In a move aligned with Dubai’s vision to modernize vital sectors and adopt global best practices, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, has issued Law No. (7) of 2025. The law regulates the practice of contracting activities across the emirate and aims to strengthen governance and legal frameworks in the sector.
Clear Classification and Oversight
The law introduces a comprehensive framework for classifying contractors based on their technical, financial, and administrative capabilities. It promotes transparency, improves coordination among relevant authorities, and supports Dubai’s long-term urban development goals.
A permanent committee, chaired by a Dubai Municipality representative, will oversee contractor activity approvals. It will assign responsibilities to relevant entities and propose policies and ethical practices for the sector.
Applies to All Contractors in Dubai
The law applies to all contractors operating in Dubai, including those in free zones and special development areas. However, activities related to airports and key infrastructure are excluded. Dubai Municipality will also create a unified digital registry, integrated with the “Invest in Dubai” platform. The registry will track contractor data and technical qualifications.
Strict Compliance and Penalties
Contractors must avoid projects beyond their capacity and adhere to classification terms. Forming contractor alliances is allowed, but only under specific conditions.
Violations of the law can lead to financial penalties of up to AED 200,000, suspension from operations, or removal from the registry. Existing contractors must align with the new regulations within one year, with possible extensions based on committee approval.