New Delhi, March 13: The ruler of the United Arab Emirates, Mohammed bin Rashid, has issued a new law in 2026 aimed at regulating the outsourcing of government services in Dubai. This legislation seeks to enhance the efficiency of government services, improve their quality, and facilitate easier access for the public.
According to the law, outsourcing allows a private company to provide some or all services of a government department under a contractual agreement with the government.
The regulation aims to organize the outsourcing of government services according to global best practices, improve service quality and efficiency, foster collaboration between the public and private sectors, and support Dubai’s strategic goals. It is also designed to create more job opportunities for UAE citizens in the private sector.
The law defines the responsibilities of the Dubai Finance Department, which will oversee the outsourcing of government services. It outlines the rules and procedures for outsourcing and specifies the responsibilities of contractors. A contractor is defined as a licensed private company or organization permitted to operate in Dubai.
Under the law, a government department may retain more than one contractor for the same service. Special contracts can only be awarded when there is a single bidder to ensure fair competition. The law also includes provisions regarding contract duration, termination rules, and the protection of contractor assets.
Additionally, the law establishes rules for violations and penalties. If necessary, contractors may assist in collecting fines imposed on service users for violations.
However, even if judicial enforcement rights are granted to contractor employees, they cannot impose fines or penalties exceeding the limits set by government regulations.
Government departments are required to regularly monitor and evaluate the contractor’s work, utilizing predetermined performance indicators outlined in the contract.
Furthermore, the law mandates that for every foreign employee, the contractor must hire at least one UAE citizen. Their salaries and incentives will be in accordance with government regulations and contract terms.
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