Law
No. (5) of 2026
Regulating
the
Outsourcing
of Government Services in the Emirate of Dubai[1]
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We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal
Law by Decree No. (32) of 2021 Concerning Commercial Companies and its
amendments;
Federal
Law by Decree No. (33) of 2021 Regulating Labour Relations and its amendments;
Law
No. (5) of 1995 Establishing the Department of Finance;
Law
No. (14) of 2009 Concerning the Pricing of Government Services in the Emirate
of Dubai and its amendments;
Law
No. (31) of 2009 Establishing the Dubai Government Human Resources Department
and its amendments;
Law
No. (13) of 2011 Regulating the Conduct of Economic Activities in the Emirate
of Dubai and its amendments;
Law
No. (22) of 2015 Regulating Partnership between the Public Sector and the
Private Sector in the Emirate of Dubai;
Law
No. (26) of 2015 Regulating Data Dissemination and Exchange in the Emirate of
Dubai;
Law
No. (1) of 2016 Concerning the Financial Regulations of the Government of
Dubai, its Implementing Bylaw, and their amendments;
Law
No. (12) of 2020 Concerning Contracts and Warehouse Management in the
Government of Dubai;
Law
No. (1) of 2021 Establishing the Dubai Digital Authority;
Law
No. (9) of 2022 Regulating the Provision of Digital Services in the Emirate of
Dubai;
Law
No. (26) of 2023 Concerning the Executive Council of the Emirate of Dubai;
Law
No. (15) of 2024 Concerning the Dubai Electronic Security Centre; and
Resolution
No. (2) of 2017 Approving the Policies Document on Classification, Dissemination,
Exchange, and Protection of Data in the Emirate of Dubai,
Do
hereby issue this Law.
This
Law will be cited as "Law No. (5) of 2026 Regulating the Outsourcing of
Government Services in the Emirate of Dubai".
The
following words and expressions, wherever mentioned in this Law, have the
meanings respectively assigned to them, unless the context implies otherwise:
|
Emirate: |
The Emirate of Dubai. |
|
Government: |
The Government of Dubai. |
|
Executive Council: |
The Executive Council of the Emirate of Dubai. |
|
SFC: |
The Supreme Fiscal Committee in the Emirate of
Dubai. |
|
DOF: |
The Department of Finance. |
|
Government Entity: |
Any of the Government departments, public agencies
or corporations, Government councils, public authorities, or other public
entities affiliated to the Government. |
|
Outsourcing: |
A contractual arrangement under which a Contractor
is authorised to provide some or all of the Government Services on behalf of
a Government Entity, in accordance with the conditions and rules prescribed
by this Law, the resolutions issued in pursuance hereof, and the relevant
Outsourcing Contract. |
|
Outsourcing Contract: |
A Contract concluded between a Government Entity and
a Contractor, under which the Contractor undertakes to provide Government
Services on behalf of, and under the supervision and control of, the
Government Entity, for a fee and for a specified term, in accordance with the
provisions of this Law, the resolutions issued in pursuance hereof, and the
terms of that Contract. |
|
Contractor: |
A for-profit or non-profit private Establishment or
Company licensed by the competent licensing authority in the Emirate to
perform an Outsourcing Contract. |
|
Government Services: |
The services and activities provided by Government
Entities in accordance with the legislation applicable to them, for the
public benefit of Customers, whether for a fee or free of charge. These
include the collection of fines from persons in breach of the legislation in
force in the Emirate. |
|
Digital Channels: |
Websites, smart applications, and other media
through which Government Services are provided and made available to
Customers. |
|
Outsourcing Centre: |
The premises provided by a Contractor for receipt of
Customers and provision of Government Services. |
|
Customer: |
A Person requesting a Government Service from a
Government Entity or a Contractor. |
|
UAE National: |
Any person who holds the nationality of the United
Arab Emirates. |
This
Law aims to:
1. ensure the proper Governance of the
Outsourcing of Government Services in accordance with relevant international
best practices, and in a manner that serves the interests of Government
Entities;
2. contribute to improving the quality
and efficiency of Government Services provided by Government Entities to
Customers;
3. contribute to reducing Government
costs incurred in the provision of Government Services and achieve financial
savings for the Public Treasury of the Government of Dubai, while ensuring that
such services continue to be delivered at the required quality and performance
standards;
4. enhance Customer confidence in
Government Services by ensuring ease of access to these services and their
availability at times, through channels, and in areas that are suited to
Customers’ needs;
5. contribute to creating and developing
a competitive environment that enhances productivity in the provision of
Government Services and ensures the provision of the highest quality Government
Services to Customers;
6. enhance cooperation and facilitate the
transfer of knowledge and expertise between the Public Sector and the Private
Sector in relation to the provision of Government Services, in a manner that
supports the achievement of the strategic objectives of the Government; and
7. contribute to creating new job
opportunities for UAE Nationals in the Private Sector and to increasing the
participation of UAE National cadres in the labour market.
