𝐖𝐡𝐚𝐭 𝐭𝐡𝐞 𝐋𝐚𝐰 𝐃𝐨𝐞𝐬
Issued under the leadership of
HH Sheikh Mohammed bin Rashid Al Maktoum, this law introduces:
- A 𝐮𝐧𝐢𝐟𝐢𝐞𝐝 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐨𝐫 𝐫𝐞𝐠𝐢𝐬𝐭𝐫𝐲 managed
by Dubai Municipality and linked to the Invest in Dubai platform.
- A professional classification system
based on financial, technical, and administrative capacity.
- Mandatory competency certification
for engineers and technicians.
- A binding code of conduct governing
safety, ethics, and subcontracting.
- A new oversight committee to
monitor compliance and resolve disputes.
🧭 Who It Affects
This law applies to all
contractors operating in Dubai, including those in free zones.
Exemptions are rare and subject to Executive Council approval (e.g.,
airport-related activities).
Why It Matters
For Gulf facilitators,
ESG-aligned investors, and regional franchise builders, this law offers:
|
Strategic Benefit |
Description |
|
Investor Confidence |
Transparent classification and licensing reduce risk. |
|
Operational Clarity |
Defined standards simplify
onboarding and compliance. |
|
Scalability |
Registered contractors gain
faster access to approvals and funding. |
|
Risk Mitigation |
Unlicensed or non-compliant
operators face penalties and exclusion. |
🔍 What You Should Do
If you're advising
contractors, onboarding franchisees, or structuring JV deals in Dubai:
- Verify registry status
before engagement.
- Update onboarding sheets
to reflect new compliance requirements.
- Educate partners
on certification and classification thresholds.
- Avoid delays—non-compliance
now carries reputational and financial risk.
Penalties for Violations
The law imposes strict
penalties for non-compliance. Fines can range from AED 1,000 to AED 100,000 for
a first offense. For repeat violations within one year, fines can be doubled up
to a maximum of AED 200,000.
More severe violations could
lead to:
- Suspension
from contracting activities for up to one year.
- Downgrading
of a contractor's classification.
- Removal
from the official registry.
- Cancellation
of commercial licenses.
- Suspension
or de-registration of technical staff.
This law is a wake-up call for legacy operators and a green light for disciplined builders.
Let’s raise the
bar—professionally, ethically, and operationally.
#DubaiLaw7of2025 #ContractingReform #ESGCompliance #OperationalExcellence
#LegacyBuilding
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