Amended rule cuts Dubai construction costs by 12%

Amended rule cuts Dubai construction costs by 12%
DM's amendment to consultant appointments has cut construction costs by 12% in Dubai [representational image].
Published: 29 July 2018 - 7:41 a.m.
By: Oscar Rousseau

A new policy that lets contractors to build up to two-storey metal structures without appointing a consultant has reduced construction costs, according to the Dubai Municipality (DM).

The initiative has led to a 12% drop in construction costs and decreased the licensing period of such projects by a third since the scheme was introduced in April 2018, DM said.

Under the revised rule, contractors were allowed to apply for a permit to construct industrial buildings that had no more than two floors. This afforded hundreds of contractors the opportunity to design and implement project low-rise industrial building projects without appointing a consultant. By doing this, contractors could assume the role of a consultant by obtaining permits from DM to oversee the progress of the project, reducing costs and accelerating the time to takes to get such projects off the ground.

Dawood Al Hajiri hinted that further initiatives to reduce the cost of construction and encourage investment in the sector will be launched by Dubai authorities in the future.

He said this plan was in line with the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to enhance investment and strengthen the competitiveness of the country's construction market.

Rolling out initiatives to reduce construction costs will, DM hope, speed up the time it takes to build industrial projects as the emirate looks to keep up with the pace of development in the industry.


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