Construction contracting —
DED + Municipality + classification.
Open a Dubai contracting company. DED industrial licence + Dubai Municipality contractor classification (G+1, G+4, G+12, unlimited) + Civil Defence + MEP/civil categorisation. Specialty-driven.
- Timeline
- 21–45 d
- From
- AED 30k
- Authorities
- 3
- Activity codes
- 8
Dubai construction & contracting — full stack.
A Dubai construction contracting business operates under Dubai DED industrial licensing combined with Dubai Municipality contractor classification. Classification tiers (G+0, G+1, G+4, G+12, G+40, unlimited) determine the building heights you can contract; specialty categorisation (civil, MEP electrical, MEP plumbing, MEP HVAC, finishing, demolition) determines work type. Higher classifications require demonstrated past projects, financial capacity (paid-up capital), and engineer credentialing. Civil Defence approval is mandatory for any project with fire-safety scope.
Dubai DED activity codes covered
4100 — Construction of buildingsGeneral contracting — residential and commercial
4220 — Civil engineering worksRoads, bridges, utilities
4321 — Electrical installationMEP electrical contracting
4322 — Plumbing, heat, AC installationMEP mechanical contracting
4330 — Building completion and finishingFit-out, painting, flooring
4311 — Site preparation and demolitionEarthworks and demolition
Dubai contractor tiers — what each unlocks.
Dubai Municipality grades contractors by maximum building height plus specialty. The tier you start at depends on demonstrable past projects, paid-up capital, and registered engineers.
| Tier | Max scope | Typical paid-up | Engineer requirement |
|---|---|---|---|
| G+0 | Ground floor only — small fit-outs, retail interiors | AED 50,000+ | 1 registered engineer |
| G+1 | Up to 1 floor above ground — villas, low-rise commercial | AED 100,000–300,000 | 1–2 registered engineers |
| G+4 | Up to 4 floors — small mixed-use, mid-rise residential | AED 500,000+ | 2–3 registered engineers |
| G+12 | Up to 12 floors — mid-rise commercial / residential towers | AED 1,000,000+ | Specialty mix + bond |
| G+40 | Up to 40 floors — high-rise towers | AED 3,000,000+ | Full team + project record |
| Unlimited | Any height — Burj-class, mega-projects | AED 5,000,000+ + bond | Audited team + 5+ year track record |
Construction setup — competitor pricing.
Initial G+1 classification + DED industrial licence + Civil Defence + 2 visas. Excludes paid-up capital deposit and bond.
| Provider | Setup price | Classification handling | Civil Defence package |
|---|---|---|---|
| YABS | AED 30,000 | Included for G+1 | Included |
| Shuraa | AED 35,000+ | Add-on AED 4,500 | Upsell |
| Virtuzone | AED 38,000+ | Add-on AED 6,000 | Upsell |
| Creative Zone | AED 32,000+ | Included | Upsell |
| Adam Global | AED 45,000+ | Add-on AED 7,500 | Upsell |
Who has to say yes.
Dubai DED
Industrial trade licence under construction activity codes
Dubai Municipality Buildings Department
Contractor classification (G+0 to unlimited) + specialty categorisation. Determines what you can bid on.
Dubai Civil Defence
Pre-approval for fire-safety scope on every project
8 steps, 21–45 d.
DED activity + trade name
Choose construction activity code(s) 4100–4330. Reserve trade name AED 620.
Initial DED approval + paid-up capital
DED initial approval 1–2 days. Construction activities require demonstrated paid-up capital — varies by classification target. Standard G+1 typically requires AED 100,000+; G+12 typically requires AED 1M+.
MoA notarisation
MoA at Dubai Notary Public AED 1,100.
Office tenancy (physical office mandatory) + Ejari
Construction licences require physical office. Yard/warehouse separate. AED 220 Ejari + typing.
Final DED trade licence
Trade licence fee AED 11,500–17,000. Industrial category.
