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Construction Companies in Dubai, UAE: Business Setup & Cost 

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UAE has become one of the fastest-growing economies in the world. The booming construction industry in Dubai is an example of this. When it comes to construction company setup, the business setup in Dubai is easier. The licensing process is quite straightforward for Construction Companies in Dubai. The benefits and opportunities are endless in the United Arab Emirates.  

Dubai remains in second place in terms of construction activities. Whether it is the famous Burj Khalifa or other major upcoming projects such as Dubai Creek, the construction industry is going strong. If you are establishing a construction firm in the UAE, you must follow this guide to get started. 

Overview – UAE Construction Companies 

The UAE market is currently growing very fast. The construction market size is approximately around 41 billion dollars, and it will increase to 50 billion dollars in the year 2029.   

The UAE construction industry is focusing on sustainability. It emphasizes green building practices and energy-efficient designs. Modern technologies are getting common in UAE. These technologies enhance construction efficiency and precision. 

Additionally, the smart city infrastructure, AI and digital technologies offers better site services. Construction Companies in Dubai are building and diversifying their portfolios. They now cover all the sectors including residential, commercial, and other. 

There are a lot of notable projects in the UAE construction industry. The famous projects include Burj Khalifa, the tallest building in the world, developed by Emaar Properties. Palm Jumeirah was developed by Nakheel Properties. The Dubai Mall, the largest shopping mall in the world, was also developed by Emaar Properties.

Abu Dhabi’s Yas Island is an entertainment destination, featuring projects by Aldar Properties. Expo 2020 Dubai is a global event that has driven many construction projects across Dubai.

Three Yellow and Red Tower Cranes Under Clear Blue Sky

Steps to start a construction company in Dubai 

To set up your construction company in Dubai, you need to follow these steps: 

Step # 1. Choose a unique trade name 

First you need to choose a unique trade name that must follow the rules set by the UAE government. After that, you need to register with the Department of Economic Development.   

Step # 2. Choose a business location 

After you register your name with DED (Department of Economic Development), you need to choose a business location in your preferred area.

Step # 3. Submit your application 

Once the location is decided, you need to submit the application to the DED. In this application, you need to submit the required documents. The documents usually include an original passport copy, Emirates ID, a solid business plan, and others. 

Step # 4. Get the necessary permits 

For the mainland construction company in Dubai, you need to have an additional permit. It is a G+1 permit. You need to get it from the Dubai Municipality. After getting this permit you can pay the fees and secure a building license in Dubai. 

Also, if required, you may need to obtain other licenses like an environmental license and a civil work permit. 

Step # 5. Get a UAE residence visa 

After you obtain all the necessary permits and visas, you need to apply for a UAE residence visa. It is valid for 2 years and you can sponsor your family members. 

Step # 6. Open a business bank account 

Now that you have become an official business owner in Dubai, you can open a corporate bank account in Dubai

welding

Types of business license for construction companies in Dubai 

To set up a construction company in Dubai, you need appropriate business licenses and permits. The types of business licenses with allow business activities for a construction company include: 

 1. Commercial business license  

The construction companies usually get commercial business license in Dubai. It includes countless business activities.

Some of the activities are construction chemicals trading, building materials trading, steel construction contracting, contracting and building works, construction equipment & machinery rental, machinery, and equipment rental, building & construction materials trading, 3D printing building construction contracting, marina construction contracting, rental of loading, lifting & construction equipment with wheels & motors trading, green buildings construction materials, and many others.  

2. Professional business license  

It includes business activities such as compliance certification for building construction products, construction & demolition waste recycling, construction engineering services, construction equipment & machinery spare parts trading, and more.  

3. Industrial business license  

The industrial license includes business activities such as construction clay products manufacturing, construction chemicals manufacturing, construction equipment & machinery assembling, and others.  

labor working on construction sites

Cost of setting up a construction company in Dubai 

Starting a construction business in Dubai involves several costs. The exact amount can vary. It is based on factors such as location, business activities, company structure, and office rent.

  • Usually, it will cost you between AED 15,000 to AED 50,000 to start a construction business in Dubai. 
  • You will need to consider visa costs for yourself and your employees. A single visa can cost you around AED 5,000 to AED 8,000. 
  • Renting office space can cost you from 30,000 to 50,000 or more. It depends on the chosen area and the size of the office. 

Top 10 construction companies in UAE 

Here are the top 10 construction companies in the UAE for 2024: 

1. Arabtec Construction L.L.C (Limited Liability Company) 

Arabtec has been important in the construction market in the UAE. It has been in the market since 1975, with famous and successful projects like the Burj Khalifa and the Dubai Mall. 

Skyscrapers in Dubai

2. Al Naboodah Construction 

Al Naboodah Construction is one of the top construction companies in the UAE. It is part of the Al Naboodah Group Enterprises, which is big in construction, business, and investments.

3. Al Futtaim Group 

Al Futtaim Group is also one of the best construction companies in Dubai. Its portfolio showcases successful construction projects. Al Futtaim Group has done big construction projects like the Dubai Metro. 

4. Arabian Construction Company 

Arabian Construction Company was founded back in 1967. It built many tall buildings in the Middle East, like the World Trade Centre in Abu Dhabi and Emaar Residences. 

5. Al Habtoor Group 

Al Habtoor Group Company handled some of Dubai’s most iconic projects, including the Burj Al Arab Jumeirah and the Dubai Opera House.

Industrial machine

6. Drake & Scull International PJSC (DSI) 

DSI specializes in construction, mechanical, and electrical engineering fields. DSI is quite popular in the MENA region. 

7. Habtoor Leighton Group LLC (HLG) 

HLG is a major contractor in the UAE construction market. They have worked on some major and up-scale projects like the Burj Khalifa and the Abu Dhabi International Airport. 

8. ASGC Dubai 

ASGC has built a reputation since 1978. It has successfully completed construction projects on time. It is making a great impact on the residential and commercial developments in Dubai. 

construction site

9. ALEC 

ALEC Dubai is a leading construction and project development company in the UAE. It is known for delivering high-quality and innovative infrastructure projects. ALEC portfolio includes a range of construction sectors. The sectors include residential, commercial, and hospitality developments. 

10. Dutco Balfour Beatty LLC 

The company established in 1947. Dutco Balfour Beatty LLC specializes in a wide range of civil engineering projects. The major projects include trading, luxury hotel management, surveying, pipeline and electrical engineering. Dutco is recognized as a reliable entity in the contracting sector. 

Conclusion 

 In conclusion, setting up a company can be a business opportunity. The reason is due to the booming construction industry in Dubai. The process of starting a construction company is not complicated. You must have a solid business plan. Then, you need to get the necessary licenses, and work permits in Dubai. After getting the licenses you can find qualified employees.

The cost of setting up a construction company in Dubai can vary. It depends on the size and business activities. Initial expenses may include licensing fees, office rent, employee visas, and equipment costs.  
Overall, with strategic decision-making, construction companies in Dubai can succeed. Consider partnering with Emirates Business Setup. 

We offer business setup services in Dubai and across the UAE. Contact us and get more information today! 

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