The
provisions of this Law apply to:
1. Government Entities subject to the
General Budget of the Government, as well as any other Government Entity to
which the application of this Law is extended by a resolution issued by the
Chairman of the Executive Council upon the recommendation of the SFC;
2. Government Services designated for
Outsourcing, in respect of which Outsourcing Contracts are concluded by
Government Entities to which this Law applies; and
3. Contractors engaged by Government
Entities to provide Government Services on their behalf.
For
the purposes of this Law, the DOF will have the duties and powers to:
1. propose, update, and develop the
policies regulating Outsourcing, based on the outcomes of the performance of
Government Entities’ Outsourcing Contracts, the feedback and development
proposals submitted by those entities, and relevant international best
practices;
2. provide support and assistance to
Government Entities in the preparation and development of Outsourcing initiatives;
3. provide, in coordination with the
concerned entities in the Emirate, support to Government Entities in reviewing
their proposals to outsource some or all of the Government Services they are
authorised to provide in accordance with applicable legislation;
4. review and approve, before the
Outsourcing Contract is entered into, the fee payable to a Contractor for
Outsourcing, as well as any other amounts agreed upon with the Contractor that
may affect the charges collected from Customers or the Public Revenue generated
from the Government Services intended for Outsourcing;
5. review, in coordination with the
Government Entity that has contracted with a Contractor, the procedures and
penalties that may be imposed on the Contractor in the event of a breach of its
contractual obligations, as agreed in the Outsourcing Contract;
6. prepare templates for the general
conditions of Outsourcing Contracts. A Government Entity may use its own
templates, provided that such templates are not inconsistent with the templates
prepared by the DOF; and
7. exercise any other duties or powers
required for the achievement of the objectives of this Law, as assigned to it
by the Chairman of the Executive Council.
a. A Government Entity may outsource any
Government Service, whether delivered through Digital Channels or traditional
channels, to a Contractor under an Outsourcing Contract.
b. Prior to Outsourcing any Government
Service in accordance with the provisions of this Law, the Government Entity
must obtain the DOF's approval of the following:
1. the proposed fee payable to the
Contractor for the Outsourcing; and
2. the mechanism for collecting payments by
the Contractor for the provision of Government Services and for remittance of
these payments to the Public Treasury of the Government of Dubai.
c. For the purpose of obtaining the
approval of the DOF under paragraph (b) of this Article, the Government Entity
must prepare a detailed study of the Government Services to be outsourced to a
Contractor and submit the same to the DOF. The study must include:
1. a work plan for the
implementation of the Outsourcing and its term;
2. a detailed feasibility study
comparing Outsourcing with the continuation of direct service provision by the
Government Entity in order to ensure that there is no adverse long-term impact
on Public Revenue;
3. an assessment of potential
strategic risks associated with the provision of Government Services by the
Contractor, together with the Government Entity’s plan for managing these
risks;
4. an evaluation of the impact
of Outsourcing on the quality of the Government Service covered by the
Outsourcing Contract;
5. an analysis of the impact of
the Outsourcing of Government Services on existing and future employment plans
of UAE Nationals within the Government Entity;
6. an estimate of the financial
savings to be achieved by the Government Entity from Outsourcing Government
Services, and the long-term impact on the Government Entity’s annual budget;
7. the proposed Outsourcing fee
to be paid to the Contractor;
8. the number of Contractors to
be engaged for the provision of Government Services, their respective
Outsourcing Centres, and the geographical distribution of these centres across
the Emirate;
9. the channels for the
provision of Government Services, whether traditional or digital; the entity
responsible for overseeing these channels, whether the Government Entity or the
Contractor; and whether the Government Entity will continue to provide the
Government Services through its official channels and centres alongside their
provision through Outsourcing Centres; and
10. any other Data or
information required by the DOF.
