Dubai has introduced new legislation to regulate contracting activities, aiming to enhance oversight and efficiency in the construction and development sectors. The move supports the UAE’s broader efforts to align regulatory frameworks with global standards and promote sustainable urban growth across key industries.

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 regulating contracting activities in the emirate. The law is described as a significant step in strengthening the legal and governance framework of Dubai’s contracting sector and aligns with the emirate’s long-term development vision.

The law establishes a unified system for contractor classification, oversight, and accountability, ensuring alignment with existing building codes and planning regulations.

A key feature of the legislation is the formation of the Contracting Activities Regulation and Development Committee. Created by a decision of the Chairman of The Executive Council of Dubai, the committee will be chaired by a representative from Dubai Municipality and include members from relevant government entities. It will be responsible for approving contracting activities, assigning supervisory roles, proposing new policies, resolving regulatory disputes, and coordinating efforts between the public and private sectors. The committee will also adopt a code of ethics for the industry.

The law applies to all contractors operating in Dubai, including those in free zones such as the Dubai International Financial Centre, but excludes airport-related activities and any others exempted by executive decision.

Dubai Municipality will oversee the implementation of an electronic platform integrated with ‘Invest in Dubai’. It will serve as the central registry for contractors, manage classifications, and issue competency certifications.

Violations may result in fines ranging from $272 to $27,230, with higher penalties for repeat offenses. Existing contractors have one year to comply, with a possible one-year extension subject to committee approval. The law will come into effect six months after its publication in the Official Gazette.