The success of Dubai’s construction industry comes as no surprise. You don’t need to have visited the emirate to be aware of its reputation for ambitious projects across hospitality, infrastructure, real estate and more.
For the businesses within this thriving industry, there’s a whole host of opportunities across the residential, government and industrial sectors.
So, if you’re considering starting a construction business in Dubai, UAE, keep reading to learn more about the market, how to get your construction licence and how to succeed. We’ll be looking at these areas:
- Construction business in the UAE – an overview
- Key factors contributing to the success of construction business in Dubai
- Construction license in Dubai – step by step
- Cost of getting a construction license in Dubai, UAE
- Strategies for success in the construction businesses in Dubai
- How Worldwide Formations can help
Construction business in the UAE – an overview
Construction companies existed in Dubai as early as the 1930s, but it was the discovery of oil in the 1970s that provided the catalyst for the recent building boom.
In a little over 50 years since, Dubai has transformed from a small fishing village into the home of one of the world’s most recognisable skylines – breaking numerous construction records along the way.
Behind these headline-grabbing constructions are many more, built to rapidly level up Dubai’s infrastructure and its corporate, industrial, and residential standards. These projects have seen great success, and today, Dubai shares the construction limelight with prestigious business hubs around the world, including Singapore, Tokyo, New York and London.
The result of this work is a construction industry predicted to reach a value of USD 133.5bn by 2027. And with the relaxation of policies to encourage greater investment in the emirate, along with a commitment to digital infrastructure with smart cities, this figure will continue to rise.
Key factors contributing to the success of construction businesses in Dubai
Many factors have contributed to the success of Dubai’s construction industry over the years. The Emirate’s leadership has been instrumental in reshaping the emirate from its humble beginnings to the powerhouse it is today.
Forward-thinking policies, abundant investment and a clear vision have enabled the emirate to grow and evolve rapidly. The government’s innovative approach to new technologies has also helped the industry remain cost-effective, speeding up construction processes and ensuring developments are fit for the future.
The UAE’s welcoming business environment plays a huge part. International entrepreneurs and foreign investment are not just welcomed but actively encouraged out here. Corporate-friendly legislation, favourable tax policies and investor incentives have paved the way for the growth of the construction industry.
Dubai is also incredibly fortunate when it comes to resources. As well as ample and affordable labour, the region is rich in the materials needed to supply near-constant construction.
Finally, Dubai is in demand. Whether it’s entrepreneurs and organisations looking to gain a business presence in the Middle East, expatriates relocating with their families, or the millions of tourists that visit every year, there is always a need for further development.
Construction license in Dubai – step by step
The first step before embarking on the process of starting your business in the UAE is to consult a local company formation expert.
The expert team at Worldwide Formations can guide you through the following process, liaising with all stakeholders on your behalf.
Step 1: Choose your business activities
The first step is to outline your business activities. There are many possible options in the construction industry, from project management to manufacturing and new developments.
To ensure you are correctly licensed, you must list all your intended business activities on your license application.
Step 2: Choose your company name
Next, you need to choose your company name. Due to the UAE’s corporate naming conventions, there are a few considerations to keep in mind at this stage.
For example, your business name cannot be the same as one used by an existing business in the UAE. In addition, it should not contain any blasphemous or offensive language or have any religious connotations.
Step 3: Applying for your construction business license
With this early administration out of the way, you can now apply for your UAE trade license.
As this process requires a certain level of expertise, now is a good time to liaise with a UAE company formation specialist, if you haven’t already.
Worldwide Formations can manage the entire application process for you, engaging free zone and mainland authorities depending on your chosen jurisdiction.
Step 4: Applying for visas
As a UAE business owner, you are eligible for a residency visa. The application process is a little more complex than obtaining a business license, comprising a medical examination, biometric scanning, immigration stamping and more.
You can also sponsor the visas of your dependants, such as your family or employees. Worldwide Formations can guide you through this process.
Step 5: Open a corporate bank account
Finally, you will need a corporate bank account to do business freely in the UAE. Once we understand your specific requirements, your dedicated contact at Worldwide Formations will advise on the financial institution that is best suited.
Cost of getting a construction license in Dubai, UAE
The cost of starting a construction business will depend on the nature of your activities and the size and scale of the projects you wish to undertake.
To start with, there is the business license, which costs in the region of AED 10,000 to AED 30,000. In addition, you’ll need to consider staff and visa costs, equipment, materials and any other permits required to trade.
For a detailed quotation, get in touch with the team at Worldwide Formations.
Strategies for success in the construction business in Dubai
One of the most effective ways to succeed in the construction business in Dubai is to build strong and fruitful relationships.
Contractors, suppliers, developers and other stakeholders prefer to work with companies that can be trusted to deliver on time and on budget. Build a reputation for quality, reliable and timely work, and you will significantly improve your chances of repeat and continued business.
The best construction companies out here are those that embrace innovation. Dubai is known for its world-leading approach to everything from healthcare to hospitality, and construction is no different. So, remain open to new tools and techniques that can help to improve the efficiency, quality and safety of your builds.
Cost control is another vital marker for success. It’s no secret that construction can be expensive, especially on the scale seen in Dubai. Be sure to keep a close eye on costs, look to maximise the use of your resources, and reduce waste water wherever possible.
Finally, it pays to find your niche. There are all manner of construction projects underway in the UAE at any given time. If you can become a trusted expert in one particular area, you can quickly gain a reputation as the go-to business for similar future projects.
How Worldwide Formations can help
Construction can be a rewarding industry in more ways than one. But getting started out here can be a daunting task, particularly if you are new to the region.
Worldwide Formations are the experts in all things relating to business setup in the UAE. We can help you manage the company formation process to make it as fast, affordable and straightforward as possible.
For more information and a personalised quote, please visit Worldwide Formations.
