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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (115)
Publication and Provision of Accounts Information
1. Each Licensed Financial Institution shall publish and make available the following information and data on its website and at all of its offices and branches inside the UAE:
a. A copy of the audited balance sheet and profits and losses statement, and a c opy of
the auditors' report. In case that the Licensed Financial Institution concerned is
incorporated in another jurisdiction, the publication and display shall be compliant
with the laws applicable in the relevant jurisdiction;
b. A list of names of bo ard members, executive officers, and their deputies or assistants;
and
c. Names of all subsidiaries or branches owned in whole or in part thereby, or
companies related to the Licensed Financial Institution concerned.
2. The Central Bank, as deemed appr opriate, may request any Licensed Financial
Institutions to publish or provide any information or statements pertaining to their accounts in addition to the information required under Clause (1) of this Article.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 72
Section Three
Restructuring and Liquidation of Licensed Financial Institutions
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (116)
Deterioration of the Financial Position
1. The Board of Directors shall develop a framework for the restructuring of the licensed
deposit -taking financial institutions to minimize the effects of the deterioration of their
financial positions on the financial system of the UAE, including the effects of the
deterioration of the financial positions of the companies owned thereby or affiliated thereto.
2. The restructuring f ramework shall include a set of prudential and qualitative triggers
signaling material risks which would lead to the deterioration of the financial position of
the institutions referred to in Clause (1) of this Article. For this purpose, the Central Bank
my adopt and take any of the following measures and actions for the protection of the
institution concerned and its depositors, as deemed appropriate:
a. Set a minimum liquidity ratio for the institution concerned which is commensurate
with the risks gene rated from its activities;
b. Obligate the institution concerned to provide additional financial resources to
support the paid -up capital as per the terms and conditions set by the Board of
Directors;
c. Make a decision whereunder the institution concerned is merged with another
Licensed Financial Institution;
d. Permit any Financial Institution to acquire the institution concerned;
e. Form an ad hoc committee to manage the institution concerned. Said committee
shall have the right to take whatever actions it deems appropriate, as per conditions
and controls set by the Board of Directors including the authority to make a decision
to stop or suspend all or part of the activities of the institution concerned e ither with
immediate effect or within another timeframe as well as consequential actions
f. The Central Bank may undertake, over a period specified by the Board of Directors,
management of the institution concerned, and shall, in this case, substitute
management of the institution concerned in respect of all powers, including financial
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 73
and administrative powers. In addition, all powers and authorities of the board of
directors and the general meeting of said institution shall be frozen with an
immediate e ffect until expiry of the period of interim management.
g. Request competent authorities in the UAE to place the institution concerned under
interim custody and seize its assets, property and shareholders' equity;
h. Make a decision requesting the court of competent jurisdiction to render a judgment ordering the liquidation or dissolution of the institution concerned, and prepare a plan for the liquidation or transfer of its assets and liabilities as well as its settle ments
and releases, as deemed appropriate, and to implement or oversee the implementation of the liquidation plan, or decide the restructuring of the institution
or submit a request to the competent court to declare the bankruptcy thereof in
accordance wit h applicable laws;
i. Where a decision is made to merge or liquidate a Licensed Financial Institution incorporated in another jurisdiction and has a branch operating in the UAE, the same procedures applicable in the jurisdiction of incorporation concerne d shall apply if
said procedures provide better protection for customers in the UAE, unless otherwise agreed upon with the authority concerned; and
j. Adopt and take any other measures or actions in accordance with a decision by the Board of Directors.
3. Whenever deemed necessary, the Central Bank may coordinate with Federal and Local
entities concerned prior to making any decision by Board of Directors pursuant to the
provisions of this Article. Further, the Central Bank may request competent judicial
authorities to take precautionary and urgent measures, and any other arrangements, which would ensure protection of the funds and interest of investors and depositors, or
which would serve the public interest.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (117)
Publication of the Restructuring or Liquidation Announcement
1. In case of restructuring or liquidation of a Licensed Financial Institution, an
announcement to that effect shall be published in the Official Gazette and in at least two
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 74
local daily newspap ers published in Arabic and in English, and for a period not less than
three (3) business days.
2. The announcement shall include the following:
a. A grace period of no less than three (3) months to enable customers of the Licensed
Financial Institutio n concerned to take necessary actions to reserve their rights; and
b. Details and tasks of the entity or liquidator assigned to perform the restructuring
procedures.
3. If the restructuring or liquidation of a Licensed Financial Institution is due to deregistration thereof from the Licensed Financial Institution register, either the
Chairman of the Board or his delegate may set in the deregistration decision the date of
closing down the institution concerned and determine the entity assigned to perform the
restructuring or to liquidate any outstanding operations on such date.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (118)
Monitoring the Efficacy of Licensed Financial Institutions under
Restructuring or Liquidation
The Central Bank shall continue to monitor the efficacy of any Licensed Financial Institution being reconstructed or liquidated until final closure of its offices.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (119)
No Prejudice to Provisions of Other Laws Concerning Restructuring or
Liquidation
The provisions of Articles Nos. (116), (117), and (118) of this Decree by Law law shall not preclude implementation of provisions of any other laws concerning restructuring and
liquidation in forc e in the State.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 75
Chapter Six
Protection of Customers
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (120)
Confidentiality of Banking and Credit Information
1. All data and information relating to customers' accounts, deposits, safe deposit boxes
and trusts with Licensed Financial Institut ions and all relevant transactions shall be
deemed confidential in nature, and may not be made available or disclosed, directly or
indirectly, to any third party without the written permission of owner of the account or deposit, his legal attorney or agent so authorized, and in cases authorized legally.
2. Prohibition to make such information available or to disclose the same shall survive
even after termination of relationship between the customer and the Licensed Financial
Institution for any reason.
3. Chairmen and members of boards of directors of Licensed Financial Institutions, their managers, staff, experts, consultants, or technicians are prohibited from providing or
disclosing any information or data pertaining to their customers, their accounts , deposits
or relevant transaction, and are prohibited from enabling others to have access to the
same unless permitted by law.
4. Said prohibition shall apply to all entities and persons having direct or indirect access to the aforementioned data and in formation by virtue of their professions, positions or
nature of work.
5. The Central Bank shall set rules and conditions organizing exchange of banking and
credit information in its capacity as the competent Regulatory Authority in the UAE in this regar d.
6. Provisions of Clauses (1) and (2) of this Article shall not prejudice the following:
a. The powers legally vested in security and judicial authorities, the Central Bank and its
employees;
b. Duties entrusted to auditors of the financial institution concerned;
c. The obligation of the institutions concerned to issue a certificate, upon the
beneficiary's request, of reasons for refusal to cash a cheque;
d. The obligation of institutions concerned to issue a certificate of partial payment of
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 76
the value of a cheque pursuant to the provisions of the Commercial Transactions
Law referred to hereinabove;
e. The right of the institutions concerned to disclose whole or part of the data pertaining to their customer's transactions in order to establish the institution's right in connection with a legal dispute arising with its customer in respect of such
transactions; and
f. Provisions of laws and international agre ements in force the State, in addition to any
provisions concerning anti- money laundering, terrorist financing and illegal
organizations financing.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (121)
Protection of Clients of the Licensed Financial Institutions
1. The Central Bank shall create the regulations for protection of clients of licensed
financial institutions, in proportion to the nature of the activities practiced by such
institutions and the financial services and productions they provide.
2. The Centr al Bank may establish a unit with independent legal personality to receive and
decide on the complaints of clients of the licensed financial institutions. The Board of
Directors shall issue a decision to establish such unit and determine its functions, rules of
procedure and powers as well as the human resources and financial affairs regulations
applicable thereto.
3. The Central Bank and licensed financial institutions shall jointly work to raise the
community awareness about the types of banking service s and financial products and
the risks inherent in them, through all available means of communication and media, in
accordance with the controls set by the Central Bank.
4. Licensed financial institutions may not charge interest on accumulated interest, i.e.
compound interests, in respect of the facilities granted to clients. In this regard, the controls and rules set by the Central Bank in the control regulations issued thereby shall
be followed.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 77
Article (121) bis
Credit Facility Guarantees
1. The licensed financial institutions shall obtain the sufficient guarantees for all types of
facilities provided to the natural clients and private sole proprietorships, in accordance
with the client's income or the guarantee, if any, and the size of the re quired facilities, as
determined by the Central Bank.
2. No application, action or plea filed to the competent judicial authorities or the arbitral
tribunals by any licensed financial institution in respect of a credit facility provided for a
natural person or a private sole proprietorship shall be accepted if such financial
institution fails to obtain the guarantees referred to in Clause (1) of this Article.
3. The Central Bank may impose administrative an d financial penalties which it deems
appropriate on the licensed financial institutions which violate the provision of Clause
(1) of this Article, in accordance with article (137) of the present Decree -Law.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (122)
Deposits Guarantee Regulation
In coordination with the Ministry, the Board of Directors may develop regulations for
protection of deposits and the rights of depositors of Licensed Financial Institutions. Said
regulation may establish and determine structure of compensation fund.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (123)
Financial Inclusion
The Board of Directors shall develop necessary regulations and mechanisms to ensure that every natural person shall have access to all or part of financial services and products from
Licensed Financial Institutions suitable for him/ her.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 78
Part Four
Financial Infrastructure
Chapter One
Money Transfer and Settlement of Securities
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (124)
Clearing and Settlement Operations
1. The Central Bank may:
a. Establish, develop and/ or operate one or more clearing and settlement systems
concerning money transfers and settlement of securities issued by the Central Bank,
or the Public Sector, and for settlement of other obligations amongst the Participants
in this system. The Bank may perform the same on its own or in partnership w ith any
other party, or by entrusting such tasks to third parties;
b. Link the systems referred to in Para. (a) of this Clause to similar systems inside and outside the State; and
c. Create and/or operate central securities depository (CSD) systems for securities
issued by the Central Bank or the Public Sector, and data repository systems for
monetary and financial transactions in the State, and link such systems to similar
systems inside and outside the State.
