Think Dubai and you might imagine the Burj Khalifa soaring into the sky or the Palm Islands stretching across the Persian Gulf. Perhaps the country's huge modern airports or stunning shopping centers come to mind.
But with a rapidly growing population and a diversified economy, there are always many small projects underground. So if you want to start a construction business, now is the right time to start in Dubai.
In this article we'll cover:
Construction work in Dubai - market opportunity
The required permits to establish a construction company in Dubai
Steps for starting a contracting business in Dubai
Costs of setting up a contracting company in Dubai
Best construction company in dubai
Why work with BLC
Construction business in Dubai - market opportunity compound annual growth rate of 4.69% in the next 5 years.
In 2022 alone, the UAE government will commit at least US$1.4 billion to construction projects, with many more millions expected from private investors. The UAE is currently working on all kinds of projects, from solar energy farms and railways to thousands of housing units, to support more labor and investor migration.
For the entrepreneurs in this sector, the opportunity is staggering. With the tried and true UAE visa, resettlement and company incorporation procedures, with the right knowledge and support, you can be here and up and running within weeks.
The required permits to establish a construction company in Dubai
To ensure high standards across the industry, contractors need multiple permits to operate. In addition to applying for all relevant building permits, you must also obtain permits and permits from departments such as sanitation, irrigation, water, electricity, roads, transportation, waste management, communications and civil defense.
At the end of any construction project, you will also need a Certificate of Completion prior to using or occupying the structure.
Steps for establishing a contracting company in Dubai
When you partner with Business Incorporation Zone (BLC), the company incorporation process is quick, affordable, and very easy. After a short consultation to determine your needs, your personal contact person will guide you through the further process.
Step 1: Choose a name for your business
You first need to choose a name for your new company. Here in Dubai, the brand names have to meet certain requirements.
You may not use abusive or profane language or the names of well-known organizations. You also need to avoid abbreviations when naming your company after yourself - B.H. Stephen Smith Construction rather than S Smith Construction.
After submitting several name suggestions, BLC can check for availability before registering them for you.
Step 2: Select your legal entity
If you set up a construction company in Dubai, you can operate from the mainland of the UAE or from the free trade zone. Either way, 100% ownership can be obtained; However, if you are incorporating a company in the mainland, this type of sharing requires additional approval.
By being in the Free Trade Zone, you can enjoy a number of benefits including 100% duty free, no currency restrictions, and repatriation of capital and profits.
Step 3: Submit your licensing request
Once you make these important decisions, you are ready to apply for your business license. When incorporating a company on the mainland, this application must be submitted to the Department of Economic Development. If you want to start a business in a free zone, you must apply to the responsible administrative authority.
In either case, you will need to submit a completed application form together with other documents such as a copy of your passport.
Step 4: Apply for the construction permit and other approvals
Now is the time to apply for your building permit, or a G+1 permit if you are working from a free zone. At the same time, you must also apply for any additional approvals that you may require such as civil works and environmental licences.
Step 5: The visa
At this point, you can apply for the visa and visa for any dependents, such as your spouse, children, or domestic workers. This process includes a physical examination, a chest x-ray, and a blood test.
Step 6: Open a bank account for your company
You will need a corporate bank account to trade in the United Arab Emirates. This is not always the easiest process for non-GCC nationals, however, BLC can help.
We will suggest the most suitable financial institution to meet your requirements and assist with your application to avoid unnecessary delays or rejections.