From record-breaking skyscrapers to sprawling resorts, Dubai is home to some of the most ambitious construction projects in the world. The industry has seen record-breaking performance in the past few years, and as businesses and governments increasingly look to incorporate sustainable practices and technology, the business of construction is only getting bigger and better. For specialists in this field, the market is ripe for success – you just need to know how to unlock it.
How to start a construction company in Dubai: Step-by-step
Dubai authorities have streamlined the business setup process in Dubai to make it easier for entrepreneurs to set up and scale their businesses. Here’s what to expect from the process in five simple steps:
Step 1: Choose a business structure
There are several business structures to choose from in Dubai, but three of the most popular options include free zone, mainland and offshore company setup. Offshore company setup is best-suited to businesses operating outside of the region, so if you’re hoping to reside in Dubai free zone and mainland structures will be the best options for you. Both offer significant advantages. Free zones offer streamlined business setup and specialised support, significant tax exemptions and easy trade access outside of the region, while mainland company setup offers the flexibility of picking up government contracts and trading anywhere within the region.
Step 2: Register your business
Once you have confirmed what type of business you plan to run, you will need to register your business with the Department of Economic Development. A reputable business setup consultancy like Set Hub will be able to help. We always recommend working with a setup service that understands the nuances of the local environment.
Step 3: Apply for your business license
All businesses require a business license to operate legally in the UAE. Construction businesses require a construction or contracting license. This process involves completing and submitting an application form, along with a selection of documents including passport copies, business plans, visa copies and a proof of trade name registration. You may also need to get additional approval from more specific authorities, depending on the type of construction work you plan to carry out.
Step 4: Secure your office, warehouse and storage facilities
Construction companies usually require physical office space in Dubai. You will also need to secure ample warehouse and storage space for your heavy equipment, raw materials, vehicles and machinery. These items all require secure, weather-protected and easily accessible storage space that can withstand Dubai’s extreme heat, sand and humidity. Consider choosing a location specifically designed for heavy-use industries situated close to major highways, ports and future project sites to ensure faster logistics, easier transport of materials and better access to labour.
Step 5: Start operations
To start your business operations, you will need to open a corporate bank account (which requires an Emirates ID), hire skilled labour and technical staff and set up supply and compliance systems.
There’s no need to do it all on your own, though. A reputable business setup consultancy like Set Hub will guide you through the entire process, from obtaining licenses and securing office space to finding the perfect warehouse and ensuring compliance to make the journey smooth and hassle-free.
Construction business in Dubai: Overview
According to recent stats, the UAE’s construction industry is projected to expand by 5% over the next year, thanks to increasing demand for residential homes and public infrastructure projects. Dubai attracts high-net-worth individuals thanks to the high-quality lifestyle on offer, which has in turn driven a shortage in luxury housing and demands to rectify this, fast. The government has also committed significant funds to improving public infrastructure, with the introduction of huge-scale projects like Dubai Metro’s Blue Line.
Robotics, automation and data are transforming the industry too, particularly in the UAE, which has been quick to embrace these technological advancements. Innovations like Building Information Modelling (BIM) enhance project planning, design and execution, while the IOT, AI and drones are streamlining the process by enabling real-time monitoring, predictive scheduling and precise surveying.
For those looking to capitalise on this wave, now is the time to make a move.
Benefits of starting a construction business in Dubai
So, why choose Dubai as the best base for your construction business?
Robust real estate market
Dubai boasts high appeal to international investors and residents, driving high demand for real estate, particularly in the luxury market. This, combined with initiatives like the Golden Visa programme, has resulted in a surge in property sales and rentals, in turn driving consistent demand for construction services.
Access to high-profile projects
Dubai is renowned for its iconic construction projects, from the tallest tower in the world to some of the most luxurious resorts on the globe. Opportunities to work on landmark developments abound in Dubai, helping those working in the sector to enhance their profile, enjoy significant financial returns and position themselves as key players in the global construction industry.
Strategic location at the heart of three continents
Dubai is located at the crossroads of Europe, Asia and Africa. This strategic location offers easy access to international markets, making it the ideal base from which to expand operations across the Middle East and in emerging markets. Plus, the city boasts fantastic logistics infrastructure, making it even easier to facilitate cross-border collaborations.
Advanced construction technologies
For ambitious entrepreneurs keen to incorporate the latest technologies into their business model, Dubai is ideal. The city has embraced innovations like Building Information Modelling (BIM), 3d printing and smart building solutions, and is committed to becoming a digital-first region.
Tax incentives and business-friendly policies
Dubai is one of the best places in the world to do business. Entrepreneurs and investors can enjoy significant tax benefits such as zero personal income tax, low corporate tax rates, exemptions from capital gains tax and minimal customs duties. Plus, the city boasts streamlined business setup processes and a supportive regulatory framework to make it easier for entrepreneurs to establish and grow their construction companies.
Start your construction business with Set Hub.
Set Hub is a leading business setup consultancy in Dubai and has helped over 25,000 businesses succeed in the UAE. Our comprehensive suite of services ensures that every aspect of your entrepreneurial journey is handled with care and expertise, from licensing and company setup to office rentals and banking.
Our tailored and dynamic approach provides personalised solutions to fit your unique business needs, ensuring a smooth and efficient setup process. If you’re ready to start a construction company in Dubai or would like to find out more about how we can help, get in touch with our friendly team of advisors today.
