Dubai has introduced a new legal framework to regulate contracting activities across the emirate, including in free zones, through Law No. (7) of 2025 issued by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
The law sets out rules for contractor classification, licensing, registration, and compliance. It applies to all contractors operating in Dubai except those involved in airport infrastructure or other activities formally exempted by the Executive Council.
A central committee named the “Contracting Activities Regulation and Development Committee” will be created to oversee implementation. Chaired by a representative of Dubai Municipality, the committee will include members from relevant government entities. Its remit includes approving contracting activities, resolving jurisdictional conflicts between regulators, and issuing policy recommendations. It will also adopt a sector-wide code of ethics and coordinate between public and private stakeholders.
Dubai Municipality has been tasked with launching and managing a digital platform that will serve as the official registry for all contractors. The platform will be linked to the existing “Invest in Dubai” portal. The Municipality will also classify contractors across construction, demolition, and related services and issue professional competency certificates to technical staff.
Contractors must operate within their registered classification and are prohibited from exceeding technical or financial limits or subcontracting without prior approval. Violations may result in fines ranging from Dh1,000 to Dh100,000, with repeated breaches reaching Dh200,000. Other penalties include suspension, downgrade in classification, de-registration, or revocation of licences and certificates.
All existing contractors are required to regularise their status within 12 months of the law’s enforcement, which begins six months after publication in the Official Gazette. This deadline may be extended by an additional year by the committee. Contractors with expiring registrations during this period must submit a compliance declaration to renew their licence.
