New Federal Procurement and Warehouse Management Decision

Analysis

Partner, Valeria Lysenko in Hadef & Partners Banking & Finance department considers what the new federal procurement and warehouse decisions mean for companies contracting with the federal government and federal government entities in the UAE.

Since 2011 the UAE federal government has been gradually working on modernising and streamlining laws and decisions relating to federal public revenues and expenditures and related laws and decisions. Laws and decisions issued on, among other matters, state public revenues, re-organisation of the State Audit Institution and unification of financial and accounting rules, decisions and policies of the federal government and independent federal entities are now complemented by new decisions on the federal procurement and warehouse management.

The UAE Cabinet has issued Cabinet Decision No. 32/2014 on the Procurement and Warehouse Management Decisions at the Federal Government ( Federal Procurement Decision ). The Decision has been gazetted and comes into effect before the year-end.

The new procurement regime applies to all purchases and contracts for supply, execution of works and provision of services concluded with:

(a)    The federal government and the federal ministries and governmental agencies.