How to Start a Construction Business in Dubai

Construction Business in Dubai

Dubai is one of the most attractive and fascinating countries in the world. We have seen the transformation of this country from time immemorial, and now the beauty of this country has reached its zenith. The UAE’s most attractive destination Dubai has a lot of eye-catching sites and beautiful beaches, not to mention the skyscraping infrastructure. Dubai’s top-notch infrastructure is not just attractive for tourists but also for the business people, by having rich class culture, high standard of living, rising GDP, tax-free environment and flexible business opportunities. These make Dubai one of the best places in the world for setting up a business.

Dubai has many mega construction projects coming towards its way in the future. There are also several ongoing projects for the World Expo 2020. The UAE recorded the highest construction project valuation in the Gulf Cooperation Council region, amounting to USD 319.1 billion. All these facts imply one thing: there is no better time than now for company formation in Dubai in the construction sector.

Opportunities in the Construction Business in Dubai

One of the highest grossing businesses in the UAE is the construction business. Dubai is home to the tallest building in the world, i.e., the Burj-al-Khalifa and the world’s tallest residential building, i.e., Marina 101. There are also the Princess Tower and Burj-al-Arab, which are some of the most notable structures in Dubai.

The government of Dubai has sanctioned USD 7.8 billion for the expansion of the Dubai International Airport and a redevelopment project, worth USD 6.8 billion, of the Abu Dhabi International Airport. Not to forget that Dubai will be hosting the World Expo 2020, providing umpteen opportunities in the construction sector.

Dubai government has funded a lot in the development of the travel and tourism sector. The promotional activities of the world’s first man-made island, i.e., the Palm Jumeirah are also raising on a daily note. There are also other projects which are in progress, like the Dubailand, Arabian Canal, and others.

Steps for Construction Business Setup in Dubai

  1. The first thing before setting up a company in Dubai is to determine whether you want to go for a company formation in Mainland or company formation in Free Zone.
  2. The next step would be starting the process of company registration at the Department of Economic Development (DED). Construction business comes in the category of the commercial sector, for which one needs to obtain a commercial license. This license is an official permission to start any business in Dubai.
  3. After acquiring a commercial license for setting up a business in Dubai, the next step would be to hiring professionals like engineers and business consultants in Dubai, who can apply for a ‘building permit’ on your behalf.
  4. Evaluation of the soil for construction and determining the properties of the soil will be the job of the professionals, which is the next important step.
  5. Other activities include obtaining a Building License from the Dubai Municipality in case of Mainland Company. In case of a free zone, it is called the G+1 permit. There are other licenses to be obtained, like the environmental license and civil work permit.

Approvals and Permits Required for a Construction Business in Dubai

  • A civil works permit, which includes works prior to any foundations
  • For a building permit, the contractor needs to submit the design drawings of the proposed building, by the relevant authority
  • An environmental license from the relevant authority
  • A permit from the Roads and Transport Authority to access the road and internal road network for transportation purpose
  • To dispose of hazardous waste, an approval is to be issued by the relevant authority
  • Permits from Dubai government entities regarding utilities, such as a permit from the Dubai Electricity and Water Authority (DEWA) for water, electricity and sewage, and a permit from Etisalat for telecommunications
  • NOC from Dubai Civil Defence (DCD) for Dubai Airports Company, and other related government entities
  • A Building Completion Certificate, which allows the building to be occupied

Conclusion

The construction sector in Dubai is booming, and is planned to reach new heights in its coming 3-4 years. We have seen why Dubai serves as the best potential market for the construction business. A country with so much potential for just one sector of its market is totally remarkable. If you are into the construction business or planning to set up your business in Dubai, Commitbiz Management Consultants can help you in your company formation and business setup consultancy.