UAE issues law on standardising government procurement processes

The Ministry of Finance has issued a law, which sets the general framework for the procurement of products and services in the UAE government.

Federal Decree-Law No. 11 of 2023 defines the principles, controls and standards for government procurement operations within federal government entities.

The law, which is based on international best practices, aims to enhance integrity, trust, transparency and competitiveness in all procurement procedures.

The new law applies to all procurement and contracting activities and procedures of federal entities mentioned in Article (3), including ministries, authorities, and central agencies, as well as subsidiaries under them.

Likewise, it applies to independent and autonomous federal entities that are established to carry out specific government responsibilities or services and operate under the supervision of the government through their own administrative and organisational structure and their own budgets, and are not-for-profit.

#MOFUAE announced issuance of 2023 Federal Decree-Law No. 11 regarding procurement in federal government entities. The law is founded on advanced & resilient international best practices, providing a regulatory framework for procurement in the UAE's government. pic.twitter.com/8g2TJ5Tk5C

— وزارة المالية | الإمارات (@MOFUAE) January 10, 2024

The law also specifies the exempt entities in Article (4) due to the nature of these entities and the special regulations that exist to govern their procurements.

To ensure flexibility and business continuity, the Federal Decree-Law No. 11 of 2023 stipulates that Cabinet Resolution No. (1/1) of 2022 regarding the adoption of the Digital Procurement Policy for the federal government and Cabinet Decision No. (4) of 2019 regarding procurement regulation and storehouse management in the federal government will continue to be enforced as long as they do not conflict with its provisions until the executive regulations implementing this law are issued.

In addition, to minimise interference in running projects, the law, which entered into force on December 1, 2023, doesn’t apply to federal entities’ procurement contracts concluded before the aforementioned date.

However, the provisions of Federal Decree-Law No. 11 of 2023 must be followed upon amendment, renewal or extension of these existing contracts.