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The United Arab Emirates has created a benchmark in every sector like tourism, business, architecture, state-of-art infrastructure; you name it. It has achieved many things in less time, thanks to the pro-development policies and practices of the government. One of its most famous cities, Dubai, had fascinated the world since time immemorial, even when it was not a renowned emirate of the UAE. Today, the fascination has reached the zenith. The Emirate’s charm lies in its pristine beaches, fancy buildings, stunning open spaces, rich culture, and top-notch infrastructure. Its galloping GDP makes it a favourable destination to set up a business or seek a quality life.
These advantages have resulted in an unusual demand for office and housing spaces coupled with sporadic triggers like the Expo 2020. Dubai is currently witnessing one of its major construction, razzmatazz.
Investors have realized the potential of starting a construction business in Dubai, resulting in a spate of application to the Department of Economic Development (DED). This authority handles the new business setup application in the UAE. You must know that the formation of a construction company requires you to get approvals, permits, and licenses from various departmental authorities in Dubai. So, coming to the main topic, the construction license should on the top of the list while getting the approvals.
Construction License in Dubai- Things You Must Know
There is enormous competition in the GCC region for skyscrapers, and Dubai has the upper hand. The city is a hub to the world’s highest building ‘Burj Khalifa’, giving rise to tourism. No wonder investors are giving major priority to the construction sector in Dubai due to increase in the travel and tourism. To kick-start your construction business, you will need a construction license apart from other permits.
Let us now understand the essential points to obtain a Construction License in Dubai.
- Construction License is a type of Commercial License in Dubai. You need to apply for the same at the DED, the official authority for applying for licenses in the UAE mainland. When it comes to free zones, you have to apply for the license at the relevant free zone authority
- You need to have a complete knowledge about the Building Law amended in the year 2013 before you start the company
- If you want to be an engineering consultant, design as well as manage the project, you will need to apply for a Professional License
- You must also hire consultants and engineers who can start their work after you obtain permits. The consultant must evaluate the soil of the construction site and determine its properties
- After you get the approval from the DED for the construction license, you must also get special approvals from other departments
- One of such approvals is to get a building permit which will allow you to start the construction activities
- You must apply for a G+1 permit which the Dubai Municipality issues
Once you get the construction license, you are allowed to do a range of diversified activities. You can be involved in many projects for several industries such as automobile, food processing, chemical plants, residential buildings, warehouses, and logistics.
Types of Construction License in Dubai
There are many types of construction license in Dubai; each has different requirements and different regulation. They are-
1.Construction of all types of buildings and facilities
Construction of residential buildings, villas, malls, production areas and warehouse premises and other types of buildings under a general license
2.Maintenance of facilities on a turnkey basis
Supply of construction materials, furniture, equipment and decorative elements to already erected facilities, and facilities which are under construction
3.Foundation and concrete works
Wall and foundation construction, the concrete casting of industrial and warehouse floors, reinforcement of cracks with concrete
4.Construction of special purpose facilities
Construction of electric power substations, sewage disposal plants, pipelines, also on seaport and airport sites
5.Construction of metal structures
Installation of frame structures, exhibition stands and/or pavilions, hangars, as well as steel and metal structures
6.Facade and finishing works
Internal or external wall covering of commercial, industrial and residential premises with any materials
7.Landscape Gardening
Development, improvement and organization of parks and gardens, arrangement of villa and cottage grounds
Special Approvals for Forming a Construction Company in Dubai
As mentioned above, construction company formation in Dubai UAE requires clearances and several special permits from environmental and civil works departments. Some of the compulsory approvals from the Dubai authorities are mentioned below.
- Water and Electricity Department- The clearance of these two authorities is mandatory as it provides the essential amenities to the occupants
- Drainage and Irrigation Department- This permit will typically provide liquid waste management and other disposable services
- Building Department and Dubai Civil Defense Authority- Both the authorities will keep check of whether the construction company adheres to the construction norms or not
Procedure to Obtain Construction License in UAE
The steps include –
- Decide on the jurisdiction where you want to set up your construction company. If its mainland, you will get a license from the Department of Economic Development, and if its a free zone, you will get a license from the respective free zone authority
- All aspects of construction activities are controlled by the UAE Building Department. Obtaining individual licenses requires additional approvals from the Department of road industry, the Department of Civil Protection, and other agencies depending on the field of activity. To obtain some licenses for construction works in the UAE, you need to provide technical personnel and pass a number of procedures for the accreditation of experts.
- Get documents to submit to the mentioned authorities
- Pay fees and obtain the license
The construction sector in Dubai is at the top for the last two decades, and there is no reason for it not to attain tremendous growth in upcoming years. And with the biggest possible event nearby, i.e. the Expo 2020, is offering a great opportunity to all the investors. If these reasons are not enough to kick-start your dream project today, then we at Commitbiz are here to give you all the help and information that you need. Contact us today- even if it’s for free advice.