2. The Central Banks shall coordinate with other regulatory authorities and bodies
concerned in the UAE in connection with creation of data repository systems for
monetary and financial transactions referred to in Para. (c) of Clause (1) of this Article.
3. The Board of Directors shall develop necessary regulations concerning the systems
referred to Clause (1) of this Article.
Article (124) TER
Application for License of Financial Infrastructure System or Extension of its
Scope
1. Based on the regulations set by the Board of Directors, any legal person may file an
application with the Central Bank to obtain a license of financial infrastructure system or
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 79
to expand the scope of a l icense previously issued.
2. The Board of Directors shall issue the regulations, rules, criteria and conditions
pertaining to the licensing of the financial infrastructure system, including:
a. Merit and eligibility criteria;
b. Resources required fo r the system; and
c. Control and supervisory systems.
3. The Board of Directors may require the license applicant to meet any further
requirements or conditions at its own discretion and as he deems to be in the public
interest.
Article (124) QUATER
Deciding on the Application for License of Financial Infrastructure System or
Extension of its Scope
1. The application for license of financial infrastructure system or extension of its scope shall be decided on within a period not exceeding sixty (60) working days from the date
of satisfying the requirements and conditions of the license. The lapse of such period
without reply shall be deemed as rejection of the application.
2. The Central Bank may request the applicant to meet the requirements and co nditions of
the license within the period it determines.
3. The Central Bank may reject the application or request the expansion of the scope of the
license of a financial infrastructure system at its sole discretion, in accordance with the
absorptive ca pacity of the financial sector of the State and the requirements of the
domestic market. The decision issued thereby in this regard shall be final and not
appealable before the Grievances and Appeals Committee.
4. The applicant shall be notified of the s ubstantiated rejection decision by means of an
official notice within a period not exceeding twenty (20) working days from the date of
its issuance.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 80
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (125)
Retail Payment Operations and Related Electronic Services
The Central Bank shall solely:
1. Have the authority to develop regulations, rules, and procedures relating to electronic
banking transactions, digital money, and Stored Value Facilities, and shall regulate
electronic Retail Payment Systems, and banking and financial electronic servic es
licensed and supervised thereby
2. Take all measures and procedures deemed appropriate to minimize the risks associated
with operations and systems referred to in Clause (1) of this Article to which the UAE's
financial and economic systems are exposed .
Chapter Two
Powers and Functions of the Central Bank in respect of Financial
Infrastructure Systems
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (126)
Designation of Systems
1. The Central Bank may designate any Financial Infrastructure System as systemically
important if it deems, at its own discretion, that any operational malfunction or
inefficient performance of said system would negatively impact processing of the daily
operations of financial institutions operating in the UAE, or the stability of the financial
system in the UAE.
2. For the purposes of designating a certain financial infrastructure system, one of the
following requirements shall be satisfied:
a. The system concerned is operating in the UAE;
b. The system concerned has the capacity to accept clearing and settlement of financial
Transfer Orders denominated in national Currency, without prejudice to provisions
of article (28) hereof; or
c. The system concerned has the capacity to provide transfer , clearing or settlement of
financial Transfer Orders for retail payment activities denominated in any currency.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 81
3. In case that the Central Bank intends to designate any of the Financial Infrastructure
Systems licensed thereby as systemically important, the Central Banks shall:
a. Notify the system operator or Settlement Institution, by virtue of an official notice, of
the Central Bank's intention to designate said system as systemically important, and shall clarify grounds of such intention. The notice shall include other terms and
conditions associated wit h the designation decision.
b. The notice referred to in Para. (a) of this Clause shall set a grace period of no less than
ten (10) business days from date of the notice within which the system operator or
its Settlement Institution may provide their opi nions or state the reasons why the
system should not be designated.
c. Make its decision whereby the designation of the system is granted within no more
than twenty (20) business days as of the date of receipt of responses from parties
concerned, or expi ry of the grace period stated in the notice without response.
4. The operator or the Settlement Institution of the Designated System may file a grievance
against the designation decision referred to in Clause (3) of this Article with the
Grievances and A ppeals Committee in accordance with the provisions of Part (V) of this
Decree by Law.
5. The Clearing and Settlement Systems established, developed, and/or operated in
accordance with the provisions of article (124) hereof shall be deemed as Designated Systems.
6. In case that the Central Bank intends to designate any of the Financial Infrastructure Systems licensed by any other Regulatory Authorities in the UAE or in other jurisdictions
as systemically important, the Central Bank shall express its opin ion in this regard to the
regulatory authority concerned. Should the regulatory authority concerned has no objection to such designation, it shall:
a. Notify the system operator or Settlement Institution, by virtue of an official notice, of
the grounds of such designation. The notice shall include other terms and conditions
associated with the designation decision.
b. The notice referred to in Para. (a) of this Clause shall set a grace period of no less than
ten (10) business days from date of the notice within which the system operator or
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 82
Settlement Institution may provide their opinions or state the reasons why the
system should not be designated.
c. Make its final decision whether to approve or disapprove the Central Bank's request to designate the system concerned within no more than twenty (20) business days as of the date of receipt of responses from parties concerned, or expiry of the grace
peri od stated in the notice without response.
7. The Central Bank may revoke designation of a particular Financial Infrastructure System
licensed thereby, or request the regulatory authority concerned to take the same action if
the Central Bank deems, at its own discretion, that the system is no longer of systemic
importance. The regulatory authority concerned, the operator of the system, or its
Settlement Institution, as the case may be, shall be officially notified of such decision.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (127)
1. The Central Bank shall have the sole authority to supervise operations of systems
licensed thereby and to ensure their soundness, in accordance with relevant
international standards. For this purpose, the Central Bank may require the systems
operators or S ettlement Institutions to adopt necessary measures and procedures.
2. The Central Bank shall be responsible for monitoring the implementation of additional supervisory measures and procedures concerning Designated Systems licensed by other
Regulatory Aut horities whether inside the UAE or in other jurisdictions in cooperation
and coordination with the regulatory authority concerned, in this regard, the Central
Bank may request the regulatory authority concerned to:
a. Obligate operators of designated sys tems or settlement institutions of the same to
comply with Central Bank's instructions in this respect and any relevant international
standards;
6. Ensure proper and regular functioning of Designated Systems.
c. Ensure soundness of financial positions of operators of Designated Systems and their
Settlement Institutions, as necessary; and
d. Require the operators of the Designated Systems or their Settlement Institutions to
provide it with the information deemed necessary for achievement of its objectives
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 83
and discharge of its functions.
3. The Central Bank may appoint whoever deemed appropriate from among experts and
advisors specialized in financial infrastructure to assist the Cen tral Bank in performing its
duties and functions in accordance with the provisions of Part (IV) hereof to keep in line
with best international standards and practices in this field.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (128)
Suspension or Revocation of the License
1. The Central Bank may suspend or revoke the license granted by the same to a Financial Infrastructure System, pursuant to the provisions of Articles Nos. (124) and (125) of this
Decree- Law, by virtue of an official notice to the respective operator or the S ettlement
Institution of such system, and may take necessary actions in this respect, as the case
may be, if it decides that such system is no longer capable of conducting its operations.
The Central Bank shall grant a time limit of no less than twenty (20 ) business days, as of
the date of the notification, within which the relevant system operator or the Settlement
Institution may file an objection to the Central Bank's decision on the suspension or
revocation of the license, and shall provide their justif ications for such objection in
accordance with the provisions of Part V. hereof.
2. In case the Central Bank considers that any Designated System licensed by any Regulatory Authorities in the State or in other jurisdictions is no longer capable of
conduc ting its operations, the Central Bank may request the relevant regulatory
authority under an official notice to suspend or revoke the license of said system and to take necessary actions in this respect, as the case may be. The relevant regulatory
authorit y shall have the right to approve or reject the request of the Central Bank. In case
of the approval, the procedures and controls applicable with such authority shall apply.
3. In all cases, the suspension or revocation of a license granted to a Designat ed System in
accordance with the provisions of this Article shall not affect any transaction cleared or
settled by the system concerned prior to the effective date of the suspension or
revocation.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 84
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (129)
Authority to Develop Regulations and Instructions
1. The Board of Directors shall develop regulations, rules, instructions, directives, and
codes of conduct as deemed appropriate for the implementation of the provisions of
Part (IV) hereof, and to enable the Central Bank to achieve the objectives and to
discharge its functions, including the following:
a. Regulations, conditions and rules pertaining to licences granted by the Central Bank
pursuant to the provisions of Article Nos. (124) and (125) hereof to operators of
Financial Infrastructure Systems, the Settlement Institutions for such systems or
participants; and
b. Regulations, rules and standards pertaining to the designation of and supervision
over Financial Infrastructure Systems as per the pro visions of Articles Nos. (126) and
(127) hereof, and those pertaining to monitoring operations of said systems, and shall set rules of compliance applicable to participants.
