Mohammed bin Rashid Issues Law Regulating the Outsourcing of Government Services in Dubai
In a move to enhance the efficiency of government services in Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Prime Minister, has issued Law No. (5) of 2026 to regulate the outsourcing of government services in the emirate. This law aims to improve the quality of services and increase accessibility, representing a significant shift in the delivery of government services to individuals and institutions.
Definition of Outsourcing Government Services
The law defines the concept of outsourcing government services as a process in which a designated institution or contracted company is tasked with providing some or all government services on behalf of government entities. This is done in accordance with the controls and conditions specified in the contract signed between the two parties, as reported by the Emirates News Agency, WAM.
Objectives of the Law and Expected Impacts
The law aims to regulate the outsourcing of government services according to the best global practices, contributing to a competitive environment that supports increased service productivity. Through this law, the Dubai government hopes to provide better services to citizens and strengthen effective partnerships between the public and private sectors, as well as create new job opportunities for citizens.
Procedures and Governance of Outsourcing Services
The law specifies the role of the Department of Finance in governing the outsourcing of government services and sets forth specific rules and regulations regarding the outsourcing process. Government entities are permitted to contract with multiple providers to deliver the same service, prohibiting exclusive contracts except in certain cases that ensure fairness in competition.
Penalties and Obligations of Contractors
The law also addresses violations and administrative penalties, imposing fines and sanctions on contractors in cases of non-compliance with the specified conditions. Contractors are required to adhere to defined performance standards and manage their affairs in line with the strategic objectives of government entities. Additionally, contractors must employ at least one citizen for every non-citizen worker, thereby enhancing the participation of national talent in the labor market.
This law represents significant steps toward improving government services in Dubai, with a strong emphasis on enhancing cooperation and knowledge transfer among various sectors. The law will be published in the official gazette and will take effect from the date of its publication, ensuring that all concerned parties adapt to this legal framework within the specified timeframe.