Legislation Details
- Full Title: Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment
- Law Type: Cabinet Resolution
- Law Number: No. (15) of 2025
- Issued Date: 10 Feb 2025
- Effective Date: 17 Mar 2025
- Official Gazette: No. 793
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 22
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution regulates the rules and conditions for approving the installment repayment of debts owed to federal entities in the UAE. It establishes a framework for debtors to apply for debt installment plans, outlines the criteria for approval, and grants creditors the authority to monitor and enforce the repayment plans. The Resolution aims to provide federal entities with a standardized process to manage outstanding debts and support debtors facing financial difficulties. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025) The Resolution is significant for businesses and individuals in the UAE as it offers a formal mechanism to negotiate debt repayment terms with federal government creditors. This can provide much-needed relief and flexibility for debtors experiencing cash flow challenges, while also ensuring the interests of creditors are protected. The practical impact is that debtors may be able to avoid more severe debt collection measures by obtaining approved installment plans. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to regulate the rules and conditions for approving the installment repayment of debts owed to federal entities in the UAE. It applies to any debtor seeking to repay their debt to a federal government creditor in installments, rather than as a lump-sum payment. The purpose is to provide a standardized framework for managing outstanding debts and supporting debtors facing financial difficulties. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 1-2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- Application for Debt Installment: An application submitted by the debtor to the creditor seeking approval to repay the debt in installments over a fixed period of time, without any waiver, relinquishment, or reduction of the debt amount. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 1)
- Repayment Plan: A financial plan submitted by the debtor alongside the application for debt installment, detailing the proposed mechanism and timeline for repaying the debt. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this Resolution include: 1. The debtor must submit an application for debt installment, along with a repayment plan, to the creditor. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 2) 2. The creditor must decide on the application within 10 working days, provided it meets the conditions set forth in the Resolution. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 2) 3. The debtor must provide financial documents and guarantees approved by the creditor to demonstrate financial hardship and secure the debt. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 3) 4. The repayment period must not exceed 48 months, and the debtor must provide a valid first installment cheque. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 3)
What licensing, registration, or approval requirements exist?
The Resolution does not specify any licensing, registration, or approval requirements beyond the debtor submitting an application for debt installment to the creditor. The creditor is responsible for reviewing and deciding on the application. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 2-4)
What rights and protections does this law provide?
The Resolution does not explicitly outline any specific rights or protections granted to debtors or creditors. However, it does provide a formal mechanism for debtors to apply for debt installment plans, which can help them avoid more severe debt collection measures. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this Resolution are: 1. The creditor's debt collection unit, which is responsible for reviewing applications, verifying conditions, and submitting recommendations to the creditor's director. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 4) 2. The director of the creditor, who is responsible for issuing decisions approving or rejecting debt installment applications. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 4) 3. The Debt Collection Follow-up Unit, which must approve applications for debts exceeding AED 1 million. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 3)
What are the penalties for non-compliance?
The Resolution does not specify any penalties for non-compliance. It focuses on the process and conditions for approving debt installment plans, rather than enforcement measures. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025)
What fees, charges, or financial provisions are specified?
The Resolution does not mention any specific fees, charges, or financial provisions related to the debt installment process. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025)
What exemptions or exceptions apply?
The Resolution does not provide any explicit exemptions or exceptions to the debt installment application and approval process. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025)
How are disputes resolved under this law?
The Resolution does not specify any dispute resolution mechanisms. It states that the debt for which the installment repayment is sought must not be subject to any dispute before a court, arbitration tribunal, or other dispute resolution body. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 3)
What are the key deadlines and time limits?
The key deadlines and time limits under this Resolution include: 1. The creditor must decide on the debt installment application within 10 working days. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 2) 2. The repayment plan must commence within 30 days of the application approval. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 3) 3. The repayment period must not exceed 48 months. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 3) 4. The debtor must provide the required guarantees within 5 working days of being notified of the approval decision. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 4)
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to the following UAE federal legislation: - Federal Law No. (1) of 1972 Concerning the Competencies of Ministries and the Powers of Ministers, as amended - Federal Decree-Law No. (26) of 2019 Regarding Public Finance - Federal Decree-Law No. (15) of 2024 On the Collection of Debts of Federal Entities The Resolution references and builds upon the provisions of these laws, particularly the debt collection framework established in Federal Decree-Law No. (15) of 2024. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Preamble)
When did this law come into effect?
This Cabinet Resolution was issued on 10 February 2025 and came into effect 30 days after its publication in the Official Gazette on 17 March 2025. (Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment, 2025, Art. 10)
Source Documents
This article analyses Cabinet Resolution Regarding the Rules and Conditions for Approving the Federal Entities’ Debts Installment for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.