2. The Central Bank may exempt operators of financial infrastructure systems lic ensed
thereby, settlement institutions affiliated to the former, and participants, either in general or in particular, from provisions of the regulations, rules, directives and controls
issued thereby.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (130)
Determining Violations
1. The Board of Directors shall develop regulations specifying types of violations pertaining to Financial Infrastructure Systems licensed by the Central Bank. Any of the following
instances shall be considered a violation to the terms and conditions relating thereto:
a. Violation of operational requirements of systems and of relevant settlement rules
and procedures.
b. Failure of an operator of a system or its Settlement Institution to comply with the
Central Bank request for information or documents.
c. Failure to comply with Central Bank's decisions and instructions, and failure to take a particular action deemed necessary by the Central Bank to render the system
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 85
compliant with the criteria sets by the Central Bank.
d. Failure of an operator of a system or its Settlement Institution to report any action
taken under the systems Default Arrangements in respect of a participant.
e. Failure of a participant to notify the system operator, its Settlement Institutions and
the Central Bank of any of judgment rendered to declare said person bankrupt or
place it under liquidation.
f. Operating a system without obtaining a license in accordance with the provisions of Articles Nos. (124) and (125) hereof.
g. Failure of an operator of a system or its Settlement Institution to comply within a specified period with any request from the Central Bank or any other government
body in connection with any default.
h. Failure of an operator of a system to notify the Central Bank of judg ment rendered
declaring bankruptcy or liquidation of any participant.
i. Providing the Central Bank with incorrect or misleading information.
j. Adding an incorrect entry to any regist ration book or to any document related to a
particular system, or causing alteration, deletion or obliteration of such entry.
k. Any other action pertaining to clearing and settlement or retail payment transactions
deemed by the Central Bank a violation.
2. The Central Bank may take any actions, as deemed appropriate, to correct any violations
referred to in Clause (1) of this Article, and shall determine method settlement thereof.
3. The Central Bank shall officially notify the violating Person under provisions of Clause
(1) of this Article of any actions to be undertaken against it. The violating Person shall be granted a grace period of no more than ten (10) business days from date of the notice
within which it may file a grievance against the Centr al Bank decision. In case the
grievance is rejected, the violating person may refer the matter to the Grievances and
Appeals Committee pursuant to the provisions of this Decree by Law. The decision of the
Grievances and Appeals Committee shall be final. Sh ould the violating person not
respond to Central Bank's decision within the period prescribed in this Clause, the decision of the Central Bank shall be final and enforceable.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 86
Chapter Three
Finality of Transactions and Proceedings
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (131)
Finality of Payment and Settlement
1. All transactions conducted through a Financial Infrastructure System meeting one of the
designation conditions aforementioned in Clause (2) of article (126) hereof shall be
final, irrevocable and irreversible in the following cases:
a. Transfer of money from or to the account of a participant;
b. Settlement of a payment obligation; and
c. Settlement of an obligation to transfer, or the actual transfer of book -entry securities.
2. Entry of any transfer or settlement pertaining to the transactions referred to in Clause (1) of this Article may not be cancelled, set aside, re -paid, reversed, rectified, or suspended
whether by a court judgment or order, or by law.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (132)
Precedence of Implementation of Rules and Procedures of Financial
Infrastructure Systems over Rules and Procedures of General Insolvency and
Bankruptcy
1. Upon commencement of liquidation of assets of a person under liquidation, insolvency,
financial res tructuring, or bankruptcy, none of the following operations and procedures
which have been carried out through Financial Infrastructure Systems meeting one of
designation conditions aforementioned in Clause (2) of article (126) hereof shall be affected to the extent that they are pertaining to the following:
a. A Transfer Order;
b. Any disposition of property pursuant to the Transfer Order;
c. Default Arrangements of such systems;
d. Rules and procedures of such systems concerning the settlement of Transfer Orders
not processed under the Default Arrangements of such systems; and
e. Any procedure taken to liquidate the securities deposited as security and related to
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 87
parties participat ingin such systems, other than the Default Arrangements thereof.
2. Trustee, receiver in bankruptcy or any other person appointed to manage the
bankruptcy in cases of bankruptcy or liquidation may not take any actions or procedures
contrary to the provis ions of this Decree by Law, or actions or procedures which would
preclude or affect Default Arrangements of systems referred to in Clause (1) of this
Article.
3. In cases of bankruptcy or liquidation, no obligation arising out of a Transfer Order under
Default Arrangements of systems referred to in Clause (1) of this Article may be
established until the completion of the transfer or payment order.
4. A debt or other liability arising pursuant to Clause (3) of this Article may not be taken
into account, whenever such debt or liability is not proven, for the purposes of settling
debts of liabilities by way of setting -off, clearing, or netting until the completion of the
action taken under the Default Arrangements of such systems.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (133)
Netting of Obligations of Insolvent or Bankrupt Participating Parties
1. Operator of a Financial Infrastructure System, which meets any of the designation
conditions referred to in Clause (2) of article (126), may perform Netting of debit or
credit liabilities of a Participant in this system which are incurred before the point of time
when the competent court decides to declare the bankruptcy or liquidation of the participant concerned.
2. In case that Netting has been effected as provided in Clause (1) of this Article:
a. Liabilities already netted shall be set aside from the bankruptcy or liquidation
proceedings; and
b. Net unpaid liabilities owed to or by the Participant in the system that has not been
cleared yet shall be payable to the Participant and may be recovered for the benefit
of his creditors or are provable in the bankruptcy or liquidation, as the case may be.
3. Netting operations processed by the system concerned operator in accordance with
Clause (1) of this Article may not be cance lled during a bankruptcy or liquidation
process, nor any financial transfers already paid in accordance with Para. (a) of Clause
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 88
(2) of this Article.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (134)
Reservation of Rights Pertaining to Transactions
1. Unless as otherw ise expressly provided for herein, this Decree by Law shall not limit,
restrict or otherwise affect:
a. Any right, title, interest, privilege, obligation or liability of a person resulting from any
transaction in respect of a Transfer Order that has been entered in a Financial
Infrastructure System meeting any of the designation conditions referred to in Clause
(2) of article (126).
b. Any investigation, judicial proceedings or remedies in respect of any such right, title, interest, privilege, obligatio n or liability.
2. Nothing in Clause (1) of this Article shall be construed to require:
a. Revocation of any netting process performed by the operator of the system concerned, whether pursuant to its Default Arrangements or otherwise;
b. Revocation of any Transfer Order given by a participant which has been entered into the system concerned; or
c. Reversal of a payment or settlement made under the operating rules of the system
concerned.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (135)
Obligation of Participant to Repor t Insolvency
1. A Participant in a Financial Infrastructure System, which meets any of the designation
conditions referred to in Clause (2) of article (126), shall notify the operator of the
system or its Settlement Institution, the regulatory authority concerned, and the Central
Bank, as soon as practicable, if it becomes aware of occurrence of any of the following
instances inside the UAE or in other jurisdictions:
a. Submission of a plea for declaration of bankruptcy or liquidation thereof;
b. Rendering a judgment declaring bankruptcy or liquidation thereof; or
c. Initiation of a bankruptcy or liquidation declaration upon the request of owners,
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 89
shareholders, or management of a Participant.
2. A participant failing to notify of occurrence of an event referred to in Clause (1) of this
Article within the required timeframe shall not be deemed in violation in case that:
a. He has taken reasonable actions to comply with the provisions of Clause (1) of this
Article; or
b. The bodies referred to in Clause (1) of this Article were already aware of the relevant
event by the time the participant was required to notify the operator under the provisions of this Article.
Part Five
Deciding on Grievances and Appeals
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (136)
Grievances and Appeals Committee
1. An independent committee called the "Grievance and Appeal Committee" shall be established under the provisions of this Decree -Law. The Cabinet shall issue, at the
proposal of the Board of Directors, a resolution on its formation, term of office, work
system and all procedures and rules related to the adjudication of grievances and
appeals, including fees payable for the examination thereof.
2. The formation of the committee shall include one or more judge(s) and two e xperts in
financial and banking matters.
3. Nominated committee's members may neither be members of the Board of Directors,
nor occupy any position at the Central Bank or at any of the Licensed Financial
Institutions.
4. The committee's chairperson or any of its members may not have any interest with any
party to the dispute; otherwise, he must disclose such interest. In such case, another
member shall be temporarily appointed to examine the dispute.
5. Except for regulations, guidelines, directives, policies and regulatory and supervisory
resolutions of a public nature, the Committee shall have the sole and exclusive
jurisdiction to decide on grievances and appeals filed against any decisions related to
financial and banking activities issued by the Central Bank, pursuant to the provisions of
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 90
this Decree -Law. In order to carry out its functions, it may take all or some of the
following actions:
a. Summon any person to appear before the Committee to prov ide any evidence,
testimonies, information or statements, and examine the same;
b. Hear the testimony of any witnesses under the legal oath;
c. Assign any experts, as deemed appropriate, to express an opinion on any matter
related to the dispute; and
d. Take any actions and issue any instructions its deems appropriate to perform its functions.
6. No appeal against decisions falling within the Committee's functions may be admissible,
pursuant to the provisions of this Article, before being grieved or challenged before the
Committee and the grievance is decided, as the case may be.
7. If the Committee decides to reject or dismiss any grievance or appeal, the Committee
may impose a fine of not more tha n (AED 200,000) two hundred thousand Dirhams on
the applicant.
8. The Committee may stay the execution of the grieved or appealed decision, if it deems necessary, until a decision is made on the dispute.
9. No grievance or appeal against any decision m ay be admissible before the Committee
following the lapse of (15) fifteen business days of the date of notifying the stakeholder or where his knowledge is certainly established.
