Selling to government and contracts in the United Arab Emirates

01How government buys

Federal procurement is governed by Federal Decree-Law No. 11 of 2023, in force since 1 December 2023. Each emirate runs its own procurement system.

Who can bid on federal tenders

• Local companies, SMEs, free zone companies, productive families, freelancers, foreign companies based outside the UAE and government entities.

Language

• Contracts and tender documents are in Arabic, with English as an alternative if the entity finds it necessary.
• A two-language contract states which language governs.

Exemptions

• National security, defence, intelligence and emergencies are exempt from the federal procurement law.
• Procurement by bodies such as the Central Bank is also exempt.

02Supplier registration

A supplier to federal entities registers in the Federal Supplier Register at the Ministry of Finance. Accounts are activated within 30 working days and renewed yearly.

• Federal: the Federal Supplier Register at the Ministry of Finance.
• Abu Dhabi: the Government Procurement Gate.
• Dubai: eSupply and iSupplier, plus entity portals such as DEWA.
• Sharjah: the Sharjah eProcurement Portal.
• Ajman: Tawreed.
• Ras Al Khaimah: vendor registration.

03Grievances, disputes and governing law

A supplier lodges a grievance within five working days of a pre-award or award decision. A complaints committee sits at the Ministry of Finance.

• A grievance with no reply in the set period counts as rejected.
• Disputes: contract disputes go to the UAE courts.
• Governing law: UAE law. Parties to a contract signed abroad can agree a foreign law with ministerial or head-of-entity approval.

04Local content and nationality conditions

Article 22(2) of the federal procurement law allows a preferential margin for bidders offering the best in-country value or supporting local SMEs, as the Executive Regulations set.

• Ras Al Khaimah: bidders must be licensed and either UAE nationals or businesses with a UAE citizen holding at least 15% of the shares.
• Dubai: Dubai Law No. 5 of 2026 applies to contractors providing services to Dubai Government entities and requires UAE nationals in their workforce. It is not a general obligation for Dubai private employers.

05National In-Country Value programme

The Ministry of Industry and Advanced Technology (MoIAT) has run the National In-Country Value (ICV) programme since the second half of 2021. Participating government bodies and large companies score suppliers on an ICV certificate during tender evaluation.

• There is no minimum score. A bidder without a certificate scores zero.
• The score has five parts: goods manufacture or third-party spend (0% to 50%), investment in the UAE (0% to 25%), Emiratisation salaries (0% to 15%), expatriate contribution (0% to 10%) and a bonus of up to 5%.
• The certificate is valid for 14 months from the date the audited accounts were issued.
• Foreign companies and free zone entities can obtain certificates. Accounts must follow IFRS and be signed by a Ministry of Economy approved auditor.
• A separate certificate is needed for each licence.

06Commercial agents and distributors

Commercial agencies are governed by Federal Law No. 3 of 2022, in force since 15 June 2023. It replaced Federal Law No. 18 of 1981.

• Eligible agents: a UAE national, an entity wholly owned by UAE nationals, or a public joint-stock company with at least 51% UAE national capital.
• Registration: the agency must be registered with the Ministry of Economy and the contract notarised.
• Goods: registered agency goods are released for trading only to the registered agent.
• Direct sales: an international company with no existing agent for a product can apply to the Cabinet, through the Minister of Economy, for permission to sell its own product directly.
• Ending an agency: a registered agency ends by expiry, by termination under the contract, by agreement or by court order. The earlier requirement of a material reason is gone.
• Notice: notice of expiry or termination is at least one year or half the contract term, whichever is less, unless the contract says otherwise. The affected party can challenge the notice before the Commercial Agencies Committee.
• Claims: if a fixed term is not renewed or the principal terminates, the agent can claim damages. An agent whose work created clear success for the principal can also claim lost profits. Assets held for the agency pass to the principal or new agent at fair value.
• Disputes: disputes go first to the Commercial Agencies Committee and then to arbitration if the parties choose it. The Committee's decision does not bind them.
• Existing agencies: they were protected from the new termination rules for two years, to June 2025. Agencies registered with the same agent for over ten years, or with investment above AED 100 million, keep the protection for ten years from the effective date, to June 2033.

07Contract law

Commercial contracts are governed by the Civil Transactions Law (Federal Decree-Law No. 25 of 2025). It was issued on 1 October 2025 and took effect on 1 June 2026.

• It repealed Federal Law No. 5 of 1985, which still governs contracts formed before 1 June 2026.
• Governing law: in cross-border contracts the parties can choose the governing law. Foreign law does not apply if it conflicts with UAE public order or morals.
• Liquidated damages: agreed compensation is allowed. A court has power to reduce an excessive amount.
• Force majeure: impossibility of performance cancels a two-sided contract automatically. Partial or temporary impossibility allows partial cancellation or modification.

08Courts, language and enforcement

Federal and local courts work in Arabic. Documents in other languages need an Arabic translation.

• Civil procedure is governed by Federal Decree-Law No. 42 of 2022, in force since 2 January 2023.
• ADGM Courts and DIFC Courts work in English under common law.
• Enforcement: an Execution Judge handles enforcement. Measures include bank and asset attachment, a travel ban and civil detention in specific cases. A grace period of around 15 days follows notification.
• Foreign judgments: enforced under Articles 222 to 225 of the Civil Procedure Law if the UAE courts have no exclusive jurisdiction, the foreign court had jurisdiction, the judgment is final, parties were notified, it does not conflict with a UAE judgment or public order, and reciprocity exists unless a treaty applies.

09Arbitration

The Federal Arbitration Law No. 6 of 2018, as amended by Federal Decree No. 15 of 2023 and effective 16 September 2023, governs arbitrations seated in the UAE outside the financial free zones.

• The amendments allow virtual seats, make proceedings confidential by default, bar arbitrators with a direct relationship to a party and allow documents-only arbitration.
• DIFC arbitration follows DIFC Law No. 1 of 2008.
• The Dubai International Arbitration Centre was restructured by Dubai Decree No. 34 of 2021.
• Foreign awards: the UAE joined the New York Convention in 2006. A valid award has the force of a judgment. Enforcement is sought from the Court of Appeal.

10Currency

The dirham is pegged to the US dollar at AED 3.6725 per USD. The peg has been official since November 1997.