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Construction License in Dubai

How To Get a Construction License in Dubai

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The UAE houses a rapidly expanding construction industry, projected to cross $50 billion in 2029. This makes it an ideal place for entrepreneurs to get a construction license in Dubai, or expand their business operations.

Business Activities Under Construction Company License

The following activities are permissible under a Dubai mainland license for a construction business:

  • Residential construction
  • Farm construction
  • Industrial construction
  • Commercial construction
  • Community building construction (schools, hospitals, public buildings)
  • Building adjusting
  • General maintenance
  • Interior decoration
  • Landscaping
  • Electrical fittings
  • Sanitary plumbing

How to Set Up a Construction Company in Dubai

How to Set Up a Construction Company in Dubai

Working with a business setup consultant is the best way to start a construction business in Dubai. A&A Associate can guide you through the entire process, making sure to support you with the paperwork and liaising with government officials.

1. Choose a Business Location

You can get a building construction license in a free zone or on the mainland. Generally, most businesses prefer to set up their facility on the mainland due to the ease of the expansion. Some location examples include Al Rega, Dubai Investment Park First, and Saih Shuaib 2.

2. Register a Trade Name

The next step is to register a business name. You can check the trade name database on the Department of Economy and Tourism (DET) to make sure that your name is unique.

3. Apply for a Construction License

The Dubai trade license application requires an external approval in the form of a No Objection Certificate (NOC) from the Dubai Municipality. The business setup consultants at A&A Associate can help you apply for the license and prepare all the necessary paperwork.

There are three types of trade licenses in the UAE: commercial, industrial, and professional. Generally, a construction license is considered to be a commercial license.

4. Open a Bank Account

Opening a corporate bank account is easier with the help of a business setup consultant. Our consultants maintain good relationships with multiple banking service providers and can guide you through the account opening process.

Cost For Construction License in Dubai

It costs approximately around AED 28,272 to get a construction license in the Dubai mainland. The price is broken down into the following expenses:

  • Trade name reservation: AED 736
  • Initial approval: AED 236
  • Ejari: AED 4,000
  • MoA & document submission: AED 500
  • NOC from Dubai Municipality: AED 800
  • Activity fees: AED 10,000
  • License fees (approx) : AED 12,000

“These are the general expenses associated with getting a construction license but the final cost will depend on the client’s visa requirements and office location. It’s important to consult a professional to get the most accurate estimate,” said Anjali Jose, a Senior Operations Executive at at A&A Associate.

Benefits of General Construction Licenses in Dubai

Foreign entrepreneurs and investors get multiple advantages from business setup in Dubai:

Government incentives

The government provides modern infrastructure for businesses of all sizes, along with a simpler business setup process.

Thriving business hub

Dubai is home to various business ventures across industry sectors.

Low taxes

There is no income tax or capital gains tax in the UAE. This makes getting a construction contractor license a lucrative opportunity.

International customer base

There is a large expat population in the country, exposing businesses to a diverse range of customers.

Get a Construction Business License With A&A Associate

A&A Associate’s business setup consultants streamline the company formation processing, handling everything from applying for a trade license to getting a bank account. We handle clients from every industry sector, across business size and jurisdiction. Book a free consultation today!

Frequently Asked Questions (FAQs )

To get a construction license in Dubai, you need to submit your application with the Department of Economy and Tourism (DET). A business setup consultant can help you get a trade license in Dubai.
A No Objection Certificate (NOC) from the Dubai Municipality, Ejari, personal ID documents of the owners and a Memorandum of Association (MoA) are required to get a general construction license in Dubai.
Construction business licenses are generally issued on the mainland. However, it is possible to register an office in a free zone if you already have a warehouse facility on the mainland.
You cannot sell a construction license in Dubai. Trade licenses cannot be sold, but you can sell the business associated with the license.
It costs AED 28,272 to start a construction company in Dubai. The price includes reserving a trade name, getting initial approval, getting an NOC, submitting documents, and paying the necessary fees.
Foreign business owners can have complete ownership of their company if they set up in a free zone. Recently, most mainland activities also allow for 100% ownership.

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Nithila Kumar
With over four years of writing experience, Nithila Ashok Kumar has established a strong expertise in the personal finance, tax, accounting, and business industries. Having worked with companies across the USA, UAE, and India, she specializes in simplifying complex information into content that informs and engages readers.

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