Law No. 7 of 2025
Dubai Municipality
HIGH RISK
Construction setup 2026
Construction company setup in Dubai
A trade licence is half of it. Your Dubai Municipality grade decides which projects you can win.
- DET licence plus Dubai Municipality
- DM grade caps your project size
- A qualified engineer per activity
- 100% foreign ownership
15+ years10,000+ engagements4.8 Google, 163+ reviewsISO certified
Contracting, licensed
What does construction setup involve?
A construction company in Dubai needs a DET trade license for a contracting activity, plus a Dubai Municipality classification that grades the size and height of project you can take.
A license alone does not let you bid; the classification does.
From 8 January 2026, both sit under one unified contractor register under Dubai Law No. 7 of 2025.
DET + DMTwo authorities license you
GradeCaps the projects you can win
100%Foreign ownership, most activities
First fork
Contractor or engineering consultant, which license?
Two separate licenses. A contractor builds; a consultant designs and supervises. Under Law No. 14 of 2025, one firm cannot do both on a job.
| Factor | Contractor | Eng. consultant |
|---|---|---|
| What you do | Build the works | Design and supervise |
| License type | Contracting | Professional |
| DM classification | Contractor grade | Engineer grade + SOE |
| Ownership | 100% most | Professional, LSA case |
| Key staff | Engineer + laborers | Registered engineers |
| Same project | One role only | Cannot also contract |
The mechanic that decides your projects
How contractor classification works in Dubai
Dubai Municipality grades every contractor by the scale of building it can take on.
Your category is a ceiling, not a label
Dubai Municipality grades contractors by building height and project scale. The entry point is G+1, ground plus one floor. The top is the Unlimited category. Foreign-company branches must apply for the Unlimited category.
New companies start at the bottom
You begin at the lowest category and move up by proving completed projects, registering more senior engineers, the top tier expects 10-plus years of UAE experience, and showing the financial capacity DM asks for at each step.
The wrong category caps revenue or voids a bid
Bidding above your category gets you disqualified, and under Law No. 7 of 2025 exceeding your classification limits is a penalised violation. Under-classifying is quieter but costs you.
G+1
Entry category, up to two storeys, rising to Unlimited for any height
What changed in 2026
The unified Dubai contractor register
From 8 January 2026, Dubai Law No. 7 of 2025 puts every contractor on one Dubai Municipality register.
Law No. 14 of 2025
Dubai Municipality
HIGH RISK
Federal Decree-Law 25 of 2025
UAE Federal
MEDIUM RISK
Choose your activity
Construction license types in Dubai
Dubai issues contracting licences by activity, and the one you pick sets your classification path and approvals.
Confirm my activity
Building Contracting
Villas, warehouses and buildings up to your classification grade.
- Best for
- General contractors building structures.
- Key consideration
- Grade caps the building height you can take on.
Civil Works
Roads, drainage, sewerage and infrastructure works.
- Best for
- Infrastructure and government-project contractors.
- Key consideration
- Often needs civil engineers and a project portfolio.
MEP / Electromechanical
Mechanical, electrical, plumbing, HVAC and fire systems.
- Best for
- Specialist electromechanical contractors.
- Key consideration
- A specialist classification, separate from building.
Demolition & Landscaping
Controlled demolition and outdoor and landscape works.
- Best for
- Specialist trade contractors.
- Key consideration
- Demolition carries added safety approvals.
Building Maintenance
Repair, upkeep and technical maintenance of properties.
- Best for
- Maintenance and technical-services firms.
- Key consideration
- A lighter grade than main contracting.
- Activity sets your grade path
- DM classification required
- One engineer per activity
- Government tenders need mainland
Not sure which activity fits?
Tell us what you build and we will confirm the contracting activity, the classification path and any approvals it triggers.
Which is right for you
Mainland or free zone?
For most contractors, mainland: government and most private projects need a mainland licence and DM classification.
Best for contractors
MainlandDET plus DM
Free zoneZone authority
Foreign ownershipWho holds the shares
100% on most activities
100%, always
Government tendersDubai Tenders Portal
Eligible to bid
Needs a mainland structure
Mainland projectsWork across Dubai
Direct, no restriction
Limited without a branch
DM classificationUnder Law 7 of 2025
Via the unified register
Also via the register now
OfficePresence requirement
Ejari office or warehouse
Flexi-desk options
Visa capacityResidence visas
Scales with premises
Capped by package
Entry costTypical first year
Higher
Often lower to start
Best for
Contractors bidding on Dubai government or private mainland projects.
Engineering consultancy, design and turnkey work aimed at export or specific developments.
The honest verdict
If you build on mainland projects or bid for government work, mainland is the route. Free zones suit consultancy, design and turnkey-export work.
Straight answers
What construction actually requires
The load-bearing requirements founders miss until a project stalls.
Myth
Construction needs a 51% local partner
Reality
100% foreign ownership on most contracting activities since 2021, under Federal Decree-Law No. 32 of 2021. Check the positive list.
