Construction Sector in the UAE Leads as Business Acquiring Licenses for the Year 2019

by Zaara 14, May 2020

According to the latest figures issued by the Central Bank of the UAE, the construction sector in the United Arab Emirates has taken the lead in the top 10 list of business activities that acquired licenses for the year 2019. Three licenses were issued daily for both construction contracting and general commercial operations, followed by restaurants, which received two licenses daily, reflecting an increase after a period of the showdown.

The local economic departments issued a total of 1,050 licenses in all the Emirates for construction contracting and 1,004 for general commerce business. The top ten list comprises of the transport sector, with 521 licenses allotted for transporting general supplies by light trucks and 508 by heavy trucks, along with 429 licenses to sell perfumes, 403 for retail clothing, and 390 for building cleaning services.

The total number of licenses issued for the top ten businesses activities amounted to 6,599, accounting for 14.6 per cent of new licenses issued for all economic activities in the country in 2019.

The increase in business activity in these economic sectors has also encouraged the Emirate’s banking system to provide more financial support to these industries in the year 2019.

How to Obtain a Construction License?

Before getting into the procedure to obtain the construction license, here are the types of construction licenses.

  1. Building Contracting License
  2. Wrecking and Demolition License
  3. Steel Construction Contracting License
  4. Building Maintenance License

Next, you need to obtain clearance from a few departments. Here’s the list for the same.

  • Department of Water and Electricity – This clearance will help in providing necessary facilities to the occupants
  • Department of Drainage and Irrigation – Under this clearance, one will be provided with the liquid waste management and other disposable services
  • Building Department and Dubai Civil Defense Authority – Both the departments will keep check of whether the construction company adheres to the construction norms or not

Once you obtain these permits, pay fees, you will be given the Construction license according to your construction activity.

Why Start a Construction Business in the UAE?

There has to be a reason for the construction business to lead the list of activities for acquiring a license. Some of them are mentioned below –

  • The government takes initiatives like the Sheikh Zayed Housing Programme, Energy Strategy, and the Dubai Tourism Strategy ensures that the construction business in the country has a positive outlook
  • Low construction cost due to the increase in competition in the UAE and among the GCC countries. Here the low wage is also an essential factor to consider
  • Cheap labour availability makes the construction sector a popular choice among the entrepreneurs
  • Easy and hassle-free procedure to avail the construction license and start the construction business
  • One of the main perquisites of setting up a construction company is its location. A proper place where import-export and the systems are readily available. The UAE is strategically located with easy access to the lively markets from Asia and Africa

How can we help?

Commitbiz has been a pioneer company for helping entrepreneurs start a business in the UAE and its Emirates. Our business setup consultants have years of experience in this field and can make the process hassle-free. Contact us today for more information.