Law No. (24) of 2009
Establishing the
Dubai Financial Support
Fund[1]
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We, Mohammed bin Rashid Al
Maktoum, Ruler of Dubai,
After perusal of:
Law No. (5) of 1995 Establishing
the Department of Finance and its amendments;
Law No. (3) of 2003
Establishing the Executive Council of the Emirate of Dubai;
Law No. (11) of 2006
Establishing the Investment Corporation of Dubai and its amendments;
Law No. (18) of 2006
Concerning Management and Realisation of the Public Funds of the Government of
Dubai;
Law No. (27) of 2006
Concerning Management of the Government of Dubai Human Resources;
Law No. (3) of 2007
Establishing the Financial Audit Department and its amendments; and
Decree No. (24) of 2007
Establishing the Supreme Fiscal Committee in the Emirate of Dubai and its
amendments,
Do hereby issue this Law.
This Law will be cited as “Law No. (24) of 2009 Establishing the Dubai
Financial Support Fund”.
The following words and expressions will have the
meaning indicated opposite each of them unless the context implies otherwise:
|
Emirate: |
The
Emirate of Dubai. |
|
Government:
|
The
Government of Dubai. |
|
Executive
Council: |
The
Executive Council of the Emirate of Dubai. |
|
DOF:
|
The
Department of Finance. |
|
Director
General: |
The
Director General of the DOF. |
|
SFC:
|
The
Supreme Fiscal Committee in the Emirate of Dubai. |
|
DFSF:
|
The
Dubai Financial Support Fund. |
|
Board
of Directors: |
The
board of directors of the DFSF. |
|
CEO:
|
The
chief executive officer of the DFSF. |
Pursuant to this Law, a public corporation named the
“Dubai Financial Support Fund” is established. The DFSF will have legal
personality and the full legal capacity to undertake all acts and dispositions required
to achieve its objectives. The DFSF is hereby affiliated to the DOF.
The head office of the DFSF will be located in
Dubai. The DFSF may establish branches inside and outside of the Emirate.
The DFSF will have the following objectives:
1.
to provide financial support to strategic and development projects in
the Emirate;
2.
to keep, manage,
and invest the proceeds of debt instruments on behalf of the Government;
3.
to collect and
reinvest the proceeds of bonds; and
4.
to provide liquidity
for strategic projects in the Emirate.
In order to achieve its objectives, the DFSF may:
1.
provide loans and credit facilities to Government and
non-Government entities to be provided with financial support as decided in
accordance with this Law;
2.
issue notes, bonds,
sukuk, and other financial instruments on behalf of the Government, whether
inside or outside of the Emirate, in order to provide necessary liquidity to
finance projects;
3.
invest in
commercial projects, establish investment funds, and manage commercial
companies and corporations solely or jointly with others;
4.
establish, and
wholly own or hold shares in, commercial companies and corporations related to
the functions of the DFSF, whether inside or outside of the Emirate;
5.
open and manage
bank accounts inside and outside of the Emirate and obtain loans as required to
achieve the objectives of the DFSF and its affiliated corporations and companies;
6.
secure its funds through
mortgage or other guarantees and take the relevant implementing procedures; and
7.
perform any other
duties or activities related to the objectives of the DFSF.
The DFSF will be managed
by a Board of Directors comprised of a chairman, a vice chairman, and a number of members appointed by a Decree of the
Ruler for a renewable term of three (3) years.
The Board of
Directors will be convened by its chairman, or vice chairman in the absence of
the chairman, at least once every two (2) months or as required. Meetings of
the Board of Directors will be valid if attended
by the majority of members, provided that the chairman or vice chairman is in
attendance. Resolutions of the Board of Directors will be passed by
majority vote of attending members; and in the event of a tie, the chair of the
meeting will have the casting vote. Resolutions of the Board of
Directors will be recorded in minutes signed by the chair of the meeting and
attending members.
