Mohammed bin Rashid Al Maktoum has issued Law No. 5 of 2026 regulating the outsourcing of government services in Dubai, a move aimed at improving service efficiency, raising quality standards, and making government services easier for customers to access.
Issued in his capacity as Ruler of Dubai, the law establishes a clear framework for government entities to contract private companies to deliver some or all public services under agreed terms. The initiative aligns with global best practices and supports stronger collaboration between the public and private sectors.
The legislation assigns the Dubai Department of Finance responsibility for overseeing the outsourcing framework, including the rules and procedures governing contracts and the obligations of service providers. Contractors must be licensed organisations operating in Dubai and authorised to perform the agreed services.
To maintain fair competition, government entities may appoint more than one contractor to provide the same service and are not allowed to sign exclusive agreements unless only one bidder participates in the process.
The law also outlines key contractual requirements such as service duration, termination procedures, and safeguards to protect contractor assets. It introduces mechanisms to address violations and penalties while allowing contractors to assist in collecting fines related to regulatory breaches by service users.
Government entities are required to continuously monitor contractor performance through indicators tied to their strategic objectives.
In a move supporting national employment, the law requires contractors to employ at least one UAE national for every non national employee. Salaries and incentives for Emirati staff must follow relevant regulations and contractual terms.
Government entities and contractors have three years to align their operations with the new legislation, which takes effect upon publication in the Official Gazette.
News Source: Emirates News Agency