When
Outsourcing Government Services, a Government Entity must:
1.
ensure that the needs of Customers across all areas of the Emirate are
met. The Government Entity must continue to provide Government Services through
its official channels and centres where the Contractor fails to deliver
Government Services in any area;
2.
continue to deliver Government Services through its approved Digital
Channels and shared digital platforms;
3.
maintain full transparency with the Contractor in respect of all
financial matters, including reports and financial statements; and must have
access to financial Data and details to ensure optimal management of revenue
and expenditure;
4.
develop a proactive plan to address potential issues or obstacles arising
in the performance of the Outsourcing Contract;
5.
develop a plan for the qualification and capacity-building of UAE
National employees working with the Contractor;
6.
establish a risk management and business continuity plan for the
Outsourcing Centre to ensure the uninterrupted provision of Government Services
during emergencies, crises, disasters, or other exceptional circumstances;
7.
develop, in coordination with the Dubai Government Human Resources
Department, a plan for the deployment of employees holding positions related to
the Government Services to be outsourced. This plan must aim to maximise the
utilisation of UAE National talent and expertise;
8.
assess the efficiency, solvency, and compliance of the Contractor with
the legal and regulatory requirements for providing Government Services, taking
into account any complaints or legal actions of any type or nature filed
against it and their impact on the performance of its contractual obligations.
The Government Entity may, by reasoned decision, grant an exception from any of
these requirements where there is a valid justification for engaging the
Contractor;
9.
verify the competence and capacity of the employees of the Government
Entity in managing the Outsourcing Contract effectively;
10. ensure that the Outsourcing Centre
complies with the Government-approved standards for centres for the provision
of Government Services;
11. ensure that Outsourcing does not
affect existing Government Service fee structures or the Customer experience or
service journey;
12. allow the Contractor to deliver, at a
single Outsourcing Centre, a range of Government Services falling within the
remit of multiple Government Entities;
13. ensure that Outsourcing covers the
entire Government Service, rather than only parts thereof, in order to enhance
Customer experience and facilitate ease of doing business. However, the Head of
the Government Entity may, in certain cases, approve the Outsourcing of
specific parts of a service, provided that the Outsourcing does not result in
increased procedures, complexity, or costs borne by Customers;
14. ensure that the Contractor employs UAE
Nationals in the Outsourcing Centre, in accordance with Article (19) of this
Law;
15. not outsource Government Services to a
Business taking the legal form of a sole proprietorship, civil company, or
partnership;
16. not impose any monthly or annual
subscription fees for entering into an Outsourcing Contract or for the number
of Outsourcing Centres of the Contractor;
17. not impose on the Contractor any
financial guarantees for providing Government Services, except in the form of
letters of guarantee or fixed-amount cheques, in accordance with the relevant
applicable legislation; and
18. comply with any other obligations
prescribed by the DOF pursuant to resolutions issued by the Director General in
this respect.
