED 160–220 per registration) before collecting rent on behalf of the landlord.
What is the MOLLAK system and who is required to use it?
MOLLAK is RERA’s mandatory online platform for service charge collection and Owners Association financial management in Dubai’s jointly owned (strata title) developments. All RERA-registered OA management companies must process service charges exclusively through MOLLAK, and all OA annual budgets must receive RERA approval via the platform before collection can begin. The system prevents unauthorized collection and gives individual unit owners real-time visibility into financial statements and expenditures.
How much does it cost to establish a facility management company in UAE?
A basic FM company with DED Facility Management activity and Dubai Municipality approvals can be established for AED 150,000–250,000, covering the DED license, Municipality approvals, office lease, initial equipment, and working capital. A full-service FM operation targeting Grade A commercial contracts — including ISO 41001:2018 certification, enterprise FM software (IBM Maximo or ServiceNow), DEWA electrical contractor registration, and a 20-person field team — requires AED 400,000–600,000 in initial investment.
Are international property management brands like CBRE or JLL exempt from RERA requirements?
No, there are no exemptions. All entities managing properties in Dubai — including multinational firms such as CBRE UAE, JLL, Savills, Knight Frank, and Cushman and Wakefield — must hold valid RERA Property Management Broker Licenses and comply fully with DLD/RERA requirements: dedicated client escrow accounts, mandatory Ejari registration for each tenancy, professional indemnity insurance, and DREI-certified staff. Brand reputation or international certification does not substitute for RERA compliance.