How To Set Up A Construction Company In The UAE

November 23, 2024

The construction industry in the UAE is a thriving sector that plays a crucial role in the country’s economic development. With its ambitious infrastructure projects and rapid urbanisation, the UAE has created a significant demand for construction services.

The industry encompasses a wide range of projects, including residential, commercial, industrial, infrastructure, and energy construction. The UAE attracts international construction companies and expertise to execute large-scale projects.

The ongoing construction boom in the UAE creates a significant demand for construction services, offering ample opportunities for entrepreneurs.  Entrepreneurs can focus on niche areas within the construction industry, such as green construction, sustainable materials, or specialised project management.

Entrepreneurs who want to enter this field can choose the following business activities under their business license.

4100.00 – Construction of buildings

Building construction is a fundamental industry that involves the creation of structures for various purposes, including residential, commercial, industrial, and institutional use. It is a complex process that requires a wide range of skills, expertise, and resources. Key activities include site preparation, foundation construction, structural framing, exterior and interior finishing, mechanical and electrical systems, and project management. 

This business excludes the erection of complete prefabricated constructions from self-manufactured parts not of concrete, construction of industrial facilities, except buildings, architectural and engineering activities, and project management related to construction.

Third-party Approval: This business activity requires third-party approval from the Sharjah Municipality/Civil Defense, post obtaining your trade license.

Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.

Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article. 

4100.01 – Construction of all types of residential buildings: Single-family houses, Multi-family buildings, including high-rise buildings

Residential building construction is a specialised field within the broader construction industry, focusing on the creation of structures designed for human habitation. This sector encompasses a wide range of building types, from single-family houses to multi-family buildings, including high-rise structures. Key activities here, too, include site preparation, foundation construction, structural framing, exterior and interior finishing, mechanical and electrical systems, and project management. 

This business excludes the erection of complete prefabricated constructions from self-manufactured parts not of concrete, construction of industrial facilities, except buildings, architectural and engineering activities, and project management related to construction.

Third-party Approval: This business activity requires third-party approval from the Sharjah Municipality/Civil Defense, post obtaining your trade license.

Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.

Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article. 

4100.02 – Construction of all types of non-residential buildings: buildings for industrial production, e.g. factories, workshops, assembly plants etc. hospitals, schools, office buildings, hotels, stores, shopping malls, restaurants, airport buildings, indoor sports facilities, parking garages, including underground parking garages, warehouses, religious buildings

Non-residential building construction is a specialised field within the construction industry that focuses on the creation of structures for purposes other than residential use. These buildings serve a wide range of functions, from industrial production to commercial activities and public services.

This business excludes the erection of complete prefabricated constructions from self-manufactured parts not of concrete, construction of industrial facilities, except buildings, architectural and engineering activities, and project management related to construction.

Third-party Approval: This business activity requires third-party approval from the Sharjah Municipality/Civil Defense, post obtaining your trade license.

Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.

Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article. 

4100.03 – Assembly and erection of prefabricated constructions on the site

Prefabricated construction involves the manufacturing of building components off-site, which are then transported to the construction site for assembly. This method can significantly reduce construction time and costs, while also improving quality control. Key activities include design and planning, manufacturing, transportation, site preparation, assembly, and finishing.

This business excludes the erection of complete prefabricated constructions from self-manufactured parts not of concrete, construction of industrial facilities, except buildings, architectural and engineering activities, and project management related to construction.

Third-party Approval: This business activity requires third-party approval from the Sharjah Municipality/Civil Defense, post obtaining your trade license.

Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.

Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article. 

4100.04 – Remodelling or renovating existing residential structures

Remodelling and renovating residential structures is a specialised field within the construction industry that involves modifying existing buildings to improve their function, appearance, or energy efficiency. This can range from minor upgrades to complete overhauls. Key activities include assessment and planning, demolition, structural modifications, mechanical and electrical upgrades, interior and exterior finishing, and accessibility modifications.

This business excludes the erection of complete prefabricated constructions from self-manufactured parts not of concrete, construction of industrial facilities, except buildings, architectural and engineering activities, and project management related to construction.

Third-party Approval: This business activity requires third-party approval from the Sharjah Municipality/Civil Defense, post obtaining your trade license.

Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.

Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article.


Did you find what you were looking for? Explore the other guides in our Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.

You can also calculate your business setup costs easily using our handy cost calculator and choose from our customized company setup packages to find your perfect fit.

Get your business license in the UAE today and explore a world of opportunities waiting for you.

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