Dubai continues to see steady demand for residential, commercial, and infrastructure projects, driven by population growth, urban expansion, and government-backed development plans. This makes it a strong market for qualified building contractors looking to establish a foothold or grow their business.
In this article, we’ll cover what it takes to set up a building contracting company in Dubai. You’ll find a step-by-step breakdown of the licensing process, an overview of the costs involved, the benefits of operating here, and practical tips for winning clients once you’re up and running.
Building contracting business in Dubai: Overview
Construction is one of the UAE’s biggest and busiest sectors, and Dubai sits right at the centre of it. The city is growing fast—both in terms of population and real estate—and that means a steady pipeline of work for building contractors across housing, commercial, and infrastructure projects.
Public and private developers are active across the city, from large-scale residential builds to logistics parks, office towers, and school expansions. Government plans like Dubai 2040 and major investment zones such as Dubai South and Expo City are creating long-term demand for qualified contractors.
What matters in this market is licensing, experience, and the right approvals. For firms that meet the requirements, there’s a clear path to consistent work, especially for those offering specialist skills or working with clients that need to build fast and at scale.
How to start a building contracting company in Dubai: Step-by-step
Starting a building contracting company in Dubai involves a few key steps. Once you’ve chosen your target activity and understood the license type, the process moves quickly—especially with the right guidance.
- Choose your business activity and location
Start by selecting the specific type of contracting work you plan to offer—such as general building, steel work, or concrete works. Then decide whether you’ll register in the mainland (through the Department of Economy and Tourism) or in a free zone that allows construction activities. Mainland is usually required if you want to take on local government or large commercial projects. - Decide on your legal structure and trade name
Most contractors register as LLCs. You’ll need to reserve a trade name that meets the UAE’s naming rules and reflects the activity you’ve chosen. Some activities also require local ownership or a local service agent, depending on the setup. - Apply for your license and get approvals
Submit your license application through the relevant authority. You’ll need to provide passport copies, application forms, and details about your technical staff. Most contracting activities require at least one qualified engineer registered with the UAE Society of Engineers and approved by Dubai Municipality. - Secure your office and register for visas
You’ll need a commercial lease for your office space. Once this is sorted, you can apply for establishment cards and visas—for yourself and any employees. The number of visas you can request depends on your office size and license package. - Open a corporate bank account and begin operations
Once your license and visas are in place, you can open a business bank account. Banks may request a business plan, proof of address, and meeting attendance. From there, you’re ready to start quoting, bidding and building.
Benefits of starting a building contracting company in Dubai
Ongoing demand from public and private sectors
Dubai awarded over AED 80 billion in construction contracts in 2023, with more lined up under the 2040 Urban Master Plan. Contractors are needed for residential towers, commercial plots, schools, and healthcare facilities. Projects linked to Expo City and Dubai South are creating steady demand.
Access to government and mega-project tenders
Registered contractors can bid for major government-backed developments and private mega-projects. These include projects from Dubai Municipality, Nakheel, Emaar, and TECOM. Winning even one of these can secure long-term revenue and credibility in the market.
100% foreign ownership and low tax exposure
Most building contracting companies can now be set up with full foreign ownership. Corporate tax applies only on profits above AED 375,000, and there’s no personal income tax. This gives business owners more control and keeps margins clean.
Choice of setup structures to suit contract size
Mainland licenses are ideal for firms looking to work with government or local developers. Free zone licenses can work for niche or subcontracting roles, especially if you’re focused on B2B supply or external projects. The setup can scale with your business model.
Opportunity to niche and scale fast
Firms that specialise—such as in G+1 villas, structural steel, or concrete works—can start small and grow quickly. Dubai’s licensing system allows you to build around a specific scope, which helps with approvals, recruitment, and positioning with clients.
How to get clients for a building contracting business in Dubai
Register with tendering platforms
To access government and large-scale private projects, contractors must be registered on portals like eSupply, Etimad, and Tejari. These platforms list upcoming tenders across Dubai and the wider UAE. Once approved, you can bid for work from municipalities, developers, and public entities.
Build relationships with consultants and developers
Most projects pass through engineering consultants or project managers before reaching the contractor. Connecting with firms involved in design, supervision or fit-out can lead to subcontracting work or referrals. Attend trade shows, join local industry groups, and stay visible.
Focus on delivery and referrals
In construction, word of mouth matters. Delivering on time, sticking to the budget, and being easy to work with are the basics that help win repeat work. Developers and consultants talk—strong execution on one site can lead to your next contract.
About Worldwide Formations
Worldwide Formations has been helping entrepreneurs set up companies in the UAE since 2008. With clients in over 90 countries and official registration in all major free zones, the team offers clear, hands-on support across every step of the setup process.
That includes help with free zone, mainland and offshore licenses, as well as visas, corporate bank accounts, and post-setup services through trusted partners. Whether you’re launching a new contracting firm or expanding an existing one, they’ll guide you through the steps and make sure everything is in order.
To get started with your business setup in Dubai, reach out to the team today.
