Legislation Details
- Full Title: Cabinet Resolution Regarding the National Content Program
- Law Type: Cabinet Resolution
- Law Number: 72 of 2021
- Issued Date: 01 Jul 2021
- Effective Date: 16 Jul 2021
- Official Gazette: No. 706
- Sector: Industry and Technical Standardisation
- Status: Active
- Number of Articles: 37
- Chapters/Parts: 0
- Amendments: 1
Summary
This Cabinet Resolution establishes the National Content Program, which aims to localize the production of industrial goods and services, support demand for national products, and recycle a larger portion of procurement and services expenditures in the UAE economy. The program applies to all procurement procedures and categories, supply contracts, and service execution conducted by federal entities, as well as concerned entities and suppliers who choose to join voluntarily. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 1-3) The program sets criteria for calculating the national content value, including the cost of manufacturing and spending on products and services within the UAE, investment in fixed assets, spending on hiring and developing national human capabilities, investment in advanced technology, and spending on job cadres in the country. The Ministry of Industry and Advanced Technology is responsible for supervising the program, issuing guidelines and requirements, and establishing a National Committee to assist in its implementation. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 4-7)
What is the scope and purpose of this law?
The scope of the National Content Program applies to all procurement procedures and categories, supply contracts, and service execution conducted by federal entities. The program can also be voluntarily joined by concerned entities and suppliers, in which case the provisions would become mandatory for them. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 3) The purpose of the program is to: 1. Localize the production of industrial goods and services and support demand for national products. 2. Recycle a larger portion of procurement and services expenditures in the national economy. 3. Activate the governmental procurement cycle to achieve governmental objectives and strategies. 4. Support the UAE's programs, projects, and objectives regarding increasing Emiratization rates and providing job opportunities for citizens in the private sector. 5. Encourage institutions and companies contracting in procurement to set plans and mechanisms to enhance the local content. 6. Develop and enhance economic activities that are based on knowledge and advanced technology in the UAE, and increase their positive impact on the gross domestic product. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 2)
What are the key definitions under this law?
The key definitions under this law include:
- Ministry: Ministry of Industry and Advanced Technology
- Minister: Minister of Industry and Advanced Technology
- Federal Entities: Any ministry, federal independent agency, or federal regulatory body with procurement approval authority
- Concerned Entities: Any local entity, department, authority, institution, or private sector company that implements the program in its procurement
- Committee: The National Committee of National Content Program
- The National Content: The total amounts spent within the UAE to develop businesses, human resources, and boost productivity in the economy according to the In-Country Value (ICV) formula criteria
- Program: The National Content Program approved by this Resolution
- Certificate: The In-Country Value certificate measuring the supplier's contribution to the In-Country Value
- Companies Granting the Certificate: Companies and institutions authorized by the Ministry to issue In-Country Value certificates
- Supplier: Any natural or legal person with whom federal entities and concerned entities contract
(Cabinet Resolution Regarding the National Content Program, 2021, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this law include: 1. Federal entities must implement the program across all procurement procedures and categories, and apply the specified mechanism for evaluating procurements and awarding bids. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 8) 2. Concerned entities that join the program must set appropriate procedures and policies to meet the program requirements, include the weight of the National Content in the evaluation criteria for tenders and contract awarding, and provide proposals and improvements for the program's development. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 9) 3. Companies granting the In-Country Value certificates must measure the National Content for suppliers based on the approved criteria, comply with confidentiality and integrity requirements, notify the Ministry of any fraud or unfair practices, and issue the certificates through the Ministry's electronic platform. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 11) 4. Suppliers must provide documentation proving their contribution to the National Content, renew the certificate, submit it with procurement requirements, and provide the Ministry with a list of commodities and services supplied. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 12)
What licensing, registration, or approval requirements exist?
The legislation states that companies wishing to be appointed as companies granting the In-Country Value certificates under the program must submit an application for approval in accordance with the criteria and conditions specified by the Ministry. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 10)
Which authorities or bodies are responsible for enforcement?
The Ministry of Industry and Advanced Technology is responsible for supervising the program, monitoring its implementation, and establishing the necessary criteria for its application and participation. The Ministry may delegate any of its entities or executive committees to execute any of its competencies relevant to the program. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 5) The law also establishes a "National Committee for the National Content program" that reports to the Ministry. The National Committee is responsible for preparing policies and strategies, proposing the mechanism for calculating the National Content percentage, reviewing guidelines and procedures, and proposing administrative penalties for violations. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 6-7)
What fees, charges, or financial provisions are specified?
The legislation does not specify any fees, charges, or financial provisions related to the National Content Program.
What exemptions or exceptions apply?
The legislation does not provide any exemptions or exceptions to the scope of the National Content Program.
When did this law come into effect?
This Cabinet Resolution was issued on 01 July 2021 and came into effect on 16 July 2021, the day following its publication in the Official Gazette No. 706. (Cabinet Resolution Regarding the National Content Program, 2021, Art. 2)
How does this law interact with other UAE legislation?
This Cabinet Resolution is issued pursuant to the following UAE federal laws and regulations: - Federal Law No. (1) of 1972 Concerning the Competences of Ministries and the Powers of Ministers - Federal Law No. (2) of 2015 concerning Commercial Companies - Federal Law No. (14) of 2016 concerning Administrative Violations and Penalties in the Federal Government - Federal Decree-Law No. (20) of 2020 Concerning Specifications and Standards - Cabinet Resolution No. (4) of 2019 concerning the Regulations of Procurement and Stocks Management of the Federal Government (Cabinet Resolution Regarding the National Content Program, 2021, Preamble) The legislation does not mention any laws that it repeals or amends.
Source Documents
This article analyses Cabinet Resolution Regarding the National Content Program 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.