Dubai: In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, has enacted Law No. (5) of 2026 to regulate the outsourcing of government services in Dubai. The introduction of this law aims to enhance the efficiency of government services, improve their quality, and facilitate customer access.
According to Emirates News Agency, the Law provides a framework for outsourcing, which allows contracted companies to deliver government services on behalf of government entities under agreed terms. It seeks to align the outsourcing of government services with global best practices, aiming to boost service quality and efficiency, foster public-private sector collaboration, support strategic goals, and create job opportunities for UAE nationals in the private sector.
The Law outlines the responsibilities of the Department of Finance in overseeing government service outsourcing. It specifies rules and procedures and delineates the obligations of contractors, which are defined as licensed private or non-profit companies authorized in Dubai to execute outsourcing contracts. The Law ensures fair competition by allowing multiple contractors to provide the same government service and prohibits exclusive contracts unless a contractor is the sole bidder.
The Law mandates detailed elements in the outsourcing contract, such as its duration, termination rules, and measures for protecting contractor assets. It addresses violations and penalties, permitting contractors to assist in collecting fines related to regulatory breaches by service users. Additionally, contractors with employees holding judicial enforcement authority are prohibited from imposing fines or penalties beyond those set by government regulations.
Government entities are required to monitor and evaluate contractor performance regularly, using performance indicators linked to strategic objectives. Contractors must employ at least one UAE national for each non-national employee, with salaries and incentives aligned with applicable regulations and contract terms. The Law also incorporates provisions from Law No. (12) of 2020 on Contracts and Warehouse Management in the Dubai Government for contractor selection and unaddressed contractual matters.
The Law requires compliance from government entities and contractors within three years of its enactment, and repeals conflicting provisions in other legislation. It is effective from its publication in the Official Gazette.