In
providing Government Services, a Contractor must:
1. comply with all terms, procedures, and
requirements governing the provision of Government Services under the
legislation in force in the Emirate;
2. comply with the policies and standards
for the provision and evaluation of Government Services established by the
Government Entity;
3. ensure that the procedures and
requirements for providing Government Services at Outsourcing Centres are
aligned with those applied at the Government Entity's service centres and
through its Digital Channels to ensure seamless Customer experience in
accessing Government Services across all channels;
4. establish electronic connection
between the Outsourcing Centre and the systems used by the Government Entity
for the provision of Government Services;
5. maintain the privacy and
confidentiality of Customer Data in accordance with the processes and
procedures adopted by the Dubai Digital Authority and the Dubai Electronic
Security Centre, ensuring the security and protection of that Data;
6. apply the quality standards adopted by
the Government Entity in all matters related to the provision of Government
Services;
7. provide continued training to
employees at Outsourcing Centres to ensure that Government Services are
provided to the highest standards of quality, efficiency, and integrity;
8. develop the necessary measures and
procedures to combat and prevent any act that constitutes a violation of
applicable legislation in the course of providing Government Services;
9. submit all documents, information, and
Data requested by the Government Entity or the DOF for the purposes of
reviewing and auditing the Contractor’s financial Data and performance;
cooperate with the DOF's employees; and grant them access to its premises and
Outsourcing Centres at any time for audit purposes;
10. transfer knowledge and expertise to
the Government Entity, and train and qualify its Employees, as agreed between
the Government Entity and the Contractor in this respect;
11. comply with the environmental and
health standards, and public safety requirements, applicable to employees and
Customers at the Outsourcing Centre, as prescribed by legislation in force in
the Emirate;
12. offer a variety of appropriate options
and channels for delivering Government Services to different Customer segments;
and
13. fulfil any other obligations
stipulated in the Outsourcing Contract.
A
Government Entity may engage one or more Contractors to provide the same
Government Service. In order to ensure neutrality and promote fair competition,
it may not enter into an exclusive contract with a Contractor, except where the
Contractor is the only bidder to provide the Outsourced Government Service.
An
Outsourcing Contract must include the essential provisions governing
Outsourcing between the Government Entity and the Contractor and the mutual
obligations of the parties, including in particular:
1. the nature and scope of the Government
Services that the Contractor must provide;
2. the responsibility for obtaining
Licences, permits, and approvals;
3. the mutual financial and technical
obligations of the parties to the Outsourcing Contract;
4. the quality assurance methods; the
financial, administrative, and technical audit, control, and supervision tools
for the Outsourcing of Government Services; and the relevant performance
indicators;
5. the rules governing the right of the
Government Entity and the Contractor to terminate or amend the Outsourcing
Contract and the Contractor’s obligations upon any such amendments; and the
grounds and methods of compensation in the event of such termination or
amendment of the Outsourcing Contract;
6. the term of the Outsourcing Contract,
cases of early partial or complete termination, and the rights and obligations
of the contracting parties;
7. the cases where the Government Entity
may unilaterally terminate the Outsourcing Contract;
8. the measures and penalties that may be
imposed on the Contractor for failure to meet its contractual obligations;
9. the rules and procedures for ceasing
the provision of Government Services by the Contractor and transferring those
services back to the Government Entity, whether upon the expiry, unilateral
termination, mutually-agreed early termination, or partial termination of the
Outsourcing Contract;
10. the procedures for ensuring the
continuity of Government Services covered by the Outsourcing Contract upon
expiry or termination of the Contract, or upon failure by the Contractor to
meet its contractual obligations;
11. the procedures for the employment of
UAE Nationals by the Contractor, including eligibility criteria for their
financial entitlements and all other matters related to their employment;
12. the measures the Contractor must take
in the event of technical malfunctions during the provision of Government
Services;
13. the procedures for collecting charges for
the Government Services provided by the Contractor and the methods for remittance
of these fees to the Public Treasury of the Government of Dubai;
14. the service levels the Contractor is
required to meet, including operational performance indicators, safety and
security standards, and other relevant criteria, as well as the electronic
systems and programmes that must be implemented by the Contractor;
15. the procedures for evaluating the
quality of Government Services provided by the Contractor to Customers;
16. the methodology and percentages for
distributing revenues between the parties to the Outsourcing Contract, in a
manner that ensures fairness and economic feasibility in relation to the
provision of the Government Services, taking into account all the procedures,
efforts, total cost, and other relevant factors;
17. the procedures for monitoring and
auditing the Contractor’s financial and administrative performance throughout
the term of the Outsourcing Contract; and
18. any additional provisions that must be
included in the Outsourcing Contract for the achievement of the objectives of
this Law, as determined by the Government Entity or the DOF.
