How to Start a Construction Company in Dubai?

by Zaara 18, Oct 2019

Dubai is no longer a desert devoid of greenery and aesthetic appeal. Today, Dubai is home to the world's tallest structure, the Burj Khalifa. Dubai has experienced a boom in the infrastructure sector in recent years, with an increase in the number of towers. Because of its tremendous beauty, Dubai is a sight for sore eyes, and after nightfall, it transforms into a city of lights. 

For many years, Dubai's building industry has thrived, and this trend appears to be continuing with huge profits involved. And because of this, everyone wants to know how to start a construction company in Dubai.

How to Start a Construction Company in Dubai?

Now that you want to utilize the opportunity and invest in the construction sector, you would be wondering on how to start a company in Dubai. There are certain steps to be followed

Choose your Location

Before setting up a company in Dubai; the first thing is to determine whether you want to go for a company formation on Mainland or company formation in the Free Zone.

License Formalities

The next step would be acquiring a construction license in Dubai. Start with company registration at the Department of Economic Development (DED). Construction business comes in the commercial sector category, for which one needs to obtain a commercial license. This license is official permission to start any business in Dubai.

Hiring Professionals

After acquiring a license for setting up a business in Dubai, the next step would be hiring professionals like engineers and business consultants in Dubai who can apply for a 'building permit' on your behalf.

Other Permits

Other activities include obtaining a Building License from the Dubai Municipality in the case of Mainland Company. In the case of a free zone, it is called the G+1 permit. Other licenses are to be obtained, like the environmental license and civil work permit.

Things to Consider Before Starting a Construction Company in Dubai

The Dubai government is also actively helping investors in their construction business.  However, before launching a construction company in Dubai, there are a few things to consider.

Licenses and Permits

Before starting your construction business in Dubai, it is always required to secure the relevant rights and licenses before launching any industry-based firm in Dubai. Any action carried out without a license is prohibited and may result in a fine. In Dubai Mainland, the top authority providing licensing is the Department of Economic Development. On the other hand, the free zone authority is in charge of issuing permits in free zones.

Safety Measures

The construction industry needs a high level of safety and health. Accidents occur on many construction sites owing to incompetence and poor precautions, causing problems for construction businesses in Dubai and worldwide. 

It is critical to understand the geographical context of the location, and an extensive study must be conducted before any building can begin. Environmental protections must also be observed, or there may be an inadvertent disruption. 

Helmets, goggles, and vests are examples of basic protection. Working conditions and hours must also be in conformity with Dubai authorities' health regulations and standards.

Equipment and Machinery

Before accepting any contracts, plenty of equipment is necessary for various functions. The significance of high-quality equipment cannot be overstated. The equipment ranges from wheelbarrows, pulleys, and excavating tools to cement mixers, elevators, trolleys, and barrels. 

Any flaw or incident with any of these pieces of equipment can result in a significant financial hit to any organization in terms of compensation or material waste. As a result, it is critical to conduct research and purchase the best equipment available for safety and quality objectives.

Building businesses in Dubai utilize high-end equipment since the quality of construction is excellent and competition is fierce.


Accidents are widespread in the construction industry. As a result, any construction firm must have insurance coverage for incidents and personnel. All workers must also be covered. Otherwise, a company's capital may be depleted to satisfy compensation expenses.


all laborers must receive training. These workers will be in charge of all equipment that may need to be properly trained before usage. As a result, it is critical that no one ruins or creates a mishap by misusing the equipment. A well-trained workforce will ensure a profitable firm with fewer incidents to worry about. In Dubai, a lot of hard labor is available for the building industry.

If this excites you, contact us to start your journey in the construction sector.


How to start your own construction business?

Follow the steps

  • Choose the activity, location, and trade name

  • Get the license and other permits

  • Rent a space and start your business.

What license is required to be a contractor in Dubai?

You need a contractor classification license.

How much profit does a construction business in Dubai make?

It depends on the activity, the scale of the business and the location you choose.

What permission is required to do construction business in Dubai Free Zone?

You need a G+1 permit to start a construction business in Dubai Free Zone.

Is the construction business in Dubai profitable?

Yes, the construction industry is a major part of Dubai’s economy and there is a huge scope there.