The United Arab Emirates has rather successfully established a reputation for being a construction hotspot. It will also be hosting the Expo in 2020 and the announcement has already triggered an influx of investment with announcement of several new construction projects. Therefore, in this vibrant construction market, it becomes increasingly important for investors and consumers alike to understand the environmental laws applicable at the Federal and Local level and how it affects their businesses. This is also significant as some of the penalties prescribed under the statutes levy heavy fines and can also result in criminal sanctions. This paper seeks to lay out the laws and regulations which business entities need to comply when undertaking construction activities along with giving a brief background about the governmental set- up which enforces such laws.