Mohammed Bin Rashid Issues Law Regulating Outsourcing Of Government Services In Dubai

WAM - In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, issued Law No. (5) of 2026 regulating the outsourcing of government services in Dubai.

The Law aims to enhance government services efficiency, improve quality, and ease customer access.

Outsourcing, as defined by the Law, allows a contracted company to deliver some or all government services on behalf of a government entity under agreed terms.

The Law seeks to regulate the outsourcing of government services in line with global best practices.

It also aims to improve service quality and efficiency, strengthen collaboration between the public and private sectors, support Dubai’s strategic goals, and create more private sector job opportunities for UAE nationals.

The Law defines the responsibilities of the Department of Finance in governing government service outsourcing. It details the rules and procedures for outsourcing and sets out the obligations of the contractor, defined as a licensed private for-profit or non-profit company or organisation authorised in Dubai to carry out the outsourcing contract.

According to the Law, a government entity may engage one or more contractors to provide the same government service but cannot enter into exclusive contracts unless a contractor is the sole bidder, ensuring fair competition.

The Law defines what must be included in the outsourcing contract, its duration, rules for termination, and measures to protect the contractor’s assets. It also covers violations and penalties, allowing the entity to involve the contractor in collecting any fines related to breaches of applicable regulations by service users.

Furthermore, the Law prohibits a contractor whose employees are granted judicial enforcement authority from imposing any fines, penalties, or administrative measures on service users beyond those specified in the government entity’s applicable regulations.

According to the Law, the government entity must regularly monitor and evaluate the contractor’s performance in delivering government services, using performance indicators set out in the outsourcing contract and linked to the entity’s approved strategic objectives.

In addition, the Law requires the contractor to employ at least one UAE national for each non-national employee.

The salaries and incentive mechanisms for UAE national employees must follow applicable regulations and the terms agreed in the outsourcing contract with the government entity.

Moreover, provisions of Law No. (12) of 2020 on Contracts and Warehouse Management in the Dubai Government apply to the procedures to selecting a contractor and to any matters not specifically addressed in the outsourcing contract.

The new Law also requires the government entity and the contractor to ensure their operations comply with its provisions within three years from the date the law takes effect.

Any provision in other legislation that may conflicts with this Law is repealed to the extent of the conflict.

This Law is effective from the date of its publication in the Official Gazette.