A new law issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, establishes a comprehensive regulatory framework for the construction and contracting sector in Dubai.
Announced via the Dubai Media Office, the legislation applies to all contractors operating within the emirate, including those in free zones and special development areas, except for airport-related infrastructure and other activities specifically exempted by the Executive Council.
Key Highlights of the New Framework:
New Regulatory Committee:
A Contracting Activities Regulation and Development Committee will be formed under the Dubai Municipality, comprising representatives from relevant government agencies. This body will:
- Supervise and approve contracting activities
- Resolve jurisdictional disputes
- Coordinate between stakeholders
- Propose new legislation and policy updates
- Enforce a sector-wide code of ethics
- Oversee the implementation of the new law
Centralized Electronic System:
Dubai Municipality will also launch an integrated electronic registry, connected to the Invest in Dubai platform. This system will act as the sector’s central database, enabling:
- Contractor classification
- Issuance of technical competency certificates
- Monitoring of code-of-conduct compliance
Contractors must register and operate following their designated classification. Subcontracting or exceeding classification limits will require prior approval from the committee.
Penalties and Enforcement:
Violations of the new law carry fines ranging from AED 1,000 to AED 100,000. Repeat violations within 12 months could result in penalties being doubled to AED 200,000. Other sanctions include:
- Suspension of activity
- Downgrading of contractor classification
- Removal from registry
- Cancellation of trade licenses
- Deregistration of technical staff
Transition Period:
The law comes into effect six months after publication in the official gazette. Existing contractors will have one year to comply, with a possible one-year extension upon approval by the committee. Renewals of current registrations during the transition period can be processed with a compliance pledge. Any conflicting legislation will be repealed.
This move aims to standardize operations, enhance compliance, and strengthen Dubai’s position as a global hub for quality-driven infrastructure and construction development.
(With input from Dubai Media Office)
