Law No. (8) of 2019 On Regulating Practice of Contracting Profession ( This Law had been amended by Law No. 5 of 2022) We, Saud Bin Saqr Bin Mohamed Al Qasimi Ruler of Ras Al Khaimah After perusal of the Constitution; And Federal Law no. 5 of 1975 on Commercial Register; And Ras Al-Khaimah Municipality Law of 1981, as amended; And Law no. 1 of 2008 on Regulating Practice of Engineering Consultancy Profession in Emirate of Ras Al-Khaimah; And Law no. 1 of 2009 on Regulating Buildings in Emirate of Ras Al-Khaimah; And Law no. 7 of 2012 on Establishing Executive Council in Emirate of Ras Al-Khaimah; And Law no. 8 of 2016 on Regulating Practice of Economic Activities in Ras Al-Khaimah; And Law no. 2 of 2017 on Establishing Ras Al Khaimah Economic Zones and Supervising Authority; And based on approval of Executive Council; And Legislative Committee in the Emirate had considered. Promulgated the following Law: Article (1) In applying provisions of this law, the following words and phrases shall have the meaning stated opposite each of them respectively: State: United Arab Emirates Emirate: Emirate of Ras Al Khaimah Department: Ras Al Khaimah Municipality Department Director General: Director General of Department Competent Administration: Buildings Administration in the Department Competent Division: Qualification Division affiliated to Competent Administration Competent Authority: The Competent Authority to issue the trade license of building contracting establishments in the emirate, namely Economic Development Department or Ras Al-Khaimah Economic Zones Authority Contracting: A contract by which the contractor shall commit to carry out building or construction and development works. Contractor: Any person entrusted with conducting contracting works. Establishment: Any company or establishment licensed to practice contracting activity Grievance Committee: The committee stipulated in Law no. 1 of 2009 on regulating buildings in emirate of Ras Al-Khaimah Article (2) The provisions of this law shall apply to all contractors in the emirate including Ras Al-Khaimah Economic Zones. However, the Executive Council may, upon the request of the Department, exclude certain authorities from the provisions thereof. Article (3) A register to record and classify contractors shall be created in Department. No person may practice contracting profession or whatever related thereto except after being recorded in this register. The executive regulation shall determine the form and details of the register, the procedures to record therein and the certificates to be issued by the Department through it. Article (4) 1- The contracting establishments shall be classified as follows: A- First Category B- Second Category C- Third Category D- Fourth Category E- Special Category 2- Director General shall, in coordination with Competent Authority, develop contracting establishment classification system that shall include the types and legal forms thereof. The system shall be approved by the Executive council. Article (5) By resolution from Director General in Competent Administration, an engineering committee shall be formed which shall have competence to examine and express opinion to Competent Division on the following issues: 1- Initial recording applications that include type and classification of the establishment. 2- Final recording applications in the register, classification change, recording suspension and deregistration applications. 3- Record engineers working in the establishment. 4- Whatever referred to the Committee by Competent Administration. Article (6) Competent Division shall take over the following: 1- Register and classify establishments and approve engineers. 2- Decide on temporary suspension applications submitted by contracting establishments’ owners. 3- Approve new specialties and branches in contracting. 4- Propose Code of Ethics of the profession and approve it by Director General. 5- Inspect contracting establishments periodically and continuity in meeting conditions of their classification. 6- Investigate violations committed by the establishment licensed inside the emirate and impose administrative sanctions thereon. 7- Any other tasks or competences entrusted to the Section by Director General. Article (7) It is required for those who practice contracting activity: 1- Not to hold the same position along with engineering consultancy profession. 2- Not to be one of technical affairs sector employees in the Department. 3- To provide no objection letter from the authority he works therein if he is an employee of federal or local government. Article (8) Competent Administration shall issue an initial registration certificate for the establishment indicating therein its category that authorizes the same to complete the license procedures with Competent Authority after depositing cash guarantee to be determined by a resolution from Director General as per type and category of each activity. No establishment may start practicing the activity by virtue of this certificate. Article (9) The validity of the initial registration certificate is six months and it may be renewed for two consecutive times only and period of each one shall be three months and with maximum limit of six months. The establishment is entitled to apply to cancel the initial registration prior to its expiry date and refund the cash guarantee. If the certificate expired without renewal or the license procedures had not been completed, the registration shall be considered void, the right to refund cash guarantee shall be abated and the amount thereof shall devolve upon public treasury Article (10) It is not permissible to issue trade license to establishment except after obtaining initial registration certificate. The license must include a notice of not practicing the activity before obtaining classification and registration certificate. The establishment may have one or more additional office, as the case may be, under a permission from Competent Authority, whenever it has more than one project inside the emirate. Article (11) Permanent registration and classification procedures shall be completed after issuing the trade license and meeting classification conditions on the required category. However, registration shall be for one year and shall be renewed annually. Article (12) Competent Administration shall be entitled to reject establishment registration on the required classification category, if the establishment fails to meet its conditions and register the same on the category meeting its