Dubai has introduced a new law regulating the outsourcing of government services, aimed at improving efficiency, enhancing service quality, and strengthening public-private collaboration.

Issued by Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, Law No. (5) of 2026 establishes a legal framework that allows licensed private sector entities to deliver certain government services on behalf of public institutions.

The legislation also seeks to support Dubai’s strategic objectives while creating additional private-sector employment opportunities for UAE nationals.

Under the law, government entities may appoint one or more contractors to deliver services, ensuring competition and preventing exclusive contracts unless only one qualified bidder is available.

The Dubai Department of Finance will oversee the outsourcing framework, including setting procedures, monitoring performance, and ensuring contractors comply with the terms of outsourcing agreements.

The law also introduces workforce requirements, mandating that contractors employ at least one UAE national for every non-national employee, in line with national employment policies.

Government entities will be responsible for monitoring contractor performance through key performance indicators aligned with their strategic objectives.

The legislation will take effect upon publication in the Official Gazette, with government entities and contractors given 3 years to fully comply with its provisions.