10. The decision made by the Committee on a grievance or appeal shall be fi nal and may be
challenged only before the Higher Federal Court within twenty (20) business days of
date of the decision notification. Upon request of the appellant, the Higher Federal Court
may stay the execution of the decision made by the Committee until the Court
adjudicates the disputed matter if it considers that the appeal is grounded on genuine
grounds and that the continuation in executing the Committee's decision shall have
irreversible consequences.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 91
Part Six
Administrative and Financial Penalties and Punishments
Chapter One
Administrative and Financial Penalties
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (137)
1. Without prejudice to any other penalties provided for in other laws in the State, in case a
violation is proven to have been commit ted by a Licensed Financial Institution or by an
authorized person of the provisions of this Decree -Law or resolutions, rules, standards or
instructions issued by the Central Bank in implementation thereof, or any measures
adopted by the Central Bank, including anti- money laundering and financing terrorism
and unlawful organizations, the Central Bank may impose, at its sole discretion, one or more of the following penalties or take any of the following measures:
a. Draw the violator's attention by any means whatsoever;
b. Obligate the violating Licensed Financial Institution to take necessary measures and actions that the Central Bank deems appropriate to rectify the violation;
c. Prevent the violating Licensed Financial Institution from conducting som e operations
or performing some Licensed Financial Activities, or impose any restrictions,
conditions or other limitations on practicing all or part of the operations and
activities;
d. Impose conditions or restrictions on the license of the violating Licensed Financial
Institution;
e. Reduce or suspend the violating Licensed Financial Institution's ability to withdraw
from the Central Bank's funds through the Standing Facilities;
f. Obligate the violating Licensed Financial Institution to deposit funds with the Central
Bank without an interest for the period the Central Bank deems appropriate, in
addition to the credit balance referred to in article (32) of this Decree -Law;
g. Impose a fine of four hundred (400) basis poin ts over the prevailing base interest
rate with the Central bank on any shortfall on the obligatory Reserve referred to in article (32) of this Decree -Law;
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 92
h. Request the violating Licensed Financial Institution to return to customers the funds
obtained from as a result of the Institution's violation of the provisions of this
Decree- Law. In addition, any excess funds, including income and profits, shall be
transferred to the Central Bank;
i. Impose a fine amounting to one (1) to ten (10) times the value of unjust enrichment,
as determined by the Central Bank, which the violating Licensed Financial Institution
has illegally acquired as a result of the violation;
j. Impose a fine of no less th an (AED 2,000,000) two million Dirhams on the violating
Licensed Financial Institution;
k. Delink the violating Licensed Financial Institution from one or all Financial
Infrastructure Systems;
l. Withdraw the license of the violating Licensed Finan cial Institution and deregister
the same;
m. Impose conditions or restrictions on the authorization granted to the violating
Authorized Person;
n. Impose a fine of not less than (AED 100,000) one hundred thousand Dirhams and not exceeding (AED 2,000,000) two million Dirhams on the violating Authorized
Person;
o. Prohibit the violating Authorized Person from undertaking any of the Designated
Functions at the Licensed Financial Institution he works for, or at any other Licensed
Financial Institution.
p. Any other financial or administrative measures or penalties issued under a decision
of the Board of Directors. Such decision shall identify the authority authorized to
impose such penalties or measures.
2. Penalties provided for in Clause (1) shall be imposed by virtue of a resolution by the
Governor, except for the penalty provided for in Clause (l) where it shall be imposed by
virtue of a decision of the Board of Directors.
3. In all cases, the violator shall be notified officially of the reasoned decision not later than fifteen (15) business days of the date of said decision. Such notice shall include the following information:
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 93
a. Content of the decision;
b. Reasons for the decision;
c. Effective date the decision; and
d. Advising the violator of its right to file a grievance against the decision before the
Grievance and Appeal Committee, pursuant to the provisions of this Decree -Law.
Chapter Two
Punishments
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (138)
Without prejudice to any more severe punishment provided for in any law, committers of offences referred to in the following Articles shall be punished pursuant to the respective
punishments stated therein.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (139)
An employee or representative of the Central Bank, any member of the committees formed
within the Central Bank, or any Board Member who discloses any confidential information
in breach of provisions of article (26) of this Decree by Law shall be punished b y
imprisonment for a term not exceeding three (3) months and or a fine not exceeding one hundred thousand Dirhams (AED 100,000).
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (140)
Whoever issues Currency in contravention to the provisions of this Decree by Law shall be
punished by imprisonm ent for a term not exceeding twenty (20) years and/ or a fine not
exceeding one hundred million Dirhams (AED 100,000,000).
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (141)
Whoever intentionally mutilates, destroys or tears up Currency publicly shall be punished by
imprisonment and a fine that is not less than ten thousand Dirhams (AED 10,000) or one of
these two punishments.
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 94
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (142)
1. Whoever contravenes the provisions of Clause (1) of article (68) of this Decree by Law
shall be punished by imprisonment and/ or with a fine not les s than two hundred
thousand Dirhams (AED 200,000) and not exceeding ten million Dirhams (AED
10,000,000).
2. Whoever contravenes the provisions of Clause (2) of article (68) of this Decree shall be
punished by imprisonment for a term not exceeding six (6 ) months and/ or with a fine
not less than one hundred thousand Dirhams (AED 100,000) and not exceeding five
million Dirhams (AED 5,000,000).
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (143)
Whoever violates the conditions and restrictions imposed on a licence granted to perform
Licensed Financial Activities shall be punished with a fine not less than two hundred
thousand Dirhams (AED 200,000) and not exceeding ten million Dirhams (AED
10,000, 000).
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (144)
Whoever contravenes the Central Bank's instructions regarding imbalance of the balance
sheet referred to in article (116) of this Decree by Law shall be punished by imprisonment
for a term not less than one (1) year, and/ or a fine of not less than one million Dirhams
(AED 1,000,000) and not exceeding ten million Dirhams (AED 10,000,000).
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (145)
Whoever contravenes any of the provisions of Article No. (72) of (96) of this Decree by Law
shall be punished by imprisonment and/ or a fine of not less than five hundred thousand
Dirhams (AED 500,000) and not exceeding ten million Dirhams (AED 10,000,000) Dirhams.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (146)
Whoever contravenes any of the provisions of article (83) of this Decree by Law shall be
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 95
punished by imprisonment for a term of not less than one (1) year and/ or a fine of not less
than five hundred thousand Dirhams (AED 500,000) in addition to an extra daily fine of fifty
thousand Dirhams (50,000) in case of continued breach, which cumulatively may not
exceed five million Dirhams (AED 5,000,000).
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (147)
Whoever commits any of the following violations shall be punished by imprisonment for a term not exceeding two (2) years and/ or a fine of not less than five hundred thousand
Dirhams (AED 500,000) and not exceeding five million Dirhams (AED 5,000,000):
1. Provides incorrect or incomplete facts, information, or data included in any statements
or documents submitted to the Central Bank.
2. Conceals any fac ts from the statements, information, minutes, papers, or other
documents submitted to the Central Bank or to representatives, employees, and auditors
thereof.
3. Destroys, adjust or modifies any document relating to a matter under investigation by
the Ce ntral Bank, or sends or causes to be sent out of the State such a document.
4. Obstructs, resists, or causes the delay of the progress of an investigation by the Central Bank or the furnishing the Central Bank with information.
5. Connives with another person to commit any of the acts referred to in Clause (1)
through (4) of this Article.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (148)
Whoever intentionally discloses the confidential banking and credit information referred to
in article (120) of this Decree by Law shall be punished by imprisonment and a fine of not
less than one hundred thousand Dirhams (AED 100,000) and not exceeding five hundred
thousand Dirhams (AED 500,000).
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (149)
1. Where a violation was committed by a legal person, the official in charge of actual
management thereof shall be punished by the same punishments prescribed for actions
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 96
committed in violation o f the provisions of this Decree by Law, whenever his awareness
of the violation is established, or if the violation is a result of his negligence or failure to
perform his duties.
2. The legal person shall be responsible jointly with the official in char ge of actual
management in respect of the imposed financial fines and damages if the violation was
committed in the name and on behalf of the legal person by one of its employees.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (150)
Whoever commits any of the violations relating to Financial Infrastructure Systems referred
to in article (130) of this Decree shall be punished by imprisonment and/ or a fine not less
than one hundred thousand Dirhams (AED 100,000) and not exceeding ten million Dirhams
(AED 10,000,000).
Part Seven
General Provisions
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (151)
Scope of Application of this Decree by Law
Provisions of this Decree by Law shall apply to the Central Bank, Licensed Financial
Institutions, Licensed Financial Activities and persons governed thereby. This Decree by Law
shall not apply to the Financial Free Zones and the financial institutions regulated by the
authorities of these zones.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (152)
Statutes in Force to Remain in Force
Statutes, resolutions, and circulars issued pursuant to the provisions of Federal Law No. (10)
of 1980 Concerning the Central Bank, the Monetary System, and the Regulation of the
Banking Profession, as amended; and Federal Law No. (6) of 1985 Concerning Banks,
Financial Institutions, and Islamic Investment Companies shall remain in force until the
statutes, resolutions and circulars which shall replace them are issued within no more than
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 97
three (3) years from the date of entry into force of this Decree by Law.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (153)
Adjustment of Statuses
All entities and persons governed by the provisions of this Decree by Law shall adjust their
statuses in accordance with the provisions of this Decree by Law within the period to be
specified by the Board of Directors.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (154)
Repealing Conflicting Provisions
Provisions contravening or conflicting with the provisions of this Decree by Law shall be repealed. Further, Federal Law No. (10) of 1980 Concerning the Central Bank, the Monetary
System, and the Regulation of the B anking Profession, as amended, and Federal Law No. (6)
of 1985 Concerning Banks, Financial Institutions, and Islamic Investment Companies shall
be repealed.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (155)
Fees and Charges
The Central Bank may impose fees and charges for providing services, and issuing licenses and authorizations, as deemed appropriate, in accordance with the nature and scope of
functions, activities, and the controls set by the Board of Dir ectors. A decision to this effect
shall be made by the Board of Directors and shall be published in the Official Gazette and on
the Central Bank's official website.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (156)
Enforceability of Judgments of Foreign Judicial Bodies
Judgments and decisio ns issued by foreign judicial and law enforcement authorities in
respect of national Licensed Financial Institutions and branches of foreign Licensed
Financial Institutions operating in the UAE shall apply in accordance with applicable legal
Federal Decree- Law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial Institutions
and Activities 98
proceedings of laws in force in the UAE.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (157)
Interpretation of the Technical Terms Referred to in this Decree -Law
1. If there is any reference in any legislation applicable in the State to the UAE Dirham,
"Currency", "Cash", "Monetary Funds" or "Fund" or any similar terminology, this shall
include the digital currency subject to provisions of this Decree -Law, unless context re-
quires otherwise.
