(Bloomberg) –Dubai is curbing the establishment of state-related entities to ensure they aren’t crowding the private sector and holding back economic development.

Additional state-related firms will only be created to fulfill a national security requirement or a strategic government need, according to a statement by Dubai’s Executive Council.

They will only be created if the private sector is unable or unwilling to provide the services or goods needed or if the government is better-placed to offer them.

New government companies must operate without legislative favoritism or any additional advantages that would give them an edge over private-sector peers.