Federal government procurement law

The Federal Decree-Law No. 11 of 2023 on Federal Government Procurement sets the general framework for the procurement of products and services by the UAE government entities.

The Federal Decree-Law No. 11 of 2023 also aims to enhance integrity, trust, transparency and competitiveness in all procurement procedures, while providing public value and public interest that align with global quality standards and sustainable development.

The law applies to all procurement and contracting activities and procedures of federal entities, including ministries, authorities, central agencies, as well as subsidiaries under them.

The law also specifies the entities that are exempt from following this law due to the nature of their activities and the special regulations that exist to govern their procurements.

The law, which entered into force on December 1, 2023, does not 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.

Advanced procurement system of the UAE Federal Government

The advanced procurement system  developed by Ministry of Finance (MoF) contains a list of purchases intended to be made by MoF, other ministries and federal entities. Through this system, entities can announce the launch of tenders and invite bids. Vendors can submit bids and follow up on them. Later, entities can announce the awarding of contracts. In addition, there is the tenders and auctions system which can be used for conducting auctions in a similar way.

Benefits of the procurement and tenders and auctions systems

The procurement and tenders and auctions systems help the entities to make purchases in a transparent manner and reduce financial and administrative costs as suppliers are screened and approved before they can participate in tenders, auctions and bids.

Registration guidelines for suppliers

To register with Ministry of Finance, suppliers must meet the requirements which include submitting the documents required.  

After their registration is accepted, they can access and participate in the tenders by joining the Federal Supplier Register. Only those suppliers who are registered on the Federal Supplier Register, can view the winning bids as they are automated within the eProcurement system.

Suppliers need to renew their registration annually and they can do that online.

Digital procurement platform

View upcoming and ongoing tenders  and bid for them on the digital procurement platform. 

Sustainable procurement

Sustainable procurement supports the sustainability goals of the organisation and optimises the environmental, social, and economic impacts over the life cycle of the product or service. Some of the typical sustainable procurement practices involve:

• compliance with environmental laws and targets
• the removal of hazardous/forbidden materials and waste in the supply chain
• the thorough vetting of suppliers for fair labour practices.

Some of the sustainable and socially responsible practices at Department of Culture and Tourism in Abu Dhabi include:

• promoting the use of Khalifa Fund Suppliers
• reducing the use of paper and recycling exercises
• supporting sustainable solutions and green practices
• supporting suppliers who are committed to the development of UAE Nationals
• encouraging joint ventures and partnerships with UAE owned businesses.

Dubai Statistics Center’s policy related to Sustainable Procurement Management System commits to:

• fulfilling the requirements of Sustainable Procurement Management System (ISO 20400:2017), and endorse the system's continual improvement process
• purchasing DSC's business needs along with the required quality, specifications and on a timely manner with competitive prices, to ensure the efficiency of the procurement process and in alignment with public sector law No. 6 of 1997 and its amendments for regulating the contractual affairs of Dubai Government
• endorsing the procurement governance, integrity, equality and transparency in all procurement and contractual process
• promoting the fairness and equality in all procurement aspects such as giving an equal contractual opportunity, fair proposals evaluation and fair suppliers' performance evaluation
• giving a privilege/priority to the funded members of Mohammed Bin Rashid Establishment for Small and Medium Enterprises
• conducting a fair and transparent investigation on all suppliers' complaints and feedbacks in a professional manner
• ensuring the business continuity and the supply chain flow of DSC's critical business activities through singing solid strategic partnership agreements with the key suppliers
• increasing the expenditures' efficiency in all aspects of the procurement process and avoid the public funds inefficiency
• maintaining sustainability in multiple dimensions such as environment, society, economy, health and safety for all DSC's employees', customers', and suppliers' aspects during the procurement and contractual process. Also, to express DSC's commitment towards implementing the international standards and best practices in the field of protecting environment and reducing CO2 emissions and footprint impacts; Furthermore, DSC will show serious commitment towards public funds' efficient management, in order to achieve sustainable economic growth rates, and implement fair procurement process which reserves the community rights
• demonstrating the commitment towards controlling the quality of the procurement process, and to accelerate the continuous improvement process, which is based on the international best practices, ISO 20400:2017.

Meanwhile, Dubai Government adopted a new Green Procurement Policy to enhance the efficiency of government services. The policy aims to stimulate the local supply chain, adopt more sustainable practices, broaden the use of sustainable materials, create a competitive environment, reduce the environmental footprint and enhance financial efficiency.

The policy, which was piloted with several government entities to assess its practicality ahead of implementation, includes the development of measurable environmental and technical standards for procuring green products in line with Dubai’s efforts to boost environment protection and encourage the private sector to adopt green technology, green products and green services, as well as high sustainability standards in all government procurement.

The Green Procurement Policy will focus on four categories for government purchases in its first phase of implementation: construction materials, information technology devices, lighting materials, and the waste management sector.

Read more:

• Implementing sustainable procurement in the United Arab Emirates public sector – Abu Dhabi University
• UAE Green business toolkit 1 (PDF, 915 KB) – Ministry of Climate Change and Environment
• UAE Green business toolkit 2 (PDF, 1.23 MB) – Ministry of Climate Change and Environment.