2. Virtual assets defined in applicable legislations in the State shall not be deemed a cur-
rency subject to provision s of this Decree -Law. Regulations, by -laws and rules issued by
the Board of Directors shall be applicable to virtual assets and currencies if used as a
method or instrument of payment or exchange.
3. The Central Bank may issue a list of interpretation for all technical terminologies stated
in this Decree -Law and such list shall be published on the official website of the Central
Bank.
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finance and banking | Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities | Article (158)
Date of Entry into Force of this Decree by Law
This Decree by Law shall be published in the Official Gazette, and shall enter into force on
the day following the date of its publication.
Khalifa Bin Zayed Al Nahyan
President of the United Arab Emirates
Issued by us at the Presidential Palace in A bu Dhabi
Date: 13 th of Muharram 1440 A.H.
Corresponding to 23 rd of September 2018 A.D. |
finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (1)
Definitions
In application of the provisions herein, the following words and expressions shall have the
meanings ascribed thereto, unless the context otherwise requires:
State : United Arab Emirates.
Government : Federal Government of the State.
Local Government : Government of any of the Emirates that are members of the
Union.
Cabinet : Cabinet of the State.
Ministry : Ministry of Finance.
Minister : Minister of Finance.
Federal Agencies :
Means any of the followin g Federal Agencies:
1. Ministries and central bodies: The Ministries established
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 2
under Federal Law No. (1) of 1972 concerning the
Competences of Ministries and the Powers of Ministers, as
amended and the councils, bodies and the like that engaged in
the l egislative and judicial and executive federal activities.
2. Independent Federal Agencies: The Federal Agencies that
are either established or shall be established in accordance
with the legislation in effect in the State, to perform specific
public tasks or services, and that operate under the
supervision of the Government, which:
A. The independent legal personality and the capacity to act,
prepare, organise and implement its special budget, is granted
either by law or by the incorporation resolution.
B. Have a special administrative and organisational structure.
C. Non -Profit.
3. Government Companies: Establishments and companies
owned, wholly or partially, (Subsidiaries) by the Federal
Government or Federal Agencies.
Union Owned
Properties : Union O wned Properties described in article (4) and Clause
(1) of article (15) herein.
Property Assets
Register :
A Register established by the Ministry that contains data on
the Union Owned Properties, the transactions related to them,
and other matters related to them that this Decree by Law
requires to be noted in the Register.
Government Official : For the purposes herein, it includes:
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 3
1. Every person holding a government position in any Federal
Agency.
2. A representative of the Federal Agency in any Subs idiary,
including a member of the BOD representing the Federal
Agency in that company.
3. Public employee, or person charged with a public service.
Union Owned
Properties allocated
to serve a Public
Facility : Any of the assets listed in Clause (1) of Art icle (4) herein.
Union Non -Owned
Properties : Any of the assets listed in Clause (2) of article (4) herein.
Private Union
Owned Properties : Any of the assets listed in Clause (3) of article (4) herein.
Private Union
Non -Owned
Properties :
Union Owned P roperties described in Clause (4) of article (4)
herein.
Subsidiary :
A company in which any Federal Agency owns shares not less
than (51%) of its capital.
Person :
The natural person and the private legal person that is not
considered a Federal Agency.
Act:
Creating a real or personal right over any of the Union Owned
Properties.
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 4
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (2)
Scope of Application of the Decree by Law
Subject to the text of article (3) herein, this Decree by Law shall apply to Union Owned
Properties inside the State or abroad.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (3)
Property and Rights to which the provisions herein do not apply
The provisions of Articles (9) to (43) herein do not apply to:
1. Union Owned Properties allocated for the use and exploitation of the Armed Forces and Federal Security Agencies in the State.
2. Union Owned Properties that is organised, managed or disposed of by a special law to the extent that its provisions conflict with any provision herein.
3. The rights specified in Clause (5) of article (4) herein.
4. Union Owned Properties that are excluded by a resolution of the Cabinet.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (4)
Union Owned Properties
The following assets shall be deemed as Union Owned Properties:
1. Union Owned Properties that are actually allocated to serve a Public Facility or based on
a resolution of the Cabinet or based on a law, including:
a. Vacant lands and buildings that were previously granted or granted by a Local Gov-
ernment to the Government or any Federal Agency for the purpose of constructing
administrative buildings or other Public Facilitie s or for the purpose of managing or
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 5
operating them, which were owned or are being owned in accordance with the local
legislation in force in the Relevant Emirate.
b. Vacant lands and buildings located outside the State and granted to the Government or any Fed eral Agency, without prejudice to the provisions of article (22) herein.
c. Properties and buildings that are owned by the Government or whose ownership
devolves to the Government or any of the Federal Agencies inside the State or abroad, or that are built on previously granted lands or lands that are granted by a
Local Government to the Government or any Federal Agency, which are, directly or
indirectly, used to establish, manage, or operate a Public Facility.
d. Properties and buildings owned by the Government that are assigned, with or with-
out compensation, by any natural or legal person in favour of any Federal Agency,
which are, directly or indirectly, used to establish, manage, or operate a Public Facili-
ty.
e. All facilities owned by a Federal Agency and allocated for public use, such as roads, railways, federal bridges, and any other similar assets.
f. Properties by allocation owned by a Federal Agency and allocated to own, establish,
manage, or service any Public Facility, including stations, lines, and units for the
production, distribution, and transmission of energy, water, sewage, communica-
tions, mail, and lines and cables for the production, transmission, and distribution of
any of these Public Facilities.
2. Union Non -Owned Properties which are owned by the Gov ernment or a Federal Agency
and used to serve any of the properties specified in Clause (1) of this Article.
3. Private Union Owned Properties not allocated to serve a Public Facility, which include
vacant lands, buildings, and property.
4. Private Union Non- Own ed Properties owned by a Federal Agency that are not allocated
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 6
to serve a Public Facility, and include all types of movables, rights, cash funds, shares,
stocks, bonds, commercial papers, and all other Non -Property Funds owned by a Federal
Agency that are invested, reinvested, exploited, or used on a commercial basis, and the
resulting investments.
5. The accessory real rights assigned to any of the Union Owned Properties stipulated in Clauses (1) to (4) of this Article.
6. The rights arising from any of the Unio n Owned Properties stipulated in Clauses (1) to
(5) of this Article, including the distributable or non -distributable profits assigned to
them.
7. Assets stipulated in article (49) herein
8. Any other material or moral rights, warranties or guarantees of economi c value legally
established for any Federal Agency pursuant to a law.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (5)
Protecting the Union Owned Properties
Union Owned Properties are inviolable and shall be preserved. It may not be owned, gain
any right over it, possess, occupy, benefit in any way, or dispose of it in any way except in
accordance with the provisions of the law. It may not be seized or restrict its uses for any
reason. Any action taken in violation of the foregoing shall be void. Any encroachment on
Union Owned Properties s hall be removed in accordance with the provisions herein,
without prejudice to the right of the Federal Agency to resort to the Judicial Authorities, if
necessary.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (6)
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 7
Reporting Violations which are related to Union Owned Properties
1. The Governme nt Official shall prevent the abuse of Union Owned Properties and shall
immediately inform the Competent Authorities with any proof of violations related to
abuse, exploitation, or infringement in any way on Union Owned Properties.
2. Any person may immediate ly inform the Competent Authorities of his knowledge of any
behavior that violates the provisions herein.
3. For the purposes of this Article, the Competent Authorities shall mean the Ministry or the
Federal Authority supervising the Union Owned Properties or its occupants, or the
Security and Police Authorities according to the nature of the violation.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (7)
Government Official Prohibited Actions
The following actions shall be prohibited for Government Official:
1. Misuse of his position or work to achieve a benefit for himself or for others, or exploiting
his influence to facilitate for others to obtain any illegal benefit on any of the Union
Owned Properties.
2. Act as an broker, agent, or guarantor for any natural or legal person who contracts with
the Agency where he works to carry out work or provide a service related in any way to
the construction, maintenance, restoration, demolition, or contracting for the use or
transfer of ownership of any of the Union Owned Properties.
3. Use Union Owned Properties f or personal purposes or for purposes other than those
intended, whether in their custody or someone else custody.
4. Allow any person to use or exploit any of the Union Owned Properties or to occupy any
part thereof except the cases permitted under any applic able legislation.
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 8
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (8)
Security and Police Authorities Tasks
1. The State Security and Police Authorities – each within the limits of their jurisdictions –
shall, upon learning of an attack on any of the Union Owned Properties, seizing it, or
illegally exploiting it, or attempting any of that, take appropriate measures to prevent or
stop this attack immediately, without the need to receive any complaint or obtain any
permit or statement as long as the action takes place in a public place.
