Legislation Details
- Full Title: Cabinet Resolution Regulating the Issuance of the Government Guarantee
- Law Type: Cabinet Resolution
- Law Number: 69 of 2023
- Issued Date: 10 Jul 2023
- Effective Date: 01 Aug 2023
- Official Gazette: No. 756
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 38
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution regulates the issuance of government guarantees in the United Arab Emirates. It establishes the objectives, controls, and procedures for granting government guarantees, which can be used to support financing of infrastructure, development, and economic projects, as well as to reduce costs and improve the feasibility of government-backed initiatives. The Resolution also sets limits on the total public debt that can result from outstanding government guarantees. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 1-2) The Resolution is significant for businesses and individuals in the UAE as it provides a framework for obtaining government backing for certain projects and activities. This can improve access to financing and reduce the costs of government-supported initiatives, potentially benefiting a wide range of stakeholders. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 1-2)
What is the scope and purpose of this law?
The purpose of this Cabinet Resolution is to lay down the general rules and conditions that regulate the issuance and management of government guarantees in the UAE. It applies to any of the Federal Government Entities, as well as other entities specified by federal law or in accordance with federal law provisions. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 2, 4)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- State (UAE): The United Arab Emirates
- Government: The Federal Government of the State
- Minister: The Minister of Finance
- Ministry: The Ministry of Finance
- The Federal Government Entity: Any of the Federal Government entities specified in Federal Decree Law No. (9) of 2018 regarding Public Debt and Federal Decree-Law No. (26) of 2019 regarding Public Finance
- Public Debt: Direct and indirect outstanding liabilities, denominated in UAE dirhams or any foreign currency, owed by the Government
- Government Guarantee: A written undertaking issued by the Minister on behalf of the Government, whereby the government is committed to meeting the obligations specified in it
- Outstanding Government Guarantee: The total outstanding liabilities owed, at any time, by the Government under one or more government guarantees
(Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this Resolution include: 1. The Cabinet may, based on the recommendation of the Minister, issue a resolution approving the granting of a government guarantee. The Minister shall then issue the government guarantee in accordance with the Cabinet's resolution and the provisions of this Resolution. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 3) 2. The Federal Government Entity desiring to obtain a government guarantee must submit an application to the Ministry, meeting all the requirements specified in the Resolution. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 9) 3. The Federal Government Entity on whose behalf the government guarantee is issued must notify the Ministry of any facts, cases or circumstances that may lead to failure to meet any of its obligations contained in the government guarantee. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 13) 4. The Federal Government Entity on whose behalf the government guarantee is issued must submit monthly or periodic reports to the Ministry on the performance of the debts related to the government guarantee. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 14)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements for obtaining a government guarantee. The process is initiated by the Federal Government Entity submitting an application to the Ministry of Finance, which is then reviewed and submitted to the Cabinet for approval. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 9)
What rights and protections does this law provide?
The legislation does not explicitly mention any specific rights or protections provided under this Resolution. The focus is on establishing the framework and procedures for issuing government guarantees. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the enforcement of this Resolution are: 1. The Cabinet, which may issue a resolution approving the granting of a government guarantee based on the recommendation of the Minister of Finance. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 3) 2. The Minister of Finance, who is responsible for issuing the government guarantee in accordance with the Cabinet's resolution and the provisions of this Resolution. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 3) 3. The Ministry of Finance, which is responsible for controlling and auditing the performance and management of the government guarantee, as well as taking necessary measures to recover any funds paid by the Government in implementation of its obligations. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 11, 13)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this Cabinet Resolution. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023)
What fees, charges, or financial provisions are specified?
The legislation does not mention any specific fees, charges, or financial provisions related to the issuance of government guarantees. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023)
What exemptions or exceptions apply?
The Cabinet may, upon a recommendation of the Minister, exempt the Federal Government Entity on whose behalf the government guarantee was issued from all or part of the funds paid by the Government in implementation of its obligations contained in the government guarantee. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Art. 12)
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms or procedures under this Cabinet Resolution. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023)
What are the key deadlines and time limits?
The legislation does not mention any specific deadlines or time limits related to the issuance or management of government guarantees. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023)
How does this law interact with other UAE legislation?
This Cabinet Resolution is issued in accordance with the following UAE federal laws: - The Constitution - Federal Law No. (1) of 1972 regarding the Competences of Ministries and the Powers of Ministers, as amended - Federal Decree-Law No. (9) of 2018 regarding Public Debt, as amended - Federal Decree-Law No. (15) of 2018 regarding the Collection of Public Revenues and Funds - Federal Decree-Law No. (26) of 2019 regarding Public Finance, as amended (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Preamble)
When did this law come into effect?
This Cabinet Resolution came into effect on 01 Aug 2023, as specified in the "Effective Date" section. (Cabinet Resolution Regulating the Issuance of the Government Guarantee, 2023, Effective Date)
Source Documents
This article analyses Cabinet Resolution Regulating the Issuance of the Government Guarantee 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.