A Market at the Crossroads
For decades, Dubai’s construction industry has been a symbol of speed, scale, and ambition. Towers rose in months, new districts appeared overnight, and contractors became global players almost by momentum.
Yet beneath this energy, another truth persisted: a market often driven by price rather than performance, where transparency could feel like a disadvantage.
Now, with Law No. 7 of 2025, Dubai is addressing that imbalance.
A Unified Law for a Complex Industry
The new legislation, coming into effect January 2026, introduces a unified contracting framework that applies to all companies operating across the Emirate — including those in free zones and special development areas.
It replaces fragmented systems with a single set of rules that demand classification, documentation, and measurable capacity.
At the heart of the reform is a digital contractor registry, managed by Dubai Municipality and connected to the Invest in Dubai platform.
This registry will rank every contractor by technical competence, financial stability, and track record, allowing clients and regulators to verify who is qualified for what.
For developers and investors, this brings something Dubai’s market has long needed: clarity.
From Speed to Substance
The law’s intent is clear — to replace speculation with structure.
It requires each contractor to operate strictly within its approved classification scope and to obtain official approval for subcontracting.
This eliminates the grey zone where a company could win a tender on price, then outsource execution to unverified teams.
At the same time, the law recognises EPC (Engineering, Procurement & Construction) and consortium delivery models, aligning Dubai with international best practice.
It acknowledges that modern projects demand multidisciplinary collaboration — but now within a regulated, transparent framework.
This shift redefines the meaning of competitiveness.
From 2026 onward, being cheaper will no longer be enough; companies will need to prove competence.
Ten-Year Record Retention: Building Memory into Law
One of the most significant advances is the requirement for contractors to retain project documentation for ten yearsafter completion.
That includes design drawings, material certificates, inspection reports, and contractual correspondence — everything that defines how a project was truly built.
This clause reflects international liability standards and creates a culture of traceability.
For the first time, every project will have a long-term record — a digital “memory” that supports maintenance, warranty, and legal accountability.
It also encourages contractors to adopt digital project management tools, quality control software, and data-driven documentation, turning compliance into a new form of professionalism.
Raising the Bar Through Enforcement
Accountability means little without consequences.
To ensure adherence, Law No. 7 introduces graduated penalties — from AED 1,000 to AED 100,000 for initial violations, up to AED 200,000 for repeated offences.
Authorities may also suspend operations, downgrade classification, or remove companies from the registry for persistent non-compliance.
This creates a measurable cost for cutting corners and establishes incentives for best practice.
In time, this system will push the market toward cleaner competition — one where doing things right is the only sustainable strategy.
What It Means for Developers and Clients
For developers, investors, and hotel operators, the benefits are immediate:
- Verified contractor qualifications through a single registry.
- Transparent documentation trails from design to handover.
- Fewer delays and disputes caused by underqualified subcontractors.
- Lower long-term risk and stronger warranties.
For villa owners and private clients, it means that every approved contractor will carry a recognised classification — a clear indicator of capacity and compliance.
Quality, finally, becomes measurable before the first wall is built.
Changing the Selection Culture
Perhaps the most important impact of this reform will be cultural.
The real challenge was never the lack of regulation — it was the mindset in the selection process.
Too often, the cheapest offer won, while professional contractors who invested in systems, equipment, and qualified teams were overlooked.
This law provides the structure to correct that imbalance, but it will take leadership from developers and consultantsto apply it rigorously.
When tenders evaluate value, not price, the entire market elevates.
A Step Toward Global Standards
Dubai’s new law positions the Emirate alongside established global frameworks that have long balanced innovation with accountability:
- United Kingdom — Contractor competence systems under the Construction Leadership Council.
- Germany and France — Classification and insurance-based quality assurance.
- United States — Federal contractor prequalification registers.
With these reforms, Dubai sends a clear message: excellence is measurable, and quality is policy.
Interni’s Commitment to the New Standard
At Interni – Turnkey Projects Contracting LLC, this law doesn’t require reinvention — it validates our philosophy.
Through our proprietary Invisible Standard™ and Interior Performance Log™, every stage of design, procurement, and installation is already traceable, certified, and archived.
Our teams operate under a framework that mirrors the law’s intent:
technical mastery, invisible craftsmanship, and trusted execution.
For us, transparency isn’t a trend — it’s the essence of long-term trust between client and contractor.
Looking Ahead
By January 2027, all contractors will be classified and aligned with the new system.
Those who adapt early will gain an undeniable advantage: recognised credibility, access to larger tenders, and stronger partnerships with developers who now prioritise verified capacity.
The law is not a constraint — it’s a filter that separates what is built fast from what is built to last.
Key Takeaways
- Law No. 7 of 2025 unifies Dubai’s contracting sector under one transparent framework.
- Introduces mandatory classification, EPC/consortium recognition, subcontracting approval, and ten-year documentation retention.
- Creates a culture where competence, safety, and ethics are measurable business assets.
- Aligns Dubai with global construction governance standards.
- Rewards contractors who invest in professionalism, training, and quality control.
Dubai Law No. 7 of 2025 — A New Framework for Transparent and Accountable Construction