UAE: New law announced regarding federal properties

It is designed to better manage and develop the federal government's financial resources, domestically and internationally

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By WAM

Published: Mon 19 Feb 2024, 9:40 PM

The UAE Ministry of Finance announced the issuance of Federal Decree-Law No. 35 concerning federal properties for 2023, which aims to further develop the legislative environment in inventorying and managing government properties.

The law's scope includes organising all federal properties, whether real estate assets or otherwise.

The Decree-law is designed to better manage and develop the federal government's financial resources, domestically and internationally. It aims to efficiently govern federal assets, improve their use, and ensure sustainable growth by adopting top global practices. Additionally, it seeks to boost the country's standing in global competitiveness rankings and enhance its credit rating.

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The new law mandates the creation of a state-of-the-art electronic platform for the cataloguing of federal real estate properties, ensuring their safeguards, management, and maintenance. This initiative bolsters asset protection and promotes transparency, aligning with the nation's push towards digitalisation.

The legislation clarifies the definition and registration process for federal real estate assets, resolves uncertainties in asset management and utilisation, and introduces strategies for "optimising government asset returns" by allowing for effective leasing and use. It also provides the flexibility to meet the specific needs of federal entities, ensuring alignment with their roles and responsibilities.

The Decree-law specifies federal government assets, which encompass federal real estate used for public services such as roads, railways, and bridges, along with movable assets that support these properties, termed "real estate by allocation." It also addresses other non-real estate federal properties and personal property of the federation that are not for public use, whether movable or immovable. Furthermore, the law provides for the rights in relation to any federal property and clearly defines intangible assets as recognised properties belonging to the federation.

The Decree-law also sets out rules for managing private federal properties and non-real estate assets not dedicated to public service, detailing how these assets can be acquired, used, and sold. It establishes a registry for federal real estate properties and coordinates with relevant local authorities for asset recovery or transfer to local governments.

The law outlines the management of federal properties within and outside the state, sets leasing rules for private properties, and stipulates requirements for using and benefiting from federal assets.

The law also emphasises the need to comply with local urban planning and building regulations to ensure the optimal utilisation of these properties.

This Decree-law will replace the federal Decree-law No. 16 of 2018 concerning federal government real estate properties when it comes into effect on March 28, 2024. The aforementioned decree-law can be found on the UAE Legislation platform.

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WAM

Published: Mon 19 Feb 2024, 9:40 PM

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