How to Start a Construction Business in Dubai? 

How to start a construction business in Dubai 

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In Dubai and other parts of the UAE, the construction business is booming. This is because there are thousands of projects coming up every day. With so many work opportunities, most people have started their own construction businesses in Dubai. It has been strategic for several years because it is an economic sector that’s always in demand, especially at the time country’s economic crisis. But you might be wondering how to start a construction business in Dubai. There are several things you need to consider before beginning your construction business there. 

Why construction business in Dubai? 

Construction is one of the most important industries in Dubai. The construction industry is one of the main drivers of economic growth, as it provides many jobs to workers and creates many new building projects. In fact, the construction industry accounts for about 80% of all jobs in Dubai. Construction companies are also very important because they provide materials and equipment that go into making buildings and other structures. 

The construction industry has been growing rapidly in Dubai over the last few years because of a number of factors including population growth, increased global demand for real estate, and increased foreign investment in the country’s economy. With so much demand for construction services, there are many opportunities for skilled workers from around the world to join these companies or start their own businesses within this sector. 

Steps for Construction Business Setup in Dubai 

The construction business is one of the fastest-growing industries in the world. With such a large demand for new companies, there are many people looking to open new construction businesses. However, those who are looking to start their own construction business, need to follow these steps. 

Decide the company’s structure and location 

Setting up a construction business in Dubai is not as difficult as it may seem. The main thing to remember is that you need to choose your company structure and location before you can apply for your license. 

The first step is to decide what type of company structure you want. You can either form a sole proprietorship, partnership, or limited liability company (LLC). 

Choose your company name 

Once you’ve decided on a structure and location, you’ll need to choose your company name it’s important that it’s memorable, easy to spell and pronounce, and has a catchy ring to it. You can also think about how you want your company logo to look and feel, as well as what colors might work best for you. 

Create a business plan 

To set up your new construction company, you’ll need to create a business plan that describes what your company does, how it will achieve its goals, and how it will run itself professionally and efficiently. The Ministry of Finance requires that all businesses undergo inspections before they’re allowed to operate legally in Dubai; therefore, it’s important that your plan include details about how you will ensure transparency during inspections by government officials (such as employees). Your plan should also address how you intend on keeping track of compliance issues throughout the year so that there aren’t any surprises when inspectors come around to check on things like product quality or safety standards. 

Apply for the license 

The next step is to apply for an operating license from the Dubai Department of Economic Development (DED). You will need to pay a fee of about $500 and submit an application form along with supporting documents such as bank statements and employment contracts. The DED will then review your application and issue or deny it within 30 days. 

Obtain the building permit 

The initial step is to obtain a building permit. The building permit is issued by the Dubai Municipality and is valid for a period of one year unless stated otherwise on the permit. 

Apply for other necessary licenses and approvals 

After obtaining a building permit, it is necessary to apply for other licenses and approvals. These may include: 

1. Land Use Permit (LUP) – This document provides information on how much land can be used in order to build a certain type of structure or business. It also specifies where each type of structure can be built on that piece of land. 

2. Construction License – This document authorizes the construction company to perform its work legally within Dubai’s territory. 

3. Site Plan Approval – This document approves your plans for construction at your site. It also ensures that no incompatible structures exist at your location prior to beginning construction activities onsite (such as residential units). 

Understand your provisions and limitations 

You should also understand your provisions and limitations when applying for these licenses/approvals before proceeding with any construction activities onsite; this will help ensure that all procedures are carried out correctly from start to finish! The Dubai Municipality has detailed information about its policies and regulations on building in Dubai, which can be found online 

Manage visas and open a corporate bank account 

Corporate banking is an important part of your construction business setup in Dubai. You need a corporate bank account to open up credit lines, receive payments, and pay bills. You also need to make sure your company has all the right permits before you can open an account. 

Before you can open an account with a local or foreign bank, you need to get the necessary permits from the UAE Central Bank (UCCB) and the Dubai Police. 

Visa issues can be a big headache for construction companies in Dubai. The UAE has strict rules about who can enter the country, so you need to pay close attention to what kind of visa you need and how long it will take to get one. 

Cost of opening a construction company in Dubai 

The cost of establishing a construction company in Dubai is quite high, but it is also very reliable. The government is trying to promote the construction sector and encourage investors to start businesses here. The cost of establishing a construction company in Dubai varies from AED 1,836.50 to AED 36,729.90 depending on certain factors such as location, size, and type of business. 

Why Choose AIG Corporate Services Provider? 

You are getting into the construction business in Dubai and you want to start your own company. You are looking for reliable Business Setup Consultants in Dubai that can provide all these services for you at a low cost. You need a corporate services provider who can take care of all your business needs. 

AIG Corporate Services Provider will help you get started with your new construction business in Dubai. Our experienced professionals will assist you with designing the best layout for your new site, finding out the best location based on your budget and other factors, ensuring compliance with all legal requirements and regulations of Dubai’s real estate laws & regulations, etc. Their experience means they know how to help businesses succeed through every stage of their development. 

Read More: Myths About Business Setup in UAE


Launching a construction company in Dubai is a challenging process. Any entrepreneur entering the industry should consider not only their financial capabilities but also the caliber of their management skills and experience in the field to make sure they can meet both expectations and obligations while continuing to grow and expand. 

There is a list of documents you need to get started on your company. It will help you save time and money because the documentation you need, can be obtained through the responsible authorities and specialized institutions in Dubai. 

Constructing a building is basic as it may seem but it is a process that needs some people to be working on it together, the type of workers and how they interact with each other is a key benchmark. 

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