General UAE Legal Questions LawLaw No. (35) of 2009 Concerning Management of the Public Funds of the Government of Dubai

Article (2) The following words and expressions, wherever mentioned in this Law, 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. Department: The Department of Finance. Supreme Committee: The Supreme Fiscal Committee of the Emirate of Dubai. Government Entity: Government departments, public authorities, public corporations, Government authorities and councils, and any other entities affiliated to the Government, including free zone authorities. Government Companies: Corporations and companies wholly owned by the Government, or in which the Government or any Government Entity is a shareholder. Public Treasury: The general Revenues account of the Government. Revenues: Any financial returns resulting from the conduct of various activities by Government Entities. This includes prices, charges, profits, fees, taxes, and fines. Financial Autonomy: The legal status accorded to a Government Entity by virtue of a legislation which provides that the Government Entity has a budget that is independent of the general budget of the Government. Temporary Advance: An amount allocated to cover expenses in connection with an activity or event to which no allocations are made in the general budget.

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Article (5) Financial Autonomy a. A Government Entity is considered as having Financial Autonomy and an independent budget if its establishing legislation and the nature of its business so require. Such an entity must: 1. not obtain allocations or appropriations from the general budget except as loans; 2. submit its annual budget to the Supreme Committee for discussion and approval, after the Supreme Committee presents it to the Department for opinion; 3. prepare all statements relating to its approved budget and final accounts at the beginning and at the end of each financial year, and submit these statements to the Department; 4. comply with the financial provisions of all local legislation in force, including those relating to public debt, loans, approval and collection of fees and taxes, financial audit, and submission of financial statements and reports to the concerned entities; and 5. transfer the surplus of its annual Revenues to the Investment Corporation of Dubai.

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Article (8) a. The profits of Government Companies and of Government investments, and the surplus of the Revenues of entities that have Financial Autonomy will be considered part of the public Revenues. The Investment Corporation of Dubai will manage these investments and surpluses, and will transfer distributed profits to the Public Treasury. b. Subject to the approval of the Supreme Committee and recommendations of the Department, and in coordination with the Investment Corporation of Dubai, the profits of Government Companies and of Government investments, and the surpluses of entities that have Financial Autonomy, may be re-invested before being transferred to the Public Treasury of the Government, provided that the Department is provided with the complete financial statements of distributed and non-distributed profits, and realised surpluses to be accounted for as general Revenues of the Government.

Article (9) Refundable Security and Deposits a. Government Entities whose budgets are included in the general budget of the Government must transfer to the Department, in accordance with the instructions issued by the Department in this respect, all amounts deposited with them by clients as refundable security or other refundable deposits.

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Law No. (35) of 2009 Concerning Management of the Public Funds of the Government of Dubai Page 5 of 6 b. A Government Entity will maintain the necessary detailed registers of the amounts received as security and transferred to the Department, including the amount, name of owner, reasons, date, and refund conditions of each deposit or security. c. On the due date for refund of the amount of deposit or security, the Government Entity will request the Department, through a letter, other than the letter stating the Government Entity’s periodical needs from the budget, to refund this amount. d. The Department will issue the instructions and prescribe the forms that are required for the accounting and administrative procedures related to refundable security and deposits, and Government Entities must comply with these instructions and forms.