H.H. Sheikh Mohammed issues law on outsourcing of government services

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued a law to regulating the outsourcing of government services in Dubai.

The Law No. (5) of 2026 aims to enhance government services efficiency, improve quality, and ease customer access in line with global best practices, strengthen collaboration between the public and private sectors, support Dubai’s strategic goals, and create more private sector job opportunities for UAE nationals.

According to the law, a government entity may engage one or more contractors to provide the same government service but cannot enter into exclusive contracts unless a contractor is the sole bidder, ensuring fair competition.

It also covers violations and penalties, allowing the entity to involve the contractor in collecting any fines related to breaches of applicable regulations by service users.

Furthermore, the law prohibits a contractor whose employees are granted judicial enforcement authority from imposing any fines, penalties, or administrative measures on service users beyond those specified in the government entity’s applicable regulations.

The government entity must regularly monitor and evaluate the contractor’s performance in delivering government services, using performance indicators set out in the outsourcing contract and linked to the entity’s approved strategic objectives.

In addition, the contractor must employ at least one UAE national for each non-national employee. The salaries and incentive mechanisms for UAE national employees must follow applicable regulations and the terms agreed in the outsourcing contract with the government entity.

The new law also requires the government entity and the contractor to ensure their operations comply with its provisions within three years from the date the law takes effect.

Any provision in other legislation that may conflicts with this Law is repealed to the extent of the conflict.