Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum has issued Law No. 7 of 2025 to regulate the emirate’s contracting sector. The law aims to standardize practices by categorizing contractors based on their skills and qualifications. It sets clear registration requirements and mandates that contractors operate within their approved classification, avoid unauthorized subcontracting, and not exceed their financial or technical limits.The action aims to improve the sector's alignment with Dubai's swift urban and economic development, increase transparency, and expedite collaboration amongst pertinent authorities.
A key part of the new law is the creation of the Contracting Activities Regulation and Development Committee, led by a Dubai Municipality representative. The committee will oversee contract approvals, assign supervisory authorities, resolve jurisdictional disputes, and ensure the law's implementation. It will also develop a sector-wide code of ethics and work with public and private stakeholders.
The legislation is applicable to all contractors in Dubai, including those who work in free zones and special development zones like the Dubai International Financial Centre (DIFC).
Violators face fines from Dh1,000 to Dh100,000, rising to Dh200,000 for repeat offenses within a year. Additional penalties include a one-year contracting ban, downgrade in classification, removal from the contractor registry, license revocation, and sanctions against technical staff, such as certificate suspension or deregistration.
The updated system, which is scheduled to go into force in early 2026, adds more specific performance standards and evaluation criteria, supporting ethical and professional standards and guaranteeing safer, more effective building projects.
