Dubai has become a hub of talented and thoughtful entrepreneurs willing to enter this productive market of construction which has made Dubai what it is today and become its recognition. From a man-made island called the Palm Jumeirah to the tallest skyscraper Burj-al-Khalifa government has been offering endless opportunities for the construction business in Dubai.
Dubai’s construction sector is showing no sign of slowing down. In fact, Dubai has been ranked second in terms of construction. So with all of these signs and government support construction business in Dubai is currently the most profitable business.
So if you are planning to start a construction business in Dubai know that the government continuously supports this construction business by investing in tourism.
Choosing Dubai for Construction Business
Dubai is currently attracting tourists, businesses, and foreign investment. Due to multiple factors, Dubai is now considered among the top locations to start a business. These factors include a Tax-free environment, diverse population, stunning infrastructure, high GDP, standards of living, and excellent business opportunities. Above all of this is the pleasing location of Dubai which includes several attractive landmarks, beautiful beaches, and sky-scraping infrastructure.
The construction business in Dubai is considered as the most Profitable Business. Dubai is already a way ahead of others in infrastructure as it has the world’s tallest building (Burj-al-Khalifa) and the world’s tallest residential building (Marina 101). Burj-al-Arab and Princess Tower are also state-of-the-art and well-recognized buildings in Dubai.
How to Start a Construction Company in Dubai
From planning to registration and compliance starting a construction company in Dubai requires many steps to be fulfilled before you step into the market.
Choose Your Company Name:
First of all, you need to register your name with the Department of Economic Development (DED). The trade name should be unique and you cannot use the names of organizations that are already in the market. Your name should not be offensive in any way. You also need to avoid using abbreviations if you are naming your company after yourself.
Decide Your Legal Entity:
When you are about to start a construction company in Dubai you can start your operation from both the mainland and free zone. It is always a good option to start your operations from the mainland. The companies operating from the mainland are subjected to All the laws and regulations of the UAE government.
Make License Application:
After you have made the decision for the operation of your business your next step is to apply for a license. License is very important for doing any type of business in Dubai. The construction industry falls under the category of the commercial sector so a commercial license is required for you to start a construction business in Dubai.
The license application is made to the Department of Economic Development (DED) but it applies if you are starting a business on the mainland. You need to fill out an application form and attach documents like a copy of your passport and business plan.
Apply for Building Permit:
A G+1 permit is required it is also referred to as a building license in Dubai. Other licenses such as the environmental license and a civil work permit must be obtained.
Visa and Labor Requirements:
Try to secure sponsorships and Residence Visas for yourself and other employees if they are not residents of the UAE. Stick to laws by the UAE government in terms of labor, wages, hiring people, and working conditions.
It is always advised to take the opinion of an expert who knows everything about the construction market of UAE because it is a complex journey and expert advice is always needed.
Open Your Corporate Bank Account:
After you have obtained your construction license for the operation of your company in Dubai the next step is to open a corporate bank account which is necessary to receive payments from the clients and pay your employees and suppliers.
How to get a License for Construction Business in Dubai
After deciding whether you want to open a construction site in the mainland or free zone the next step is to avail a building contractor license, clearances, and approvals. Out of all these, the registration of your construction company comes first on the list. After all of this, the business entity can then hire engineers, site in-charge, and workers of various kinds after you have secured the registration permit.
A building license is also required before you start any kind of construction activity. This license is also called a G+1 permit. Both of these permits are issued by the Dubai Municipality in order to lay the groundwork for a residential or commercial structure.
In addition to all this, the establishment of a construction company in Dubai requires multiple other permits from the Department of Civil Work and Environment. Some of them include
- Drainage and Irrigation Department: This department is responsible for providing liquid waste management and other related services.
- Water and Electricity Department: This department is responsible for confirming that basic life amenities will be provided.
- Building Department and Dubai Civil Defense Authority: Responsible for keeping a check at the construction and making sure that all standards are met.
Types of Construction License in Dubai:
Multiple types of construction licenses are available and each of them corresponds to a specific type of construction work. Some of the most common construction license types include:
- Landscape Gardening License: This license will allow the company to install landscaping features such as gardens, lawns, and irrigation systems.
- Building Contracting License: This type of license allows a company to take the construction of industrial properties, residential buildings, commercial construction, and offices.
- Steel Construction License: This license is helpful in the construction of steel structures which include bridges, factories, and warehouses.
- Wrecking & Demolition License: This license allows a company to carry out demolition work on buildings and structures.
- Building Maintenance License: This license allows a company to carry out all kinds of repair and maintenance work on buildings. This may include electrical repairs, plumbing repairs, and painting.
Cost of Construction Business License:
The cost of getting a construction license in Dubai is around AED 25,000. Remember this value may change under different conditions depending on circumstances. The actual or estimated cost of starting a construction business depends on various factors such as the size of the business, its location, and the type of construction work it will be doing.
Business Opportunities in Dubai:
The UAE’s construction industry currently is one of the biggest and most fascinating industries in the world. It has a wide range of business opportunities available for construction companies.
The government of Dubai is also taking measures to expand the tourism industry which is also opening the gates for the opportunities provided for the construction industry. Projects of man-made islands like Palm Jumeirah, Deira Island, and Maritime City have opened the door to advancement for the construction business in the Emirates.
UAE has also started some projects with enormous investments. The expansions of Dubai International Airport and Abu Dhabi International Airport are major examples of this and a huge opportunity for companies working in the region.
The construction business is the most profitable in Dubai. It will end up in profit irrespective of the type of construction that is going on. Multiple opportunities of the same kind are emerging every day and if you are capable enough to grab these opportunities you will have a bright and successful future.
Construction Companies in Dubai:
Several construction companies in Dubai are running their operations successfully. Among these companies, a few include Arabtec Construction, Al Jaber LEGT Engineering & Contracting (ALEC), Khansaheb Civil Engineering, Al Habtoor Group.
Conclusion:
The feeling of owning a construction business in Dubai is unmatched. This place is considered the best place to make your dream building under your own construction company due to the friendly laws of the government. Starting a construction business in Dubai is not that complicated when you contact and get help from Al Riyady.
The consultants at Al Riyady are assisting when you are starting a business in Dubai and have successfully made many reach new heights. So what are you waiting for contact us now and take the first step in starting your own construction business in Dubai now.
