Green Procurement Policy in UAE: Leading the Shift to Sustainable Buying

Green Procurement Policy in UAE: Leading the Shift to Sustainable Buying

The United Arab Emirates (UAE) has emerged as a global leader in sustainability and environmental innovation. One of the key areas where the country is making impactful progress is through its green procurement policy, a structured approach to sourcing products and services with minimal environmental impact.

The green procurement policy in UAE is a part of the country’s broader vision to reduce carbon emissions, promote circular economy practices, and ensure long-term ecological balance across all sectors, including construction, transport, and public administration.

What is Green Procurement?

Green procurement, also known as environmentally responsible purchasing , is the practice of buying goods and services that cause minimal harm to the environment throughout their lifecycle. This includes considering energy use, recyclability, toxicity, carbon footprint, and supplier sustainability standards.

Green Procurement in the UAE: A National Priority

The UAE government has made green procurement a national priority under initiatives like UAE Vision 2030, Green Agenda 2030, and the National Climate Change Plan.

Key Highlights:

• The Ministry of Climate Change and Environment (MOCCAE) launched a Green Procurement Program that encourages all government bodies to purchase eco-labelled and certified products.
• According to MOCCAE, government departments must prioritize items with energy efficiency labels, low emissions, or eco-certifications during tenders.
• As of 2023, over 44% of federal purchases included green or sustainable components, a number expected to rise annually.

If you are a UAE-based business bidding for government contracts, evaluate how many of your offerings are compliant with eco-label or sustainability standards.

4 Types of Green Procurement

It’s helpful to understand its key types to implement effective green procurement. These four categories help organizations evaluate and align their purchasing strategies:

1. Product-Based Green Procurement

Focuses on purchasing eco-friendly products like recycled paper, biodegradable packaging, or LED lighting. Buyers assess the sustainability features of the item itself.

Example: Replacing standard air conditioners with energy-efficient systems rated 5-star by the UAE’s Emirates Authority for Standardization and Metrology (ESMA).


2. Process-Based Green Procurement

Evaluates how the product is made or delivered. This includes assessing manufacturing processes, supply chain emissions, and vendor practices.

Example: Choosing a concrete supplier that uses reclaimed water and solar-powered mixers.


3. Supplier-Based Green Procurement

Look at the sustainability profile of the supplier. Preference is given to companies that follow ISO 14001 standards, ESG frameworks, and have environmental policies in place.


4. Service-Based Green Procurement

Applies to contracts involving services like maintenance, cleaning, or landscaping. This includes using green-certified cleaning agents, smart irrigation systems, or waste segregation methods.

Example: Contracting a cleaning company that uses biodegradable chemicals and reduces water usage by 40%.

Identify which of the four types your organization is already practicing. Can you introduce one more this quarter?

Business Benefits of Green Procurement in the UAE

Beyond compliance, adopting green procurement offers strategic advantages:

• Cost savings through reduced energy and waste
• Stronger client relationships, especially with government entities
• Brand value enhancement through sustainability alignment
• Access to green financing and incentives offered by UAE-based banks

Many UAE businesses have already begun adapting their procurement policies. For example, construction companies now use recycled aggregates, and retail chains stock products made with sustainably sourced materials.

Final Thoughts

The green procurement policy in the UAE reflects a bold and forward-thinking vision. As sustainability becomes central to business and governance, companies operating in the UAE must adapt their procurement strategies to remain competitive and compliant.

Understanding the 4 types of green procurement: product-based, process-based, supplier-based, and service-based gives organizations a framework to evaluate their current practices and move toward more responsible sourcing. Start a green procurement checklist for your next project, including one requirement from each of the four types.

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