UAE government procurement in one paragraph
There is no single UAE procurement system. The federal government buys under Federal Law No. 11 of 2023, in force since December 2023, and its executive regulation, Cabinet Resolution No. 122 of 2024, in force since May 2025. Each emirate has its own rules. Dubai buys under Law No. 12 of 2020, and Abu Dhabi through its own procurement standards and portal. State companies such as ADNOC, DEWA and Etihad Rail run their own supplier systems. The federal law covers ministries and federal authorities, but not defence and security, construction projects, medicines, public-private partnerships or missions abroad.
Where UAE tenders are published
| System | Where | Notes |
|---|---|---|
| Federal | Digital Procurement Platform (procurement.gov.ae) | Every federal procurement opportunity goes through it, and entities may only contract with suppliers registered and accepted on it. More than 10,000 companies are on the federal supplier register. |
| Dubai | Dubai eSupply | Dubai government entities. |
| Abu Dhabi | Abu Dhabi Government Procurement Gate (ADGPG) | Run by the Department of Government Enablement, through TAMM. |
| Other emirates | Sharjah eProcurement, Ajman Tawreed, RAK Finance | Each with its own registration. |
| State companies | ADNOC Supplier Hub and others | Separate supplier registration and rules. |
How federal procurement works
Methods:
- Public tender: open to all registered suppliers.
- Limited tender: only after prequalification. Large, strategic or complex projects must be prequalified, and prequalification lasts a year with that entity.
- Direct order: must be justified in writing, and can’t be used to cover poor planning or repeat purchases when other suppliers exist.
- Other channels: catalogue purchases, blanket and framework agreements (at least a year), low-value purchases and reverse auctions for price negotiation.
Bid period: at least 15 business days, which the entity can extend to 30.
Thresholds: the AED thresholds are set by the federal procurement manual, published in Arabic, not by the law. Larger purchases are evaluated in two stages, technical first and then financial. Negotiation becomes mandatory for the largest purchases, which also need a performance bond.
Consortia (“supplier alliances”) are allowed. Every member must be registered, and members are jointly liable.
What you need to qualify
Federal registration is online, renewed every year, and takes up to 30 working days to approve. It is open to UAE companies, free-zone companies, freelancers and foreign companies based outside the UAE, so you don’t need a UAE licence to register federally.
Abu Dhabi: companies holding an Abu Dhabi licence register themselves on ADGPG. Others, including companies from other emirates, free zones and abroad, must ask each entity they want to work with to register them.
Dubai: UAE and GCC nationals are the default bidders. Foreign and free-zone companies can be contracted only by exception, for example when the goods aren’t available locally or there is a significant price or quality gap. A company doing business in the UAE must be licensed and registered there.
In-Country Value (ICV). The national ICV programme certifies how much a company spends, employs and invests in the UAE. Federal tenders reward it. The UAE’s own trade-agreement schedules describe an additional 25% bonus in bid evaluations for ICV certificate holders. Foreign companies can be certified if they have audited accounts and a measurable UAE contribution. Federal entities must also encourage suppliers to meet Emiratisation targets.
SMEs. Federal entities must give small and medium enterprises 10% of their annual procurement spend, and SMEs get 10% added to their final score. They can give 5% retention from invoices instead of a performance bond.
Bonds:
- Dubai: a bid bond of up to 2% of the estimated value and a performance bond of 10%. No performance bond is needed for contracts up to AED 500,000.
- Federal: performance bonds are required on large contracts and must remain valid for the contract term plus 90 days.
Language. Federal procurement uses Arabic, with English as an alternative. In Dubai, Arabic prevails, though technical specifications may be in another language.
How bids are assessed
Federal evaluation criteria and their weights must be published in the tender notice, and nothing unannounced may be used. The law allows preference margins for in-country value, local products and SMEs. Unsuccessful bidders must be told the reasons within 10 business days. The winner provides its bond and documents within 10 business days and signs within 15.
Grievances:
- Federal: complain to the entity within 5 working days of a decision or the award. Its grievance committee’s decision is final, and silence counts as rejection.
- Dubai: complain to the entity’s Director General within 30 days. A committee decides within 30 days, and its decision is final.
Federal contract disputes go to the UAE federal courts, and arbitration abroad isn’t allowed without Cabinet approval. Blacklisted suppliers are excluded for at least five years.
Getting paid
Federal suppliers are paid according to the contract terms, and the law sets no single statutory period. Federal entities can relax payment terms for SMEs, and the federal manual allows advance payments on request. In Dubai works contracts, interim payments cover 90% of completed work and 85% of materials on site, with 5% retention.
Bidding from outside the UAE, including from India
The UAE is not a party to the WTO Government Procurement Agreement. It isn’t even an observer. Its procurement commitments to other countries come through its bilateral trade agreements (CEPAs), with countries such as India, New Zealand and Australia.
The India–UAE CEPA has a real government procurement chapter. Chapter 10 of the agreement, in force since 1 May 2022, gives Indian suppliers rights in UAE federal procurement:
- National treatment: for covered procurement, the UAE must treat Indian suppliers no worse than its own.
- Open tendering is the default, English is used where possible, and each side must offer an independent domestic review with at least 10 days to file.
