Payment of public funds in Dubai can now be paid via instalments if lump-sum payments are not possible, according to a new resolution passed by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council.
According to the resolution, the head of a government entity or their authorised representative has the authority to allow payment by instalments of any public funds outlined in a list submitted by the entity to the Department of Finance.
Payment of public funds by instalments is subject to several conditions, including: public funds must be due by the date on which the application for payment by instalment is submitted, and the amount of public funds to be paid by instalments must not be less than the minimum amount prescribed by the DoF. Further, the applicant must prove their inability to pay the total outstanding amounts in one payment. The applicant must also make an initial payment of at least 25 per cent of the outstanding amount of public funds requested to be paid by instalments.
If an applicant cannot make the minimum payment of 25 per cent of the outstanding amount before applying for the payment by instalments, the authority may reduce the minimum payment.
The other conditions that remain unchanged are: the instalment period must not exceed five years, or the period in which the public funds are due, whichever is shorter. Instalments must be paid by bank cheques or by providing other guarantees or security as prescribed by the DoF. Any other conditions set by the DoF must be satisfied.
An applicant for payment by instalments must also submit the guarantees or security prescribed by the DoF in respect of the total outstanding amounts. The guarantees or security must be valid throughout the instalment period, until full payment is made.
The resolution shall be effective from the date of its publication in the Official Gazette.
