How to Start a Construction Business in Dubai?

Posted on January 28, 2023

Dubai is an international business and cultural hub that revolutionizes the construction site with some of the most iconic towers. The most attractive location in Dubai features a variety of landmarks, skyscraping infrastructure, and lovely beaches.

Due to its diverse population, high GDP, excellent infrastructure, high standard of life, tax-free environment, and flexible business options, Dubai attracts visitors and business travelers. These factors make Dubai one of the prime locations to start your business.

Future mega-construction projects are headed in the direction of Dubai. The UAE achieved the greatest building project worth in the Gulf Cooperation Council area, totaling $319.1 billion. These data conclude that there has never been a better time to start a construction business in Dubai!

Why Construction Business in Dubai?

Dubai is the hub of architectural marvels making it one of the hottest retail hubs. Here are some of the major benefits you need to start your construction business in Dubai.

High demand for construction in Dubai due to population growth and a strong economy
Supportive government policies and regulations for foreign investors
Access to a large pool of skilled labor
An abundant supply of building materials
Strategic location for international trade and commerce
The growing tourism industry drives the demand for new hotels and other tourist-related infrastructure
Tax-free income and low corporate tax rates
Access to a wide range of financing options
Opportunities for public-private partnerships and government contracts
A diverse, multicultural business environment with a strong emphasis on innovation and technology.

Approvals required to start a construction business in Dubai

Construction enterprises must get multiple operating approvals to maintain high standards throughout the sector.

In addition to requesting approval from the departments of drainage and irrigation, water and electricity, roads and transportation, waste disposal, telecommunications, and civil defense, you must also submit applications for all necessary construction licenses.

Before a building may be utilized or occupied, you must also get a completion certificate after any construction project.

How to start a Construction Company in Dubai?

When you engage with Airzone, forming a business is a quick, inexpensive, and effortless procedure. Your personal contact will walk you through the following process after a brief chat to determine your needs.

Step 01 – Select the name of your company

You must first decide on a name for your new company. Dubai requires that company names abide by specific rules.

You are not permitted to use any vulgar or derogatory language or the names of any well-known organizations. In addition, when naming your business after yourself, you must avoid abbreviations; for example, use Smith Steven Construction rather than S Steven Construction.

When you have provided several potential names, BIZ can determine whether they are available before registering them on your behalf.

Step 02 – Finalize the legal entity

When beginning a construction business in Dubai, you can choose between operating from the UAE’s mainland or a free zone. 100% ownership is feasible in both situations; however, special permission would be required if you create a mainland firm.

When you open a business in a free zone, you can take advantage of several benefits, such as a complete exemption from customs taxes, the removal of all currency restrictions, and capital and profit repatriation.

Step 03 – Apply for a license

Once you’ve made these crucial selections, you can apply for your business license. When starting a mainland business, this application should be submitted to the Department of Economic Development.

You must submit an application to the appropriate managing authority to launch your business in a free zone.

You will be required to submit an application form and supporting documentation, such as a copy of your passport.

Step 04 – Fill out the application for a building permit

Applying for your building permission or G+1 permit if you’re operating from a free zone is best done immediately. You should also apply for any other permissions you might need, such as your environmental and civil works licenses.

Step 05 – Apply for a Visa

You may now apply for your visa and the visas of any dependents you may have, such as your spouse, children, or domestic help. This process includes an examination, chest X-ray, and blood test.

Step 06 – Open your business bank account

To conduct business in the UAE, you must have a corporate bank account. For non-citizens of the GCC, this process isn’t always the simplest, but Airzone can support you.

We’ll provide recommendations for the best financial institution to meet your needs and help you with your application to prevent any unnecessary hold ups or denials.

Cost of opening a construction company in Dubai

AED 23,000 is needed to start a construction firm in Dubai. This is only a starting point, though. You will also need to include expenses associated with hiring workers, opening an office, and obtaining all the permissions and approvals.

Get in touch with the Airzone team for a comprehensive quote and explanation of the costs associated with starting a business in Dubai.

Documents required to start a construction business in Dubai

Following is the list of documents you will need to start your construction business in Dubai.

Business registration documents, including a trade license and a commercial registration certificate
A valid Emirates ID or residence visa for all partners or shareholders
A Memorandum of Association (MOA) outlining the ownership and management structure of the company
A detailed project plan and feasibility study for the construction project
Proof of financial capability, such as a bank statement or letter of credit
Professional qualifications and certifications for key personnel, such as engineers and project managers
A valid work permit for all foreign employees
A valid insurance policy for the construction project
Approval from relevant government authorities, such as the Dubai Municipality or Dubai Civil Defense
Any other documents required by specific authorities for a particular type of construction business, such as building permits, land allocation, etc

Note that these requirements are subject to change based on the type of construction business and specific regulations in place. It’s recommended to consult with legal experts or government authorities to get the most updated information.

How can Airzone help you start a Construction Business in Dubai?

Starting your own business in Dubai, United Arab Emirates is the easiest way to get a visa there. We hope our manual on how to start a construction business in Dubai aids you in your effort.

If you engage with a business formation specialist like Airzone, you can start swiftly. Due to our expertise and understanding of the industry, we can assist you as you start a business in Dubai. We’ll put you in touch with the appropriate service providers to support the growth of your business in the United Arab Emirates.

Our trustworthy partners in Dubai will be able to help you gain the required trade and construction permits. Then, while you focus on expanding your business, we’ll connect you with the relevant specialists to handle anything from visa applications to critical administrative responsibilities.

We offer a comprehensive guide on how to set up a business in Dubai if you need assistance with the process. You should be well-prepared to start a business in the UAE if you know the local business environment. We also have in-depth articles on the various free zones in the United Arab Emirates if you require more information.

Conclusion

Dubai’s construction industry is expanding rapidly and is expected to reach new heights in the coming years. We hope that our blog helps you understand the benefits of starting your construction business in Dubai and all the prerequisites associated with it.

It is amazing how much potential a country has in just one market segment. If you have any problem understanding the requirements, Airzone can assist you with company formation and business setup consulting whether you are in the construction industry or intend to open a business in Dubai.