- Coverage: 41 UAE federal entities, including the Prime Minister’s Office, the Ministries of Finance, Interior, Education, Health and Prevention and Energy and Infrastructure, UAE University and Zayed University.
- Thresholds: SDR 134,000 for goods and for services, about ₹1.6 crore. Construction services are listed at SDR 5,844,000, but construction projects are excluded.
What the CEPA doesn’t cover:
- Emirate governments and state companies: Dubai, Abu Dhabi and other emirates, and companies such as ADNOC.
- Sectors: defence, oil, gas and minerals, medicines, public-private partnerships and construction projects.
- ICV programme procurement: procurement under the In-Country Value programme, so the ICV advantage still applies.
- Green preference: the UAE may give a 10% price preference to domestic “green” suppliers and goods.
Enforcement is weak. Disputes under the procurement chapter can’t go to the CEPA’s dispute settlement. A review of that was due by May 2026, and no outcome has been published.
In practice, for an Indian company:
- Start federal. Register on the federal Digital Procurement Platform as a foreign company, and target the 41 covered entities above the thresholds, where you have national treatment.
- Build In-Country Value. Large federal tenders reward ICV, which the CEPA doesn’t touch. A UAE presence with local spend and staff makes you more competitive.
- For Dubai and Abu Dhabi, plan on a UAE licence. Dubai prefers UAE and GCC companies, and Abu Dhabi registers others only on request. A free-zone licence doesn’t count as local for Dubai government work.
- Bid in English where allowed, but expect Arabic to prevail in Dubai.
What changed in 2025–2026
- 26 February 2025: the Ministry of Finance launched the federal procurement procedures guide and delegation of authority matrix.
- 14 May 2025: Cabinet Resolution No. 122 of 2024, the federal procurement regulation, took effect.
- November 2025: the India–UAE CEPA Joint Committee met for the third time, as two-way trade passed US$100 billion.
- February 2026: Dubai amended its procurement law’s rules on supplier delays and penalties.
- March 2026: Dubai passed a law regulating the outsourcing of government services.
- By May 2026: a review of whether CEPA procurement disputes can go to dispute settlement was due. No outcome has been published.
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Questions
Does the India–UAE CEPA cover government procurement?
Yes. Chapter 10 of the CEPA, in force since 1 May 2022, requires each country to treat the other’s suppliers no worse than its own for covered procurement. On the UAE side it covers 41 federal entities, including the Ministry of Finance, the Ministry of Health and Prevention and UAE University, above SDR 134,000 for goods and services. It doesn’t cover Dubai, Abu Dhabi, other emirates or state companies such as ADNOC, and it excludes defence, oil and gas, medicines, construction projects, PPPs and procurement under the In-Country Value programme. Disputes under the chapter can’t go to the CEPA’s dispute settlement.
Can a foreign company bid for UAE federal tenders without a UAE licence?
Yes. The federal supplier register on the Digital Procurement Platform accepts foreign companies based outside the UAE, as well as free-zone companies. Registration is renewed every year and takes up to 30 working days. Federal entities may only contract with registered, accepted suppliers.
Can foreign companies bid for Dubai government tenders?
Only by exception. Dubai’s procurement law makes UAE and GCC nationals the default bidders, and allows foreign and free-zone companies when, for example, the goods aren’t available locally or there is a significant price or quality difference. A company doing business in the UAE must be licensed and registered there.
What is In-Country Value (ICV)?
A national programme that scores companies on how much they spend, employ and invest in the UAE. ICV certificate holders get an advantage in federal tenders: the UAE’s own trade-agreement schedules describe a 25% bonus in bid evaluations. Foreign companies can be certified if they have audited accounts and a measurable UAE contribution.
How do I complain about a UAE federal tender?
File a grievance with the entity within 5 working days of the decision or the award. The entity’s grievance committee decides, and its decision is final; silence counts as rejection. In Dubai, complaints go to the entity’s Director General within 30 days.
Do SMEs get preference in UAE federal procurement?
Yes. Federal entities must give small and medium enterprises 10% of their annual procurement spend, and SMEs get 10% added to their final evaluation score. SMEs need membership of the national SME programme, and can give 5% retention from invoices instead of a performance bond.
Sources
- Federal Law No. 11 of 2023 on Procurement in the Federal Government (Ministry of Finance)
- Cabinet Resolution No. 122 of 2024: executive regulation of the federal procurement law
- Ministry of Finance: federal procurement
- Ministry of Finance: Digital Procurement Platform
- Ministry of Finance: federal supplier register
- Ministry of Finance: supporting SMEs in federal procurement
- u.ae: government tendering and awarding
- Dubai Law No. 12 of 2020 concerning contracts and warehouse management in the Government of Dubai
- Abu Dhabi Government Procurement Gate (ADGPG)
- India–UAE Comprehensive Economic Partnership Agreement (full text)
- UAE Ministry of Economy: India–UAE CEPA
- UAE–New Zealand CEPA: UAE government procurement schedule (ICV bonus)
- WTO: parties and observers to the Government Procurement Agreement
This guide explains the rules in plain English; it isn’t legal advice. Procurement rules change, and each tender document sets its own conditions — it always prevails.