"Municipalities and transportation" It issues a decision to support the construction sector and stimulate investment in Abu Dhabi

ABU DHABI, 21 November / WAM / The Department of Municipalities and Transport issued an administrative decision that includes a package of new legislative amendments aimed at supporting the building and construction sector in the Emirate of Abu Dhabi, stimulating investment by removing obstacles facing contracting companies and engineering offices, and enhancing their competitiveness and ability to implement urban development projects according to the highest standards of quality and sustainability.

The department confirmed that the new decision comes within the framework of its continued commitment to developing the engineering business environment and raising the attractiveness of investment in the emirate, which contributes to achieving sustainable development, supporting the local economy, and consolidating Abu Dhabi’s position as a leading destination in the urban development sector.

His Excellency Engineer Abdullah Mohammed Al Balushi, Acting Director General of the Urban Planning and Licensing Center at the Department of Municipalities and Transport, said that these amendments come within the department’s strategy to enhance market competitiveness and facilitate companies’ efficient fulfillment of regulatory requirements, which is reflected in the quality of projects and improving the sector’s performance.

The new amendments include facilitating the classification requirements for engineering facilities operating in the emirate, allowing local and international companies to meet the required conditions and standards more easily, and enhancing their contribution to infrastructure and urban development projects.

The amendments included deleting the requirement for the two activities to be classified into the higher categories, with the aim of expanding the base of classified establishments and increasing their diversity, in addition to facilitating the transfer of expertise from branches operating in other emirates to Abu Dhabi, and allowing local establishments and branches from other emirates or Gulf countries to apply directly for classification into the higher categories according to their expertise and capabilities.

To ensure the continuity of the facilities’ work without interruption, the department allowed the use of the expertise of the local legal partner or from another emirate, which contributes to raising the level of the facilities’ compliance with the standards required for classification. The value of the projects required for local engineering facilities (contractors) owned by Emirati investors was also reduced, with the aim of facilitating the process of renewing the classification and supporting the growth of these facilities while maintaining quality.

Establishments can now amend their classification category before the expiration of their license to practice the profession, allowing them to apply for classification within categories that reflect their true capabilities from the beginning, thus enhancing the efficiency of competition between engineering establishments in the market.

The amendments also included extending the validity of the annual financial report for the classification to one year and six months, with the aim of ensuring business continuity and reducing complaints related to delayed project completion.

The decision came after a series of meetings held by the department with local and international offices specialized in the construction and contracting sector, with the aim of listening to the challenges faced by these entities and working to provide practical solutions that enhance their ability to implement projects efficiently.

The decision is an extension of qualitative initiatives implemented by the department over the past year, which included conducting a detailed quarterly evaluation of engineering facilities, including consulting offices and contracting companies, based on precise criteria that include performance, improving resources, technical expertise, quality of work, and administrative efficiency.

The facilities are also subject to a performance examination based on financial indicators such as liquidity, innovation, and excellence, in addition to operational efficiency and compliance with regulations related to the practice of engineering activities, to ensure the provision of the best engineering services to the residents of the emirate.

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