Dubai Municipality says new initiative cuts construction costs by 12%

A new initiative by the Dubai Municipality has cut construction costs in the emirate by 12 per cent, it was announced on Sunday.

Under the initiative, contractors can design and supervise metal structures for industrial projects without appointing consultancy offices.

Through the municipality’s electronic programme for building licences, contractors can directly submit a request to obtain a building permit for industrial buildings that do not exceed the height of ground and first floors.

They can then design and implement the project without the presence of a consultant.

Along with reducing construction costs, the move has also cut the project licencing period by 33 per cent, official news agency WAM reported.

Dawood Al Hajiri, director general of Dubai Municipality, said that the initiative aims at reducing the steps of the new building permit procedures, which the emirate’s Building Permits Procedure Development Committee has already launched.

He also said that the initiative will “save financial cost and enhance speed of completion of construction projects” – particularly steel and industrial buildings – in order to meet and keep up with the pace of development in the field of construction.

It is also one of many that will be launched in Dubai to simplify the procedures and reduce the cost of building in the emirate in order to increase investment, Al Hajiri stated.

Dubai has announced several measures this year to reduce costs and boost business confidence.

Earlier in the year, it was announced that government fees would not be increased for the next three years as businesses in the country absorb higher costs linked to the introduction of a 5 per cent value added tax.

Read more: Dubai says won’t raise government fees for three years

Dubai govt proposes fee waivers, mortgage law, SME incentives to boost economy

In June, the Dubai Executive Council also approved measures to slash the market fees imposed by Dubai Municipality from 5 per cent to 2.5 per cent, scrap 19 fees related to the aviation industry to attract Dhs1bn ($272.2m) of foreign investment, and waive a 4 per cent late payment fee on property registration for 60 days.

The municipality fee on sales at hotels and restaurants were also cut to 7 per cent from 10 per cent, in a bid to make the emirate more tourist-friendly.

Read more: Dubai to cut municipality fees at hotels, restaurants