The Ministry of Finance of the United Arab Emirates (UAE) has formalised a partnership with LuLu Retail to incorporate business-to-business (B2B) e-commerce service, LuLuOn, into the UAE federal government's digital procurement framework.

The objective is to bolster the effectiveness and clarity of government procurement operations.

The partnership provides federal agencies with direct access to LuLu's extensive product offerings via the government's e-procurement system by leveraging a new feature termed 'Punch Out.'

Punch Out feature is anticipated to reduce the procurement timeline from as long as 60 days to mere minutes, concurrently advancing cost management and transactional transparency.

The tool permits users to peruse, select, and complete purchases from LuLu while remaining within the procurement system, thereby enhancing the efficiency of the workflow.

This collaboration is aligned with the ministry's commitment to transform procurement activities digitally and broaden the network of approved suppliers.

Under the terms of this agreement, federal entities are also set to gain from specialised institutional pricing on a variety of products offered by LuLu, encompassing food, groceries, and operational necessities, supported by LuLu's robust global sourcing and delivery infrastructure.

At present, the federal catalogue boasts more than 120,000 products and services spanning 35 different categories, supplied by upwards of 400 accredited vendors.

The ministry is dedicated to enhancing this platform through deliberate partnerships between public and private sectors that contribute value and innovation to governmental procedures.

Financial Affairs Minister of State Mohamed bin Hadi Al Hussaini said: “This strategic agreement is part of the Ministry of Finance’s ongoing efforts to develop and enhance the efficiency of the government procurement system, in line with the federal government’s vision for more flexible and sustainable business models. Through this partnership, we aim to provide diverse, high-quality options that meet the needs of federal entities while promoting transparency and competitiveness.”

In February this year, Lulu Retail Group announced plans to extend its reach to the suburban zones of major Emirati cities, establishing new retail locations.