The Board of Directors will undertake the
general supervision of the administrative, technical, and financial affairs of
the DFSF; and will take the decisions and procedures it deems appropriate to
achieve its objectives, including to:
1.
lay down the general policy
of the DFSF and its affiliated corporations and companies,
and determine their programmes and projects;
2.
obtain loans and finance as required
to achieve the objectives of the DFSF and of its affiliated entities, and
provide all sureties and guarantees required for this purpose;
3.
establish corporations,
companies, commercial enterprises, offices, and branches; and purchase and sell
assets and shares;
4.
propose the
standards and rules for providing financial support by the DFSF;
5.
propose the
strategic projects and entities entitled to receive support, and submit the proposals
to the SFC for approval;
6.
approve financial, administrative,
and technical bylaws as required for the business of the DFSF, and submit the
same to the SFC for final approval;
7. regulate the procedures for contracting with any
parties, including the loan agreements concluded by the DFSF with entities
entitled to financial support; and submit such procedures to the SFC for
approval;
8.
form permanent and
temporary committees and work teams, with members from the Board of
Directors or otherwise, and determine their duties and
powers;
9.
approve the
organisational structure of the DFSF and submit the same to the Executive
Council for final approval;
10. approve the draft annual budget of the DFSF and
submit the same to the SFC for final approval;
11. approve the annual report on the activities of the
DFSF and submit the same to the SFC for final approval;
12. perform any other duties assigned to it by the
Director General or the SFC within the scope of the duties and objectives of
the DFSF.
In addition to the duties assigned to the SFC under this Law, the SFC will:
1.
approve the standards and rules for
providing financial support by the DFSF to strategic and major projects and
Government and non-Government entities in the Emirate;
2.
approve the
projects and entities entitled to receive financial support from the DFSF;
3.
determine the amount
of financial support to be provided by the DFSF;
4.
determine the rate
of interest on loans provided by the DFSF as financial support, and determine
the nature of mortgages and securities required to ensure repayment of such loans;
and
5.
appoint auditors
and determine their fees at the beginning of each financial year.
The DFSF will have a CEO
appointed by a resolution of the Chairman of the Executive Council upon the recommendation
of the Board of Directors. The CEO will have the powers
and duties to:
1.
implement the
resolutions of the Board of Directors;
2.
represent the DFSF
before third parties and conclude and execute contracts and agreements as required
to achieve the objectives of the DFSF;
3.
propose the
organisational structure and the bylaws regulating the administrative,
financial, and technical work of the DFSF;
4.
prepare the annual
budget of the DFSF;
5.
supervise the
day-to-day business of the DFSF;
6.
submit to the Board
of Directors periodic reports on the workflow at the DFSF; and
7.
perform any other
duties as assigned or delegated to him by the Board
of Directors.
The
financial resources of the DFSF will consist of:
1.
funds provided by the Government to
enable the DFSF to perform its duties;
2.
revenues from loans and from
the investment of the DFSF’s assets and property;
3.
proceeds from the notes,
sukuk, and financial bonds issued by the DFSF; and
4.
any other resources approved by the Board
of Directors.
The financial year of the DFSF
will commence on 1 January and will end on 31 December of each year, except
that the first financial year will commence on the date this Law comes into
force and will end on 31 December of the following year.
In managing its accounts
and records, the DFSF will follow the rules and principles of commercial
accounting in accordance with recognised international standards. Accounts will
be audited in accordance with the international standards on auditing.
The Financial Audit
Department will audit the work and activities of the DFSF in accordance with
Law No. (3) of 2007 Establishing the Financial Audit Department and its
amendments.
The DFSF must submit to
the Investment Corporation of Dubai annual reports on its investments in all areas
within the scope of its business.
Neither the Government nor
the Investment Corporation of Dubai will be liable for any debts or obligations
claimed from the DFSF or its affiliated companies and corporations in relation
to performing the duties and functions of the DFSF under this Law or any
regulations, resolutions, or bylaws issued in pursuance hereof.
Law No. (27) of 2006 Concerning
Management of the Government of Dubai Human Resources applies to the Employees of
the DFSF.
Any provision in any other
legislation will be repealed to the extent that it contradicts the provisions
of this Law.
This Law comes into force
on the day on which it is issued, and will be published in the Official
Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 13 July 2009
Corresponding to 20 Rajab 1430 A.H.
©2021 The Supreme Legislation Committee in the Emirate of Dubai
[1]Every effort has been made to
produce an accurate and complete English version of this legislation. However,
for the purpose of its interpretation and application, reference must be made
to the original Arabic text. In case of conflict, the Arabic text will prevail.