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Dubai’s new engineering law: Comply or face Dh100,000 fine and ban

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Dubai is getting serious about engineering quality and professional standards. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, has just issued a comprehensive new law (Law No. 14 of 2025) that fundamentally reshapes how engineering consultancy offices operate across the emirate. 

This new regulation ensures that every company, from architecture to electrical engineering, must be officially licensed, meet high international standards, and prove its competence. 

If firms fail to comply, by operating outside their approved scope or employing unregistered staff, they face severe penalties, including hefty fines up to Dh100,000 and being removed from the registry entirely.

Here are the key aspects of the law:

Objectives and Scope

The law aims to:

  • Advance Dubai’s engineering consultancy sector.
  • Regulate practices according to international standards.
  • Classify service providers based on their technical, financial, and managerial competence.
  • Encourage investment, remove obstacles, and ensure timely project execution.
  • Attract global companies, positioning Dubai as a key hub.

The law covers engineering activities in all fields, including architectural, civil, electrical, electronic, mechanical, mining, petroleum, chemical, coastal, and geological engineering, among others.

Regulatory Requirements and Prohibitions

Authorisation and Licensing

  • No one is allowed to take up engineering consultancy activities without proper authorisation.
  • Individuals or offices cannot portray themselves as engineering consultancy offices without a valid trade licence and registration with Dubai Municipality.
  • The registration must detail the office’s licensed scope, classification, technical staff, and other essential information.

Operational Prohibitions

Engineering consultancy offices are specifically prohibited from:

  • Operating beyond their licensed scope.
  • Employing unregistered engineers.
  • Contracting with unlicensed companies to carry out consultancy work in Dubai.

Dubai Municipality’s Role

Dubai Municipality is central to implementing the law:

  • It will establish a unified electronic system across the emirate, linked to the ‘Invest in Dubai’ platform. This system manages applications for registration, classification, issuing professional competency certificates, and other related matters.
  • The Municipality oversees, operates, and updates the system and maintains a comprehensive registry of licensed offices, their scope, classification, and technical staff.
  • It also regularly approves and updates the classification system for construction, building, or demolition companies and issues professional competency certificates for their technical staff.

Committee and Office Types

Permanent Committee

The law mandates the establishment of a permanent ‘Committee for the Regulation and Development of Engineering Consultancy Activities’ in Dubai, appointed by the Chairman of The Executive Council and chaired by a Dubai Municipality representative.

Types of Engineering Consultancy Offices

The law defines several types of registered offices:

  • Local companies established in Dubai.
  • Branches of UAE-based offices with 3 consecutive years of experience.
  • Branches of foreign offices with 10 consecutive years of experience.
  • Joint endeavours are formed between a local office and one or more foreign offices (where the foreign office has 10 years of experience).
  • Engineering advisory offices providing opinion and consultancy services, owned by registered engineers, each with a minimum of 10 years of experience.
  • Engineering audit offices are authorised to conduct third-party audits.

Violations and Penalties

Fines and Measures

Violators may face fines of up to Dh100,000, with the penalty increasing for repeat offences within the same year. Authorities may also take punitive measures, including:

  • Suspending the office for up to one year.
  • Downgrading the office’s classification.
  • Removing the office or the engineers from the registry.
  • Cancelling commercial licences.
  • Suspending staff or revoking certificates.

Appeals

Parties affected by fines or other measures can submit a written appeal within 30 days of notification. The competent authority’s committee will decide within 30 days, and the decision is final and binding.

Implementation

  • The new law annuls Local Order No. (89) of 1994 and its amendments.
  • Engineering consultancy offices and their staff must regularise their status within one year of the law taking effect.
  • The law will come into effect six months from the date of its publication in the Official Gazette.

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.

Announcements

Dubai Chambers launches one-stop digital platform to help businesses start, grow and expand

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Starting and growing a business in Dubai is set to become easier with the launch of Business in Dubai, a new digital platform by Dubai Chambers that brings together essential corporate services in one place.

Designed as a single gateway for companies, the platform connects businesses with trusted service providers, helping them access everything from financial solutions to technology, marketing and certification services without having to navigate multiple channels.

The initiative aims to simplify business operations while strengthening Dubai’s position as one of the world’s most competitive destinations for investment and entrepreneurship.

What does the platform offer?

The Business in Dubai platform currently provides 65 corporate services through seven accredited partners, offering companies a wide range of support as they establish or expand their operations in the emirate.

The services are grouped into four key categories:

  • Financial services
  • Marketing and business growth services
  • Technology services
  • Testing, inspection and certification services

The current network of partners includes ZENDATA Cybersecurity, FAST Ventures, Mamo, OCTA, SGS Gulf Limited, Vault, and Pemo.

Helping businesses grow

Dubai Chambers said the platform has been designed to save companies time and resources by bringing multiple business services under one digital roof.

