Dubai is set to roll out new construction laws to boost transparency, quality, and efficiency across the sector. The enhanced Contractor and Engineering Consultancy Rating System will be led by Dubai Municipality and guided by Law No. 7 of 2025 Regulating Contracting Activities in the Emirate of Dubai.
The new Dubai construction regulations 2026 will guide how contractors, engineers, and consultants work in the coming years.
Here's everything you need to know about the new contractor law Dubai 2025.
Dubai Law No. 7 of 2025 introduces a new Contractor Register, administered by the Dubai Municipality and supervised by the newly formed Contracting Activities Regulation and Development Committee. All contractors operating in Dubai are required to register and comply with the new classification framework by January 8, 2027.
Law No. 7 of 2025 represents the most comprehensive update to Dubai construction regulations. This law update applies to all contractors operating in the emirate, including those in free zones and special development zones such as the Dubai International Financial Centre (DIFC).
However, infrastructure-related contracting, particularly airport development, may be exempt, pending recommendations from the new regulatory committee.
Contractors will now be classified by expertise, qualifications, and capacity and must operate strictly within their approved limits. Subcontracting without prior written approval is strictly prohibited, reinforcing a higher level of construction compliance in Dubai.
The revised framework introduces precise performance benchmarks, bolsters ethical practices, and enhances construction safety.
In support of these reforms, the law introduces the Contracting Activities Regulation and Development Committee. It is a powerful new oversight body chaired by a Dubai Municipality representative.
This committee is tasked with approving contracting activities, assigning regulatory authority, resolving jurisdictional disputes, and implementing a comprehensive code of ethics across the sector. Its collaborative framework will bring together key public and private stakeholders.
According to the Dubai construction law update, Dubai Municipality has been directed to establish a centralized, integrated electronic registry. Linked to the Invest in Dubai platform, this e-registry will catalog contractors by field (e.g., construction, demolition) and issue professional competency certificates to qualified personnel. This digitization push forms a cornerstone of the emirate's modernization drive.
All contractors are mandated to register in the new digital system and regularize their status within one year of the law’s enactment. The committee may extend this transition period by an additional year. Contractors with expiring licenses during this period can renew after signing a formal compliance declaration.
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Violations under the new contractor law will be treated with strict enforcement measures, supported by a tiered system of penalties designed to enforce compliance. Fines include:
Additional penalties may involve:
These provisions reflect a stricter phase of the UAE contractor regulations aimed at enhancing integrity, professionalism, and accountability across the construction sector.
The new contractor law Dubai 2025 represents more than a regulatory reform; it is a structural transformation of how the emirate builds its future. As Dubai continues its rapid urban expansion, the law aims to ensure sustainable, ethical, and high-quality development across all projects.
This law reinforces the city's commitment to world-class construction governance. For contractors, consultants, and developers, understanding and adhering to these regulations is not just mandatory but essential for continued participation in Dubai's booming construction ecosystem. The twin emphasis on digital integration and ethical oversight marks a definitive step forward in construction compliance in Dubai.
It applies to all contractors operating in Dubai, including those in free zones and special development zones. Exceptions include certain infrastructure projects, such as airports, subject to committee recommendation.
The Contracting Activities Regulation and Development Committee will oversee implementation, approve activities, assign supervisory authorities, and enforce ethical standards.
Violators face fines (up to AED 200,000 for repeat offenses), suspension, downgrading, deregistration, and possible revocation of staff professional certificates.
Contractors must regularize their status within one year of the law’s enactment. The committee may grant a one-year extension.
The new law is broader in scope, introduces a centralized registry, and imposes tougher penalties.
Older laws like Local Order No. 89 of 1994 and No. 3 of 1999 will remain in effect unless they conflict with the new legislation.
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