Dubai has introduced Law No. 7 of 2025, a landmark reform aimed at transforming its contracting sector with a unified, professional regulatory framework. It mandates contractor classification based on expertise, financial strength, and operational capacity, ending the era of winning tenders purely on low price. Now, quality, compliance, and track records take precedence Reddit+1224 Law+12Gulf News+12.
🧱 Why Turnkey Firms Need to Take Notice
1. Registration and Classification Are Mandatory
All contractors—including turnkey service providers—must register in the new digital registry managed by Dubai Municipality and linked to the “Invest in Dubai” platform. Classification determines which types of projects firms are allowed to execute A&O Shearman+4protocol.dubai.ae+4Legal Advice Middle East+4.
2. Ethical and Operational Compliance Required
Subcontracting, joint ventures, or exceeding registered capacity are restricted unless prior approval is obtained from the Contracting Activities Regulation and Development Committee. Full adherence to the forthcoming code of ethics is required The Law Reporters+4A&O Shearman+4protocol.dubai.ae+4.
3. Strict Penalties for Non‑compliance
Fines range from AED 1,000 to AED 100,000 for first violations. Repeat offenses within 12 months can double fines up to AED 200,000. Violators may also face suspension, deregistration, or license revocation Gulf News+9protocol.dubai.ae+9Legal Advice Middle East+9.
4. Turnkey Contracts Receive Special Attention
Article 19 of the law specifically addresses turnkey contracts. A turnkey contractor delivering “ready-to-use” projects must meet stipulated criteria as defined by the competent authority Beale & Co+5A&O Shearman+5Economy Middle East+5.
✅ What This Means for Alriyady Projects — and Clients
- Built‑in Trust & Capability: Your man-hour-based model aligns perfectly with the shift toward competence‑driven selection, positioning you favorably in tenders.
- Structured Accountability: With your emphasis on time tracking, no hidden costs, and clear deliverables, you naturally meet new standards for transparency and documentation.
- Prepared for Classification: As you build project feasibility, design, interiors, supervision, and management expertise, you’ll be well-placed to register at the appropriate class level and meet technical requirements.
What’s Next?
Dubai’s Law No. 7 marks a turning point. Clients increasingly demand proven quality over lowest bids, and compliance—alongside ethical conduct—is now non-negotiable. Turnkey providers structured around transparency and competency are not only compliant—they’re competitive.
