New UAE law issued for federal government projects with private sector entities

Federal Decree Law No. 12 of 2023, which came into force on December 1, 2023, applies to any partnership project proposed by a federal entity and financed in whole or in part by the private sector.

The law also specifies exemptions in article (4), which include partnership contracts that were entered into before the date of entry into force of the law, as long as they do not conflict with article (32) of the law, outsourced services specified in the Association Project Manual, projects whose value is less than the limit specified in the Association Project Manual, privatization projects of public goods and services.

It also applies to national security-related supply and procurement contracts specified in the Partnership Project Manual, and to federal entities, sectors and projects that are exempt in accordance with UAE Cabinet Decisions.