Introduction:
The Ministry of Finance proudly announces the issuance of Federal Decree-Law No. 11 of 2023, a landmark legislation setting the stage for a paradigm shift in the procurement landscape of the UAE’s federal government. This comprehensive law is designed to redefine and elevate principles, controls, and standards for procurement operations, aligning with global quality standards and sustainable development.
Key Objectives:
- Digital Transformation:
- Drives the implementation of digital procurement systems.
- Utilizes world-class policies and practices for enhanced efficiency and effectiveness.
- Equality and Fairness:
- Ensures equality and fairness among suppliers participating in procurement processes.
- Involves relevant stakeholders and participants to maintain transparency and integrity.
- Efficiency and Quality:
- Enhances operational efficiency to achieve spending efficiency.
- Ensures quality in operations to align with global standards.
- Integrity and Transparency:
- Promotes integrity, trust, and transparency in all procurement procedures.
- Aligns with global quality standards and sustainable development.
- Support for SMEs and National Economy:
- Supports Small and Medium Enterprises (SMEs) and contributes to the national economy.
- Provides flexibility and improves the performance of purchasing and contracting operations.
Applicability and Exemptions:
- Applies to all procurement and contracting activities of federal entities, ministries, authorities, and central agencies.
- Also applies to independent and autonomous federal entities with their own administrative structure and budget.
Flexibility and Continuity:
- Recommends exempt entities to refer to the law for guidance.
- Ensures business continuity by maintaining the enforcement of relevant Cabinet Resolutions until the issuance of executive regulations.
Implementation and Amendments:
- Standardizes the governance of the procurement process, emphasizing transparency, competitiveness, and equal opportunities.
- Applies to procurement contracts concluded after December 1, 2023, with provisions to follow upon amendment, renewal, or extension of existing contracts.
Conclusion: The issuance of Federal Decree-Law No. 11 of 2023 underscores the UAE’s commitment to modernizing procurement processes, fostering integrity, and aligning with global best practices. As the law takes effect, it is poised to revolutionize the landscape of government procurement, contributing to a more efficient, transparent, and equitable public procurement ecosystem. For more details, please refer to the official decree document or visit the Ministry of Finance website.