Electronic procurement system in Abu Dhabi Government entities

Abu Dhabi Government makes procurements through the designated portal, Abu Dhabi Government Procurements.

Registration

Those who wish to do business with Abu Dhabi Government must register on the Abu Dhabi Government Procurements portal. Registration is a one-time process for businesses registered in Abu Dhabi. After registration, the profiles of suppliers become visible to procurement teams in the government entities operating through the procurement portal.

View ongoing public tenders of Abu Dhabi Government entities.

You could subscribe to email notifications for information about public tenders relating to your business interest. Type in your email and select the categories you wish to be notified about.

Related links

• Help centre for suppliers

Procurements and contracts of the UAE Armed Forces and Abu Dhabi Police

Tawazun Council manages the procurements and contracts of the UAE Armed Forces and Abu Dhabi Police. It also enforces the execution of the Tawazun Economic Programme in the defence and security sectors. Responsibilities of Tawazun include:

1. approving and awarding projects and contracts
2. following up and supervising their execution
3. undertaking relevant executive procedures on contracting and related matters
4. preparing, managing, implementing, and allocating budget for procurement, and appearing before the concerned entities on all matters related to the financial aspects of procurement
5. registering suppliers and reviewing their requests
6. revising and developing legislations and policies related to organising procurement to keep pace with the latest industry developments and best practices
7. carrying out quality assurance activities with the aim of continuous improvement and addressing various stakeholder needs, challenges and complaints.

Law on procurements and issuing contracts for Abu Dhabi Government entities

Abu Dhabi Government follows the new Public-Private Partnership (PPP) procurement regulations which come under Abu Dhabi’s Law No. 2 of 2019 on Regulating Partnerships between Public and Private Sectors. The new regulations provide greater clarity to the private sector in regard to engaging with the government during the procurement and development phase of any major PPP project.

Abu Dhabi Investment Office, the central authority responsible for the development and procurement of all infrastructure projects delivered through a PPP model in Abu Dhabi, will implement these regulations. It has published the Partnership Projects Guidebook, which encompasses a practical and comprehensive overview of the processes and procedures for the development, procurement and management of partnership projects in Abu Dhabi to support public and private sector entities in delivering projects in a transparent, timely and efficient manner.

Electronic procurement system in Dubai Government entities

eSupply is the official procurement portal of the Dubai Government. It acts as the single online destination for all suppliers engaged for business with Dubai Government entities.

View current tenders of Dubai Government entities.

Dubai Municipality provides all tenders and procurements including those that will be launched in future. View future tenders and bids of Dubai Municipality.

Related links

• Dubai Government entities on eSupply

Law on procurements and issuing contracts for Dubai Government entities

Law No. 12 of 2020 on Contracts and Warehouse Management in Dubai Government which came into effect on 1 January 2021, aims to create a framework and set standards for regulating the procurement processes of Dubai Government entities. The law also seeks to:

1. create a unified process for procurement to achieve financial efficiency
2. foster integrity, transparency and equal opportunities among suppliers
3. provide a legal framework for automating the procurement and warehouse management operations
4. unify rules and regulations governing government contracts and warehouse management
5. ensure sound governance of procurement, and asset disposal and inventory management
6. preserve government assets.

Role of Dubai Government entities

As per the law, Department of Finance is tasked with creating guidelines for the governance of procurement, and asset and inventory management, as well as drafting policies and decisions related to unified procurement processes.

The law stipulates the creation of a ‘Central Registry of Suppliers’ as part of the government’s unified online system for managing contracts and inventory. Furthermore, the Director General of each government entity is authorised to create an ‘Inventory and Valuation Committee’ to manage inventory and assets.

Impact of the law

Law No. 12 of 2020 annuls Law No. 6 of 1997 on Contracts of Government Departments in the Emirate of Dubai, and its amendments. The Law also annuls any clause in any other legislation that may contradict its provisions.

However, it does not apply to commitments made by government procurement departments to projects and programmes supported by the government, especially those relating to small and medium enterprises registered under the Hamdan bin Mohammed Programme for youth projects, which is covered by Law No. 23 of 2009 on the Mohammed Bin Rashid Establishment for SME Development.

Electronic procurement system in Sharjah Government entities

The eProcurement Portal for Sharjah Government entities facilitate procurement professionals and suppliers to conduct sourcing activities. It provides a simple, secure and efficient means for managing sourcing activities, reducing the time and effort required for both buyers and suppliers.

View current and past procurement opportunities.

Register as a supplier in the eProcurement portal.

Electronic procurement system in Ajman Government entities

To do business with the government entities of Ajman, a supplier must first submit an application to Department of Finance - Ajman.

Registration can be done through Ajman’s iSupplier portal.

Electronic procurement system in Ras Al Khaimah Government entities

To do business with Ras Al Khaimah Government, you must first register at the supplier’s register of RAK Finance Department.

Conditions for registration

To register, the applicant must be:

• a UAE national, or a business in which a UAE citizen maintains not less than 15 per cent of the company’s shares and
• licensed by the competent authorities.

Additionally, a business must not have been banned from participating in tenders conducted by any government department. It must not be owned by any employee of Ras Al Khaimah Government or by first-degree relatives of employees involved in contracting and tendering.

Registration in RAK procurement system is free of charge.