The Dubai contracting sector is undergoing its most significant transformation in years. As of January 15, 2026, Law No. 7 of 2025 is officially in effect, introducing a unified regulatory framework that every contractor, from small fit-out firms to mega-project developers, must follow.
At BizGate, we believe that being “informed” is the first step to being “compliant.” Here is everything you need to know about the new Contractor Licensing Law and how to safeguard your business.
1. Mandatory Registration & The Central Register
Gone are the days of fragmented licensing across different zones. All contractors operating in Dubai, including those in Free Zones and the DIFC, must now be registered in a central Contractor Register managed by Dubai Municipality.
The Digital Link: This register is integrated with the Invest in Dubai platform, making it a “one-stop shop” for compliance.
The Rule: You cannot market or perform any contracting activity without being on this register.
2. The New Classification System
Dubai is moving away from the “lowest bidder” model toward a Competency-Based Classification. Contractors will now be assigned a tier based on:
Financial Stability: Your capital and past fiscal health.
Technical Capacity: The equipment and technology you own.
Workforce Qualifications: New entrants start at the base tier and must “level up” by proving their expertise over time.
3. Professional Competency Certificates
It’s no longer just about the company license; it’s about the people on the ground.
Every technical employee (engineers, technicians, and specialized labor) must now hold a Professional Competency Certificate issued by the Municipality.
Employer Liability: As a business owner, you are legally responsible for ensuring your staff is certified. Hiring uncertified staff can now result in heavy fines.
4. Subcontracting & Joint Ventures (JVs)
The law brings much-needed transparency to subcontracting.
You can no longer “informally” pass work to another firm. All subcontractors must be pre-approved by the Municipality and must hold a classification that matches the work they are doing.
For complex projects, Joint Ventures are now formally regulated, requiring prior approval to ensure all parties are qualified.
5. Penalties for Non-Compliance
The authorities are serious about enforcement. Violations can lead to:
Fines: Ranging from AED 1,000 to AED 100,000 (doubling for repeat offenses).
Operational Bans: Suspension of your trade license or a downgrade in your classification.
Deregistration: Removal from the official registry, effectively shutting down your ability to work in Dubai.
The Grace Period: Act Now
While the law is active, existing contractors have a one-year transition window (until January 2027) to regularize their status. However, if your license is up for renewal in 2026, you will be required to sign a Declaration of Compliance immediately.
How BizGate Can Help
Navigating Municipality registrations and technical certifications can be a bottleneck for your growth. At BizGate, we specialize in:
Navigating the Invest in Dubai registration process.
Advising on the documents needed for your Classification Tier.
Managing the transition for existing licenses.
Is your business ready for the 2026 standards? Contact the BizGate team today to audit your current license and ensure you’re on the right side of the law.
