The 20% Trap: Hidden Costs Investors Overlook in Dubai Commercial Leases

Many entrepreneurs believe their annual rent is simply the figure written in the "Ejari" contract. However, in Dubai, a hidden reality increases the actual cost by at least 20% the moment you sign.

At JADWAH, we automatically apply a 1.2 multiplier to cover these expenses, which often cause cash flow crises for startups:

• 5% Agent Commission: Fees for securing a prime location.

• 5% Security Deposit: Frozen capital held by the landlord.

• 5% VAT: A legal obligation on commercial properties.

• 5% Admin & Utilities: Including DEWA setup, District Cooling, and Dubai Municipality fees.

Jadwah’s Insight:

We don’t just calculate what you pay; we calculate the liquidity you actually need to start safely.