Setting up a building contracting company in Dubai

Dubai is home to many skyscrapers and marvels in the form of buildings and other infrastructure. Moreover, Dubai has now become a business hub and a tourist destination. People around the world come in search of work, to expand their business, set up a new business, or visit the scintillating tourist places. With the increase in population and tourists, the question of accommodation and associated infrastructure arises. In this regard, the government has sanctioned many massive infrastructural projects. The building of high rises, hotels, parks, artificial islands, entertainment projects, and other business projects are on a continuous rise in Dubai. There are several small and large-scale projects in-line to be built in Dubai. Therefore, the opportunity for setting up a building contracting company in Dubai is huge. Amongst the favorable factors of tourism growth and business growth, the upcoming Expo 2020 is a major factor.

Opportunities for setting up a building contracting company in Dubai

According to a report, the UAE has the world’s second-fastest construction growth. The construction and contracting business is one of the highest-grossing businesses in the UAE. Moreover, Dubai is home to the tallest building Burj-al-Khalifa. In addition, Dubai also boasts of having the tallest residential building, Marina 101. Princess tower and Burj-al- Arab are other marvels. The upcoming Dubai Expo has contributed majorly to the growth of Dubai as a business hub. The government is funding the expansion of Dubai International Airport and also the redevelopment of Abu Dhabi International Airport. The tourism industry also plays a major part in the development of the contracting business in Dubai. The scintillating tourist spots make Dubai one of the best tourist places in the world. Thus, the opportunities in this sector are on a rise.

Contracting activities

Some of the contracting activities are:

• Road contracting
• Sewage and drainage contracting
• Water pipeline and stations
• Tunnels,
• Bridges and dams
• Oil and natural gas pipelines
• Electric power line,
• Water well drilling,
• Plumbing and sanitary works, etc

Steps to start a building contracting company in Dubai

• Firstly, the owner has to decide the location of the business. The contracting business can be set up in Dubai mainland or Free Zone.
• Secondly, the entrepreneur has to apply for a commercial license from the DED. In the case of Free Zone, the respective authority grants the license. The business requires a building contracting license, building maintenance license, wrecking, and demolition license, steel construction contracting license, and others.
• Thirdly, the business has to hire an engineer or consultant as a professional. This professional looks after the engineering works, design and is in charge of project management. The professional requires a professional license. The professional can start the activities only after getting the building permit.
• Fourthly, the engineer has to determine the properties of the soil and evaluate the soil for construction.
• Finally, the DED gives approval in the form of a license. After that, the owner has to get approval from the DM and other departments. In the case of Free Zone, the authorities grant the G+1 permit.
• The other approvals required are:
  • Approval from DEWA ( Department of Electricity and Water Authority)
  • Sanction from Etisalat ( permit for telecommunication)
  • Approval from building department (for building permit)
  • Approval from the Drainage and Irrigation department, and
  • NOC from Dubai Civil defense Authority

Other permits required

• Initially, the owner has to get Civil works to permit for the works before foundation
• After that owner has to get a Building permit, for which the owner has to submit the designs and drawings
• Environmental license
• In addition, the businessman has to get approval from the Road and Transport Authority to access the roads and internal road networks for the transportation of goods.
• Moreover, the owner has to get approval to dispose hazardous waste
• Finally, a Building Completion Certificate grants permission to occupy the building.

Conclusion

In short, the building contracting business has lots of opportunities in Dubai. The main factors being Expo 2020 and tourism. A businessman willing to set up a building contracting company in Dubai has to get several licenses and approvals. However, he can reap in huge profits by setting up the business.