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Construction licence in Dubai under Law 7

DET issues the trade licence, and since January 2026 Dubai Municipality also registers and classifies each contractor before it takes on work.

Site engineer in a hard hat and safety vest checking her clipboard at a construction project
Usual route
Mainland (DET)
Extra approval
DM register
Timeline
Weeks to months
AML
Not a DNFBP activity
At a glance

A construction company in Dubai holds a DET trade licence and, since 8 January 2026, a place on the Dubai Municipality contractor register under Law 7 of 2025. Classification sets the work it may take, and engineers and technicians need competency certificates. The law covers free zones too, and contractors already trading have until about 8 January 2027 to regularise.

Covers
Civil and building works, within your classification
Not covered
Design and supervision (an engineering consultancy office)
Premises
A real office; the register checks your capability
Timeline
Weeks to months, led by registration and staff certificates

What a building contracting licence covers

The activity covers the works you build and invoice for, inside the limits your classification sets.

Covered

Not covered

Law 7 of 2025 requires contractors to stay independent of engineering consultancy offices, which a separate 2025 law regulates.

Where a contractor should be licensed

Building happens on site, so the usual base is a DET licence. The register follows you either way, because Law 7 covers free zones too.

Likely route by where most of your clients are
If most of your clients areLikely routeWhy
Private owners and developers across DubaiMainland (DET)Mainland sites and clients sit naturally on a DET licence
Projects in free zones and on the mainlandEither routeA free zone contractor reaches mainland sites through a DET branch
Main contractors, with you as a subcontractorEither routeEvery party in the chain needs its own registration

Executive Council Resolution 11 of 2025 lets a free zone company work on mainland projects through a DET branch licence or permit. Mainland income can change how the company's profits qualify under QFZP.

Several free zones license this activity; we match the zone to your visas, office and banking. Compare free zones

Who signs off a contractor

DET issues the trade licence, and Dubai Municipality then registers and classifies the company on the unified contractor register. Engineers and technicians need competency certificates, while project permits and subcontract approvals follow job by job.

  1. Before the licence

    • Trade name and initial approvalDET
  2. The licence

    • Trade licenceDET
  3. After the licence

    • Contractor registration and classificationDubai Municipality
    • Staff competency certificatesDubai Municipality
    • Permits for each projectDubai Municipality or the area authority
    • Subcontract approvalsThe regulator, with client consent
    • Corporate bank accountThe bank
    • Work permits and labour accommodationMOHRE

We build the classification file while the licence is being issued.

Licence and register run side by side

The licence comes quickly, but the register sets the real start date, because classification decides which jobs the company may take.

Contractors already trading must regularise by about 8 January 2027, a date the committee can extend.

Trade licence (DET)

  1. Trade name and approvalDays
  2. Licence issuedDays

Contractor register (Dubai Municipality)

  1. Registration on the registerWeeks
  2. Classification by capabilityWeeks
  3. Staff competency certificatesWeeks

How banks read a contracting company

Bank viewCloser look: contracts, payroll and subcontract chains

A contracting company draws a closer look at account opening. The bank wants to see signed contracts or awarded tenders, a payroll that fits the site team, and how money moves down the subcontract chain. Large incoming payments with no contract behind them raise questions at review. We put the contracts, the register status and the staffing plan into the bank file together, so the account reads like the business it serves.

AMLNot a DNFBP activity; the bank's own customer checks still apply.

Where contracting setups stall

  1. Treating the register as a later step

    Founders often finish the trade licence and only then look at Dubai Municipality registration. Project owners must appoint registered contractors, so a licensed but unregistered company cannot sign its first job.

  2. A classification file that undersells the team

    Classification rests on financial, technical and administrative capability and on experience. A file that leaves out the team's certificates or the balance sheet caps the jobs the company may bid for.

  3. Design and build under one roof

    Engineers who start a firm often want to design and build. Contractors must stay independent of engineering consultancy offices, so the design side needs its own structure and its own licensing.

Questions about a construction contracting licence

A question about your plan? Describe your construction contracting plan and an advisor replies on WhatsApp.

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Can a free zone company do construction work in Dubai?

Yes, with two conditions. Law 7 of 2025 covers free zones, so the company still registers with Dubai Municipality and works within its classification. For mainland projects it also needs a DET branch licence or permit under Executive Council Resolution 11 of 2025, and mainland income can affect its QFZP tax position.

Do I need Dubai Municipality classification to start a construction company?

Yes. Since 8 January 2026, contractors in Dubai register on the Dubai Municipality contractor register and work only inside their classification. The trade licence comes first and registration follows it. Classification looks at financial, technical and administrative capability and experience, so the team and accounts you start with shape what you can bid for.

What is the Dubai contractor register under Law 7 of 2025?

A single electronic register, run by Dubai Municipality and linked to the Invest in Dubai platform, that records and classifies contractors across the emirate. It has applied since 8 January 2026, and contractors already operating have until about 8 January 2027 to regularise, a date the committee can extend.

Can a construction company also be an engineering consultancy in Dubai?

No. Law 7 of 2025 requires contractors to stay independent of engineering consultancy offices, and those offices are regulated separately under Law 14 of 2025. A founder who wants to offer design as well needs the structure settled before either licence is applied for, since the two roles sit with different firms.

How long does it take to open a construction company in Dubai?

Weeks to months in most cases, and the DET licence is the quick part. Registration and classification with Dubai Municipality, plus competency certificates for technical staff, set the real pace, and permits then follow project by project. The team you hire first shapes the timeline more than the licence does.

Plan the contractor register alongside the licence before the first tender lands

Thirty minutes with a senior advisor on the works you plan to take and the team behind them. You leave with the activity wording, the route and the order of the DET and Dubai Municipality steps.

On the call

  1. The activity wording that fits your plan
  2. The route, and the approvals in order
  3. A written scope, agreed before any work starts
Portrait of your advisor
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