Latest news with #LawNo.(7)of2025
Hi Dubai
2 days ago
- Business
- Hi Dubai
Mohammed bin Rashid Issues New Law to Regulate Dubai's Contracting Sector
His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued a new law to regulate contracting activities in Dubai, marking a major step towards enhancing governance, transparency, and oversight across the emirate's construction and development sector. Law No. (7) of 2025 introduces a unified regulatory framework that aligns with Dubai's planning regulations, building codes, and long-term growth strategies. It aims to promote sustainable development while ensuring accountability among contractors. A central feature of the law is the formation of the 'Contracting Activities Regulation and Development Committee,' chaired by a Dubai Municipality representative. The committee will oversee the sector's regulation, propose policies, resolve jurisdictional issues, and coordinate with stakeholders across public and private sectors. The law applies to all contractors in Dubai, including those in free zones like DIFC, except for certain exempted activities such as airport-related infrastructure. Dubai Municipality has been tasked with setting up an integrated electronic system linked to the 'Invest in Dubai' platform to manage contractor registration, classification, and compliance. Contractors must now adhere strictly to their approved capacity, avoid unauthorized subcontracting, and maintain professional competency standards. Penalties for violations include fines of up to AED200,000, license suspensions, and potential disqualification. Existing contractors are required to regularise their status within a year of the law's enactment, which will take effect six months after its publication in the Official Gazette. News Source: Emirates News Agency
Gulf Today
4 days ago
- Business
- Gulf Today
Sheikh Mohammed issues law regulating contracting activities in Dubai
His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No.(7) of 2025 regulating contracting activities in the Emirate of Dubai. The law, which represents a significant step forward in strengthening the legal and governance framework of the emirate's contracting sector, supports Dubai's vision to advance the development of vital industries in line with global best practices. The new law sets out a unified regulatory framework for contractor classification, oversight, transparency and accountability, supporting Dubai's goals for sustainable growth. It also aligns with the emirate's building codes, planning regulations, and long-term development strategy. A key provision of the law is the establishment of the 'Contracting Activities Regulation and Development Committee', which will be formed by a decision of the Chairman of The Executive Council of Dubai. The committee, chaired by a representative from Dubai Municipality, will include members from government authorities and entities concerned with contracting activities. The committee will be responsible for approving contracting activities in Dubai, identifying entities responsible for supervising each activity, overseeing the implementation of the law, proposing new policies and legislation for the sector, and resolving any jurisdictional disputes that may arise between regulatory entities. The committee will also adopt a code of ethics for the sector, coordinate with both public and private stakeholders, and review and act upon recommendations submitted by the authorities. The law applies to all contractors operating in Dubai, including those based in special development zones and free zones such as the Dubai International Financial Centre. Contracting activities related to airports and their associated infrastructure, as well as any other activities exempted by a decision from the Chairman of The Executive Council based on the committee's recommendation, are excluded from the scope of the law. Dubai Municipality has been assigned the responsibility of establishing, operating, and managing an integrated electronic system for all contracting activities in the emirate. This system will be linked to the 'Invest in Dubai' platform and serve as the central registry for contractors. Dubai Municipality is also tasked with preparing a code of conduct for the sector, classifying contractors engaged in construction, building, and demolition activities, and issuing professional competency certificates to technical personnel. The law outlines rules for contractor registration. Contractors must comply with all relevant legislation and operate within their approved classification and capacity. They are prohibited from exceeding their technical or financial limits or subcontracting without prior approval. Penalties for violating the provisions of the law or any related decisions include fines ranging from Dhs1,000 to Dhs100,000. Repeat violations within a year may result in doubled fines, up to a maximum of Dhs200,000. Additional actions may include suspension from contracting activities for up to one year, downgrading of classification, removal from the registry, cancellation of commercial licenses, and suspension or de-registration of technical staff and revocation of their professional certificates. All contractors operating in Dubai at the time the law comes into force are required to regularise their status within a year. This period may be extended by the Committee for another year if necessary. Contractors whose registration expires during this period will be allowed to renew it upon submitting a declaration pledging to comply with the law's provisions within the given timeframe. Any existing legislation that conflicts with this law will be annulled. The law will be effective six months after its publication in the Official Gazette. WAM