Myth
A trade license lets me start building
Reality
No. You also need Dubai Municipality classification, and each project needs its own building permit before work starts.
Myth
Any engineer on the license counts
Reality
At least one qualified engineer per activity, DM-registered and a member of the UAE Society of Engineers, is mandatory.
Myth
Insurance is optional at the start
Reality
Contractor's All Risk applies, and the Civil Code holds you liable for structural defects through decennial liability.
Myth
A consultancy can also be the contractor
Reality
Not on the same project. Law No. 14 of 2025 adds a conflict-of-interest bar between consulting and contracting.
Myth
A free zone contractor is tax free
Reality
Qualifying income only. Corporate tax of 9% above AED 375,000 applies to most contractors, and building work is not VAT zero-rated.
Real ranges
How much does it cost to set up a construction company in Dubai?
Basic contracting licensing starts around AED 25,000 to 30,000; a classified contractor runs higher. 2026 planning ranges.
Entry category (G+1)
Entry-grade contractor
Basic license plus the lowest classification, a small office, minimal visas. The cheapest way in.
DET contracting license
G+1 classification
One engineer on file
Working contractor
Mid-grade contractor
Classification for larger projects, engineer registered, warehouse or office, insurance and team visas.
Higher DM classification
Warehouse or office lease
CAR insurance and visas
Unlimited category
High-grade contractor
Top classification for high-rise and infrastructure, multiple senior engineers, larger financials.
Unlimited classification
Multiple senior engineers
Larger financial capacity
Not sure which grade is genuinely worth targeting?
Tell us the projects you want and we return an itemized quote by grade, renewal included.
Government fees (trade name and initial approval, the contracting license, DM classification) are separate from your office or warehouse, the engineer, insurance, and visas, and from our service fee. A low headline that leaves out classification, an engineer or insurance is not cheaper, it is incomplete.
The process
How to set up a construction company in Dubai
An unclassified trade license takes about two weeks. A classified contractor takes 6 to 12 weeks: classification follows the license.
- Critical stage
Confirm activity and target grade
Pick the contracting activity and the classification grade your projects need.
Reserve trade name and initial approval
Submit name options that follow UAE naming rules and match your activity.
Register the entity and premises
Set up the LLC or branch and sign the Ejari office or warehouse lease.
Issue the DET contracting license
Submit the MOA and documents, pay the fees, receive the trade license.
- Critical stage
Classify with Dubai Municipality
Register your engineer, then get the DM classification that sets your grade.
Register on the contractor register
Complete registration under Law No. 7 of 2025 on the Invest in Dubai platform.
Open a corporate bank account
Prepare the file and open the account once the license is issued.
- Critical stage
Establishment card and visas
Get the establishment card, then process investor and staff visas.
What you bring
Documents for a construction licence
For a construction license file6 items
- Passport copies of the shareholders and the manager
- Trade name options and your chosen contracting activity
- MOA for an LLC, or parent-company documents for a branch
- Ejari office or warehouse tenancy agreement
- Your engineer's degree, experience and Society of Engineers registration
- Attested foreign documents where a shareholder or parent is overseas
Construction setup, handled in sequence
Classification, engineer registration and site approvals all have to line up in order. We run the full sequence.
Right setup strategy
We match your structure, license and target grade to the projects you want.
Approvals in order
License, then classification, then the unified register, sequenced so nothing stalls.
Engineer registration
We handle the DM and Society of Engineers registration your grade depends on.
End to end
From license to your first project approval, one desk owns the sequence.
- Since 2009Filing mainland setups in Dubai
- 15+ yrsOn the Dubai mainland
- 10,000+Client engagements
- 50+Industries served
Get a fixed quote for your construction setupTell us your activity, target grade and premises for an itemized figure.
Get a fixed quoteReal results from our clients
What our clients say about working with us
Real Google reviews from founders we have set up and kept compliant on the Dubai mainland.
A
Abdul Sami3 months ago
Thank you to the team for supporting us with our company setup. Our case was not straightforward, especially the bank account opening, but they stayed committed and got it done.
P
Paolo Chua8 months ago
I had a great experience opening a corporate bank account. The process was smooth and efficient. The staff were friendly, professional, and explained everything clearly.
A
Amy Elliott Dunne4 months ago
The accounting and bookkeeping service has been exceptional. Attention to detail is impressive, and communication is always clear. Tasks are handled promptly.
R
Rashed Al Falasi5 months ago
They confirmed our activity grouping before filing and flagged an issue the bank would have raised. Licensed in under two weeks with no surprises on the invoice.
M
Marwa Khalil2 months ago
We came for a mainland LLC and stayed for renewals and PRO work. The same team answers the phone after the license is issued, which is rare here.
FAQ
Frequently asked questions
Get your construction setup quote
Tell us your contracting activity and your target grade. We confirm the license route, the classification path, and an itemized quote with renewal included. No obligation.
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