The United Arab Emirates (UAE) has become a major international center for commerce. Foreign businesses have long questioned whether they can collaborate directly with the UAE government after successfully completing business setup in Dubai. “Maybe” has been replaced with “yes.” The regulations have been revised to accommodate multinational corporations, drawing in international enterprises looking for opportunities to work with government agencies. Navigating regulatory frameworks, registration procedures, and strategy considerations are all part of the process. With the most recent rules and useful advice, this article offers a thorough summary of how international businesses can participate in UAE government contracts. These new regulations are explained in an easy-to-understand manner in the coming sections under the topic ‘Can Foreign Companies Sign Business and Work Contracts With UAE Government?’

The Changing Environment of Government Contracting in the UAE

For many years, getting government contracts in the UAE was complicated and often favored local companies. But things are changing. Now, in 2025, the question isn’t just whether foreign businesses can get contracts, but how they can succeed in a system that is friendly but has specific rules.

The UAE’s leadership is shifting toward a more diversified economy that doesn’t rely solely on oil. They are removing barriers to foreign investments, opening up opportunities in sectors like infrastructure, technology, healthcare, and education. The government now focuses on innovation, quality, and value in its every step, welcoming international companies with good practices and new solutions. Instead of lowering standards, this new approach aims to raise expectations for both local and international partners.

An Open Market for Foreign Companies

The UAE’s goal for the future and changes in the global economy have sped up its move to an open market. The government has been rethinking its role in economic growth, helped by plans like the UAE Centennial 2070 and the Projects of the 50. Now, instead of leading initiatives, the government mainly acts as a regulator and supporter, creating the right conditions for private companies to innovate. This has greatly changed how government contracts are planned, awarded, and executed.

Foreign companies can build better, long-term partnerships with UAE government agencies if they understand that the government now sees itself as a partner instead of just a supplier. Instead of just offering the lowest price, companies are now being evaluated based on technology transfer, local development, sustainability, and long-term economic benefits.

From Limited Access to Regulated Freedom

Historically, international businesses faced a big barrier: they needed to have 75% local ownership. However, in 2021, the Commercial Companies Law was revised, removing the old rule that required at least 51% UAE citizen ownership in onshore companies. This change was a major shift, allowing foreign investors to easily set up limited liability companies for most business activities without needing a local partner.

The government allows open access in most industries but keeps tight control over key sectors like security, oil and gas, utilities, banking, insurance, telecom, and pilgrimage services. This balance helps promote openness while safeguarding important national interests.

Getting government contracts in the United Arab Emirates

A foreign firm must follow a set of procedures in order to get government contracts in the United Arab Emirates. This requires a strategic approach and rigorous adherence to local rules.

Know the Legal Structure

Both local (emirate-level) legislation and Federal Law No. 11 of 2023 regulate government procurement in the United Arab Emirates. Public bids that are open to both domestic and foreign organizations are encouraged by procurement procedures, which place a strong emphasis on openness and fair competition.

Select the Right Business Structure

Mainland Company: Direct bidding for government contracts across all emirates is possible with fewer limitations when a mainland firm is registered in the United Arab Emirates.

Free Zone Company: Despite certain restrictions, free zone entities can also occasionally participate with the proper structure or specific authorization.

Most public sector contracts in the UAE require setting up a branch or representative office. While recent laws no longer mandate a local service agent, some organizations may still prefer to form local partnerships or joint ventures.

Complete Company Registration

You must register with the UAE Ministry of Economy, relevant municipal authorities, and local Chambers of Commerce. Documents typically required include:

Commercial license
Chamber of Commerce certificate
Company Articles of Association
Bank statements and financial records
Agency agreement (in some sectors, attested by the Ministry or UAE embassy)
UAE Trade Licence (if applicable)

Registration on each emirate’s or federal authority’s eProcurement platform is mandatory for access to tenders.

Pre-Qualification and Compliance

Pre-qualification is necessary for many government agencies to confirm your management, financial, and technical skills. Get ready with:

An overview of the company and previous project records
Sector-specific permissions (such as MOHRE or Civil Defense licenses for construction)
Current licenses and certifications

To stay eligible, your business must renew registrations, keep up-to-date certificates, and update its information on a regular basis.

Track and Understand Government Bids

Ministries and government agencies post tender opportunities on their respective websites. Keep a close eye on criteria and submission dates, and sign up for relevant alerts.

Get ready and place your bids.

Get your proposals ready according to the stated requirements:

Follow the due dates for submissions
As directed, provide all supporting documentation.
Adhere to the bid forms and templates that are specified.
Include financial guarantees if required

Contracts are given out mostly on the basis of merit rather than connections, and bids are evaluated transparently.

Contract Award and Execution

Applicant companies will be informed and required to sign the contract, which is normally subject to UAE law, if you are successful. Specific agreements may stipulate that conflicts must be settled within the jurisdiction of the United Arab Emirates; thus, it is crucial to be familiar with local dispute resolution procedures.

Foreign businesses may strategically position themselves to obtain UAE government contracts and establish enduring local partnerships by following these procedures and staying compliant.

The message for international businesses is clear: government contracting is now more accessible than ever before, but success demands more than simply technical requirements and a reasonable price. It requires a sincere dedication to enhancing the UAE economy, comprehending the changing procurement ecosystems, honoring cultural quirks, and forming alliances founded on a common goal and advantage. Establishing your firm with the assistance of reliable business setup consultants in Dubai is the first step you can take in this process to ensure flawless business operations in the region.