UAE procurement; a bigger role for the private sector

Analysis

In early February, the UAE announced a major Government shake-up to prepare the UAE for the future. Under the new plans, a number of ministries are to be consolidated and most Government services will, in the future, be outsourced to the private sector.

The rationale for the change is that ministries should focus predominantly on setting policies, drafting laws and regulating private sector activities, rather than undertaking commercial activities themselves. The UAE Vice president, Sheikh Mohammed bin Rashid Al Maktoum said on Twitter that “I would like to announce that the UAE President has approved the biggest structural changes in the history of the federal Government.”

It is striking that this "federal" announcement comes so soon after the publication on 20 September 2015 of Dubai's new PPP law (Dubai Law No. 22/2015), and when taken together, it is clear that a considerable opportunity is now emerging for the UAE private sector, both in Dubai and the UAE as a whole.

Dubai's approach