Dubai passes law to better manage state budgets

Dubai’s government on Tuesday passed a new law that aims to improve management of public capital and state budgets, and enhance control of government revenue, expenses and assets.

All government entities will be required to establish an internal auditing unit to ensure that financial statements are reviewed. The unit will monitor the implementation of annual budgets.

The law also regulates subsidies, grants and donations, and states that government entities may not pay any grants, donations or gifts to any entity beyond the approved allocated budget. Government agencies are also restricted from receiving grants, donations or gifts without approval.

“The new Law regulates the tabulation and approval of financial statements and closing accounts, financial and audit policies and procedures, financial governance KPIs, principles of financial records and improvement of financial risk management,” a statement published by the UAE’s national news agency WAM revealed.

Law No (1) of 2016 on Dubai Government Financial Regulation was issued by Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s ruler and vice-president and prime minister of the United Arab Emirates (UAE).

Dubai’s Department of Finance will communicate the objectives of the government’s financial policies and procedures, and publish the general budget’s key performance indicators and announce any changes in auditing procedures.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com