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Dubai issues law on all procurement made by government departments

Dubai: Dubai is setting up a new framework for regulating procurement at all government entities, as per a new law issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai. The Law will be effective from January 1, 2021.

The Law on Contracts and Warehouse Management will create unified processes to achieve the “highest levels of financial efficiency”. It also seeks to “foster integrity, transparency and equal opportunities among suppliers” and provide a legal framework for automating procurement and warehouse management operations as part of Dubai’s smart transformation objectives.

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

The Law does not apply to commitments made by government procurement departments to projects and programmes supported by the government. This applies to those relating to small and medium enterprises registered under the Hamdan bin Mohammed Program for youth projects.

What will change
* The Department of Finance is tasked with creating guidelines for the governance of procurement, and asset and inventory management, as well as drafting policies.
* 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. The Director-General of each government entity is authorised to create an inventory and valuation committee.