H.H. Sheikh Mohammed issues law regulating contracting activities in Dubai

In a major step to enhance regulation in Dubai’s construction sector, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued a new law governing contracting activities across the emirate.

Law No. (7) of 2025 introduces a unified framework for contractor classification, oversight, and accountability—aiming to support sustainable growth and align with Dubai’s long-term development plans and international best practices.

A key feature of the law is the creation of the Contracting Activities Regulation and Development Committee.

Chaired by a representative of Dubai Municipality and made up of representatives from relevant authorities, the committee will oversee the law’s implementation, resolve disputes, and propose future policy changes for the sector.

The law applies to all contractors in Dubai, including those operating in free zones. Airport-related projects are exempt, as are any other activities specified by the Executive Council.

Dubai Municipality will launch an integrated electronic system to manage all contracting activities. This platform, linked to ‘Invest in Dubai’, will serve as the central registry and issue professional competency certificates.

Contractors must now adhere strictly to their approved classifications and cannot subcontract work or exceed capacity without prior approval.

Penalties for violating the provisions of the law or any related decisions include fines ranging from AED 1,000 to AED 100,000.

Repeat violations within a year may result in doubled fines, up to a maximum of AED 200,000, while additional actions may include suspension from contracting activities for up to one year, downgrading of classification, removal from the registry, cancellation of commercial licences, and suspension or de-registration of technical staff and revocation of their professional certificates.

All contractors operating in Dubai at the time the law comes into force are required to regularise their status within a year. This period may be extended by the Committee for another year if necessary.

Contractors whose registration expires during this period will be allowed to renew it upon submitting a declaration pledging to comply with the law’s provisions within the given timeframe.

The law will come into force six months after it is published in the Official Gazette.

Mohammed bin Rashid issues law regulating contracting activities in the Emirate of Dubai. The law, which represents a significant step forward in strengthening the legal and governance framework of the emirate’s contracting sector, supports Dubai’s vision to advance the… pic.twitter.com/ewGpbpzNjP

— Dubai Media Office (@DXBMediaOffice) July 12, 2025