New Dubai Law Regulating Contracting Activities

Dubai Enacts New Contracting Regulation Law – Key Changes and Actions Required

Dubai has issued Law No. 7 of 2025 (the Law) regulating Contracting Activities across the Emirate, including those conducted in free zones and the DIFC. Published on 8 July 2025, the Law takes effect six months after publication (8 January 2026), and creates a unified framework for licensing, registration, classification and oversight of contractors and technical staff, supported by a new central digital System[1] linked to the Invest in Dubai platform.

Who Is Affected

The Law generally impacts all contractors operating in Dubai, technical staff (i.e., engineers and technicians) working for contractors, and any public or private entity procuring contracting services. Airport-related Contracting Activities (including airport related infrastructure and associated facilities) are, however, exempt from the application of the Law, and further exemptions may be introduced by decision of the Chairman of the Executive Council upon the recommendation of the Committee for Regulating and Developing Contracting Activities (the Committee).

Key Features of the Law

• Licensing and Registration: Contractors may not perform or market Contracting Activities without a valid Commercial License, and registration in a new Dubai Municipality Electronic Register. Contractors must operate only within their licensed activities and classification category and employ technical staff holding the required Professional Competency Certificates.
• Unified Electronic System: A single Emirate-wide online system will manage all applications for registration, classification, competency, amendments and cessation. Dubai Municipality will maintain the Register, set the Classification System, issue competency certificates and prepare a code of conduct. Other competent authorities will supervise practice, classify contractors, assess performance, investigate complaints and impose sanctions.
• Permanent Regulatory Committee: The Committee will oversee implementation of the Law, resolve supervisory disputes, approve Contracting Activities, propose policies and legislation, approve the code of conduct and set rules for cancellations, reclassification and cessation. Sub-committees may be formed as needed.
• Registration and Classification Rules: Contractors must be independent from engineering consultancy offices and meet prescribed experience, qualification, staffing and fee requirements. Initial registration is valid for one year (renewable). New entrants are placed in the lowest classification (unless they meet higher criteria). Authorities may upgrade or downgrade classification based on compliance.
• Contractor Obligations: Contractors must comply with all building, planning, safety, environmental and public health laws; maintain classification standards; employ only certified staff; supervise subcontractors; notify changes; comply with the code of conduct; and retain project documents for 10 years after the date of issue of the completion certificate. Subcontracting and consortia are permitted, but subject to approval and specific conditions. Turnkey contracting is contemplated, with criteria to be set by the Competent Authority.
• Fees, Sanctions and Enforcement: Fees and guarantee requirements will be set by the Executive Council and Competent Authorities. Non-compliance may lead to fines from AED 1,000 to AED 100,000 (up to AED 200,000 for repeat offences), suspension or downgrading, cancellation of registration, license revocation, and suspension of competency certificates. Designated officials have judicial seizure powers to inspect premises and records, with police support.
• Grievances and Transitional Period: Parties may file grievances within 30 days of an adverse decision. Existing contractors must regularise their status within one year of the Law taking effect (extendable). Registrations expiring during this period may be renewed if contractors commit to rectifying their status.

[1] Capitalised terms not expressly defined in this article have the meaning specified in the Law.

How can we help?

Al Tamimi & Company’s Construction & Infrastructure team can provide further insights into what these new statutory requirements mean for your business and the steps you need to take to ensure compliance before the Law formally comes into effect.