In
determining the term of an Outsourcing Contract, consideration must be given to
the financial return that may be realised by the Contractor in the short and
medium term, as well as to the number of UAE Nationals to be employed at the
Outsourcing Centres. In any event, the term of an Outsourcing Contract must not
be less than three (3) years, renewable for the same period.
a. A Contractor may not dissolve or
liquidate the Company or Establishment contracted by a Government Entity to
provide Government Services, nor reduce its share capital or change its legal
form, without first obtaining the written approval of the Government Entity
that entered into the Outsourcing Contract.
b. A Contractor may not assign an
Outsourcing Contract, in whole or in part, to another Contractor or enter into
a partnership with third parties, without first obtaining the written approval
of the contracting Government Entity. For this approval to be granted, the
assignment must meet the following conditions:
1. The Contractor must provide
justifiable reasons for the assignment of the Outsourcing Contract or any part
thereof.
2. The assignment must be formalised by a
tripartite agreement between the Government Entity, the Contractor, and the
assignee. This agreement must clearly specify the respective obligations of the
Contractor and the assignee toward the Government Entity and will take effect
only upon approval by the Government Entity.
3. The assignee must satisfy all the
requirements, conditions, controls, and rules applicable to the Outsourcing and
the Contractor, as prescribed by this Law, the resolutions issued in pursuance
hereof, and other legislation in force in the Emirate.
a. An Outsourcing Contract will be
terminated in any of the following cases:
1. mutual agreement by the parties to the
Outsourcing Contract to terminate it before its expiry date;
2. expiry of the term of the Outsourcing
Contract, unless renewed by agreement of the parties;
3. issuance of a court judgment
dissolving the Contractor or declaring its bankruptcy;
4. breach by the Contractor of any of the
essential conditions of the Outsourcing Contract that necessitate its
termination, or failure by the Contractor to comply with any of the conditions
and rules prescribed by this Law and the resolutions issued in pursuance
hereof; and
5. a change in the strategic directions,
policies, or plans of the Emirate or the Government Entity relating to
Government Services or the functions assigned to the Government Entity under
applicable legislation.
b. Where a Government Entity elects not
to renew an Outsourcing Contract, it must notify the Contractor of the
non-renewal at least six (6) months before the expiry of the term of the
Outsourcing Contract, unless the parties agree otherwise.
a. Neither the Contractor nor the
Government Entity may impose any additional charges in addition to the
Government fees, prices, tariffs, or charges, prescribed by the applicable
legislation for the provision of Government Services, without first submitting a
request to the contracting Government Entity and obtaining prior approval from
the DOF.
b. The Government Entity must refer the
request to collect additional charges as referred to in paragraph (a) of this
Article to the DOF for review, in accordance with the rules and regulations
adopted by the DOF in this respect.
c. Where the DOF approves collection by
the Contractor or Government Entity of any additional charges for providing
certain Government Services, the Contractor must provide these services to all
categories of Customers for a fee equivalent to the standard cost of providing
the services, and must offer multiple options for accessing them.
d. In collecting Government fees, prices,
tariffs and charges for the provision of Government Services, multiple payment
options must be made available, and such amounts must be collected from the
Customer only once per transaction.
a. The Contractor must remit all
Government fees, prices, tariffs, and charges collected in return for the
provision of Government Services to the Public Treasury of the Government of
Dubai.
b. The Government Entity may, subject to
the DOF’s prior approval, authorise the Contractor to deduct the financial
costs due to it under the Outsourcing Contract before remitting Public Revenue
to the Public Treasury of the Government of Dubai, to enable it to cover its operational
costs and pay its employees' salaries.
c. Neither the Government Entity nor the
Contractor may allocate any portion of the Public Revenue collected for the
provision of Government Services to any community contributions.
d. The Contractor must prepare and submit
to the Government Entity a monthly report on the Public Revenue collected in
return for the provision of Government Services. This report must include the
number and types of transactions carried out during the month, and the total
revenue collected.
e. The Government Entity must
periodically and regularly audit and reconcile the amounts received from the
Contractor against its monthly report and the Government Entity’s financial
collection reports, and provide the DOF with a report indicating the total Public
Revenue collected.
