Dubai has taken another bold step in modernising its governance. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has issued Law No. (5) of 2026, regulating the outsourcing of government services across the emirate.
At its core, the law formalises how private companies can deliver public services on behalf of government entities — bringing structure, accountability, and competition to a space that directly affects residents and businesses every day.
What Changes?
The law defines outsourcing as a contracted company delivering some or all government services on behalf of a government entity under agreed terms, with the Department of Finance overseeing and governing these arrangements.
To prevent monopolies, government entities are allowed to appoint one or more contractors to provide the same service, but exclusive contracts are prohibited unless a contractor is the sole bidder. This ensures healthy competition and keeps service quality high.
Contractors are also kept in check. Those whose employees hold judicial enforcement authority are explicitly barred from imposing fines or penalties beyond what government regulations permit.
A Push for Emiratisation
One of the law’s standout provisions ties directly into the UAE’s national workforce agenda. Private companies contracted for government services must hire at least one Emirati for every non-national employee — a meaningful push to expand Emiratisation beyond the public sector.
Looking Ahead
Both government entities and contractors have three years from the law’s effective date to bring their operations into full compliance.
For Dubai, this isn’t just regulatory housekeeping — it’s a deliberate move to raise the bar on public service delivery while creating real economic opportunity for UAE nationals.
For more trusted business news, market insights, and investment updates from the UAE and beyond, visit www.moneypetrol.com and stay ahead of the curve.
🎧 Watch & subscribe to MoneyPetrol podcasts on YouTube for in-depth conversations with industry leaders and decision-makers.
Follow us on Instagram for real-time updates, expert perspectives, and exclusive content.
