Dubai Tightens Control on Construction Standards

A New Era in Dubai's Construction Sector – Stricter Regulations and Unified System Implemented

Dubai has taken another step towards increasing transparency and professional standards: the 2025/7 law, which comprehensively regulates the emirate's construction sector, has come into effect. The new legislation aims to unify standards, provide a clear framework for contractor classification, and strengthen oversight in a continuously expanding, significant industry.

What does the new regulation entail?

The law applies to all contractors, including those operating in special development zones or free zones, such as the Dubai International Financial Centre (DIFC). Exceptions may be granted to certain projects, such as airport-related infrastructure, exempting them from the regulation, based on committee recommendations.

The legislation stipulates that contractors may operate only within their own technical and financial capacities, and subcontractor involvement is allowed only with prior approval. Additionally, adherence to all related legislation is mandatory, and activities must align with the approved classification level.

New committee oversees sector operations

As part of the law, the Regulatory and Development Committee for Construction Activities will be established, led by a representative from the Dubai Municipality and including several government bodies. The committee's responsibilities include:

approving construction permits,

appointing supervisory bodies,

resolving possible jurisdictional disputes,

and adopting the sector's code of ethics.

Furthermore, it maintains active communication with public and private stakeholders and evaluates incoming professional recommendations.

Electronic registry and professional certifications

The Dubai Municipality is tasked with creating a comprehensive electronic registry system that covers all construction activities and will be integrated with the 'Invest in Dubai' platform. This will serve as the official database for all contractors.

Additionally, the office is required to:

develop the sector's code of conduct,

categorize contractors based on disciplines (e.g., construction, demolition, structural engineering),

and issue professional competency certificates for technical personnel.

Sanctions and compliance obligations

Violating the regulations will lead to severe consequences:

fines ranging from 1,000 to 100,000 dirhams, or up to 200,000 dirhams for repeated offenses,

suspension of activity: the affected company may be barred for up to one year,

downgrading of classification,

registration cancellation and withdrawal of commercial licenses,

suspension or revocation of technical personnel certifications.

Currently operating construction companies have one year to comply with the new regulations. The deadline may be extended by one year if necessary by the committee.

Updated evaluation system from 2026

Following the introduction of the new law, the Dubai Municipality also announced a significant update to the 'Contractors and Engineering Offices Evaluation System,' which will come into effect in early 2026. The new system introduces more precise performance indicators and ethical criteria aimed at ensuring safer and more efficient constructions.

The stricter approach is already having effects: two engineering consultancy firms have been suspended for six months for violating standards and ethical guidelines.

Summary

Dubai's new construction law is a significant milestone in the city’s urban development. The regulation not only enhances the transparency and professionalism of the sector but also promotes the spread of sustainable and safe building practices. The modern electronic registry, the system of professional certifications, and the code of ethics all serve to ensure that Dubai continues to provide an exemplary construction environment on a global scale.

(Source of the article: Dubai Media Office release.)