How To Start A Construction Business Setup in Dubai?

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CONSTRUCTION BUSINESS SETUP

Construction company is one of the first businesses that humankind developed, and it continues to shape our daily life in unique ways. Virtually all other businesses rely on the construction industry to provide and maintain their accommodation, plants, and infrastructure, and construction is a determinant of where and how almost everyone lives, works, and plays. For nearly the entire population of the world, the built environment heavily influences the quality of life.

 

Early in 2013, the Abu Dhabi Government committed to funding a further AED330 billion for major developments over the next five years, focusing on social development, particularly healthcare, education, housing, and selected strategic transport projects.

 

Same time in Dubai, expansion of existing conurbation continues and construction activity remains steady through the various projects taking place, including the completion of the Downtown Dubai and Business Bay projects. Further work was intended in and around Dubai’s second major airport, Maktoum International. Dubai within a short span of time has set up a benchmark in the construction business by erecting ‘Burj Khalifa’ as the modern wonder of the world.

THE MAIN PLAYERS IN CONSTRUCTION PROJECTS IN THE UAE ARE, AS IN OTHER JURISDICTIONS:

  • The project developer generally referred to as the employer.
  • The contractor.

EMPLOYERS TEND TO FALL INTO ONE OF THE FOLLOWING CATEGORIES:

  • Commercial and leisure real estate developers (often wholly or partly government-owned).
  • Public works authorities and public utilities (again usually government-owned, although there are examples in the UAE of power, water, and infrastructure facilities being procured through public-private partnerships (PPP) structures with the government party participating in the project company.
  • Oil and gas companies (including state-owned organizations such as Abu Dhabi National Oil Company).

CONSULTANTS ARE TYPICALLY ENGAGED TO PROVIDE THE FOLLOWING SERVICES:

  • Architecture.
  • Civil and structural engineering.
  • Mechanical and electrical engineering.
  • Project supervision.
  • Project management.
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Under the most commonly used procurement and contractual arrangements (involving both local and international parties), the employer engages its own design, supervision, and project management consultants and separately procures a contractor to construct the project according to that design.

PERMITS & LICENCE REGISTRATION REQUIREMENTS

  • Dubai Municipality G + 1 permit required and other mandatory permits from the other department
  • Drainage and Irrigation Department
  • Water and Electricity department
  • Building department
  • Dubai Civil Defence Authority
  • Types of licence
  • Contracting Licence
  • Wrecking & Demolition license
  • Building Maintenance Licence
  • Steel Fabrication contracting license

WHY OPEN CONSTRUCTION COMPANIES IN DUBAI?

The outlook for the UAE construction sector is positive for the years to come. Although the low oil prices pose real challenges for a country in which the hydrocarbons sector still contributes 34.3% to the nominal GDP (2014), the construction sector is set to benefit from further development of tourism, international events such as Expo 2020, major government investments in transportation infrastructure and even from the current political unrest in the region, in which the UAE continues to have a ‘safe haven’ status. This concise study will look into ongoing construction activity in the UAE, spread across residential, commercial, hospitality, healthcare, and infrastructure segments. Opportunities and challenges will be highlighted. Anyone wanting to explore the construction market in further detail is most welcome to contact the FIT office in Dubai.

A large number of infrastructure works have been started in recent years in the United Arab Emirates. Major roadway, airport, and port (upgrade) projects are ongoing in preparation for further expected population influx and of the upcoming Expo 2020 event in Dubai. The ongoing airport expansion project at Dubai International, worth USD 7.8 billion, will increase the airport’s current capacity from 60 to 90 million passengers per year by 2018. Dubai’s second airport, Al Maktoum International, was opened for cargo operations in 2010 and opened its doors to passengers in 2013. When the USD 32 billion expansion will have been completed, the airport will be the largest in the world, able to accommodate more than 160 million passengers and 12 million tonnes of cargo per year.

THE PROJECT SECTORS ARE :

    The forecast for the UAE construction sector remains largely positive. The continuous growth of the population, along with major government investments, makes for a large number of projects in the healthcare, leisure, hospitality, and residential sectors. More care is being taken by investors and developers with regards to feasibility and correlation of supply and demand.

     

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    Mainland Company Setup

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    Complete exemption from corporate tax
    Possible to operate from UAE
    No Capital requirements
    No currency restrictions
    Employment visa processing made simple
    Repatriation of profits and capital
    No audit requirements
    Minimum responsibility and maximum benefits
    Single person can open up an LLC
    The maximum number persons or employees an LLC can have is 50
    Corporate bank account in UAE
    The UAE Companies law does not prescribed any minimum share capital but the entity should have adequete capital to achieve the incorporation purpose. Normally accepted minimum share capital for an LLC registered in Dubai was AED 100,000.

    Presently, there is no requirements to deposite the share capital in UAE local bank.

    Draft the MOA and AOA
    Help in obtaining approval from DED
    Registering the company name
    Acquiring out an office space