Legislation Details
- Full Title: Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government
- Law Type: Federal Law
- Law Number: No. (122) of 2024
- Issued Date: 04 Nov 2024
- Effective Date: 14 May 2025
- Official Gazette: No. 787
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 126
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution provides the executive regulation for the Federal Law on Procurement in the Federal Government. It establishes a comprehensive framework for procurement processes, including the roles and responsibilities of government entities, supplier registration and prequalification, procurement methods, contract management, and dispute resolution mechanisms. The law aims to streamline and standardize procurement practices across the UAE federal government, promote transparency and competitiveness, and support the participation of small and medium enterprises (SMEs) and Emirati businesses. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 1-55) The resolution is significant for businesses and individuals engaged in government procurement, as it outlines the detailed rules, requirements, and procedures they must follow to participate in federal tenders and secure government contracts. It also empowers government authorities to enforce compliance and impose penalties for non-adherence, making it an important consideration for all parties involved in the UAE's public procurement ecosystem. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 1-55)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to provide the executive regulation for the Federal Law on Procurement in the Federal Government. It applies to all federal government agencies in the UAE and regulates their procurement activities, including the use of various procurement methods, supplier registration and prequalification, contract management, and dispute resolution. The purpose of the law is to establish a standardized and transparent procurement system across the federal government, promote competitiveness, and support the participation of SMEs and Emirati businesses. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 1-6)
What are the key definitions under this law?
The Cabinet Resolution provides the following key definitions:
- Law: Federal Law No. (11) of 2023 regarding Federal Government Procurement
- Federal Agency: The Federal Agency that is subject to the provisions of this Law
- Central Procurement Unit: The organizational unit within the Ministry responsible for managing the procurement system across the Government
- Procurement Organizational Unit: The organizational unit within each Federal Agency responsible for roles and responsibilities related to procurement
- Grievance Committee: The committee established within the Federal Agency to review grievances submitted by suppliers
- Procurement Committee: The committee established within the Federal Agency to carry out tasks related to procurement processes
- Procurement Strategy: A document prepared by the Procurement Organizational Unit for specific procurement processes
- Supplier Prequalification: The process of conducting an initial evaluation of the supplier's capacity to fulfil the required procurement
- Supplier Registration: The process of registering suppliers in the procurement system
- Suppliers Registry: The electronic database of registered and accepted suppliers in the procurement system
- Award Decision: A decision made by the Federal Agency to award the contract to the successful supplier
- Exclusion Decision: A decision made by the Federal Agency to exclude a supplier from participating in a tender
(Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 1)
What are the main obligations and requirements?
The Cabinet Resolution imposes the following key obligations and requirements: 1. Federal Agencies must establish a Procurement Organizational Unit and a Procurement Committee to manage their procurement processes. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 3-4) 2. Federal Agencies must use the Digital Procurement Platform established by the Ministry for all procurement activities. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 7) 3. Federal Agencies must comply with the procurement methods and approaches specified in the law, including public tenders, limited tenders, direct orders, and price agreements. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 17-23) 4. Federal Agencies must establish a Grievance Committee to review complaints from suppliers regarding procurement decisions. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 46-49) 5. Suppliers must register and be accepted in the Suppliers Registry to participate in federal procurement opportunities. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 8-9)
What licensing, registration, or approval requirements exist?
The Cabinet Resolution requires suppliers to register and be accepted in the Suppliers Registry maintained by the Central Procurement Unit in order to participate in federal procurement opportunities. The registration and acceptance process involves providing information about the supplier's financial solvency, prior expertise, and other documents specified by the requesting federal agency. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 8-9) For certain procurement opportunities, the federal agency may also require suppliers to undergo a prequalification process, where the agency evaluates the supplier's capacity to fulfil the required procurement based on predefined criteria. Only suppliers who successfully pass the prequalification process are eligible to submit bids for the limited tender. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 8)
What rights and protections does this law provide?
The Cabinet Resolution provides the following rights and protections: 1. Suppliers have the right to submit grievances to the Grievance Committee established within the federal agency regarding procurement decisions. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 46-49) 2. The law prohibits anti-competitive practices, such as bid-rigging and price-fixing, and imposes penalties for such violations. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 51) 3. The law requires federal agencies to ensure impartiality and prevent conflicts of interest in the procurement process. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 10-11) 4. The law promotes the participation of small and medium enterprises (SMEs) and Emirati businesses in federal procurement opportunities. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 13-15)
Which authorities or bodies are responsible for enforcement?
The Cabinet Resolution establishes the following authorities and bodies responsible for the enforcement of the procurement regulations: 1. The Central Procurement Unit within the Ministry is responsible for managing the procurement system across the federal government, including developing policies, procedures, and procurement documentation. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 2) 2. Each federal agency must establish a Procurement Organizational Unit and a Procurement Committee to carry out procurement-related tasks and responsibilities within the agency. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 3-4) 3. The Grievance Committee, established within each federal agency, is responsible for reviewing complaints from suppliers regarding procurement decisions. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 46-49)
What are the penalties for non-compliance?
The Cabinet Resolution does not specify any penalties for non-compliance. The legislation only states that cases of non-compliance will be subject to the penalties provided in the Federal Law No. (11) of 2023 regarding Federal Government Procurement, but the source text does not provide the details of those penalties. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 50)
What fees, charges, or financial provisions are specified?
The Cabinet Resolution does not specify any fees, charges, or financial provisions related to the procurement process. The legislation is silent on these matters. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024)
What exemptions or exceptions apply?
The Cabinet Resolution does not provide any explicit exemptions or exceptions from the application of the procurement regulations. The legislation applies to all federal government agencies in the UAE. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 1-55)
How are disputes resolved under this law?
The Cabinet Resolution establishes a Grievance Committee within each federal agency to review complaints from suppliers regarding procurement decisions. Suppliers can submit grievances to the Grievance Committee, which will review the case and issue a decision. The decisions of the Grievance Committee are binding on the federal agency. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Art. 46-49)
What are the key deadlines and time limits?
The Cabinet Resolution does not specify any key deadlines or time limits related to the procurement process. The legislation is silent on these matters. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024)
How does this law interact with other UAE legislation?
The Cabinet Resolution is issued in relation to the Federal Law No. (11) of 2023 regarding Federal Government Procurement. It provides the executive regulation for implementing the provisions of that law. The Resolution also references the following related legislation: - Federal Law No. (1) of 1972 on the Competences of Ministries and the Powers of Ministers, as amended - Federal Decree-Law No. (26) of 2019 Concerning Public Finance, as amended (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Preamble)
When did this law come into effect?
The Cabinet Resolution on the Executive Regulation of the Federal Law on Procurement in the Federal Government was issued on 04 November 2024 and came into effect on 14 May 2025, as per the effective date specified in the legislation. (Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government, 2024, Issued Date and Effective Date)
Source Documents
This article analyses Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.