How to start construction business in Dubai?

September 14, 2023

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Unlike other emirates, government of Dubai took a major decision by showing less reliability on oil and petroleum due to lower oil reserves in the state. This decision proved to be a blessing in disguise for Dubai as they shifted their focus on development on other sectors such as trade of high end commodities, real-estate, tourism, transport, hospitality and many more. Resultantly, the overall business environment backed by investor friendly policies, excellent infrastructure as well as political stability in the state lead Dubai in becoming a business leader in terms of foreign direct investment and job opportunities.

Rise in Construction Sector of UAE

The factor which significantly gave rise to construction business in Dubai is the increase in number of foreign investors. Entrepreneurs from around the world are coming to Dubai for business opportunities and are seeking residency in Dubai for this purpose. This has led to a sharp increase in construction sector considering the value of properties for this purpose is very high.

Business Opportunities in Construction Sector Of UAE

Construction business is one of the most thriving business sectors in UAE. There is a race in GCC Region for skyscrapers and Dubai is clearly ahead of all. The city is home to world’s highest building i.e. Burj al Khalifa. World’s tallest residential building i.e. Marina 101 is also located in Dubai. Along with these, Princess tower and Burj al Arab are also notable structures.

For the upgrading of transport infrastructure, UAE has undertaken USD 7.8 billion project of expansion of Dubai International Airport and redevelopment of Abu Dhabi international Airport; a project worth of USD 6.8 billion.

For promotion of tourism industry, government of UAE is undertaking unique initiatives like creation of man-made artificial islands such as Palm Jumeirah. Other projects are also under progress namely Palm Jebel Ali, Deira Island, Maritime City and many others.

Whether you undertake real estate for residential or commercial purpose, formation of a construction company in Dubai is one of the most profitable sectors these days. Keep in mind that Dubai will host much talked about World Expo 2020 which is approaching fast. Consequently, number of construction projects in Dubai is growing day by day.

Our company formation agents at KWSME can greatly guide you about opportunities in construction sector and how to setup Construction Company in UAE.

Formation of Construction Company in UAE

If you are looking to start construction business in UAE, you must first decide whether you want to form Mainland Company or Free Zone Company. Formation of Mainland Company will require you to have local partner who will also own 51% of your company shares. Formation of Free Zone Company will grant you complete ownership. For better understanding of difference and benefits of these company formation types, read here.

No matter what kind company you want to establish, you must take into account the provisions of building law in UAE which was amended in 2013.

Contracting and Construction License in UAE

Our experts at KWSME can assist you with company registration process, which involves preparation of application form and necessary documents and filing them with the Department of Economic Development (DED) in UAE.

You must obtain commercial license which gives you official permission to start formation of your company in Dubai. After obtaining this license, you require building permit which will allow you to start construction activities. You need specialists such as engineers or consultants who can apply on your behalf in order to get building permit. After that, it will be the responsibility of the consultant to evaluate soil of construction site and determine its properties.

Other license include building license which is issued by Dubai Municipality or in case of Free Zone Company, it is called G+1 permit. Furthermore, construction companies must also obtain environmental license and civil work permit.

Special Approval Required From Government Authorities

After obtaining the above mentioned license, Construction Company in Dubai is required to acquire special approvals from following government authorities,

  • Dubai water and Electricity Authority: Clearance from this department is must as it will provide basic amenity to occupants
  • Drainage and Irrigation Department: It deals with liquid waste management and other disposable services.
  • Building Department and Dubai Civil Defense Authority: Both institutions will keep check whether construction company adheres to construction norms or not.

For complete information on how to setup Construction Company in UAE, contact our business representatives at KWSME. We provide complete company formation services for new business setups in Dubai and across UAE. Visit our website today.

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