Dubai has released a new legislation that governs outsourcing of government services to the private companies with an aim of enhancing efficiency and quality of services and exposing the public services to the residents and businesses.
Sheikh Mohammed bin Rashid Al Maktoum issued the legislation, Law No. (5) of 2026 in his role as the Ruler of Dubai. He is also the Vice President and Prime Minister of United Arab Emirates. The law permits government agencies to engage the services of private firms to provide some of all government services under well-stipulated contracts.
Under the new regulation, the framework will serve to make sure that the outsourcing practices are in line with the internationally accepted standards. Another of the law objectives is to improve the collaboration between government institutions and the private sector along with preserving the transparency and high quality of the services.
The Dubai Department of Finance will be in charge of the oversight of the outsourcing process. The department will also be charged with the responsibility of setting up procedures and regulatory guidelines that will govern contracts between government bodies and the service providers who are in the private sector.
The law allows the government bodies to employ more than one contractor to provide the same service. Nevertheless, only in cases where a company is the only bidder to a project, this particular rule will be permitted since it is aimed to introduce fair competition to the market without geopardizing the efficiency of service provision.
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