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Dubai issues new law to regulate the construction and contracting sector 

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In a major move to enhance governance and transparency in the construction and contracting sector, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (7) of 2025 regulating contracting activities across the emirate.

The new legislation introduces a unified regulatory framework aimed at standardising contractor classification, improving oversight, and reinforcing accountability across the sector. It is designed to align with Dubai’s strategic vision for sustainable development and global best practices in urban planning and infrastructure.

Oversight Committee to Lead Sector Reform

A central provision of the law is the establishment of a new Contracting Activities Regulation and Development Committee, which a representative from Dubai Municipality will chair. The committee will include members from various government entities involved in the sector.

The committee will be tasked with:

  • Approving and supervising contracting activities
  • Defining regulatory responsibilities across entities
  • Proposing new policies and legislative updates
  • Resolving jurisdictional conflicts
  • Establishing a sector-wide code of ethics
  • Coordinating with public and private stakeholders

Digital Transformation of Contractor Registry

Dubai Municipality has been appointed as the lead authority to manage the sector’s transformation. It will establish and operate a fully integrated electronic platform for all contracting activities in the emirate. The platform will be linked to the existing Invest in Dubai portal and serve as the official contractor registry.

The Municipality is also responsible for:

  • Issuing professional competency certificates
  • Creating a code of conduct for the industry
  • Classifying contractors in construction, building, and demolition
  • Enforcing compliance with approved classification and operating capacity

Law Applies Across Zones, with Specific Exemptions

The law applies to all contractors operating in Dubai, including those in free zones and special development zones, such as the Dubai International Financial Centre (DIFC). However, contracting activities related to airport infrastructure and other exceptions approved by the Executive Council are excluded.

Penalties and Compliance Deadlines

The law imposes strict penalties for non-compliance:

  • Fines ranging from Dh1,000 to Dh100,000
  • Repeat violations may result in doubled fines up to Dh200,000
  • Additional measures include license suspension, contractor downgrading, and removal from the registry

Contractors currently operating in Dubai must regularise their status within one year of the law’s implementation. This deadline may be extended by the committee for an additional year if necessary. Contractors with expiring registrations during this period can renew them by submitting a pledge to comply with the law.

Law Effective in Six Months

The new law will take effect six months after its publication in the Official Gazette, and any conflicting legislation will be annulled.

This initiative marks a significant step in reinforcing Dubai’s position as a global hub for world-class infrastructure, while ensuring higher levels of efficiency, transparency, and professionalism in the contracting industry.

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

Business

UAE launches new digital platform to manage federal government real estate

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The UAE Ministry of Finance has launched a new digital system to centralise and manage data on all federally owned real estate, marking another step in the country’s push to modernise public asset management and strengthen governance.

The platform, known as the Federal Government Real Estate Assets Platform, will act as a unified electronic registry for federal government properties. It is designed to document, update and classify real estate data, while linking assets directly to financial and operational systems across the federal government.

The ministry said the launch fulfils the requirements of Article 18 of Federal Decree-Law No. 35 of 2023 on Union-Owned Properties, which mandates the creation of a federal electronic registry for government real estate.

Supporting digital transformation

Younis Haji AlKhoori, Undersecretary at the Ministry of Finance, said the platform is designed to strengthen regulation, governance and oversight of federal real estate assets, while supporting the UAE government’s wider digital transformation agenda.

By automating real estate-related processes, the system aims to improve data accuracy and provide better insights for policymaking, planning and long-term asset management.

Federal entities can use the platform to register and update property data under standardised classifications, manage leasable spaces, and submit real estate-related requests through automated workflows. These include inspections, transfers, sales, demolitions and structural changes to properties.

The platform also integrates with other federal systems to ensure records remain up to date, while generating reports and performance indicators to support evidence-based decision-making.

Linking real estate and financial data

Mariam Mohamed Al Amiri said the platform was developed to unify real estate data across federal bodies and connect it directly to financial and operational procedures, helping improve planning, expenditure control and transparency.

The system records both financial and non-financial data, including property values, depreciation, operating costs, location, condition and technical specifications. It also stores digital documents such as architectural drawings, site maps and contracts.

