UAE Free Zone — Government Contract Procurement Rules Reference 2026
UAE free zone companies can bid for UAE government contracts, but specific rules apply. Here is the 2026 reference on UAE government procurement for free zone businesses.
In this guide:
UAE Government Procurement Overview
- Federal: Federal government contracts under Ministry of Finance Federal Procurement Law
- Dubai: Dubai government procurement via DG/DG Market; Dubai Government Excellence Programme criteria
- Abu Dhabi: AD government contracts via Abu Dhabi Government e-Procurement System
- Emirate-level: Each emirate has its own procurement rules
Can UAE Free Zone Companies Bid for Government Contracts?
- Generally: Yes; UAE free zone companies can bid for most UAE government contracts
- Restriction: Some UAE government contracts require UAE mainland company licence; check tender requirements
- Defence/security: Sensitive defence contracts often require UAE mainland company and UAE national ownership element
Government Tender Requirements (Common)
- Valid trade licence
- UAE company registration (free zone or mainland)
- Good Standing Certificate from free zone
- Bank guarantee (tender bond): Typically 5-10% of contract value
- Performance bond: Typically 5-10% on contract award
- Tax compliance certificate: UAE CT registration and good standing
Emiratisation in Government Contracts
- Nafis / Emiratisation: Government tenders increasingly require contractor workforce to have UAE national (Emirati) employees at specified ratios
- Free zone exemption: Free zone companies are partially exempt from Emiratisation rules; but some government contracts require Emiratisation regardless