Dubai: Sheikh Mohammed Introduces New Law for Contracting Sector
Sheikh Mohammed bin Rashid Al Maktoum has announced a new law aimed at regulating contracting activities across Dubai.
Law No. 7 of 2025 seeks to unify standards and practices within the contracting sector, establishing a clear framework for classifying contractors based on their expertise and capabilities.
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The legislation outlines rules for contractor registration, requiring compliance with relevant laws and prohibiting exceeding technical or financial limits without prior approval.
This initiative is designed to enhance transparency and improve coordination among relevant authorities, aligning the sector with Dubai’s rapid urban and economic development.
A key feature of the law is the formation of the Contracting Activities Regulation and Development Committee, chaired by a representative from Dubai Municipality.
This committee will oversee the approval of contracting activities, assign supervising authorities, and resolve conflicts among regulatory entities.
Additionally, the law mandates the establishment of an integrated electronic registry for all contracting activities in Dubai, which will be linked to the ‘Invest in Dubai’ platform.
Violators of the new regulations may face fines ranging from Dh1,000 to Dh100,000, with repeated infractions potentially leading to penalties of up to Dh200,000. Contractors currently operating in Dubai will have one year to regularize their status under the new law.
This update follows the Dubai Municipality’s recent announcement of a revised Contractors and Engineering Offices Evaluation System, set to take effect in early 2026, aimed at improving performance standards and ensuring safer construction practices.
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Khaleej Times
