First Bit Middle East

💡 How UAE construction firms can unlock up to 50% in R&D tax credits

Under Ministerial Decision No. 24 of 2026, companies can now claim tax credits of up to 50% on qualifying research and development expenditure.

For construction firms, this could apply to everything from modular construction and smart materials to AI-driven project management, robotics, BIM software, and sustainability technologies.

📌 Key takeaways from the new framework:

🏗️ Construction innovation now qualifies for tax incentives. Activities such as low-carbon concrete development, prefabrication systems, robotics, drones, and digital twins may fall within the regime.

📊 Tax credits range from 15% to 50%. The level of support depends on qualifying R&D spending and the number of employees involved in R&D activities.

👷 Workforce planning matters. Hiring specialists such as engineers, software developers, and sustainability experts can help firms qualify for higher credit tiers.

📑 Documentation is critical. Companies must secure pre-approval and maintain detailed records of research objectives, testing, methodologies, and outcomes for seven years.

💡 Advice for construction companies:

1️⃣ Start identifying projects that involve experimentation, technical uncertainty, or new technology development.

2️⃣ Invest in innovation areas that align with the UAE's sustainability and smart construction goals.

3️⃣ Treat R&D not only as an operational investment, but also as a strategic financial opportunity.

👉 Read more news about the UAE construction sector on our blog: https://firstbit.ae/blog/news-events/

On the blessed occasion of Arafat Day and the upcoming Eid Al Adha, we extend our warm wishes to our clients, partners, colleagues, and families. 🌙

May this sacred time bring peace, prosperity, unity, and abundant blessings to your homes and businesses. We are grateful for your trust and support, which continue to inspire our journey together. Here’s to stronger partnerships, growing businesses, and a brighter future. ✨

Eid Mubarak from all of us at First Bit! 🌟