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.