2. The State S ecurity and Police Authorities – each within their jurisdiction – shall provide
the necessary assistance to any party to protect the Union Owned Properties from any
danger threatening its use in accordance with the purposes assigned to it, or from the dang er of sabotaging, misusing, or exploiting it in any way other than its intended
purpose.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (9)
Disposal of the Union Owned Properties allocated to serve a Public Facility
Disposal of any of the Union Owned Properties allocated to serve a Public Facility shall be invalid unless the disposal is in accordance with the provisions herein and in accordance
with the relevant legislation in force.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (10)
Granting Rights or Guarantees for the Union Owned Properties allocated to
serve a Public Facility
No easement rights or any accessory real right or any guarantees or warranties or any
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 9
personal right on any part of the Union Owned Properties allocated to serve a Public Facility
may be granted, except in accordance with the cases permitted under any in force legislation and pursuant to a resolution of the Cabinet.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (11)
Demolition of Buildings and Public Facilities
1. Federal public buildings and facilities may not be demolished except after the approval
of the Cabinet, and based on a proposal from the Minister in coordination with the Local
Government.
2. Demolition of public buildings and facilities shall be for one of the following reasons:
a. Rebuilding.
b. The end of its lifespan.
c. It's destined to fall.
d. Its conflict with the urban master plan.
3. If the demolition is due to the reason stated in Paragraph (D) of Clause (2) of this Article,
the Local Government shall compensate the Government financially or in kind if the urban master plan is Non- Federal in accordance with the provisions stipulated herein.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (12)
Licensing the Union Owned Properties Use or Exploitation
Subject to Articles (5) and (10) herein, the Cabinet may authorise any person to use or exploit any part of the Union Owned Properties allocated to serve a Public Facility, in
impl ementation of the provisions of concession or partnership contracts between the public
and private sectors, considering the following:
1. This shall be in implementation of a law or a resolution of the Cabinet that authorises a
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 10
person to manage or operate any Public Facility of the Government under concession or
partnership contracts between the public and private sectors.
2. This License shall be limited to a specific time period.
3. The contract concluded with the person shall include a stipulation of his commitme nt to
all provisions herein relating to the Union Owned Properties protection, maintenance
and management.
4. This License does not affect the level of performance of the Public Facility service
prevailing before the issuance of the License .
5. The beneficiary o f the License shall not be one of those working for the Federal Agency
contracting with him or his relatives up to the fourth degree. The beneficiary shall not be
a legal person who works for any of the aforementioned or has a share in his ownership. Share holders in public joint stock companies shall be excluded from this.
6. Register any real rights arising from this License in the Property Registry with the
Competent Local Authority in the Emirate where the Property is located.
7. Use and exploitation shall not conflict with the local legislation and laws of each Emirate,
or with the interests of the Government, provided that coordination is provided between
the Concerned Parties in this regard.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (13)
The License Cancellation
1. The Cabinet shall issue a resolution to cancel the License issued to use or exploit any of
the rights stipulated in article (12) herein, or to temporarily suspend its validity in any of
the following cases:
a. The Right Holder fails to comply with the laws or agreements regulating this right.
b. The public interest requires it, or in response to an emergency or unforeseen
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 11
circumstances.
2. The resolution, in the case stipulated in Paragraph (b) of Clause (1) of this Article, shall
determine the amount of compensation – if applicable – decide d for the Right Holder,
considering the remaining period of the right and the value of the assets invested by the
Right Holder after deducting the value of their depreciation if the agreement between
the Right Holder and the Government Agency with which the Right Holder contracted
stipulated that these assets be returned to it at the end of the contract without
compensation.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (14)
Loss of a Public Facility Status
1. "Union Owned Properties allocated to serve a Public Facility" may be converted into Private Union Owned Properties in any of the following cases:
a. Expiry of the purpose of the Public Facility to which Union Owned Properties are allocated.
b. Union Owned Properties allocated to serve a Public Facility are unable to provide
public service in view of the period of its use, the deterioration of its condition, or its
inability for any reason to efficiently provide this service.
c. If the continued use of Union Owned Properties allocated to serve a Public Facility
constitutes a threat to public health, p ublic security, or public safety.
d. The office of the Public Facility shall be replaced with a new office.
2. The Cabinet, based on the recommendation of the Minister, shall issue a resolution to remove this status in accordance with the provisions of Clause (1 ) of this Article.
3. The same resolution referred to in Clause (2) of this Article, or a subsequent resolution,
shall determine how to exploit or dispose of Union Owned Properties that has ceased to
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 12
be a Public Facility.
4. Coordination shall be made with the G overnment of the Relevant Emirate if the land on
which the Property allocated to serve a Federal Public Facility is located is registered as
grant land, before issuing the resolution referred to in Clause (2) of this Article.
5. The description of the Union O wned Properties whose status has changed in accordance
with the provisions of this Article shall be amended to "Private Union Owned Properties"
by noting this in the Property Assets Register.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (15)
Provisions concerning Private Union Owned Properties
1. Private Union Owned Properties are all properties owned by any Federal Agency but not allocated to serve a Public Facility, including:
a. Properties or Properties by allocation that are not used to serve a Public Facility starting from the date of their ownership.
b. Properties whose status has ceased to be "allocated to serve a Public Facility" in
accordance with the provisions of article (14) herein.
c. Money that has disappeared or the public benefit allocated to it has ceased.
d. Union Owned Properties which are used for investment, reinvestment, contribution
or partnership in profitable economic projects.
2. Private Union Owned Properties, in terms of its acquisition, exploitation and disposal,
shall be subject to the provisions of its legislation, unless a special provision is provided
herein or any other legislation regulating its protection, use, exploitation or disposal.
3. By resolution of the Cabinet – based on a proposal from the Minister – any of the Union
Private Property or any of the rights assigned to it to any Federal Agency or Subsidiary
may be assigned, free of charge,
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 13
4. By a resolution of the Cabinet – based on a proposal from the Minister – any
guarantees, securities or rights on any of the Private Union Owned Properties as a
guarantee or security for t he obligations of any Federal Agency or Subsidiary may be
provided.
5. The Head of the Federal Agency legally authorised to manage any of the Private Union
Owned Properties may decide to lease it or to lease any of its units pursuant to a
reasoned resolution, provided that this shall consider the conditions stipulated in the
regulations and resolutions regulating that in a manner that does not conflict with
applicable local legislation.
6. No sale of any of the Private Union Owned Properties may be made except by a
resolution of the Cabinet in accordance with the conditions stipulated in the regulations and resolutions regulating this.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (16)
Federal Union Owned Properties Management
For the purposes of implementing the provisions herein, the Ministry und ertakes the Federal
Union Owned Properties Management and for this purpose it may :
1. Establish manage, operate, maintain and update the Property Assets Register.
2. Establish the necessary rules, guidelines and laws to maintain safe and efficient performance of Union Owned Properties.
3. Contribute to identifying, analysing and assessing the difficulties and risks that affect the
performance or efficiency of Union Owned Properties and proposing appropriate
solutions to resolve these difficulties or reduce these ris ks.
4. Provide Coordination between the Relevant Federal Authority and the Competent
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 14
Authorities in any of the Emirates concerning the resolutions issued by the Government
of any Emirate to grant, change, replace, or recover Government land or property to the
Government, or arrange any rights over it, and contribute to the preparation of any
documents or contracts related to that.
5. Submit proposals and recommendations to the Relevant Federal Authority and the Competent Authorities in the Government in everythin g related to resolutions issued by
foreign parties granting the Government land or property to be used for headquarters,
embassies, consulates, and other diplomatic missions of the State abroad.
6. Provide coordination with the Competent Authority in the Rele vant Emirate to
implement the resolution of the Relevant Emirate to grant the Government any original
or accessory property right over any property or replace it, including carrying out all procedures and implementing all requirements to receive and Regist er the Property or
registering the Property right assigned to it in the name of the Government in the Property Assets Register and receive all Licenses , maps and shop drawings related to this
property.
7. Coordinate with the Federal Agency that operates, manages or supervises the
management of any of the Union Owned Properties abroad to ensure that the
Competent State shall issue documents and title deeds for these properties in the name
of the Government and shall receive the original copies of these document s and bonds
and maintain them in the Property Assets Register.
8. Recommend the inclusion of any of the Union Owned Properties within the funds
allocated to serve a Public Facility, or change the nature of its use, or cancel its facility
status, and a resolut ion shall be issued by the Cabinet to that effect.
9. Determine the market value of any of the Union Owned Properties or any of its rights
that are intended to be disposed of to third parties, or arrange for any rights over them to
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 15
such third parties, or appr ove that value when it is determined by any other party.
10. Determine the market value of any of the Union Owned Properties for any other
purposes or approve that value.
11. Express opinion on any project proposed by any Federal Agency to build, rebuild,
expand, maintain, or demolish any of the Union Owned Properties, unless a special law
requires that another Agency has jurisdiction to do so.
12. Establish the rules and guidelines that Federal Agencies shall comply with in order to
lease any property or use it for a fee.
13. Establish the rules and guidelines that Federal Agencies shall comply with in order to occupy any space in any of the Union Owned Properties from any Non- Federal Agency,
for or without compensation.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (17)
Powers to view information related to U nion Owned Properties
The Ministry Competent Employees may view any files, information, data, or maps related
to any of the Union Owned Properties, and obtain copies thereof for the purposes of
exercising its jurisdiction in accordance with the provisions of applicable legislation, unless
those files, information, data, or maps include information that is confidential in nature. It requires authorisation from the authorised person to do so.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (18)
Property Assets Register
1. The Ministry shall create electronic platform called the "Property Assets Register" to
Register Union Owned Properties, and each unit of Union Owned Properties shall have
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 16
its own register that shows the following:
a. Its title deed.
b. Its actual or estimated value when owned.
c. Any legal or contractual restrictions or judicial rulings related to its use or benefit.
d. Topographic data, plans, areas, location, boundaries of the Property and adjacent
properties, number of floors and uses of each floor, if any.
e. Any warranties prescribed in its f avour.
f. The value of the expenses spent to acquire it, maintain it, rehabilitate it, or register it
in the name of the Government.
g. Any other data specified by the Ministry.
