New law to unify Dubai govt’s procurement processes

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Thursday issued Law No. (12) of 2020 on contracts and warehouse management in Dubai government.

The new law — which will be effective from January 1, 2021 — aims to create a framework and set standards for regulating procurement processes of government entities in line with the vision of Dubai government to meet the highest global benchmarks in this domain.

The law also seeks to develop an efficient system for government entities to further raise the quality of their procurement and warehouse management. It also seeks to create unified government procurement processes to achieve the highest levels of financial efficiency. The law also seeks to foster integrity, transparency and equal opportunities among suppliers and provide a legal framework for automating the procurement and warehouse management operations of government entities as part of achieving Dubai’s smart transformation objectives.

The law seeks to unify rules and regulations governing government contracts and warehouse management, ensure sound governance of procurement, asset disposal and inventory management, and preserve government assets.

The new legislation outlines the responsibilities of Dubai’s Department of Finance, Smart Dubai Government Establishment and all units responsible for inventory management in government entities. The Department of Finance is tasked with creating guidelines for the governance of procurement, and asset and inventory management, as well as drafting policies and decisions related to unified procurement processes.