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, which regulates contracting activities in the Emirate of Dubai. This law marks a major advancement in enhancing the legal and governance framework of the emirate’s contracting sector, aligning with Dubai’s vision to promote the development of essential industries in accordance with global best practices.
The new law establishes a unified regulatory framework for contractor classification, oversight, transparency, and accountability, supporting Dubai’s objectives for sustainable growth. It also aligns with the emirate’s building codes, planning regulations, and long-term development strategy.
Responsibilities of the committee
A crucial element of the law is the formation of the ‘Contracting Activities Regulation and Development Committee,’ which will be established by a decision from His Highness, the Chairman of The Executive Council of Dubai. This committee, chaired by a representative from Dubai Municipality, will consist of members from government authorities and entities involved in contracting activities. It will be responsible for approving contracting activities in Dubai, identifying entities tasked with supervising each activity, overseeing the implementation of the law, proposing new policies and legislation for the sector, and resolving any jurisdictional disputes that may arise among regulatory entities. Additionally, the committee will adopt a code of ethics for the sector, coordinate with both public and private stakeholders, and review recommendations submitted by the authorities.
The law applies to all contractors operating in Dubai, including those based in special development zones and free zones such as the Dubai International Financial Centre. Contracting activities related to airports and their associated infrastructure, as well as any other activities exempted by a decision from His Highness, the Chairman of The Executive Council based on the committee’s recommendation, are excluded from the law’s scope.
Rules for contractor registration outlined
Dubai Municipality is tasked with establishing, operating, and managing an integrated electronic system for all contracting activities in the emirate. This system will be linked to the ‘Invest in Dubai’ platform and will serve as the central registry for contractors. Dubai Municipality will also prepare a code of conduct for the sector, classify contractors engaged in construction, building, and demolition activities, and issue professional competency certificates to technical personnel.
The law outlines rules for contractor registration, requiring contractors to comply with all relevant legislation and operate within their approved classification and capacity. They are prohibited from exceeding their technical or financial limits or subcontracting without prior approval.
Moreover, penalties for violating the provisions of the law or any related decisions include fines ranging from AED1,000 to AED100,000. Repeat violations within a year may result in doubled fines, up to a maximum of AED200,000. Additional consequences may include suspension from contracting activities for up to one year, downgrading of classification, removal from the registry, cancellation of commercial licenses, and suspension or de-registration of technical staff, along with the revocation of their professional certificates.
All contractors operating in Dubai at the time the law comes into force are required to regularize their status within a year. This period may be extended by the Committee for another year if necessary.
Contractors whose registration expires during this timeframe will be allowed to renew it upon submitting a declaration pledging to comply with the law’s provisions within the designated period. Any existing legislation conflicting with this law will be annulled. The law will take effect six months after its publication in the Official Gazette.
