Law No. (18) of 2006
Concerning
The Management and Realization of Public Funds of the Government of Dubai
We, Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Having reviewed Law No. (1) of 1995 Establishing the Financial Audit Department and its amendments,
And Law No. (5) of 1995 Establishing the Department of Finance,
And Law No. (7) of 1995 Concerning the Financial System of Government Departments in the Emirate of Dubai,
And Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai,
And Law No. (3) of 2006 Establishing Dubai World,
And Law No. (7) of 2006 Concerning Real Estate Registration in the Emirate of Dubai,
And Law No. (11) of 2006 Establishing the Investment Corporation of Dubai,
And based on the proposal of the Director General of the Department of Finance and the approval of the Executive Council,
Do hereby issue the following Law:
Title of the Law
Article (1)
This Law shall be cited as the "Law on the Management and Realization of Public Funds of the Government of Dubai No. (18) of 2006".
Definitions
Article (2)
| The Government: |
The Government of Dubai |
| The Executive Council: |
The Executive Council of the Emirate of Dubai |
| The Department: |
The Department of Finance |
| The Public Treasury: |
The public revenue account of the Government of Dubai |
| Revenues: |
Revenues, profits, proceeds, fees, taxes, and fines |
Delegation of Authority to the Executive Council to Approve Fees, Fines, and Taxes
Article (3)
The Executive Council shall approve government fees, fines, and taxes by a resolution issued by it upon the request of the concerned government department and the approval of the Department.
Revenues of Government Departments
Article (4)
a- Government departments shall collect the revenues generated from their current activities or any revenues realized from the sale or privatization of their assets or any other revenues they realize, and shall remit them to the Department for the account of the Public Treasury. The Department shall establish the necessary implementing rules and procedures for this.
b- The total estimated revenues for the fiscal year shall be allocated to cover all estimated public expenditures for the same year. It is not permissible to allocate a specific revenue to cover a specific expenditure, nor is it permissible to offset collected revenues against disbursed expenditures.
Investment
Article (5)
Government departments may not engage in any investment activity except in accordance with the provisions of the law, including Law No. (11) of 2006 Concerning the Establishment of the Investment Corporation of Dubai.
Public Corporations, Companies, and Authorities Wholly Owned by the Government of Dubai
Article (6)
Public corporations, companies, and authorities wholly owned by the Government of Dubai shall prepare their financial statements and financial position annually. These statements and financial position shall be presented to the Department before their approval by their boards of directors to determine the Government's share of the surpluses from their financial activities, provided that this share is not less than ten percent of the net profits. Any revenues realized from the sale or privatization of any of these corporations, companies, or authorities shall also accrue to the account of the Public Treasury.
Public Corporations and Authorities Partially Owned by the Government of Dubai
Article (7)
a- Public corporations and authorities in which the Government owns (25%) or more of their capital shall consult with the Department on the distribution of profits from their activities before presenting it to their boards of directors.
b- Public corporations and authorities in which the Government of Dubai owns less than (25%) of their capital shall pay the Government's share of the profits from their activities within a maximum period of one month from the date of the meeting of their boards of directors or general assemblies. The Department may take the necessary arrangements to verify this.
Management, Realization, and Collection of Public Funds
Article (8)
The Department shall undertake the operations of managing, realizing, and collecting public funds for the departments, corporations, authorities, and companies of the Government of Dubai, as well as for all corporations and companies subject to fees and taxes, in accordance with the systems, regulations, and controls established by the Department.
Article (9)
1- Approval of the Department when imposing fees, fines, or taxes:
All government departments must obtain the approval of the Department before submitting to the Executive Council any draft laws that impose any fees, fines, or taxes.
2- Approval of the Department of Finance when borrowing or issuing bonds:
a- All government departments must obtain the approval of the Department before entering into any contracts to finance or borrow funds or issue bonds intended to provide funds for the implementation of their projects.
b- Public corporations and authorities must inform the Department of all their financial obligations, whether medium or long-term.
Repeals
Article (10)
Any provision in any other legislation shall be repealed to the extent that it contradicts the provisions of this Law.
Publication and Enforcement of the Law
Article (11)
This Law shall be published in the Official Gazette and shall come into force from the date of its publication.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 2 July 2006
Corresponding to 6 Jumada Al-Thani 1427 H