Saturday, December 19, 2009

New economic and financial legislations issued in Dubai

The Vice President and Prime Minister of UAE and Ruler of Dubai, H.H. Sheikh Mohammed bin Rashid Al Maktoum, has issued new economic and financial legislation that constitute a new addition to legislative structure in Dubai.

The Law No.35/2009 replaces Law No.18/2006 and deals with management of Dubai Government's public funds. The new law stipulates the following:

Regulating the preparation of annual budgets of all government bodies, inclusive of those, whose annual budgets are listed in Government budget, those who enjoy fiscal independence or those entities who receive financial support from the Government.

Government entities need to provide the exact data on their revenues and spending, and should abide by the standards aimed at controlling public spending and governmental revenues. The annual budgets of government entities will also have to be approved by the Dubai Supreme Fiscal Committee. These entities are not entitled to use, hold or spend any part of their revenues for their own activities or investments.

Government entities that enjoy fiscal independence and those with surplus revenues will have to contribute to government's treasury as they are considered public revenues.

The Law emphasizes government entities with annual budgets listed in the government's budget, to transfer to the Dubai Department of Finance, all funds lodged by clients in the form of refundable deposits or any other form, as per the relevant instructions to be issued by the department.

The new legislation forms a part of Dubai Government's plans to further develop its legislations to cope with rapid changes and new developments, and to comply with best relevant international practices. With the new legislation, Dubai's status as global economic export and re-export hub is further strengthened.

H.H. Sheikh Mohammed Bin Rashid also passed Decree No.58/2009 approving the statute of Dubai International Arbitration Centre. The new law replaces its current statute which was approved by Law No.10/2004.

The new decree aims to revise the effective legislations in Dubai, to keep pace with new global developments and abide with best practices adopted by advanced nations in the areas of resolving disputes through alternative approaches.

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