requirements. If establishment fails to meet one condition after obtaining classification, its classification shall be amended to the category suits it. However, the establishment shall have the right to grieve against resolution of the Administration before Grievance Committee. Article (13) Before granting registration certificate, engineers shall be approved and enrolled in the register by the Competent Division as per specialty and years of experience. During registration period, other engineers may be recruited in the establishment after being recorded in the register. Article (14) During registration period, the establishment is entitled to apply to amend its classification to the higher category if certain volume of registered works had been achieved pursuant to what is determined by executive regulation. Upon approval on the application, the establishment shall complete the term of its registration in the higher category along with amending the license with Competent Authority. Article (15) It is not permissible to assign contracting contracts or sub-contract with any establishment except this recorded in the register. Article (16) Without prejudice to the provisions of Economic Activity Practice Law, contracting establishments, having license outside the emirate, shall have the right to practice their activity inside the emirate for a specific period after obtaining an approval from the Department. The Director General shall set conditions to grant this approval and the due charge after consulting Engineering Committee. Article (17) The establishment is entitled to apply for temporary registration suspension. However, the executive regulation shall determine the conditions and period of suspension and the implications resulted therefrom. Article (18) Subject to the conditions of trade license cancellation, the establishment, having desire to stop practicing the activity, shall apply to Competent Administration to cancel its registration. However, the executive regulation shall determine cancellation conditions and the implications thereof in consideration of fixed fee. Article (19) The establishment may be disposed pursuant to the conditions and procedures placed by the Department in coordination with Competent Authority. If establishment’s title had been transferred under inheritance or will, the new owners should select an individual who meets the conditions placed by the Department to represent them before the same and his name shall be recorded in the register and trade license in this capacity and they have the right to assign the establishment according to the conditions referred to in the previous paragraph. Article (20) Competent Division is entitled to cancel registration in any of the following cases: 1- Obtaining classification based on false or forged data. 2- Committing material professional mistakes by establishment at the discretion of Competent Division. 3- Practicing activities by establishment, for which it is not qualified under its classification and registration certificate. 4- Non-renewal of the trade license with Competent Authority for two consecutive years. 5- Violating the classification requirements of the category and type twice during a single registration period provided that a notice is served to the establishment after the first violation. 6- Liquidating the establishment by mutual agreement of the partners or under an enforceable court judgment. The deposit amount shall be confiscated in all cases except the last one and it is not permissible to re-register again except by new procedures. Cancellation resolution may be grieved before Grievance Committee pursuant to the procedures and rules contained in the regulation. Article (21) The Executive Council shall approve fees table and consideration of services provided by the Department pursuant to the provisions of this law and the executive regulation thereof based on proposal of Director General. Article (22) Employees of Competent Division shall be empowered with capacity of law officer in proving acts committed in violation of provisions of this law and executive regulation thereof. Article (23) Before applying this law, the existing contracting establishments shall reconcile their positions pursuant to the provisions thereof within maximum period of one year from the date in which it comes into effect and the Director General is entitled to extend this grace period for another similar period. Article (24) Anyone violates provisions of this law shall be punished by the fines set out in the attached table and Department shall be entitled to conduct any of the following measures: 1- Serving a written notice to the violating establishment. 2- Publishing names of violating establishments and sanctions imposed thereon. 3- Notifying Competent Authority to close the violating establishment for a period not exceeding two weeks. 4- Not allowing the contracting establishment to accept any new works for a period not exceeding six months. The Department shall terminate the measures if the establishment removes the reasons of the violation and pays fines. If judicial judgment is rendered to close the establishment as a subsequent punishment, the Public Prosecution shall be entitled to open the same if it turned out removal of violation reasons by a letter issued from the Department. Article (25) Violations may be reconciled pursuant to terms determined by the executive regulation. However, the violator is entitled to grieve before Grievance Committee against the fines and measures taken against him within fifteen days from the date of notifying him thereof by any of the ways stipulated in the executive regulation. The Committee shall decide on the grievance by a reasoned resolution within one month from the date of receiving the same. If the grievant did not accept the Committee’s resolution, the matter shall be referred to Public prosecution. Article (26) Director General shall develop the executive regulation of this law within six months from the date of its issuance and a resolution thereof shall be issued by the Executive Council. Article (27) Law no. 2 of 2008 on Regulating the Profession of Contracting in emirate of Ras Al-Khaimah and every text contradicts with the provisions of this law shall be cancelled. Article (28) This law shall come into force from the date of its issuance and be published in the Official Gazette. Saud Bin Saqr Bin Mohamed Al Qasimi Ruler of Ras Al Khaimah Issued by us on first of Rabai Al-Awal 1441H. Corresponding to twenty-ninth of October 2019G.