Legislation to Boost Efficiency, Quality, and Emiratisation
Dubai has taken a major step towards modernising public service delivery with the introduction of Law No. (5) of 2026, governing the outsourcing of government services to private companies. Issued by Ruler Mohammed bin Rashid Al Maktoum, the law is designed to enhance efficiency, improve service quality, and increase accessibility for both residents and businesses across the emirate.
Dubai Department of Finance to Oversee Implementation
The Dubai Department of Finance will play a central role in supervising the outsourcing process, establishing clear guidelines for contracts between government entities and private service providers. The law allows government departments to appoint multiple contractors for the same service, ensuring healthy competition and preventing monopolies by restricting exclusive contracts to cases with only a single bidder.
Strict Requirements for Outsourcing Contracts
To ensure transparency and accountability, the new law sets out detailed requirements for all outsourcing agreements. Contracts must include the duration, terms for termination or renewal, protection of contractor assets, and a clear definition of each party’s responsibilities. Government departments are mandated to regularly monitor and evaluate contractors using performance indicators aligned with strategic objectives and service quality standards.
Strong Focus on Emiratisation
A key feature of the legislation is its robust support for Emiratisation. All private companies providing outsourced government services are now required to employ at least one UAE national for every non-national employee. Compensation packages and employment terms for Emirati staff must be in line with existing regulations and specific contract conditions.
Clear Limits on Contractor Authority
The law also clarifies that any enforcement powers granted to private company employees are strictly limited. Contractors cannot impose fines or administrative penalties beyond those authorised by official government regulations, ensuring checks and balances remain in place.
Transition Period for Compliance
Government departments and private contractors have been given a three-year window to fully comply with the new regulations. This transition period is intended to give all parties time to adapt operations and employment practices as required.
Driving Public Service Excellence in Dubai
Officials say the new law will help drive Dubai’s public services to new heights by fostering public-private collaboration, supporting national employment, and ensuring international best practices are followed. The move is expected to further strengthen Dubai’s position as a leader in efficient and innovative government service delivery.
