Setting up a UAE construction or contracting business requires specific licences. Here is the complete 2025 guide.
UAE Construction Sector Overview
UAE construction and real estate: AED 100B+ sector annually (driven by Expo 2020 legacy development, Dubai Urban Plan 2040, Abu Dhabi mega-projects, and RAK resort development). UAE construction regulatory bodies: Dubai: Dubai Municipality (DM) for building permits and structural approvals. Abu Dhabi: Abu Dhabi City Municipal Council (ADMC) or DM Abu Dhabi. UAE contractors register: each emirate maintains a contractors register. To bid on government construction projects: you must be registered on the relevant contractor register. Dubai Municipality Contractors Register: graded A-G (determines maximum project value you can bid for). Grade A contractors: unlimited project value (major developers). Grade G: up to AED 1M projects (small local contractors).
UAE Contractor Licence Steps
Step 1: choose the business structure. Mainland LLC (required for construction — most construction activities are on the restricted list for 100% foreign ownership). UAE national partner or GCC national required as shareholder or manager in some construction activities. Step 2: obtain the DED trade licence (construction, contracting, or specific trade activity). Step 3: Dubai Municipality contractor registration (required separately from DED licence). Step 4: build a technical team. A licensed UAE engineer (as technical manager) is required on the trade licence. The engineer must be registered with the relevant UAE engineers authority (UAE Society of Engineers or emirate-equivalent). Step 5: health and safety certification (required for larger projects — OSHAD in Abu Dhabi, Dubai Municipality in Dubai). Step 6: submit CV register and bid for contracts. Typical setup cost for a UAE contractor: AED 15,000-30,000 (DED licence + municipality registration).