Dubai, October 3, 2025
News Summary
Dubai has introduced Law No. 7 to create a unified system for contractor registration, classification and certification across the Emirate. The law requires contractors, subcontractors and joint ventures to operate within their registered scopes, employ minimum certified technical staff, and keep registrations and competency certificates current. Non-compliance can lead to fines up to AED 100,000 (doubling for repeat offences) and measures such as suspension or cancellation. The change coincides with a push toward integrated construction ERP platforms to centralise project data and compliance. Contractors are advised to begin registration, verify subcontractors and adopt digital systems.
Dubai issues Law No. 7/2025 as contractors face rapid digital shift
What happened: Dubai has issued Law No. 7/2025, creating a unified system for contractor registration and classification across the Emirate while the UAE construction sector is moving toward integrated digital (ERP) platforms. The new law sets registration, classification and certification rules for contractors, subcontractors and joint ventures and takes effect in January 2026. Contractors will have one year from the law’s effective date (i.e., until January 2027) to meet the new registration and classification requirements.
Key legal requirements and penalties
The law requires that contractors may only carry out permitted contracting activities in line with their registration and within the limits of their classification. Contractors must employ a minimum number of qualified and properly certified technical staff and must maintain compliance with the registration, classification and certification requirements throughout the duration of their projects. Contractors must keep registrations, classifications and certifications up-to-date and notify any changes affecting their status or that of their technical staff. The registration, classification and certification requirements apply to contractors, subcontractors and entities acting in joint ventures or consortiums.
Airport-related contracting activities are exempted from these requirements. Violations of the new law can result in fines of up to AED 100,000, with repeat offences potentially doubling penalties up to AED 200,000. Additional enforcement measures may include suspension from practice, downgrading of classification, cancellation of registration, and revocation of competency certificates. Designated officials under the law have judicial powers to inspect contractor premises and project sites. Contractors may be subject to investigation and enforcement action if found non-compliant.
Practical effects on contracts and project teams
Contractors are responsible for verifying that subcontractors they engage are also properly registered, certified, and classified for the relevant activities. The requirement to verify subcontractors’ registration/certification/classification also applies to parties participating in joint ventures or consortiums. Joint venture or consortium agreements should expressly require all parties to satisfy the registration, classification, and certification requirements and include remedies in the event of breach. Employers are likely to include contract provisions requiring ongoing compliance and entitling the employer to specific remedies for non-compliance, which may extend to serious measures such as contract termination and step-in rights.
During the transitional period contractors are advised to begin the registration/classification process and prepare internally. Contractors are advised to ensure their teams are trained to use the registration system and to maintain records of compliance checks as part of due diligence. Contractors are advised to review ongoing and upcoming projects to confirm that all engaged parties are in the process of being registered and classified to avoid disruptions and penalties under the new law.
Why the law matters now
At the same time this regulatory upgrade is coming into force, the construction industry in the UAE is undergoing a technological shift. For decades the industry relied on a patchwork of tools: spreadsheets for budgets, paper logs for materials, separate software for payroll, and email chains for communication. That fragmented approach worked historically, until projects grew larger, profit margins tightened, and regulations became stricter. A fundamental shift is underway: construction companies, including general and specialty contractors, are increasingly turning to integrated digital platforms (ERP software for construction in UAE).
Advocates of the digital move stress that the shift to digital platforms is not about replacing workers with robots but about giving workers the right tools to succeed. The stated goal of adopting digital platforms is sustainable efficiency and moving from reactive problem-solving to proactive, data-driven management. The aim is to create a single, reliable source of truth for the entire project lifecycle, a central nervous system that connects every department and process.
Concrete operational examples are already in play: when a project manager logs a delay, the finance team can immediately see projected cost impact; when a warehouse clerk scans a delivery, purchasing knows the budget has been adjusted. Information flowing freely enables decisions to be made with confidence. The opinion from industry contributors is that firms that embrace integrated digital management report cost savings, improved team morale, faster project delivery, and stronger client relationships built on transparency and reliability. The transition is framed as a pragmatic response to market pressures aimed at sustainable growth, not merely survival.
What to watch for in digital solutions
Not every digital tool is created equal. Generic accounting or project management software often fails for construction because it does not understand construction-specific concepts such as Bill of Quantities (BOQ), Work Breakdown Structures (WBS), or phased revenue recognition. A platform designed for construction should “speak its language” and follow its complex rules. Operating in the Emirates requires more than translating an interface into Arabic; it requires understanding UAE VAT, labour laws, Wage Protection System (WPS) compliance, and local business culture. A solution developed with or deeply adapted to the UAE market removes friction and ensures seamless compliance from day one.
Context and miscellany found in the source material
The source material included a guest opinion that described downtown Dubai as surrounded by ambition made of concrete and steel and compared managing a single construction project in the UAE to conducting a symphony where the sheet music is constantly changing. The guest opinion included calls to action shown as REGISTER! MORE INFO HERE! and argued that understanding what digital solutions are available is the first step toward building a more resilient, efficient, and profitable future.
