Dubai financial laws revised

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in his capacity as the Ruler of Dubai, issued a number of economic and financial laws to add to the legislative system in the emirate.

Shaikh Mohammad issued law No 35 of 2009 about the administration of Dubai's government public funds, which includes a number of rulings to substitute law No 18 of 2006. The new rulings cover the regulation of the preparation of annual budgets of all governmental bodies, including those whose annual budgets are listed in the Government's budget, those who enjoy fiscal independence or those entities who receive financial support from the Government.

Government sectors have to abide by a number of regulations, standards and procedures which aim at restricting public expenditure and controlling government incomes, while assembling an accurate database regarding all its incomes and expenditure. Among the government sectors that are affected by this law are the government sectors that enjoy financial independence.

The law stipulates that such sectors and entities will give all the data related to their annual balance and final balance sheet to the Financial Department.

Own revenue

They also have to rely on their own financial resources without receiving any allowances from the public balance, unless they are in the form of loans that have to be paid back in time. Their annual budgets have to be approved by the Dubai Supreme Fiscal Committee.

Government departments shall supply their revenues to the account of the Government's public treasury. They shall not keep any part of their revenues, or spend on their activities or investments or usages. Government sectors and companies that enjoy financial independence shall transfer their surplus revenues to the government's public treasury, as public revenues.

The law has passed with the approval of the Dubai Supreme Fiscal Committee and in cooperation with the Dubai Government Investments Establishment to re-invest profits and revenue surplus before transferring the funds to the government's public treasury. The Financial Department will be supplied with the complete financial data regarding the profits and surplus to be calculated among the government's public revenues.

The law also stipulates that government departments that have their budgets listed in the government public budget shall transfer all the funds deposited by clients as refundable insurance, or any other refundable deposits to the financial department according to the directives issued by this department.

New law

Shaikh Mohammad also issued Law No. 34 of 2009 replacing Law No. 10 of 2006 on setting up the Dubai Export Development Corporation.

The new law is part of Dubai Government's plans to further develop its legislations to cope with the rapid changes and new developments as well as to comply with the best relevant international practices. The new law aims to further strengthen Dubai's status as a global economic export and re-export hub. The provisions of Law 34/ 2009 will contribute to building Dubai's export capabilities, develop its relevant programs, increase its exports, contribute to opening new foreign markets as well as strengthen existing markets to facilitate the access of products and services of companies licensed in Dubai to those markets.

The new law tasks the Dubai Export Development Corporation with the following:

1- Implementing programs and initiatives aimed at increasing and marketing exports.

2- Revising and analyzing the realities of Dubai's exports as well as determining and tackling barriers to growth.

3- Providing commercial data and technical advise to exporting entities.

4- Developing and implementing initiatives aimed at raising awareness of export sector as well as the developments related to international trade.

5- Helping companies and entities develop their own capabilities to market their products at foreign markets.

Law No. 34/ 2009 also stipulates the setting up of an export marketing program aimed at increasing Dubai's exports and market the products and services of licensed companies and entities operating in the emirate.

Shaikh Mohammad also issued Decree No. 58/ 2009 approving the statute of Dubai International Arbitration Centre. The new law replaces the current statute which was approved by Law No. 10/ 2004.

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

The changes which the emirate and the whole world recently had faced created an urgent need to re-consider the statute of the center so that it to increase its responsiveness to these changes as well as its effectiveness in carrying out its role in resolving disputes speedily though determined and simplified methods to further contribute to the development of Dubai's investment environment. The decree stipulates amendments to the center's procedural rules, alternative methods of settling disputes etc to regulate its technical, organizational and financial structure as well as increase its productivity, efficiency and effectiveness.