Construction business in Dubai, UAE: 2022 guide

Construction business in Dubai, UAE

Dubai is one of the fastest-growing cities on the planet. Home to the world’s tallest building, it boasts a world-class infrastructure. Thanks to its growing population and economy, the skyline constantly evolves with new buildings.

The construction industry is one of the strongest market sectors in the Middle East and is set to increase. There is no better time to start a construction business in Dubai.

If you’re wondering how to start a construction company in Dubai, dive right into this article:

  • Construction business in Dubai – the benefits explained
  • Approvals required to start a construction business in Dubai
  • Steps to start a construction business in Dubai
  • Cost of starting a construction business in Dubai
  • Working with Trade License Zone

Construction business in Dubai – the benefits explained

Dubai’s construction sector is one of the highest grossing business sectors in the Middle East. This emirate was transformed from a desert village into a thriving global city home to 3.5 million people with new commercial and residential buildings completed nearly daily. The government has invested heavily in modernization and expansion projects for Dubai to boost the travel and tourism sector, the commercial sector category, and development projects such as Dubai International Airport extensions.

Entrepreneurs and investors looking to start a construction company in Dubai, UAE, will be able to take advantage of this emirate’s lenient taxation laws and environment, high standard of living, business supportive policies and ecosystem, and streamlined business setup and visa regulations.

Approvals required to start a construction business in Dubai

Operating a construction company in Dubai requires several approvals before you can start building. These mandatory and numerous approvals from the Dubai authorities include:

  • A civil works permit
  • A building permit: a construction company must submit all design drawings of a proposed project to the relevant government authorities for approval
  • An environmental assessment and license must be obtained from the municipal and governmental agencies
  • The Drainage and Irrigation Department needs to approve plans and construction for all liquid waste management services
  • A Roads and Transport Authority permit is necessary for transportation purposes for construction vehicles to access roads
  • A hazardous waste removal permit from Dubai Municipality
  • The electricity authority and water permits must be obtained from the Dubai Electricity and Water Authority (DEWA) for these basic amenities
  • For advanced infrastructure, telecommunications permits from Etisalat must be obtained
  • A Building Completion Certificate must be received before a building can be occupied

Steps to start a construction business in Dubai

Dubai authorities require all business regulations maintained for business setup, structure, company naming, business activities, and other critical licenses. This section outlines the steps to start a construction business in Dubai.

Step 1: Partner with Trade License Zone

The first step in starting a construction venture in Dubai is to partner with Trade License Zone. Our experts will manage every aspect of your company’s license application, registration, and setup processes.

Step 2: Choose a company structure and location

The next most crucial step in establishing your construction business in the construction sector in Dubai is to choose a company structure that best suits your business opportunities, business operations, and business activities. The two main company structure types are Free Zone Companies and Mainland Companies. If you’re unsure which one is best for your construction company in Dubai, consult with Trade License Zone.

Mainland Companies can trade within the UAE. This type of company structure is limited in its ownership of foreign nationals as investors or entrepreneurs. A foreign national is permitted to hold 49% of a Mainland Company’s business shares, and a UAE local partner must own a 51% share of foreigner-owned Mainland Companies.

A Free Zone Company can be 100% owned by foreign nationals. You can choose from one of more than 40 special free zones in Dubai, each offering unique benefits and services for specific industries.

Step 3: Choose a company name

Trade License Zone will help you choose and register your construction company name with the UAE’s Registry Office. You can use your name in the company’s name, but you must use it in full instead of your surname or initials. The business name must adhere to the UAE’s naming policies, including that a business name cannot include any offensive or profane language, nor any references to Allah or Islam.

Step 4: Applying for a trade license

All business entities in Dubai must obtain a trade license to operate in the UAE legally. To apply for a Free Zone Company trade license as a construction company, you must apply through a relevant Free Zone. When you apply for a trade license for a Mainland Company structure, you need to apply through the Dubai Department of Economic Development (DED).

Step 5: Outline your business activities

The construction industry is divided into different sectors for specific business activities. Outlining those business activities means you can list all of them on your trade application. Failure to list all your business activities in your application may result in penalties if you perform unlisted business activities. It is best to partner with a business setup specialist such as Trade License Zone to ensure your license application and business activities are aligned.

Step 6: Applying for a building permit

Before you can begin trading as a construction company in Dubai, you need to get a building permit. For Mainland Companies, this license can be obtained from the relevant authorities such as Dubai Municipality. If you are operating as a Free Zone Company, you can apply for a G+1 permit for your construction company. Contact Trade License Zone to help you obtain these necessary approvals for your trade license.

Step 7: Applying for your corporate bank account and visas

Once you’ve submitted your license application for your construction business in Dubai, you can apply for your visa and open your company’s corporate bank account. Your visa may enable you to sponsor the visas of family and staff, depending on your construction business trade license. Contact Trade License Zone’s expert team to help you with this critical step.

Cost of starting a construction business in Dubai

The cost of starting a construction business in Dubai starts from AED 15,000 to AED 50,000.

It isn’t a straightforward process to calculate the exact cost of starting a construction business and its licenses. This process depends on the location, business activities, company structure, office rent, and more. Construction companies in Dubai can choose from different business activities, and each different activity carries extra costs. Applying for the various approvals and licenses required to engage in building projects and construction sites varies according to the type of construction projects. You will also be required to rent office space, with prices ranging from free zone to free zone (or Mainland Company sites).

If you’d like an accurate quote, contact Trade License Zone’s dedicated team.

Working with Trade License Zone

Business setup in the UAE is simple – when you have partnered with a team of specialist business consultants such as Trade License Zone, that is. To apply for a trade license full fledged construction company in Dubai can be tricky. When you partner with Trade License Zone, we will save you from unnecessary delays or rejections and streamline the entire process.

To get started, simply send our experts at Trade License Zone your basic documentation and a little information about the nature of your company and business activities. Then, please sit back and let our team take care of the rest. It really is that simple.

Contact us to get a personalized quotation based on your business activity