Procurement Risk:
Critical
Score:
6/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. The UAE has Federal Procurement Resolution No. 32 of 2014, amended in resolution No.…
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No evidence shows that the UAE has legislation covering defence and security procurement with clauses specific to corruption risks. Defence institutions are generally exempt…
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This sub-indicator is marked Not Applicable because no evidence shows that the UAE has legislation covering defence and security procurement. Defence institutions are generally…
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Q58
25/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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Some elements of the defence procurement cycle are formalized through procurement, but there is no evidence that there is legislation in practice. In the…
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The UAE has no public reports disclosing its procurement cycle at any stage. It considered secret and confidential data that must not be shared…
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Although some policies and procedures are formalized for the procurement cycle, it is not always followed in practice (1), (2).
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Q59
0/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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It has been established throughout this assessment that the defence sector in the UAE is not subject to any form of oversight. Federal Resolution…
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This sub-indicator has been marked as Not Applicable, as with the lack of oversight mechanisms overseeing defence procurement, an assessment of its effectiveness is…
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This sub-indicator has been marked as Not Applicable, as with the lack of oversight mechanisms overseeing defence, an assessment of its transparency is irrelevant…
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There is very little information available on the UAE’s defence purchases. The majority of information about defence purchases is available via sporadic media reports,…
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Data is rarely if ever, released in an accessible format by defence institutions about their actual purchases. It has been established already that no…
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Capability Gap and Requirements Definition
Q62
25/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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There are no laws and regulations that describe the procurement mechanisms of the defence sector in relation to the selection of suppliers. It has…
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This sub-indicator is marked Not Applicalbe, as there is no evidence to suggest that there are procedures and standards companies are required to have,…
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Q63
8/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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According to sources, there is a secret defence strategy that has been developed and periodically reviewed by a specialized team from UAE and foreign…
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It has been established throughout this assessment that the defence sector in the UAE is not subject to any form of oversight. Federal Resolution…
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As has been established above, the UAE does not seem to have a national security and defence strategy, or its strategy is kept secret…
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Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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There is no evidence to suggest that defence procurement is conducted as an open competition. There is no evidence on the internet of any…
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There is no open competition in defence procurement, and no oversight agencies are governing the sector in the first place (1), (2). This sub-indicator…
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Q65
0/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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Since defence procurement is privately managed, tender boards as previously established do not exist publicly (1), (2). There are no rules on conflict of…
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Since defence procurement is privately managed, tender boards are not subject to oversight by government entities (1), (2).
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Defence procurement is privately managed, and there is no transparency of tender boards procedures (1), (2).
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Since defence procurement is privately managed, tender boards are not subject to oversight by government entities (1), (2).
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Q66
0/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Evidence, has demonstrated that there is no specific or wider national legislation addressing defence procurement in general, and thus there is no legislation addressing…
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This sub-indicator has been marked as Not Applicable, as with the lack of a legal framework discouraging and punishing collusion between bidders, assessing its…
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This sub-indicator has been marked as Not Applicable, as with the lack of a legal framework discouraging and punishing collusion between bidders, assessing its…
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There is no evidence that procurement officials are training in regards to collusion between bidders.
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Contract Delivery and In-Service Support
Q67
13/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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Some mechanisms and procedures ensure that contractors meet their obligations on reporting and delivery. There is an internal auditing unit and a procurement unit…
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Despite the presence of formal procedures for the management of defence suppliers, there is a lack of transparency, as the information is confidential and…
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There are no monitoring mechanisms at all. Procurement offices do not conduct any reporting outside the delivery reports to ensure quantity and quality of…
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There is little information, even for employees in the auditing units of the armed forces on whether actions are taken when contracts are breached…
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Q68
0/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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This assessment has demonstrated that there are no oversight bodies that regulate defence procurement, and for this reason, there is not a complaint mechanism…
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This sub-indicator has been marked as Not Applicable as there are no complaint mechanisms in place to allow companies to complain about perceived malpractice…
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This sub-indicator has been marked as Not Applicable as there are no complaint mechanisms in place to allow companies to complain about perceived malpractice…
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Officials have no authority to impose sanctions to punish the corrupt activities of suppliers. As major suppliers are organized by private companies, which have…
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This sub-indicator is marked Not Applicable as officials have no authority to impose sanctions to punish the corrupt activities of suppliers. There is no…
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This sub-indicator is marked Not Applicable as officials have no authority to impose sanctions to punish the corrupt activities of supplies. According to our…
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Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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There is no evidence that there are any laws that regulate off-set contracts. All off-set contracts (and contract budgets) go through the Emir’s office…
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Although evidence suggests that some defence contracts explicitly include anti-corruption clauses, there is no evidence to suggest that the government specifically addresses corruption risks…
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This assessment has thus far demonstrated that there is no evidence or knowledge about the internal procedure and policies that outline the reporting and…
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This sub-indicator has been marked as Not Applicable, as it is irrelevant within the context of the UAE to assess transparency in relation to…
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This sub-indicator has been marked as Not Applicable, as it is irrelevant to assess transparency in relation to the government’s monitoring of offset contracts,…
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This sub-indicator has been marked as Not Applicable, as it is irrelevant to assess the enforcement of the government’s policies concerning the monitoring of…
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There is no competition concerning offset contracts. The offset contracts are managed by the Office of the Crown Prince, and therefore, the suppliers are…
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Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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This assessment has demonstrated that defence procurement in the UAE is excluded from the federal legislation, namely Resolution No. 32 of 2014, amended in…
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This sub-indicator has been marked as Not Applicable because the UAE government does not have direct control over defence contractors, as defence procurement is…
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Financing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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There is no available information about financing packages for arms deals. Moreover, the topline figure representing the defence budget is available via media platforms,…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. Research has revealed that the UAE is considered one of the top 15 military…
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This indicator is not assigned a score in the GDI. There is no public deliberation within the UAE concerning any type of policy, including…
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This indicator is not assigned a score in the GDI. There is no evidence to suggest that domestic political pressure on defence decisions exist…
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