How To Set Up An Infrastructure Construction Business In The UAE

November 23, 2024

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

The UAE government is known for mega projects, and has invested heavily in infrastructure development, providing a favourable environment for construction businesses. As such, the ongoing infrastructure development in the UAE creates a significant demand for construction services, offering ample opportunities for entrepreneurs.

The country’s ambitious development plans, supportive government policies, and growing demand for infrastructure services provide a favourable environment for businesses. By focusing on innovation, quality, and sustainability, entrepreneurs can capitalise on the opportunities presented by this thriving industry.

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

4220.00 – Construction of utility projects

Utility project construction is a specialised field within the construction industry that focuses on the development and installation of infrastructure essential for providing essential services to communities. These projects often involve the construction of pipelines, power lines, water treatment plants, sewage systems, and other critical utilities.

This business excludes project management activities related to civil engineering works.

Third-party Approval: This business activity does not require third-party approval.

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. 

4220.01 – Construction of civil engineering constructions for: Long-distance pipelines, communication and power lines, urban pipelines, urban communication and power lines; ancillary urban works, water main and line construction, irrigation systems (canals), reservoirs

Civil engineering construction for utility projects involves the planning, design, and construction of infrastructure essential for providing essential services to communities. These projects often include long-distance pipelines, communication and power lines, urban pipelines, urban communication and power lines, ancillary urban works, water mains and line construction, and irrigation systems.  

This business excludes project management activities related to civil engineering works.

Third-party Approval: This business activity does not require third-party approval.

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. 

4220.02 – Construction of: Sewer systems, including repair, sewage disposal plants, pumping stations, power plants

Sewer system construction is a specialised field within civil engineering that involves the planning, design, and construction of infrastructure for the collection, transportation, and treatment of wastewater. This includes sewer systems, sewage disposal plants, pumping stations, and power plants.

This business excludes project management activities related to civil engineering works.

Third-party Approval: This business activity does not require third-party approval.

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. 

4220.03 – Water well drilling

Water well drilling is a specialised field that involves the creation of boreholes into the ground to extract groundwater. This practice is essential for providing access to clean and potable water, especially in areas with limited surface water resources. Key activities involve site assessment, drilling, well development, pump installation, and water testing.

This business excludes project management activities related to civil engineering works.

Third-party Approval: This business activity does not require third-party approval.

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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