🇦🇪UAE

غرامات عدم الامتثال للمقاولين - Dubai Law No. 7/2025

1 verified sources

Definition

Dubai Law No. 7/2025 introduces mandatory contractor registration in a central Municipality-linked registry. Non-compliance, unregistered engagement, exceeding classification scope, or Code of Conduct breaches trigger fines. Contractors must re-register within 12 months; manual administrative delays risk automatic penalties and licence suspension.

Key Findings

  • Financial Impact: AED 1,000–100,000 per violation (standard); AED 200,000 for repeat violations. Plus licence suspension (1 year max) and de-registration (loss of trade capacity).
  • Frequency: Upon violation; expected annually for non-compliant firms during 2026–2027 regularisation phase.
  • Root Cause: Manual contractor registration workflows, delayed compliance checks, poor incident notification procedures, and lack of integrated classification tracking systems.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Nonresidential Building Construction.

Affected Stakeholders

Compliance Officers, Contractor Registration Managers, Finance & Legal Teams, Project Managers

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

غرامات انتهاكات معايير السلامة - UAE Federal & Dubai Municipal

AED 5,000–50,000+ per inspection violation (estimated range based on regulatory severity). Midday break violations: AED 50,000 cited in source. Project suspension adds indirect costs (labour idle time, schedule delays).

تكاليف إعادة العمل والتأخير بسبب أوامر السلامة - Safety Rework & Schedule Delays

Estimated AED 10,000–100,000 per rework cycle (labour idle time: 20–50 workers × AED 100–300/day × 2–5 days; equipment rental idle; project delay penalties per contract terms).

تأخير الدفع وتحويل الحقوق (Payment Delay & Lien Rights Impedance)

Estimated: 5–15 additional AR days per project cycle; working capital impact 2–4% of monthly cash flow (typical for AED 50M+ projects: AED 3–6M working capital drag per cycle)

عدم الامتثال للقانون الجديد (Non-Compliance with New Construction Regulation)

Estimated: AED 5,000–25,000 per non-compliant project contract; legal remediation cost AED 10,000–50,000 per dispute; potential project halts (cost: AED 50,000–200,000+ per month in idle time)

تكاليف الإجراءات القانونية لاستحقاق الدفع (Legal Action Costs for Payment Enforcement)

Estimated: AED 15,000–60,000 per payment dispute (legal fees + court costs); 100–250 hours internal time @ AED 200/hour = AED 20,000–50,000 opportunity cost; typical 5–10% of disputes per large project = AED 75,000–300,000 annual exposure

أخطاء في إدارة التوقيع على بدل الحق (Incorrect Waiver Signing Decisions)

Estimated: AED 250,000–2,000,000 per premature waiver signing (typical for final-stage subcontractor; range covers small to large projects)

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