Dubai issues Law No. 7 to unify contractor registration and classification

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 and the construction sector pivots toward integrated digital platforms

Dubai has issued Law No. 7/2025, creating a unified system for contractor registration and classification across the Emirate, including free zones and special development areas. The law will take effect in January 2026 and gives contractors one year from the effective date — until January 2027 — to meet the new registration and classification requirements. The new framework requires contractors to operate only within permitted contracting activities as set by their registration and classification and to employ a minimum number of qualified and properly certified technical staff for their projects.

Key rules, enforcement and penalties

The law makes ongoing compliance mandatory for contractors, subcontractors and entities acting in joint ventures or consortiums for the duration of projects. Contractors must keep registrations, classifications and certifications up-to-date and must notify any changes affecting their status or that of their technical staff. Airport-related contracting activities are exempted from these requirements, and other specific activities may also be excepted.

Violations can trigger fines up to AED 100,000, with repeat offences subject to doubled 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 will have judicial powers to inspect contractor premises and project sites and to investigate suspected non-compliance.

Practical implications for contractors and employers

Contractors are required to verify that subcontractors they engage are properly registered, certified and classified for the relevant activities. Parties in joint ventures or consortiums must ensure agreements expressly require all members to satisfy registration, classification and certification requirements and include remedies for breach. Employers are expected to include contract provisions requiring ongoing compliance and to reserve remedies that may extend to contract termination and step-in rights.

During the one-year transitional period, contractors are advised to begin the registration and classification process, train teams on the registration system, maintain records of compliance checks as part of due diligence and review ongoing and upcoming projects to confirm that all engaged parties are progressing toward compliance to avoid disruptions and penalties.

Sector context: digital integration and why it matters

The law arrives at a moment of technological change in the United Arab Emirates construction market, where companies are increasingly adopting integrated digital platforms (ERP) designed specifically for construction. A guest opinion included in the source material described downtown Dubai as surrounded by ambition made of concrete and steel, noting that behind each gleaming facade there is a complex web of logistics, finances and human coordination. That opinion compared managing a single construction project in the UAE to conducting a symphony where the sheet music is constantly changing.

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. The opinion stresses a shift toward systems that create a single, reliable source of truth for the entire project lifecycle and describes such a platform as a central nervous system for the business.

Concrete operational examples in the opinion underline the value of integration: 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. The opinion states the transition to integrated platforms is not about replacing workers with robots but about giving workers the right tools to succeed and moving from reactive problem solving to proactive, data-driven management.

The material warns that generic accounting or project management software often fails in 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 the industry language and adapt to local requirements such as UAE VAT, labour laws and Wage Protection System (WPS) compliance to remove friction and ensure seamless compliance from day one.

The opinion claims firms that embrace integrated digital management report cost savings, improved team morale, faster project delivery and stronger client relationships built on transparency and reliability. It calls exploration of dedicated digital solutions essential for construction businesses aiming to future-proof operations. The guest opinion also includes a direct call to action appearing as REGISTER! MORE INFO HERE!

Other content found in the source material

The source material combined legal analysis, a guest opinion on digital platforms, code snippets and other web content. The page included two named JavaScript functions: CheckMultiple21 and CheckForm21. CheckMultiple21 loops through form elements and checks element.id and element.checked to find a matching checked element by id substring. CheckForm21 performs email validation using a case-insensitive pattern, and if the email does not match it alerts Please enter your email address., focuses the email field, and prevents submission. CheckForm21 also checks if the captcha field is empty and alerts Please enter the security code shown, and checks two custom fields identified as CustomFields_2_21 and CustomFields_3_21 for First Name and Last Name, alerting users to enter values if empty. If all checks pass CheckForm21 returns true.

The page also contained a short user comment about a laptop and price: That MSI dragon laptop looks cool! But $11,799 ……. :O I might think on a bit longer 🙂

What to do next

Contractors and project employers should review registration and classification requirements now, map out any gaps in technical staffing and documentation, confirm subcontractors and joint venture partners are in the process of complying, and consider whether integrated construction-specific digital platforms can help manage ongoing compliance, reporting and project controls during the transitional year before the law becomes mandatory.

FAQ

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Key features at a glance

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 CA News

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