Khalid AlJarwan, Executive Vice President of Commercial and Corporate Services at Dubai Chambers, said the initiative reflects the organisation’s commitment to creating an environment that supports business growth both locally and internationally.

He said the platform will strengthen Dubai’s investment ecosystem by making it easier for companies to access the services they need to scale their operations and contribute to the emirate’s long-term economic development.

Boost for the digital economy

Saeed Al Gergawi, Vice President of Dubai Chamber of Digital Economy, said the platform will particularly benefit businesses operating in the digital economy by simplifying access to trusted service providers.

He added that the initiative creates a more flexible and efficient business environment, enabling entrepreneurs and companies across different sectors to focus on growth rather than administrative processes.

A single digital gateway

By consolidating key business services onto one platform, Dubai Chambers aims to reduce the time and effort companies spend searching for service providers, allowing them to concentrate on innovation, expansion and day-to-day operations.

The launch forms part of Dubai’s wider efforts to strengthen its business ecosystem and reinforce its position as a leading global hub for trade, investment and entrepreneurship.

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Announcements

What the new DIFC investment fund proposals mean for investors

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Dubai’s financial regulator is planning the biggest update to the Dubai International Financial Centre (DIFC) investment fund rules in more than a decade.

The Dubai Financial Services Authority (DFSA) has launched a public consultation on a wide-ranging package of reforms designed to modernise the DIFC’s investment fund framework, simplify regulations for fund managers and strengthen investor protection.

Here’s what you need to know.

Why is the DFSA changing the rules?

The DFSA says the investment fund industry has evolved significantly since the current framework was introduced in 2006.

The proposed reforms aim to:

  • Modernise regulations to reflect today’s investment market.
  • Reduce unnecessary compliance requirements.
  • Make it easier for fund managers to operate.
  • Maintain strong investor protection.
  • Align DIFC regulations with international best practices.

What are the proposed changes?

The consultation includes several key proposals:

More flexible rules for private investment funds

The DFSA plans to replace rigid classifications for specialist private funds with a more flexible framework that can better accommodate modern investment strategies.

Simpler licensing for fund managers

Investment managers may no longer need separate licences for certain activities, such as arranging investments or dealing on behalf of clients, as these would be covered under an existing asset management licence.

Updated rules for master-feeder funds

The regulator also wants to modernise regulations governing “master-feeder” fund structures to reflect current market practices better.

Removal of the external fund manager regime

The DFSA proposes removing the external fund manager framework as more firms are now seeking direct authorisation from the regulator.

More investment opportunities for employees

Employees could be given greater flexibility to invest in private funds managed by their own employers, either directly or through dedicated investment vehicles.

Technical improvements

The consultation also proposes several technical amendments to improve clarity and consistency within the Collective Investment Law.

Could tokenised investment funds become a reality?

The consultation also seeks industry feedback on regulating tokenised investment funds.

Tokenisation uses blockchain technology to represent ownership units digitally, potentially making investment funds more efficient and accessible.

At this stage, the DFSA is only gathering feedback and has not proposed formal regulations.

Will retail investors get access to more investment opportunities?

Another topic under discussion is the possible introduction of a long-term investment fund regime.

If developed in the future, it could allow retail investors to access certain long-term assets—such as infrastructure projects or private market investments- that are currently limited to professional investors.

No regulatory changes have been proposed yet; the regulator is first seeking industry views.

Who can provide feedback?

The consultation is open until September 7, 2026.

The DFSA is inviting comments from:

  • Fund managers
  • Asset managers
  • Fund administrators
  • Legal advisers
  • Auditors
  • Compliance professionals
  • Other participants in the DIFC investment funds industry

The proposals form part of Dubai’s wider efforts to strengthen its position as a leading regional hub for wealth and asset management while ensuring regulations remain modern, proportionate and investor-focused.

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Business

UAE Central Bank fines foreign bank Dh1.82mn over consumer protection breach

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The Central Bank of the UAE (CBUAE) has imposed a Dh1.82 million financial penalty on a branch of a foreign bank operating in the country for violating consumer protection rules.

The regulator did not identify the bank involved.

Why was the bank fined?

According to the CBUAE, inspections found that the bank failed to issue a liability letter within the mandatory seven-day timeframe, breaching the central bank’s Market Conduct and Consumer Protection Regulations and Standards.

The penalty was imposed under Federal Decree-Law No. 6 of 2025, which governs the Central Bank, financial institutions and insurance activities.

What is a liability letter?

A liability letter is issued when a customer wants to transfer an existing loan or other financial obligations to another bank or apply for new financing elsewhere.

Banks are required to provide the document within seven days to ensure customers can switch lenders or complete financing arrangements without unnecessary delays.

CBUAE reinforces consumer protection

The central bank said the enforcement action reflects its commitment to ensuring banks comply with UAE laws and consumer protection regulations.

The regulator added that it will continue to monitor financial institutions to uphold transparency, integrity and high standards across the UAE’s banking sector.

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