Outsourcing
Centres and the tools, devices, and equipment designated for the performance of
an Outsourcing Contract and the provision of Government Services may not be
subject to attachment or enforcement proceedings. The Contractor may not sell,
or create any rights over any of its property or assets designated for the
performance of an Outsourcing Contract, without first obtaining the approval of
the contracting Government Entity; except that a collateral right in rem may be
created over such property and assets for financing purposes, subject to the
prior written approval of the Government Entity. Any act or transaction in
contravention of this Article will be null and void.
a. Customers will be subject to the
penalties, fines, and administrative measures prescribed by the legislation
applicable to the Government Entity upon committing any violation stipulated
therein. The Government Entity may engage the Contractor to collect the fines payable
in respect of these violations.
b. A Contractor whose employees are
granted law enforcement capacity to record the acts committed in breach of the
legislation applicable to the Government Entity may not impose on Customers any
penalty, fine, or administrative measure other than those prescribed by that
legislation.
a. A Government Entity must periodically
monitor and assess the Contractor's performance in the provision of Government
Services using the performance indicators specified in the Outsourcing
Contract. These indicators must be aligned with the Government Entity's
approved strategic objectives.
b. In establishing the performance
indicators referred to in paragraph (a) of this Article the following must be taken
into consideration:
1. the Contractor's financial position,
capabilities, human resources, and other internal resources;
2. the existence of channels for
monitoring Customer feedback, including complaints, suggestions, and
satisfaction levels, which must be monitored directly by both the Government
Entity and the Contractor;
3. alignment between the Contractor's
performance indicators and those of the Government Services outsourced to it and
the performance indicators of the Government Entity and the Government Services
it provides, as approved by the General Secretariat of the Executive Council;
and
4. any other criteria determined by the
relevant resolutions issued by the Chairman of the Executive Council.
a.
A Contractor must employ at least one (1) UAE National for every non-UAE
National it employs.
b. The financial entitlements of UAE
Nationals employed by the Contractor and the procedures for their
incentivisation and recognition must be determined in accordance with
applicable legislation and the terms of the Outsourcing Contract concluded
between the Contractor and the Government Entity.
Any affected party may submit a
written grievance to the Head of the Government Entity against any decision,
procedure, penalty, or measure taken against it by the Contractor in accordance
with the legislation applicable to the Government Entity, within the time frames
specified therein. The grievance must be supported by official documents substantiating
it. The provisions of the legislation whose enforcement has been outsourced to
the Contractor will apply to the consideration and determination of the
grievance.
The
provisions of the above-mentioned Law No. (12) of 2020 apply to the process and
procedures for selecting Contractors and to any matter on which the Outsourcing
Contract is silent, including the settlement of disputes arising therefrom
through arbitration outside the Emirate or the application of any legislation
other than the legislation in force in the Emirate to any dispute concerning
the Outsourcing Contract or the procedures related thereto.
Government
Entities and Contractors that have entered into contractual arrangements before
the effective date of this Law must comply with its provisions within a period
not exceeding three (3) years from that date. The Director General of the DOF
may, where necessary, extend this grace period once for one (1) year.
The
Chairman of the Executive Council will issue the resolutions required for the
implementation of the provisions of this Law.
Any
provision in any other legislation is hereby repealed to the extent that it
conflicts with the provisions of this Law.
This
Law will be published in the Official Gazette and will come into force on the
day on which it is published.
Mohammed bin
Rashid Al Maktoum
Ruler
of Dubai
Issued in
Dubai on 27 February 2026
Corresponding
to 10 Ramadan 1447 A.H.
©2026 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict, the Arabic text will prevail.