Amendment of Dubai Financial Support Fund
Law Number 10 of 2019 (the “New Law”), partially amended Law Number 24 of 2009 on the establishment of the Dubai Financial Support Fund, was issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the United Arab Emirates.
The New Law replaces the provisions of Articles 2, 9, 11, 12, 15 and 17 of Law Number 24 of 2009 with other new provisions concerning the functions and powers of the Director-General of the Dubai Department of Finance (DoF), determining the financial resources of the Dubai Financial Support Fund (DFSF), and the responsibility the Dubai Government holds towards others.
As per the amended Article 9, the Director-General of the DoF shall supervise the administrative, technical and financial affairs of the Fund, issuing decisions and procedures to achieve its objectives. It shall have several functions and powers, for instance:
- To approve the general policy of the Dubai Fund;
- To submit the general policy of the Fund to the Supreme Committee for Financial Policy for approval in Dubai;
- To obtain loans and financing necessary to achieve the objectives of the Fund.
The Director-General of the DoF has authority under the New Law to establish institutions, companies and commercial projects, offices and branches, to purchase and sell assets and shares, as per the legislation in force. It also has the authority to propose:
- criteria and controls for the provision of financial support from the Fund; and
- strategic projects and entitlements to support the obtaining of approval of financial, administrative and technical regulations concerning contracting procedures. These include lending contracts entered into by the Fund with eligible financial support entities, forming permanent and ad hoc committees and task forces, and approving the organizational structure of the Fund by submitting it to the Executive Board for approval, along with approving the annual budget of the Fund project.
The Director-General of the DoF shall approve the annual report on the performance, activities and investments of the Fund, its institutions and affiliates. This report shall be submitted to the Higher Committee for approval. The Director-General is entitled, by law, to appoint external auditors and determine their fees, to review the reports and observations to be submitted. At the end of each fiscal year, any other functions or powers assigned to it by the Higher Committee shall be relevant and correspond to the achievement of the Fund's objectives, enabling it to carry out the functions and powers entrusted to it.
Article 11 of the New Law stipulates that the DFSF shall appoint an Executive Director by a resolution issued by the Chairman of the Executive Council upon the recommendation of the DoF's Director-General. The Executive Director of the Fund shall have several functions and powers, like:
- To Organize of work concerning the administrative, financial and technical aspects of the Fund;
- To prepare the annual budget of the Fund, and to submit it to the Director-General for approval;
- To represent the Fund before others;
- To conclude contracts and agreements necessary to achieve its objectives; and
- To supervise the work of the Fund.
Articles 7, 8 and 16 of Law Number 24 of 2009 on the establishment of the DFSF shall be repealed and shall be enacted by Law Number 10 of 2019 from the date of its issuance. The New Law further annuls any other legislation that contradict or challenge its articles.