By Staff Reporter
His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued a new law to regulate contracting activities in Dubai, marking a major step towards enhancing governance, transparency, and oversight across the emirate’s construction and development sector.
Law No. (7) of 2025 introduces a unified regulatory framework that aligns with Dubai’s planning regulations, building codes, and long-term growth strategies. It aims to promote sustainable development while ensuring accountability among contractors.
A central feature of the law is the formation of the ‘Contracting Activities Regulation and Development Committee,’ chaired by a Dubai Municipality representative. The committee will oversee the sector’s regulation, propose policies, resolve jurisdictional issues, and coordinate with stakeholders across public and private sectors.
The law applies to all contractors in Dubai, including those in free zones like DIFC, except for certain exempted activities such as airport-related infrastructure. Dubai Municipality has been tasked with setting up an integrated electronic system linked to the ‘Invest in Dubai’ platform to manage contractor registration, classification, and compliance.
Contractors must now adhere strictly to their approved capacity, avoid unauthorized subcontracting, and maintain professional competency standards. Penalties for violations include fines of up to AED200,000, license suspensions, and potential disqualification.
Existing contractors are required to regularise their status within a year of the law’s enactment, which will take effect six months after its publication in the Official Gazette.
News Source: Emirates News Agency