2. The Federal Agency that operates, manages, or supervises the management of any of the Union Owned Properties shall register it in the Property Assets Register in accordance
with the provisions herein and the resolutions issued in implementation thereof. It shall
also update the Register for these properties whenever necessary.
3. The Ministr y shall supervise the protection, maintenance and efficiency of the Property
Assets Register.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (19)
Classification of the Property Assets Register
Land, space and buildings (Properties) for the purposes of their registration in the Property Asset s Register are divided into two categories:
1. Union Owned Properties allocated to serve a Public Facility.
2. Private Union Owned Properties.
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 17
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (20)
Modifying data in the Property Assets Register
If any legal facts or actions occur or any final judicial rulings, laws, decrees or final
administrative resolutions are issued requiring the deletion, cancellation or amendment of any statement recorded in the Property Assets Register, the Federal Agency that operates,
manages or supervises that property shall mark that in the data for this property.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (21)
Recovered Properties
1. In the event that the Emirate or its Local Government requests the recovery of any of the
properties it granted to any of the Federal Authorities, the Ministry shall coordinate with
the Emirate or Local Government to ensure that the recovery request is made in
accordance with the following controls and conditions:
a. The recovery shall be for the purposes of urban planning, the Emirate infrastructure,
or any public benefit for the A gency requesting the recovery.
b. The Emirate shall compensate the Government for the properties to be recovered with similar properties, or with financial compensation, or with both. The value of
the compensation shall be determined in coordination with the Local Government.
c. A resolution shall be issued by the Cabinet approving recovery and compensation.
2. As an exception to Paragraph (B) of Clause (1) of this Article, the Emirate granting vacant land may recover it without compensation if it is not exploited b y the Agency to which it
is granted, in coordination with the Ministry and the approval of the Cabinet.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (22)
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 18
Union Owned Properties outside the State
1. The provisions stipulated herein apply to any of the Union Owned Properties located
outside the State to the extent that they do not conflict with the State contractual
obligations with any foreign party, the treaties or agreements to which the State is a
party, or with the laws of the State in which the Property is located.
2. The Agency that operates, manages, or supervises the management of any of the Union
Owned Properties outside the State shall be the Agency responsible for implementing
the provisions herein to the extent necessary to protect and care for these properties.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (23)
Obligati ons of the Federal Authorities that occupy any of the Union Owned
Properties
1. In addition to the obligations stipulated herein, every Federal Agency that occupies,
manages, or supervises the management of any of the Union Owned Properties shall
comply, as f ollows:
a. Provide a report showing the legal and surveying status of that property, estimating
its value, and indicating its architectural and constructional condition, along with
attaching its construction plan and any data or any facts, documents or papers
related in any way to the sources of its ownership or occupancy, within a period not exceeding (6) six months from the effective date herein. His authority shall provide
the Ministry with a copy of this report immediately upon completion of its
preparatio n, and it shall renew this data and provide the Ministry with a copy of it
whenever necessary.
b. Take appropriate actions to create an archive, updated whenever necessary, that
classifies all data and information referred to in Paragraph (A) of Clause (1) of this
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 19
Article.
c. Carry out maintenance and preservation of the Property and restoring, repairing and
replacing any of its damaged parts or facilities, unless otherwise stipulated in the law.
d. Provide insurance to the Property against fire risks by contracting with one of the
insurance companies operating in the State.
e. Inform the Ministry Immediately of any actions or behaviours or threats that constitute a violation of any of the provisions stipulated herein.
f. Provide all forms of assistance and support to the Ministry in order to enable it to
carry out its duties in accordance with the provisions herein.
g. Inform the Ministry Immediately of any unauthorised use of any part of the Property occupy, and provide the Ministry with all relevant information.
h. Provide any information or data requested by the Ministry concerning the condition
of the Property, its suitability for use, the necessary maintenance for it, and any information, data, statistics or maps in order to enable the Ministry to carry out its
tasks specifi ed herein.
2. The Federal Agency that operates any of the Union Owned Properties shall include
within its annual budget the amounts necessary to implement the obligations stipulated
in Clause (1) of this Article.
3. The Federal Agency that receives any of the Union Owned Properties for use,
exploitation, management, or supervision of its management shall, in the procedures for
receipt or management, consider the provisions stipulated in the Guide stipulated in
article (25) herein.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (24)
Controls for Priv ate Property Lease
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 20
1. The Ministry shall issue a Guide that includes procedures and controls for leasing Private
Property by any Federal Agency.
2. The Guide stipulated in Clause (1) of this Article shall include the conditions for
requesting to lease a property , the procedures for selecting the appropriate property,
indicating the reasons for this selection, the procedures for signing the lease contract,
evaluating the lease value, and the lease contract form.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (25)
Controls and Requirements for Union Owned Properties Use and
Exploitation
The Ministry shall issue one or more Guides clarifying the controls and requirements for the use or exploitation of any of the Union Owned Properties, including its occupancy times,
occupancy density, and other specifications and requirements that achieve efficiency, security, safety, health, and cleanliness.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (26)
Compliance with the Rules and Regulations of City Planning and
Construction
When determining the uses or exploitation of any of the Union Owned Pro perties, the city
planning and building rules and regulations applicable in the area in which the Property is
located shall be considered.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (27)
The Property Optimal Use
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 21
The Federal Agency that occupies the Property may determine its occupancy and divide it
into units, offices, or sections as appropriate for its purposes, all of this considering the evidence stipulated in article (25) herein.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (28)
Informing the Ministry of the Property Aspects of Exploitation
The Federal Agency that occ upies for the first time any of the Union Owned Properties shall
notify the Ministry of the aspects of exploitation of its approved areas, indicating this on an illustrative plan, within a period not exceeding (3) three months from the date of its
occupancy.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (29)
The Ministry being Informed of the need for Excess Property Space
1. If it becomes clear to the Federal Agency that occupies the Property that a space of the Property is in excess of its need in accordance with the usage controls referred t o in
article (25) herein by more than (20%) of the total area of the Property intended for occupancy, it shall provide a report on this and send it to the Ministry. The report shall
include the opinion of the party occupying the Property concerning the pos sibility of its
need for this space within a period not exceeding one year from the date of its
occupancy of the Property.
2. The Ministry shall issue a resolution concerning how to exploit the unused space in a
way that reduces the resulting waste as much as possible.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (30)
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 22
Controls for the Exploitation of Area of Property occupied by a Federal
Agency
The Federal Agency may contract with any private company or office to exploit places or
spaces in the Property it occupies to provide any services that help it achieve its objectives, provided that:
1. This shall be necessary to enable the Contracting Party to perform its duties.
2. It shall stipulate the aspects and conditions of occupancy and the right of the Federal
Agency to suspend or terminate that occu pancy if the occupant violates these conditions
in the concluded contract.
3. The Contracting Party shall comply with the safety, health and hygiene aspects specified
in the Guide stipulated in article (25) herein.
4. The Contracting Agency shall vacate the spac e it occupies within the period specified in
the notice sent by the Relevant Ministry or Federal Agency to this Contracting Agency.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (31)
Lease of Space of Property occupied by Federal Agency
The Concerned Federal Agency that occupies any of the Union Owned Properties allocated to serve a Public Facility may lease some vacant spaces in the Property to any person to
provide an administrative service, public relations, or provide food and light beverages,
considering the following:
1. The lease shall b e in accordance with the provisions of planning, determining prices, and
procedures for leasing Union Owned Properties, which are determined by a resolution
of the Cabinet.
2. This does not affect the optimal use of the areas approved by that Agency in accord ance
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 23
with the provisions of article (28) herein.
3. The Federal Agency shall sign a "Space Lease Contract" with the person leasing according
to the form prepared by the Ministry for this purpose.
4. The person shall comply with the safety, health and hygiene asp ects specified in the
Guide stipulated in article (25) of this Decree of Law.
5. The Leasing Agency shall vacate the space it occupies within the period specified in the notice sent by the Relevant Ministry or Federal Agency to this Leasing Agency.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (32)
Residence in Union Owned Properties
No person may reside, permanently or temporarily, or exploit any of the Union Owned Properties or any part thereof, or those allocated to serve a Public Facility, or any part thereof
for sleeping or temporary housing, except in the following cases:
1. The Property shall include a part allocated for the residence of employee crews, workers, or operators of that Public Facility, or if the Property is allocated for the residence of any
employee of any Federal Agency, whet her in the State or abroad.
2. The Property has a specific space allocated for rest or temporary sleep for the alternates
who serve the Public Facility.
3. In emergencies, such as floods and natural or environmental disasters declared by the Concerned Authoritie s.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (33)
Union Owned Properties Exploitation and Illegal Use
1. No person may occupy, possess, use or exploit any of the Union Owned Properties in the
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 24
following cases:
a. Occupation, possession, use or exploitation is Illegal.
b. After the expiration of t he period specified by the Federal Authority for use or
exploitation, unless obtaining permit to extend that period.
c. If the use or exploitation violates the aspects of use or exploitation specified in the
granted License Document or in the signed agreement .
d. Not fulfilling any of essential obligations specified in the granted License or in the
agreement signed. The breach of obligation is considered fundamental if the use or
exploitation of any property or any of the machinery, equipment or other facilities
built on it or attached to it is in a way that exposes it to destruction, damage or
demolition or conflicts with the essential requirements and conditions of public health, public safety or public security.
