Legislation Details
- Full Title: Federal Decree-Law Regarding Public Debt
- Law Type: Federal Decree-Law
- Law Number: 9 of 2018
- Issued Date: 20 Sep 2018
- Effective Date: 01 Oct 2018
- Official Gazette: No. 637
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 48
- Chapters/Parts: 0
- Amendments: 2
Summary
This Federal Decree-Law regulates the general rules governing the issuance and management of public debt in the United Arab Emirates. It aims to manage public debt in a prudent and safe manner, minimizing its cost and risks. The law establishes a Public Debt Management Office within the Ministry of Finance to oversee the implementation of public debt strategies and policies approved by the Cabinet. It also sets limits on the total outstanding public debt and provides guidelines for the issuance, settlement, and management of public debt instruments. (Federal Decree-Law Regarding Public Debt, 2018, Art. 1-2) The law is significant for businesses and individuals in the UAE as it provides a framework for the government to raise funds through public debt instruments to finance infrastructure and development projects. It also supports the development of efficient primary and secondary financial markets in the country. Understanding the provisions of this law is crucial for entities seeking to participate in or interact with the UAE's public debt market. (Federal Decree-Law Regarding Public Debt, 2018, Art. 2)
What is the scope and purpose of this law?
The Federal Decree-Law Regarding Public Debt regulates the general rules governing the issuance and management of public debt in the UAE. It aims to manage public debt in a prudent and safe manner, minimizing its cost and risks. The law applies to the UAE government, local governments of the Emirates, and government entities. (Federal Decree-Law Regarding Public Debt, 2018, Art. 1-2)
What are the key definitions under this law?
The law provides the following key definitions:
- The UAE: The United Arab Emirates
- The Government: The UAE Government
- The Local Government: The Government of any of the Union's Member Emirates
- The Minister: The Minister of Finance
- The Ministry: The Ministry of Finance
- The Central Bank: The Central Bank of the United Arab Emirates
- The Governor: The Governor of the Central Bank
- The Office: The Public Debt Management Office
- Public Debt: Direct and indirect outstanding obligations, denominated in the UAE Dirham or any other foreign currencies, owed by the Government
- Local Public Debt: Direct and indirect outstanding obligations, denominated in the UAE Dirham or any other foreign currencies, owed by one or more Local Governments
- Public Debt Instrument: Any debt instrument issued by the Government or to which the Government is a party
- Local Public Debt Instrument: Any debt instrument issued by the Local Government of any Emirate or to which the same is a party
- Outstanding Public Debt: The total current and outstanding balance of public debt, which has not been paid
- Public Debt Surplus: The remaining balance of the value of Public Debt Instruments issued, and which has not been deployed
- Government's Own Stable Revenue: Financial revenue generated from the provision of services and implementation of various activities by the Government and Government Entities
- Government Entities: The public authorities and institutions and companies wholly or partially owned by the Government or by a government-owned entity
- Electronic Register: An electronic register created and kept by the Ministry for recording the ownership of Public Debt Instruments
(Federal Decree-Law Regarding Public Debt, 2018, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this law include: 1. The public debt shall be established under a law, which shall specify the purposes, maximum total amount, and period of issuance and offering of the public debt instruments. (Federal Decree-Law Regarding Public Debt, 2018, Art. 4) 2. The Cabinet may issue resolutions on the type of public debt instruments, the way of offering them, and the reissuance of outstanding public debt. (Federal Decree-Law Regarding Public Debt, 2018, Art. 4) 3. The total amount of outstanding public debt shall not exceed 250% of the government's own stable revenue. (Federal Decree-Law Regarding Public Debt, 2018, Art. 6) 4. The government may allocate up to 15% of the total outstanding public debt for financing infrastructure projects. (Federal Decree-Law Regarding Public Debt, 2018, Art. 7) 5. The Minister shall prepare and update an annual strategy and action plan for the management of public debt, to be approved by the Cabinet. (Federal Decree-Law Regarding Public Debt, 2018, Art. 9)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the enforcement of this law include: 1. The Ministry of Finance, which houses the Public Debt Management Office. The Office is responsible for proposing public debt management strategies, implementing approved strategies, providing advice to the Minister, and performing various other functions related to public debt management. (Federal Decree-Law Regarding Public Debt, 2018, Art. 3) 2. The Cabinet, which is responsible for approving the public debt management strategy and action plan, issuing resolutions on public debt instruments, and authorizing the Minister to take necessary measures for the management of public debt. (Federal Decree-Law Regarding Public Debt, 2018, Art. 4, 9) 3. The Central Bank of the UAE, which coordinates with the Public Debt Management Office on the management of public debt instrument issuance and sale, and may be authorized to settle public debt instruments on behalf of the government. (Federal Decree-Law Regarding Public Debt, 2018, Art. 3, 10)
How does this law interact with other UAE legislation?
The Federal Decree-Law Regarding Public Debt references and interacts with several other UAE federal laws, including: - Federal Law No. (1) of 1972, Regarding Jurisdictions of Ministries and Powers of Ministers - Federal Law No. (7) of 1976, On the Establishment of the State Audit Institution - Federal Law No. (10) of 1980, Regarding the Central Bank, the Monetary System & Organization of Banking - Federal Law No. (5) of 1985, Promulgating the UAE Civil Transactions Law - Federal Law No. (10) of 1992, Promulgating the Evidence Law in Civil & Commercial Transactions - Federal Law No. (4) of 2000, Regarding the UAE Securities and Commodities Authority & Market - Federal Law No. (1) of 2006, Regarding Electronic Transactions & Commerce - Federal Law No. (4) of 2007, Regarding Establishment of The Emirates Investment Authority - Decretal Federal Law No. (8) of 2011, Regarding the Rules for Preparation of the General Budget and Final Accounts - Federal Law No. (12) of 2014, Regarding Reorganization of Accounts Auditors Profession - Federal Law No. (2) of 2015, Regarding Commercial Companies - Decretal Federal Law No. (9) of 2016, Regarding Bankruptcy - Decretal Federal Law No. (13) of 2016, Regarding the Establishment of the Federal Tax Authority - Federal Law No. (20) of 2016, Regarding Pledge of Movable Properties in Guarantee of Debt - Federal Law No. (7) of 2017, Regarding Tax Procedures (Federal Decree-Law Regarding Public Debt, 2018, Preamble)
When did this law come into effect?
The Federal Decree-Law Regarding Public Debt was issued on 20 September 2018 and came into effect on 1 October 2018. It was published in the Official Gazette No. 637 on 30 September 2018. (Federal Decree-Law Regarding Public Debt, 2018, Issued Date, Effective Date)
Source Documents
This article analyses Federal Decree-Law Regarding Public Debt 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.