UAE introduces Progressive Federal Procurement Law
The Federal Law No. 11 of 2023, which addresses procurement within the federal government, was recently unveiled by the Ministry of Finance.
Modernizing procurement practices
This law, which went into effect on December 10, 2023, marks a new era for the UAE government's procurement procedures by bringing them into compliance with state-of-the-art international norms and practices.
Guiding Principles and Objectives
The primary objective of the law is to establish a comprehensive framework that defines the principles, controls, and standards governing procurement across government agencies. Aligned with the government's digital agenda, the legislation seeks to boost and streamline procurement processes at the federal level. Emphasis is placed on activating digital procurement systems and implementing globally recognized policies throughout all stages of the purchasing process.
Ensuring Equality and Efficiency
Ensuring equity, fairness, and nondiscrimination among participating providers is a primary priority. The law emphasizes the need for effective and efficient operations to assure quality and expenditure efficiency and actively incorporates important stakeholders in the procurement process within federal bodies.
Integrity, Trust, and Transparency
In all procurement processes, the new regulation seeks to improve honesty, trust, openness, and competitiveness. It underlines how crucial it is to promote small and medium-sized businesses, think about sustainability, meet quality standards, and align with the interests of the general public. Along with promoting flexibility and enhancing the effectiveness of contracting and procurement activities, the legislation also seeks to boost national economic growth.
Applicability and scope
All federal agencies, including ministries, councils, and central government entities performing federal executive, legislative, and judicial duties, are subject to the Federal Law's regulations when it comes to procurement and contracting. This emphasizes following the law's rules to get the best value possible in their purchases, and it also applies to independent government agencies.
Exclusions and guidance
The Act encourages institutions that are exempt from its provisions—those with specific regulations controlling their procurements, for example—to consult its principles when attempting to get the best value for their procurements. The goal of the law is to ensure efficiency, openness, and equity in the federal government's procurement operations by fostering a uniform and progressive approach.