2. If it becomes clear to it that a person has committed any of the acts described in Clause (1) of this Article, the Ministry or Federal Agency that occupies the Property shall notify
that person in writing of the occurrence of the violation and request to hand over the
Property to the Ministry or the Fede ral Agency within the specified period in the notice.
3. The Violator may file a appeal in writing to the Ministry in respect of the violation within (5) five working days from the date of his receipt of the notice stipulated in Clause (2) of
this Article, an d to attach with the appeal any documents proving that he did not commit
the violation.
4. If the Violator, after being informed in writing, does not submit the appeal or hand over
the Property within the period specified, the Head of the Federal Agency may issue a
resolution to vacate the Property. This resolution shall be implemented through the
Enforcement Departments of the Competent Court.
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 25
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (34)
Union Owned Properties Appeal Committee
1. The Minister shall issue a resolution to form a Committee called the "Union Owned
Properties Appeal Committee." The same resolution shall determine the number of its members, the procedures for convening it, filing appeals before it, and the mechanism
for making its resolutions.
2. The Union Owned Properties Appeal Com mittee shall consider the appeals submitted to
the Ministry by the Violator against whom a notice has been issued by the Ministry or
the Federal Agency to hand over or vacate the Union Owned Properties.
3. If the Committee finds out that the Complainant has f allen into one of the cases specified
in Paragraphs (A) to (D) of Clause (1) of article (33) herein, it shall submit its
recommendation to the Ministry or the Concerned Federal Agency concerning the
violation to issue vacation order immediately in accordan ce with Clause (4) of Article
(33) herein.
4. The resolutions of the Committee issued concerning the appeal shall be final.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (35)
Vacation Order
The vacation order referred to in article (33) herein shall include the following:
1. The reasons for makin g the resolution, including the legal or contractual provisions on
which the resolution was based.
2. The name and address of the person against whom the resolution was made.
3. Data of the Property scheduled to be vacated.
4. Inform the person that the resolution will be implemented through the Enforcement
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 26
Departments of the Competent Court if he does not implement it voluntarily within the
period specified in the resolution.
5. Hold the person responsible for paying all expenses necessary to implement the
resolution and the value of the damages, if any.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (36)
Considering the Vacation Order as Enforcement Department
The vacation order issued in accordance with the provisions herein is considered
Enforcement Bond and the Competent Authorities shall take action to implement this bond
and take its necessary measures. The Competent Authorities shall assist in its implementation, even by force, whenever they are requested to do so.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (37)
The Cost incurred in implementing the Administrative order of Vacation
The person against whom vacation order is issued shall bear the cost incurred by the Ministry to implement the vacation order and the value of the damages it caused. The value
of the cost referred to shall be collected pursuant to order submitted to the Competent
Court.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (38)
The Decree by Law applies to the Union Non -Owned Properties
The provisions herein apply to the Union Non -Owned Properties unless there is a special
provision in their regard.
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 27
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (39)
Disposal of the Union Non -Owned Properties
The purchase, supply, inventory, storage, disbursement, depreciation and sale of the Union
Non -Owned Properties shall be carried out in accordance with the provisions of the
legislation in force in this regard.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (40)
Guide to Use Mate rials, Papers and Stationery
The Ministry shall issue a Guide for the efficient and sustainable use of materials, papers,
and stationery allocated for use in Federal Agencies. The Head of each Federal Agency or his
authorised representative shall issue res olutions ensuring the implementation of this Guide,
including appropriate procedures when violating the provisions contained in the Guide or in the resolutions he issues in implementation thereof.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (41)
Transferring the Union Non- Owned Properties between the Federal
Agencies
The Union Non -Owned Properties may be transferred between Federal Agencies without
compensation, provided that this transfer takes place in accordance with the legislation in force in this regard.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (42)
Purchasing Va cant Lands or Buildings and Annexing them to Union Owned
Properties
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 28
Any vacant lands or buildings shall be purchased for the purpose of annexing them to Union
Owned Properties in accordance with the provisions determined by a resolution of the Cabinet.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (43)
Arrangement of Rights over the Property
1. If the implementation of any project to establish any Public Facility requires arranging
any original or accessory right in rem over any property owned by a Non- Federal
Agency, the Federal Agency in char ge of implementing the project or supervising its
implementation shall comply as follows:
a. Submit a memorandum to the Ministry explaining the reasons for arranging this
right, its estimated cost, the boundaries and dimensions of the Property on which
this r ight is requested to be arranged, and the Ministry views and recommendations
in this regard.
b. Submit a memorandum to the Cabinet containing its requests and the Ministry
recommendation.
2. Subject to the provisions of article (42) herein, if the Cabinet shall approve the purchase, the Relevant Federal Authority shall contract with the seller on behalf of the
Government after ensure that the Property is competent to fulfil the purpose intended
for it and that it is free of any claims, allegations or judicial dis putes. It is free of any legal
restrictions or agreements that limit its use.
3. If the purchase process is completed, and the purchased property is a Property, the
Relevant Federal Authority shall register it in the Property Assets Register.
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 29
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (44)
Penalties
The imposition of the penalties stipulated in this Law shall be without prejudice to any more
severe penalty stipulated in any other Federal Law.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (45)
Any person who does not preserve the Union Owned Properties and its inviolability, ow n it,
or gain any right over it, Or possessed, occupied, or benefited from it in any way, or disposed of it in any manner in violation of the provisions of the law shall be punished by
imprisonment for a period of no less than (6) six months and not exceed ing (2) two years,
and a fine not exceeding (500,000) five hundred thousand dirhams, or one of these two
penalties.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (46)
Any Government Official who does not prevent the misuse of Union Owned Properties and
does not immediately inform the Compete nt Authorities of any violations proven to him
related to misuse, exploitation, or infringement in any way on Union Owned Properties shall be punished by imprisonment for a period not exceeding one year and a fine not less than
(50,000) fifty thousand dirh ams, or by one of these two penalties.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (47)
Any Government Official who exploits his position or work to achieve a benefit for himself
or for others, or exploits his influence to facilitate the Obtaining any illegal benefit on any of
the Union Ow ned Properties, shall be punished by imprisonment for a period not less than
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 30
one year and not exceeding (3) three years and a fine not less than (100,000) one hundred
thousand dirhams, or by one of these two penalties.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (48)
Any Government Official who commits the following shall be punished by imprisonment for
a period not exceeding one year and a fine of not less than (200,000) two hundred thousand
dirhams, or by one of these two penalties:
1. Act as broker, agent, or sponsor for any natural or legal person who contracts with the Federal Agency where he works. Carry out work or provide a service related in any way
to the construction, maintenance, restoration, demolition, or contracting for the use or
transfer of ownership of any of the Union Owned P roperties.
2. Use Union Owned Properties for personal purposes or for purposes other than those
intended for it, whether in his custody or in the custody of someone else.
3. Allow any person to use or exploit any of the Union Owned Properties or to occupy any part thereof except in accordance with the cases permitted under any applicable
legislation.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (49)
Final provisions
The provisions herein apply to any Property or Non- Property assets that are not owned by
the Government or a Federal Agency, and the law or provision requires their confiscation or
the jurisdiction or assignment of any Federal Agency to manage, supervise their
management, direct, maintain, guard, or preserve any of the resources affiliated with them
or store them, including endowments, trust funds, and seized or seized funds as long as they
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 31
are in the possession or under the management or supervision of any Federal Agency for
any reason.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (50)
The Cabinet has the power, based on the Minister recommendation, to approve the
follo wing:
1. Excluding any of the Union Owned Properties from applying some or all of the provisions herein to them.
2. Selling, mortgaging, or reclaiming Union Owned Properties and any actions transferring their ownership.
3. Procedures for settling any disputes – if any – related to the compensation required
from the Local Government for Union Owned Properties to be recovered.
4. Any powers and competencies related to Union Owned Properties.
The Cabinet may authorise any Ministry or Federal Agency to exercise all or some of the
powers assigned to it herein.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (51)
Procedures for Coordination, Management and Disposal of Union Owned
Properties
The following procedures shall be determined by a resolution of the Minister:
1. Coordination procedures between the Federal G overnment and the Local Government
concerning:
a. Union Owned Properties to be recovered.
b. Local Property whose costs are borne by the Federal Government and which are
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 32
proposed to be returned to the Local Government.
2. Procedures for managing and leasing Union O wned Properties and mechanisms for
disposing of it in accordance with the provisions herein.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (52)
Documenting Legal Transactions on Union Owned Properties
Without prejudice to the provisions contained herein, the legal transactions relating to t he
Union Owned Properties shall be documented in accordance with the provisions of the local
legislation in force in the Relevant Emirate in which the Property is located.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (53)
Decree by Law Enforcement
The Cabinet shall issue the resolutions re quired for enforcing the provisions of this Decree
by Law.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (54)
Continuation of Implementation of Previous Regulations until the Issuance
of the Decree by Law
The resolutions currently in effect concerning the Union Owned Properties shall continue to be implemented in a manner that does not conflict with the provisions herein until the
resolutions that replace them are issued to implement the provisions herein.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (55) Repeals
Federal Decree by Law No. (16) of 2018 concerning Properties of the Fede ral Government
Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties 33
shall be repealed, as is every legislation or ruling that violates or conflicts with the provisions
herein.
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finance and banking | Federal Decree by Law No. (35) of 2023 concerning the Union Owned Properties | Article (56)
Publication and Entry Into Force of Decree by Law
This Decree by Law shall be published in the Official Gazette and shall come into force after (6) six months from the date of its publication.
Mohammed Bin Zayed Al Nahyan
President of the United Arab Emirates
Issued by us at the Presidential Palace in Abu Dhabi:
On: 13 Rabi' I 1445 H
Corresponding to: September 28, 2023 . |