Dubai Issues New Law Regulating Contracting Sector

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. 7 of 2025 to regulate contracting activities across Dubai, establishing a unified framework for contractor classification, oversight, transparency, and accountability. The law applies to all contractors operating in Dubai, including those in special development zones and free zones such as the Dubai International Financial Centre, while exempting contracting activities related to airports and infrastructure as decided by the Executive Council. A central feature of the legislation is the creation of the Contracting Activities Regulation and Development Committee, chaired by a Dubai Municipality representative and including members from various government entities, which will oversee law implementation, approve contracting activities, resolve jurisdictional disputes, and develop sector policies and a code of ethics. The law aims to align the contracting sector with Dubai’s rapid urban and economic growth, sustainable development goals, and international best practices, while enhancing transparency and coordination between authorities. Penalties for violations include fines, with repeat offenses subject to increased penalties, supporting the overall goal of strengthening governance and advancing vital industries in the emirate. This regulatory framework reflects Dubai’s commitment to a clear, standardized approach to contracting that supports its long-term development strategy and economic ambitions.