Dubai Municipality contractor classification
Submit classification application — past projects, engineer credentials, financial statements, insurance. Approval 14–30 days. Initial classification typically G+1 or G+4; higher tiers require operational track record.
Civil Defence categorisation
Specialty categorisation for fire-safety scope. Per category 7–14 days.
Establishment Card + Immigration file + worker visas
Construction visa quotas typically larger due to skilled and labour staff requirements. Initial Establishment Card AED 2,600.
What you actually pay.
| Item | AED |
|---|---|
Trade name + DED initial approval | 855 |
MoA notarisation | 1,100 |
Ejari (physical office) | 220 |
Trade licence fee (construction industrial) | 14,500 |
Dubai Municipality classification (G+1 starting tier) | 7,500 |
Civil Defence categorisation | 2,400 |
Establishment Card + immigration file | 2,600 |
| Government fees subtotal | 29,175 |
| YABS service fee | 9,500 |
| 5% VAT (on YABS service fee) | 475 |
| Total | 39,150 |
Government fees vary by activity and approval requirements. Final quote confirmed after activity selection.
Where people get this wrong.
Pulled from 500+ YABS engagements. Each pitfall has a knock-on cost in time or AED — knowing them up front is half the value of using a PRO.
Skipping Civil Defence approval for fire-safety scope
Cost: Site shutdown; AED 10,000+ fines; project handover blocked
YABS fix: We embed Civil Defence approval in the contractor classification process, not as an afterthought.
Targeting G+12 classification before completing G+4 project portfolio
Cost: Classification rejection — Dubai Municipality requires demonstrated track record at lower tier first
YABS fix: We start clients at G+1 or G+4 and stage classification upgrades as project record accrues.
Bidding on government tenders before bidder pre-qualification
Cost: Tender disqualification; bid bond at risk
YABS fix: We coordinate pre-qualification with each tender authority (Dubai Municipality, RTA, DEWA, Trakhees) before tender submission.
Frequently asked questions
What is contractor classification in Dubai?
Dubai Municipality grades construction contractors by maximum building height/scope they're approved to build: G+0 (ground floor only), G+1, G+4, G+12, G+40, unlimited. Higher tiers require demonstrated past projects, registered engineers, financial capacity (paid-up capital and bond), and equipment ownership. Initial classification typically G+1 or G+4; higher tiers achieved over years of operating record.
How much paid-up capital for a Dubai construction company?
DED statutory minimum is AED 1 since 2015 reform. Practical reality: G+1 classification typically requires AED 100,000–300,000 paid-up; G+4 requires AED 500,000+; G+12 requires AED 1M+; unlimited classification requires AED 5M+ paid-up capital plus bond. Banks will request paid-up capital for account opening regardless of activity.
Can I bid on Dubai government tenders with a private company?
Yes — mainland licence is sufficient to bid on Dubai government and federal tenders. Free zone companies typically cannot. However, government tenders have specific bidder qualification requirements: classification tier, past project experience, financial guarantee, and Ministry registration depending on the tender authority.
Do I need Civil Defence approval for every construction project?
Yes for any project with fire-safety scope (which is most construction). Civil Defence reviews fire suppression systems, emergency exits, smoke control, and life-safety design. Per-project approvals are project-by-project (typically handled by the engineering consultant) — your contractor categorisation establishes baseline credibility but each project still goes through specific permitting.
How long does Dubai contractor classification take?
Initial G+1 or G+4 classification: 14–30 working days from submission to certificate issuance. Higher tier upgrades (G+12, G+40, unlimited) take longer due to past-project audit and engineer verification — 30–60 days. Classification is renewed annually with submission of updated project record.
Apply for the construction & contracting package
Apply online in 4 steps. Itemised AED quote, no sales-call gate.
This page was last reviewed by the YABS compliance team in Q2 2026 and reflects current Dubai DED, Dubai Municipality, DHA, MOHRE, FTA, and DLD requirements.