Dubai Rolls Out New Law to Tighten Rules for Contractors
The updated law sets clear standards, tighter rules, and tougher penalties to clean up the contracting sector.
Dubai just dropped a new law that puts the city’s contracting sector under a tighter microscope. Law No. 7 of 2025, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, lays down a clear framework for contractor classification, registration, and operations.
Basically? If you’re in construction or building, you’ll need to play by the rulebook—or risk big fines.
What’s changing?
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Contractors now need to register under a strict classification system based on qualifications and capabilities.
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No going beyond your approved limits—technical or financial.
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No subcontracting unless you’ve got the official green light.
The goal is to make the system more transparent and efficient, and keep pace with Dubai’s rapid growth.
A new committee takes the wheel
A new Contracting Activities Regulation and Development Committee will oversee everything.
It’ll:
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Approve activities
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Assign regulators
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Solve jurisdiction conflicts
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Set a code of ethics
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Review concerns from the public and private sector
A full digital registry is coming
Dubai Municipality is also rolling out an electronic registry—connected to the Invest in Dubai platform—to track all licensed contractors. It’ll manage classification by category (construction, demolition, etc.) and issue professional certificates to qualified technical workers.
Big fines for breaking the rules
If you’re caught violating the law, be ready to pay.
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Fines start at Dh1,000 and go up to Dh100,000
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Repeat offenders can be fined up to Dh200,000
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Other penalties include suspension, license cancellation, downgrading, or deregistration
Even technical staff could lose their certifications.
One year to comply
Contractors already operating in Dubai must regularise their status within a year, or risk penalties. The committee can extend this deadline by another year if needed.
A bigger reform is coming
This move follows Dubai Municipality’s overhaul of its Contractors and Engineering Offices Evaluation System, set to launch in early 2026. It’s all part of an effort to raise the bar for safety, ethics, and performance across the board.
Two engineering firms have already been suspended for six months after putting property owners at risk.