In a significant move to enhance public service delivery, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (5) of 2026. This new legislation establishes a comprehensive framework for the outsourcing of government services within the Emirate of Dubai, aiming to boost efficiency, improve service quality, and strengthen the role of the private sector in the local economy.
The law formalizes the process by which a government entity can contract a private company to deliver some or all of its services, creating new opportunities for businesses and startups in the region. This initiative is designed to align Dubai’s service delivery with global best practices and support the emirate’s broader strategic objectives.
Strengthening Public-Private Collaboration
A core objective of the new law is to deepen the collaboration between Dubai’s public and private sectors. By creating a regulated environment for outsourcing, the government aims to leverage private sector expertise and innovation to improve the customer experience and streamline service delivery.
The legislation seeks to not only enhance the quality and efficiency of government services but also to stimulate economic growth by creating more private sector job opportunities, particularly for UAE nationals.
Key Provisions and Contractor Obligations
The law outlines a clear set of rules and procedures governing the outsourcing process. To ensure fair competition, a government entity is permitted to engage multiple contractors for the same service and is prohibited from entering into exclusive contracts unless a contractor is the sole bidder.
The Department of Finance is tasked with overseeing the governance of government service outsourcing. Contracts must clearly define their duration, terms for termination, and measures to protect the contractor’s assets. Furthermore, government entities are required to regularly monitor and evaluate contractor performance against key performance indicators linked to strategic goals.
Championing Emiratisation in the Private Sector
A landmark provision within the law is a direct mandate aimed at boosting local employment. Contractors are required to employ at least one UAE national for every non-national employee working on the outsourced service.
This clause ensures that the growth in public-private partnerships directly contributes to creating meaningful career opportunities for the local workforce. The law also stipulates that salary and incentive structures for Emirati employees must adhere to applicable regulations and the terms agreed upon in the outsourcing contract.
Governance and Compliance Framework
The legislation establishes a robust governance structure to manage the transition and ongoing operations. The provisions of Law No. (12) of 2020 on Contracts and Warehouse Management will apply to the contractor selection process, ensuring transparency and fairness.
The law prohibits contractors from imposing any fines or administrative penalties on service users beyond those already specified in the government entity’s existing regulations. Both government entities and their private sector partners have a three-year window from the law’s effective date to ensure their operations are fully compliant with the new provisions.
About The Government of Dubai
The Government of Dubai is the supreme authority that governs the Emirate of Dubai, one of the seven emirates of the United Arab Emirates. It operates under a constitutional monarchy framework, with His Highness Sheikh Mohammed bin Rashid Al Maktoum as the Ruler. The government is responsible for legislating and administering public services, economic development, and strategic initiatives to position Dubai as a leading global hub for business, finance, and tourism.
Source: Zawya
