Imagine a mid‑sized construction firm in Dubai that wins tenders based on price, but suddenly finds itself unable to bid because it lacks the correct classification and certificate. The new Dubai contracting law changes that reality. Under Law No. 7 of 2025, the Emirate introduces a unified regulatory framework for contractor classification, a central Contractor Register, and mandatory professional competency certificate requirements for technical staff. If your firm is active in Dubai, understanding this new contracting law is essential.
To assess your compliance with the new contracting law in Dubai and prepare your documentation, click on the WhatsApp through the button below.
Contractors License Law
The term “contractors license law” in the context of Dubai essentially refers to this new Law No. 7 of 2025 on contracting activities in the Emirate of Dubai, which overhauls previous municipal orders and imposes new licensing, registration and classification requirements.
Scope and Objective
The law applies to all contractors operating in Dubai, including those in free zones and special development zones such as the Dubai International Financial Centre (DIFC).
It excludes, however, contracting activities related to airports and infrastructure and other projects exempted by decision of the Executive Council.
Its objective is to boost transparency, standardise the sector, and align with global best practices.
Key Features of the Dubai Contracting Law
The new contracting law in Dubai introduces several major changes:
| Feature | Description |
|---|---|
| Unified regulatory framework for contractor classification | Contractors will be classified based on financial, technical and administrative capacity, and must operate within their classification. |
| Contractor Register (central registry) | A digital register managed by the Dubai Municipality (DM) via the “Invest in Dubai” platform will record licensed contractors and classification status. |
| Professional competency certificate for technical staff | Every technical person engaged in contracting work must hold a certificate of competency issued under the law. |
| Sub‑contracting and consortium controls | Contractors may only subcontract or form alliances by meeting the new criteria and obtaining approval. |
| Retention of records | Contractors must keep contracts, plans, drawings and records for a minimum of 10 years after completion. |
| Penalties for non‑compliance | Fines range from AED 1,000 to AED 100,000 for first offences; repeat offences may incur AED 200,000 plus suspension, deregistration, or downgrading. |
Registration & Classification Process
Under the contracting law:
- A contractor must register in the Contractor Register via the digital platform.
- Upon registration, the contractor is placed in the lowest classification tier if newly‑registered; upgrades are possible subject to meeting criteria.
- Technical staff must hold the professional competency certificate; the contractor must ensure staff qualifications are registered.
- Contractors cannot exceed the scope or scale of work permitted by their classification—financial, technical and manpower thresholds apply.
- All contractors currently active have a grace period (one year after law’s effective date) to regularise their status.
Compliance Timeline and Implementation
Every legal reform comes with deadlines. Here, we discuss when the law takes effect, what grace periods apply, and how long contractors have to become compliant with Law No. 7 of 2025.
- The law was issued on 8 July 2025.
- It will become effective six months after publication; contractors then have one year from the effective date to comply, subject to extension.
- During the transition, existing contractors may renew with written commitment to comply.
Practical Implications for Contractors & Employers
Whether you’re a project owner or a contractor, understanding the law’s day-to-day impact is key. This section provides practical insights on how Dubai contracting law affects contract formation, subcontracting, staff hiring, and risk exposure.
- Employers must verify a contractor is properly registered in the Contractor Register under the new law before engagement.
- Contractors should undertake internal audits of classification, staff competency certificates, subcontracting practices and record‑keeping.
- Projects must be executed within the classification capacity; failure may expose contractors to penalties or suspension.
- Legal support is advisable to navigate registration, classification, appeals in case of downgrading or deregistration.
Our Legal Services for Contractors in Dubai
Navigating Law No. 7 of 2025 can be complex—especially for contractors with ongoing projects or those new to the Emirate. Our lawyers in UAE offer full-service support to help you register in the Contractor Register, obtain your professional competency certificates, upgrade your classification, or appeal any enforcement decisions.
With deep expertise in UAE construction and administrative law, we ensure that your business not only meets all compliance requirements but also operates strategically within your licensed classification.
We assist:
- Local and international contractors with registration and licensing.
- Developers and consultants in vetting contractor eligibility.
- Businesses with representation before Dubai Municipality or appeals committees.
- Companies in drafting contracts aligned with the law’s restrictions.
To discuss your specific case, reach out to us via WhatsApp through the button below.
FAQs Related to Dubai Contracting Law
In summary, the new Dubai contracting law (Law No. 7 of 2025) introduces a robust, unified regulatory framework for contractor classification, a mandatory Contractor Register, and a professional competency certificate regime for technical staff. Contractors and employers operating in Dubai must act now to align with these requirements—registering appropriately, ensuring correct classification and staffing, and reviewing subcontracting practices. With its sweeping reforms, the contracting law signals a new era of transparency, accountability and quality in Dubai’s construction and development sector.
For a detailed compliance review, please contact our law firm via the WhatsApp button below.
Disclaimer: The information contained herein is for educational purposes only and does not constitute legal advice. For personalised advice, you should consult a licensed attorney in the United Arab Emirates.
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