A new four-tier classification structure, covering sites, buildings, floors and individual units, standardises how government real estate is recorded and enables faster access to information.

From paper to digital

According to the ministry, the platform replaces paper-based procedures with a fully digital framework that supports real-time tracking, automated approvals and structured lease management, including contract creation, amendments and terminations.

Officials said the move will improve the efficiency of federal real estate use, enhance governance and support long-term planning of government-owned properties as part of the UAE’s broader digital government strategy.

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Announcements

UAE VAT rules are changing in 2026: Here’s what businesses need to know

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The UAE’s Ministry of Finance has announced a new set of amendments to the country’s VAT law, with the revised rules taking effect on January 1, 2026. The changes are designed to make the tax system easier to use and more aligned with international best practices.

In a statement, the Ministry said the move supports the UAE’s ongoing efforts to streamline its tax framework and improve administrative efficiency. The updates are also designed to provide businesses with greater clarity and reduce unnecessary paperwork.

Simpler filing, fewer steps

One of the biggest changes removes the requirement for businesses to issue self-invoices when using the reverse charge mechanism. Instead, companies will simply need to keep the usual documents that support their transactions, such as invoices, contracts and records, which the Federal Tax Authority (FTA) can review when checking compliance.

According to the Ministry, this adjustment “enhances administrative efficiency” and provides clear audit evidence without placing extra paperwork burdens on businesses.

Five-year window for VAT refunds

The updated law also introduces a five-year limit for claiming back refundable VAT after accounts have been reconciled. Once this period ends, businesses lose the right to submit a claim. Officials say this helps prevent long-delayed refund requests and gives taxpayers more certainty about their financial position.

Tighter rules on tax evasion

To protect the system from misuse, the FTA will now have the authority to deny input tax deductions if a transaction is found to be linked to a tax-evasion arrangement. This means businesses must ensure the supplies they receive are legitimate before claiming input VAT.

Taxpayers are expected to verify the “legitimacy and integrity” of supplies as part of these strengthened safeguards.

Supporting a competitive economy

The Ministry said the amendments will boost transparency, ensure fairness across the tax system and support better management of public revenue. The updated rules also aim to maintain the UAE’s competitive edge while supporting long-term economic sustainability.


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Business

Dubai launches new permit to help free zone firms do business on the mainland

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Businesses in Dubai’s free zones can now trade more easily on the mainland, thanks to a new Free Zone Mainland Operating Permit announced on Wednesday by Dubai’s Department of Economy and Tourism (DET).

The move is designed to simplify and make it more cost-effective for companies to operate across jurisdictions, providing them with access to domestic trading opportunities and government contracts, previously available only to mainland-licensed firms.

“This initiative cements Dubai’s position as a benchmark for regulatory innovation,” said Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation. “We’re enhancing ease of doing business and opening new avenues for growth, from domestic trading to government tenders.”

What the Permit Offers

  • Cross-border flexibility: Free zone companies can now engage in mainland activities without setting up a separate mainland entity.
  • Low-cost entry: The permit costs Dh5,000 for six months and is renewable for the same fee.
  • Talent mobility: Firms can use their existing staff for mainland operations without hiring additional employees.
  • Tax compliance: Revenue earned from mainland activities will be subject to the 9% corporate tax, with companies required to maintain separate financial records as per Federal Tax Authority (FTA) rules.

Who Can Apply

The first phase of the permit covers non-regulated sectors, such as:

  • Technology and IT services
  • Consultancy and design
  • Professional services
  • Trading

Plans are in place to extend the permit to regulated sectors in the future.

Eligible businesses must have a Dubai Unified Licence (DUL). They can apply online via the Invest in Dubai (IID) platform, ensuring a quick and hassle-free process for SMEs, startups, and larger enterprises.

Big Boost for Businesses

DET expects the initiative to increase cross-jurisdiction activity by 15–20% in its first year, benefiting over 10,000 active free zone firms.

By enabling free zone companies to integrate more closely with domestic supply chains, the permit opens doors to billions of dirhams worth of government tenders and contracts, creating new opportunities for growth, innovation, and job creation.

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