Dubai Launches New 3-Year Service Fee System for Palm Jumeirah

The Dubai Land Department (DLD) has approved a new service fee framework allowing the Palm Jumeirah master community to set fixed service charges for a three-year period, marking a first-of-its-kind initiative in Dubai’s real estate sector.

The new system introduces a multi-year budgeting model aimed at improving cost stability, transparency, and long-term financial planning for property owners, residents, and investors.

How the New Three-Year Service Fee System Works

Under the updated framework, Jointly Owned Property (JOP) management companies can now submit a three-year service charge budget through the Mollak system and obtain approval in a single process.

Key features of the model include:

• Optional three-year fixed service fee approval
• Continued availability of the traditional one-year budget model
• Greater flexibility for community management companies

This dual-option approach allows communities to choose the budgeting structure that best suits their operational and financial needs.

Benefits for Property Owners and Investors

The introduction of a three-year service fee structure is designed to:

• Stabilize service charges over a longer period
• Improve predictability of ownership costs
• Enable long-term contracts with service providers
• Reduce annual budget volatility

By locking in multi-year budgets, community managers can negotiate better terms with suppliers, creating cost efficiencies that ultimately benefit residents and investors.

Enhancements to the Mollak System

DLD confirmed that the initiative is part of a broader upgrade to the Mollak platform, which now includes:

• Enhanced digital tools
• Improved data integration
• More efficient verification processes
• Stronger monitoring and compliance capabilities

These improvements are expected to reduce administrative workload, increase transparency, and raise the overall standard of community management across Dubai.

Palm Jumeirah Sets a Precedent for Dubai Communities

Eng. Abdullah Ahmed Al Shehhi, CEO of the Real Estate Regulatory Agency (RERA), confirmed that Palm Jumeirah is the first community to receive approval under the upgraded Mollak system. He noted that the three-year budgeting mechanism is available to all community management companies in Dubai, reinforcing DLD’s push toward long-term planning and service fee stability.

Industry Support and Strategic Impact

The announcement was made during a workshop held in collaboration with Dubai Holding Community Management. During the session, Francis Giani, Chief Community Management Officer, stated that the three-year model will enable more confident strategic planning and better execution of community enhancement projects.

Industry stakeholders believe the initiative will strengthen confidence in Dubai’s real estate market, particularly in premium master communities where service fees play a key role in investment decisions.

A Step Toward Smarter Community Management in Dubai

DLD emphasized that the new service fee framework reflects its commitment to adopting modern, data-driven systems that align with the evolving needs of Dubai’s property market.

By improving efficiency, transparency, and long-term cost planning, the initiative supports Dubai’s broader vision of delivering world-class living environments through advanced and sustainable community management practices.