New Regulation for Construction Activities in Dubai
29 juillet 2025
New Regulation for Construction Activities in Dubai29 juillet 2025 Why should I read this?With the aim of promoting construction investment in Dubai, new regulations have been introduced to regularise construction activities according to globally accepted standards and best practice. These apply to all contractors operating in the Emirate, including the free zones and special development zones. Construction activities relating to airports, infrastructure and associated facilities are excluded (with discretion over further activities being excluded in the future). These provisions come into effect from 15 January 2026 and contractors operating in the Emirate must be registered within one year. Violations may result in a financial fine of between 1,000-100,000 dirhams, or up to 2,000,000 dirhams if the same violation is repeated in a year. Additional sanctions may include suspension, licence revocation or downgrading of contractor classification. What do the new regulations entail?1. New registration requirement and classification system for contractors A contractor must hold a valid commercial licence to practice and promote themselves as a contractor and be registered with the Municipality (who will record the contractor’s data, permitted construction activities, classification category, technical staff and any other data deemed necessary). The regulations prohibit contracting with any contractor who is not registered and does not hold this licence. The licence may restrict the contractor’s activities to certain classifications of work. The licence is valid for one year and a renewal application must be submitted within 30 days of the expiration date, unless the registration period exceeds one year and registration fees are paid annually. There are conditions for registration, such as having the required technical staff and necessary skills and experience to practice the construction activity. A contractor may have their registration and licence revoked if they no longer meet the registration conditions. 2. Committee for Regulating and Developing Contracting Activities A new committee will be formed in the Emirate to regulate and develop construction activities. The committee has the power to:
3. Obligations on contractors There are new requirements upon contractors by the competent authority (i.e. the government entity authorised to supervise and regulate contracting in the Emirate), such as: (a) Compliance Comply with all application legislation in the Emirate; the terms and conditions of their contracting agreement and instructions from the engineer; and the Code of Conduct and Ethics for construction activities by the Committee. (b) Competency requirements Adhere to the classification requirements applicable to their registered status, which includes:
(c) Record keeping
4. Controls on sub-contracting A contractor may sub-contract, provided that:
5. Controls on forming consortiums A consortium between two or more contractors to execute a single project may be formed provided that:
ConclusionThese regulations demonstrate the Emirate’s commitment to construction, as a way to promote development and economic progress. Regulation of construction activities will encourage investment in this sector. Early adoption of these new requirements, from when they come into effect from 15 January 2026, is recommended to ensure consistency across the market. Dernières Publications
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