Dubai Enacts Law for Outsourcing Government Services

Mar 12, 2026

58 min

Mar 12, 2026 14:30

Dubai issues new law regulating outsourcing of government services

## New Legislation Overview

Dubai has introduced a new law to regulate the outsourcing of government services to private companies. This initiative aims to enhance service efficiency and accessibility for residents and businesses.

## Key Provisions

The law, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, allows government entities to contract private firms for service delivery. It mandates adherence to international best practices and promotes public-private sector collaboration.

## Oversight and Compliance

The Dubai Department of Finance will oversee the outsourcing process, ensuring contracts are governed by established procedures. Government entities can appoint multiple contractors for the same service, with exclusive contracts only allowed if a company is the sole bidder.

## Contractual Requirements

Outsourcing agreements must specify contract duration, termination procedures, and asset protection measures. Performance indicators linked to strategic goals will be used to monitor contractors.

## Employment Regulations

The law requires outsourcing companies to hire at least one UAE national for every non-national employee, with salaries and incentives aligning with regulations. Companies with judicial enforcement authority cannot impose fines beyond government regulations.

## Implementation Timeline

Entities must comply with the new law within three years of its enactment.

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