In addition, the content contained technical web page elements that were part of the original material. The CheckMultiple21 function loops through form elements (for var i=0; i < frm.length; i++) and for each element checks if the element has an id and whether that id contains the substring given by the parameter name; if a matching element is found and is checked, the function returns true; if no matching checked element is found, it returns false. The CheckForm21 function contains an email validation using the following regex pattern: /[a-z0-9!#$%&’*+/=?^_`{|}~-]+(?:.[a-z0-9!#$%&’*+/=?^_`{|}~-]+)*@(?:[a-z0-9](?:[a-z0-9-]*[a-z0-9])?.)+[a-z0-9](?:[a-z0-9-]*[a-z0-9])?/i. In CheckForm21, if the email does not match the regex, the function alerts Please enter your email address., focuses the email field, and returns false. CheckForm21 checks if f.captcha.value == “” and if so alerts Please enter the security code shown, focuses the captcha field, and returns false. CheckForm21 checks two custom field IDs: “CustomFields_2_21” (First Name) and “CustomFields_3_21” (Last Name). If either is empty, it alerts the user to enter a value for that field, focuses the field, and returns false. CheckForm21 returns true at the end if all checks pass.
The original page also contained a user comment: That MSI dragon laptop looks cool! But $11,799 ……. :O I might think on a bit longer 🙂 and several short opinions about technology and security, including statements that most cybersecurity is making up for weak platforms and that the security/performance trade off remains hard to tackle.
Bottom line for contractors and employers
The new law is set to formalize contractor oversight in Dubai and to require ongoing verification of registration and certification across supply chains. At the same time, the sector’s move toward integrated digital platforms is presented as the practical toolset contractors need to meet the law’s demands and to operate at scale. With the law effective in January 2026 and a one-year transition window, contractors should begin registration and classification work now, verify their subcontractors’ status, train teams on any registration systems, and consider how dedicated construction ERP systems can reduce the risk of non-compliance, financial leakage, and operational delays.
FAQ
Q: What is Law No. 7/2025?
A: Law No. 7/2025 establishes a comprehensive regulatory framework for contracting activities across the Emirate, including its free zones and special development areas.
Q: When does the new law take effect?
A: The new law will take effect in January 2026.
Q: How long do contractors have to comply?
A: Contractors will have one year from the law’s effective date (i.e., until January 2027) to meet the new registration and classification requirements.
Q: Are any activities exempt?
A: Airport-related contracting activities are exempted from these requirements.
Q: What are the penalties for violations?
A: Violations of the new law can result in fines of up to AED 100,000. Repeat offences can result in doubled penalties up to AED 200,000. Additional enforcement measures under the law may include suspension from practice, downgrading of classification, cancellation of registration, and revocation of competency certificates.
Q: What must contractors do about subcontractors and joint ventures?
A: Contractors are responsible for verifying that subcontractors they engage are also properly registered, certified, and classified for the relevant activities. The requirement to verify subcontractors’ registration/certification/classification also applies to parties participating in joint ventures or consortiums. Joint venture or consortium agreements should expressly require all parties to satisfy the registration, classification, and certification requirements and include remedies in the event of breach.
Q: What digital changes are happening in construction?
A: A fundamental shift is underway: construction companies, including general and specialty contractors, are increasingly turning to integrated digital platforms (ERP software for construction in UAE). The shift to digital platforms is not about replacing workers with robots but about giving workers the right tools to succeed. The stated goal of adopting digital platforms is sustainable efficiency and moving from reactive problem-solving to proactive, data-driven management.
Q: What exact validation scripts were present in the source material?
A: The CheckMultiple21 function loops through form elements (for var i=0; i < frm.length; i++) and for each element checks if the element has an id and whether that id contains the substring given by the parameter name; if a matching element is found and is checked, the function returns true; if no matching checked element is found, it returns false. The CheckForm21 function contains an email validation using the following regex pattern: /[a-z0-9!#$%&’*+/=?^_`{|}~-]+(?:.[a-z0-9!#$%&’*+/=?^_`{|}~-]+)*@(?:[a-z0-9](?:[a-z0-9-]*[a-z0-9])?.)+[a-z0-9](?:[a-z0-9-]*[a-z0-9])?/i (case-insensitive). In CheckForm21, if the email does not match the regex, the function alerts Please enter your email address., focuses the email field, and returns false.
Key features at a glance
| Feature | What it means |
|---|---|
| Law No. 7/2025 | Unified contractor registration and classification across the Emirate, including free zones and special development areas. |
| Effective date | January 2026; one-year transition until January 2027. |
| Scope | Contractors, subcontractors, joint ventures and consortiums; airport-related contracting activities exempted. |
| Core obligations | Operate within registration/classification limits, employ minimum qualified technical staff, keep records and notify status changes. |
| Penalties | Fines up to AED 100,000; repeat offences up to AED 200,000; suspension, downgrading, cancellation and revocation possible. |
| Digital shift | Growing adoption of integrated ERP platforms tailored to construction and UAE rules (VAT, WPS, labour law). |
| Practical benefit | Single source of truth, real-time cost visibility, faster decisions, and reduced compliance risk. |
Deeper Dive: News & Info About This Topic
Additional Resources
- Mayer Brown: Dubai overhauls construction sector — Law No. 7/2025
- Wikipedia: United Arab Emirates
- CBN Middle East: As Dubai builds luxury — time to rebuild contracting standards
- Google Search: Dubai contracting standards
- Construction Week Online: Beyond Dubai Maritime City
- Google Scholar: Dubai Maritime City
- Reuters: Dubai developers bring construction in-house — demand surges
- Encyclopedia Britannica: Dubai
- Bloomberg: Dubai’s construction boom stokes fears of another crash (video)
- Google News: Dubai construction boom
Author: Construction FL News
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