Legislation Details
- Full Title: Federal Law Concerning Procurement in the Federal Government
- Law Type: Federal Law
- Law Number: [number] of 2023
- Issued Date: 27 Nov 2023
- Effective Date: 01 Dec 2023
- Official Gazette: No. 764
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 92
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law regulates the general framework for procurement in the UAE federal government. It aims to enhance and digitize procurement processes, ensure equality and fair treatment among suppliers, promote transparency and competition, and improve the efficiency of procurement planning and management. The law applies to all procurement activities of federal ministries, agencies, and authorities, with some exemptions for sensitive or specialized procurements. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 1-4)
The law is significant for businesses and individuals in the UAE as it sets the rules and standards for how the federal government conducts its procurement activities. It impacts suppliers seeking to do business with the government, as well as the general public by ensuring procurement processes uphold public interest and support the national economy. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 1-4)
What is the scope and purpose of this law?
The scope of this law applies to all procurement and contracting activities of federal ministries, councils, agencies, and other federal government bodies established under Federal Law No. 1 of 1972. It does not apply to certain exempted entities such as the military, security services, and agencies involved in international agreements. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 3-4)
The law's main objectives are to: determine the principles, controls, and standards for government procurement; enhance and digitize procurement processes; ensure equality, fair treatment, and non-discrimination among suppliers; promote integrity, transparency, and competition; and improve the efficiency of procurement planning and management. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 2)
What are the key definitions under this law?
- State: United Arab Emirates (UAE)
- Government: The Federal Government of the UAE
- Ministry: Ministry of Finance
- Minister: Minister of Finance
- Powers Delegation Matrix: A document specifying the powers of employees authorized to approve procurement decisions and financial limits
- Federal Agencies: Ministries and other federal government bodies and authorities
- Procurement: Any product, service, or business needed by federal agencies
- Procurement Process: Procedures undertaken by federal agencies to secure procurements
- Annual Procurement Plan: Plan prepared by federal agencies to determine their procurement requirements
- Emergency Procurements: Procurements to obtain necessary purchases in urgent situations
- Procurement System: Electronic or digital system used by federal agencies to manage procurement processes
- Public Interest: Direct or indirect benefits to the federal agency, government, and society
- Overall Value: Best result achieved by optimally exploiting resources
- Supplier: Any natural or legal person providing procurements
- Participating Supplier: Any person submitting an offer for a tender or bid
- Confidential Information: Information designated as confidential
- Sensitive Business Information: Information that could adversely impact a supplier's commercial interests
- Tender Announcement: Statement published to announce a new procurement opportunity
- Public Tender: Procurement solicitation disseminated to the public
- Executive Regulations: Regulations and policies issued to implement this law
- Directives: Directives and procedures promulgated by the Minister to enforce this law
(Federal Law Concerning Procurement in the Federal Government, 2023, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this law include:
- Federal agencies must work on advance planning and determine their procurement requirements, including preparing an annual procurement plan. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 7(1))
- Federal agencies must ensure transparency, competition, impartiality, and equality in their procurement processes. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 9-11)
- Federal agencies must protect the confidentiality of supplier information and sensitive business information. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 12)
- Federal agencies must conduct procurement processes in a manner that upholds the public interest. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 13)
- Federal agencies must comply with the Powers Delegation Matrix issued by the Ministry of Finance when making procurement decisions. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 6)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements for suppliers or federal agencies under this law.
What rights and protections does this law provide?
The law provides the following rights and protections:
- Ensures equality, fair treatment, and non-discrimination among all participating suppliers. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 11)
- Requires federal agencies to protect the confidentiality of supplier information and sensitive business information. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 12)
- Allows suppliers to file grievances against the decisions of federal agencies. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 38)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this law include:
- The Ministry of Finance, which is responsible for issuing the Powers Delegation Matrix and executive regulations to implement the law. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 6, 42)
- The Minister of Finance, who is responsible for issuing directives and procurement procedures to enforce the law. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 1, 42)
- The heads or equivalent authorities of each federal agency, who are responsible for determining the personnel entrusted with the procurement authorities outlined in the Powers Delegation Matrix. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 6)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with this law.
What fees, charges, or financial provisions are specified?
The legislation does not specify any fees, charges, or financial provisions under this law.
What exemptions or exceptions apply?
The law does not apply to the following entities and procurements:
- Armed forces and the Ministry of Defence
- State Security Service
- Federal agencies associated with international agreements or obligations
- Construction projects and contracts
- Procurements of a military or security nature by the Ministry of Interior or security agencies
- Procurements for the State's representative missions abroad
- Procurements made outside the UAE for use abroad
- Procurements related to establishing, furnishing, and equipping government offices outside the UAE
- Procurements related to medicines and medical supplies
- Partnership contracts between federal agencies and the private sector
- Procurement and leasing of lands, buildings, and asset disposal
- Investment activities undertaken by federal agencies
- Financing operations and issuance of guarantees by federal agencies
- Federal agencies and procurements exempted by Cabinet Resolution
- (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 4)
- The legislation allows suppliers to file grievances against the decisions of federal agencies, but does not specify the dispute resolution mechanisms. (Federal Law Concerning Procurement in the Federal Government, 2023, Art. 38)
- The legislation does not specify any deadlines or time limits under this law.
- This law references and interacts with the following UAE federal legislation:
- Federal Law No. 1 of 1972 Concerning the Jurisdictions of Ministries and Powers of Ministers
- Federal Law No. 5 of 1985 promulgating the Civil Transactions Law
- Federal Law No. 8 of 2011 Re-organising the State Audit Institution
- Federal Law No. 2 of 2014 Concerning Small and Medium Projects and Enterprises
- Federal Decree-Law No. 9 of 2016 on Bankruptcy
- Federal Decree-Law No. 13 of 2016 Establishing the Federal Tax Authority
- Federal Decree-Law No. 7 of 2017 Concerning Excise Tax
- Federal Decree-Law No. 8 of 2017 Concerning the Value Added Tax
- Federal Decree-Law No. 11 of 2017 Concerning the entitlement of some powers to the Cabinet
- Federal Decree-Law No. 9 of 2018 Concerning Public Debt
- Federal Decree-Law No. 15 of 2018 Concerning the Collection of Public Revenues and Funds
- Federal Decree-Law No. 16 of 2018 Concerning the Federal Government Union Owned Properties
- Federal Decree-Law No. 26 of 2019 Concerning Public Finance
- Federal Decree-Law No. 31 of 2021 Promulgating the Crimes and Penalties Law
- Federal Decree-Law No. 32 of 2021 Concerning Commercial Companies
- Federal Decree-Law No. 38 of 2021 Concerning Copyright and Related Rights
- Federal Law by Decree No. 47 of 2022 Concerning Taxation of Corporations and Businesses
- (Federal Law Concerning Procurement in the Federal Government, 2023, Preamble)
- This Federal Law Concerning Procurement in the Federal Government was issued on 27 November 2023 and came into effect on 1 December 2023. (Federal Law Concerning Procurement in the Federal Government, 2023, Issued Date, Effective Date)
- This article analyses Federal Law Concerning 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.