Dubai is known for its booming construction industry and has become a global hub for ambitious entrepreneurs looking to tap into this lucrative market. With its impressive skyline and iconic structures, the city offers endless opportunities for construction business in Dubai.
In fact, Dubai continues to rank second in terms of construction. From iconic skyscrapers like the Burj Khalifa to ambitious infrastructure projects like Expo 2020, Dubai’s construction sector shows no signs of slowing down.
The government of Dubai has authorised USD 6.8 billion for the redevelopment of the Abu Dhabi International Airport and USD 7.8 billion for the expansion of the Dubai International Airport.
So, if you’re planning to start a construction company in the UAE know that the construction industry is being continuously supported by investments in tourism.
Why Choose Dubai for starting a business?
The most appealing location in Dubai features a variety of eye-catching landmarks, lovely beaches, and sky-scraping infrastructure. Due to its excellent infrastructure, diverse population, high GDP, high standard of living, tax-free environment, and adaptable business opportunities, Dubai attracts both tourists and business travellers.
Due to these factors, Dubai is among the top locations in the world for starting a business.
The construction business in Dubai, UAE is one of the highest-grossing industries. The Burj-al-Khalifa, the world’s tallest building, as well as Marina 101, the tallest residential structure in the world, are both located in Dubai. The Princess Tower and Burj-al-Arab are two more of Dubai’s most recognisable buildings.
How to Start a Construction Company in Dubai, UAE
Starting a construction company in the United Arab Emirates (UAE) involves several steps, from business planning to registration and compliance. Here’s a step-by-step guide to help you get started:
Step 1: Choose the right legal form for your business
To setup a construction company in Dubai, mainland is the suitable option. Mainland companies are subject to UAE laws and regulations.
Step 2: Register the trade name & Get Construction License in Dubai
You can register your trade name with the Department of Economic Development (DED). The trade name must be unique and cannot be offensive. You also need to apply for initial approval from the DED. This involves submitting a completed application form along with other documents, such as a copy of your passport and a business plan.
The commercial sector category includes the construction industry, for which a commercial license is required. To launch any business in Dubai, you must have this license.
Step 3: Get additional government approval
In the case of the mainland company, additional activities include securing a building license from the Dubai Municipality. It is referred to as the G+1 permit. Other licenses, such as the environmental license and the civil work permit, must be obtained.
Step 4: Open a corporate bank account
Once you have obtained your construction license in Dubai, you can open a corporate bank account. This is necessary to receive payments from clients and to pay your suppliers.
Step 5: Building a Team
Recruit skilled professionals and laborers required for your projects. Provide training and ensure that your team is well-equipped to handle construction tasks efficiently and safely.
Step 6: Visa and Labor Requirements:
Secure sponsorship and residence visas for yourself and any foreign employees. Adhere to UAE labor laws, including hiring practices, wages, and working conditions.
However, it’s essential to note that the business setup process in Dubai might be complex journey involving legal and regulatory requirements. Therefore, we recommend consulting with legal and business experts experienced in the UAE market like Shuraa Business Setup to ensure your business’s success and compliance with UAE laws.
How do I get a construction company license in Dubai?
To set up a construction business in Dubai, numerous clearances, licenses, and approvals are needed. The registration for a construction license comes first on this list. The business entity can then hire engineers, site in-charge staff, and workers of various kinds after securing the permit. Another legal document needed before any construction activity can begin is a building license.
In order to lay the groundwork for a residential or commercial structure, the Dubai Municipality issued the license and G+1 permit.
In addition to clearances, the establishment of a construction company in the United Arab Emirates requires several specialised permits from the departments of civil works and the environment. Some of the required approvals requested by the Dubai authorities are discussed below.
- Drainage and irrigation department – This department is responsible for liquid waste management as well as other disposable services.
- Water and electricity department – confirmation that the occupants will have access to basic amenities.
- Building department and Dubai Civil Defence Authority – Both institutes are responsible for ensuring that construction standards are followed.
Different Dubai Construction License Types
There are a variety of construction license types in Dubai, each corresponding to a specific type of construction work. Some of the most common construction license types include:
- Building Contracting License: This license allows the company to undertake the construction of residential buildings, industrial properties, commercial construction, and office spaces.
- Wrecking & Demolition License: This license allows the company to carry out demolition work on buildings and other structures.
- Steel Constructions Contracting License: This license allows the company to construct steel structures, such as bridges, warehouses, and factories.
- Building Maintenance License: This license allows the company to carry out maintenance work on buildings, such as electrical repairs, plumbing repairs, and painting.
- Landscape Gardening License: This license allows the company to design and install landscaping features, such as gardens, lawns, and irrigation systems.
Cost of Starting a Construction Business in Dubai
The estimated cost of starting a construction business in Dubai varies depending on a number of factors, such as the size of the business, the type of construction work it will be undertaking, and the location of its premises.
However, the cost of obtaining the license generally starts from AED 25,500.
Business Opportunities for Construction Company in the UAE
The UAE construction industry is one of the largest and most vibrant in the world, with a wide range of business opportunities available for construction companies.
The government of Dubai is also undertaking many special development projects for the expansion of the tourism industry. Projects like man-made islands such as Palm Jumeirah and others like Deira Island, Maritime City have opened the doors for the advancement of the construction business in the Emirates.
For the development of transportation infrastructure, the UAE has initiated some projects with enormous investment plans. The expansion of Dubai International Airport and renovation of Abu Dhabi International Airport are some examples of major opportunities for construction companies in the region.
In addition to these general business opportunities, there are also a number of specific projects that construction companies can bid for in the UAE.
A construction company is a profitable avenue in Dubai irrespective of the type of building establishment business. Many such projects and opportunities are growing daily. If you successfully grab these opportunities, then a bright future is surely waiting for your building venture.
You can connect with the business experts at Shuraa, and we’ll help you complete all these steps with our 24X7 support and guidance.
Let Shuraa Assist You!
Nothing matches the feeling of owning a company in Dubai. It’s the best place to establish your dream construction company because of friendly laws and the presence of healthy competition. Moreover, opening a business in Dubai isn’t complicated when you take the help of Shuraa business setup.
Our legal advisors and consultants provide unmatched assistance in setting up your construction business in the UAE. Be it paperwork, rental space, or additional approvals – we get it done for you in a quick time.
Furthermore, we do all of that and more at nominal prices, always prioritising your budget. Call at +971 44081900 to connect with our experienced consultants. You can also send a WhatsApp message at +971 50 777 5554. For email assistance, you can write to us at [email protected].