Mohammed bin Rashid issues a law regulating the outsourcing of government services in Dubai

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, may God protect him, in his capacity as Ruler of the Emirate of Dubai, issued Law No. (5) of 2026 regulating the outsourcing of government services in the Emirate of Dubai, as part of the ongoing development processes aimed at enhancing the efficiency of government services and raising their level of quality.
And facilitate customers’ access to it.

Outsourcing, as defined by the law, is when an institution or company contracting with a government entity provides some or all government services on behalf of this government entity, according to controls and conditions that are specified in the contract concluded between them.

The law aims to govern the process of outsourcing government services in accordance with the best international practices and to contribute to the development of a competitive environment that supports raising the level of productivity in the provision of government services, ensuring the provision of the best possible services to customers, in addition to enhancing cooperation and transferring knowledge and expertise between the public and private sectors regarding the provision of government services, in a way that serves the objectives.
The strategy of the Dubai government, as well as contributing to creating new job opportunities for citizens in the private sector, and raising the level of participation of national cadres in the labor market.

The law specifies the powers of the Department of Finance with regard to the governance of government services outsourcing. It also details the rules and controls for government services outsourcing, and its mechanisms. The law also stipulates the obligations of the contractor, which the law defines as a private, for-profit and non-profit institution or company licensed by the competent licensing authority in the Emirate of Dubai, concerned with implementing the outsourcing contract.

The law permits a government entity to use the services of one or more contractors to provide the same government service, while a government entity may not
Entering into any type of exclusive contract with any of them to provide the government service, unless the contractor is the only bidder applying to contract with it to provide the government service being outsourced, to ensure neutrality and fair competition between them.

The law included details of the contents of the outsourcing contract, the duration of the contract, controls for dissolution, liquidation and assignment, and the cases in which the outsourcing contract ends. The law also included guarantees that ensure the protection of the contractor’s assets. The law also detailed violations and administrative penalties, and stipulated that the penalties, fines, and administrative measures stipulated in accordance with the legislation in force at the government entity shall be applied to customers, in the event that they commit any of the violations stipulated in these legislations, and the government entity may seek services.
The contractor will collect the value of the fines imposed on these violations.

The contractor, whose employees are granted judicial police status to control acts that violate the provisions of the legislation in force at the government agency, may not impose on the violating customer any penalty, financial fine, or administrative measure other than the fines, penalties, and administrative measures stipulated in the legislation in force at the government agency.

According to the law, the government entity must measure and monitor the contractor’s performance when providing government services on a periodic basis, through performance indicators that are determined under the outsourcing contract, provided that
These indicators are linked to the approved strategic objectives of the government entity.

The law obliges the contractor to employ at least one citizen for every non-national worker employed by him, provided that the wages of citizens working for the contractor and the mechanism for motivating them are determined in accordance with the legislation in force, and based on what is agreed upon between the contractor and the government entity in the outsourcing contract.

The provisions of Law No. (12) of 2020 regarding contracts and warehouse management in the Government of Dubai apply to the procedures and process of selecting the contractor and to every case not stipulated in the outsourcing contract.

The new law also obligates the government entity and the contracting contractor, before implementing its provisions, to reconcile their situations in accordance with the provisions of the law, within a period not exceeding (3) three years from the date of implementation of this law.

Any text in any other legislation shall be repealed to the extent that it conflicts with the provisions of this law, which shall be published in the Official Gazette, and shall be effective from the date of its publication.