General UAE Legal Questions LawLaw No. (23) of 2022

Article (1) a. The General Budget of the Government of Dubai will be planned and approved according to a medium-term budget cycle of three (3) Financial Years. ©2020 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.

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Law No. (23) of 2022 Approving the General Budget Cycle of the Government of Dubai for the Financial Years 2023 to 2025 and the General Budget of the Government of Dubai for the Financial Year 2023 Page 2 of 7 b. The General Budget cycle of the Government of Dubai will integrate strategic and financial planning by providing the funding required to implement the Government plans, initiatives, and projects to be implemented in the Emirate of Dubai. c. The approved annual General Budget of the Government of Dubai will constitute part of the General Budget cycle. d. The General Budget cycle of the Government of Dubai will be updated and developed annually through coordination between the Department of Finance and other Government Entities in the Emirate of Dubai, with a view to achieving financial efficiency and effectiveness. General Budget Cycle Estimates

Article (3) a. The expenditure of the General Budget of the Government of Dubai for the Financial Year 2023 is estimated at sixty-seven billion five hundred million dirhams (AED 67,500,000,000.00). b. The revenue of the General Budget of the Government of Dubai for the Financial Year 2023 is estimated at sixty-nine billion dirhams (AED 69,000,000,000.00). c. The Government of Dubai General Budget surplus for the Financial Year 2023 is estimated at one billion five hundred million dirhams (AED 1,500,000,000.00).

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Law No. (23) of 2022 Approving the General Budget Cycle of the Government of Dubai for the Financial Years 2023 to 2025 and the General Budget of the Government of Dubai for the Financial Year 2023 Page 3 of 7 Allocation of Estimated Expenditure and Revenue

Article (5) A Government Entity which is subject to the General Budget must comply with the following rules and regulations: I. Salaries and Wages 1. not exceed the maximum number of posts stated in the approved budget of the Government Entity; 2. not exceed the financial appropriations allocated to the respective posts in the approved budget of the Government Entity; 3. comply with the provisions of the above-mentioned Law No. (8) of 2018, the resolutions issued in pursuance thereof, and other legislation regulating human resources in respect of all matters related to promotions and to the payment of salaries, bonuses, increments, and allowances; and 4. where the Government Entity is subject to the General Budget and its Employees are not governed by the above-mentioned Law No. (8) of 2018, coordinate with Department of Finance in case of making any amendments that have financial impact to its human resources regulations. II. Operating Expenses 1. implement expenditure control programmes based on an annual plan approved and implemented for this purpose, and inform the Department of Finance of this plan and the outcomes of its implementation; 2. avoid excessive acquisition of fixed assets; prepare a plan for replacement and replenishment of these assets in line with the approved budget; and conduct feasibility studies on the acquisition of assets, taking into consideration the available stock of goods and materials; and

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Law No. (23) of 2022 Approving the General Budget Cycle of the Government of Dubai for the Financial Years 2023 to 2025 and the General Budget of the Government of Dubai for the Financial Year 2023 Page 4 of 7 3. not incur long-term obligations without first coordinating with the Department of Finance. III. Construction Projects 1. spend only on the approved projects included in its approved budget; and 2. not make any variations to the cost of approved construction projects without first obtaining the relevant approval of the Department of Finance. IV. General Provisions 1. not exceed the financial appropriations approved for the Government Entity pursuant to this Law; and not enter into commitments or incur obligations that are beyond the approved budget; 2. comply with the provisions of the above-mentioned Law No. (1) of 2016 and Executive Council Resolution No. (5) of 2021; and with the resolutions, circulars, ground rules, instructions, and guidelines issued in pursuance thereof, particularly in respect of obtaining the approval of the Director General of the Department of Finance prior to reallocating funds across budget chapters; 3. comply with the provisions of the above-mentioned Law No. (12) of 2020, particularly in respect of variation orders; 4. perform the financial commitments made during the Financial Year 2022 out of the budget savings of the Financial Year 2023, provided that these commitments are made within the approved budget of the Government Entity; and 5. comply with the relevant circulars and ground rules issued by the Department of Finance concerning implementation of the General Budget of the Government of Dubai for the Financial Year 2023, even if these circulars and ground rules contradict any provisions stipulated in the above-mentioned Law No. (8) of 2018, the resolutions issued in pursuance thereof, or the applicable legislation governing the human resources of the Government Entity where its Employees are not governed by the provisions of the above-mentioned Law No. (8) of 2018. Issuing Implementing Resolutions

Article (8) This Law comes into force on 1 January 2023, and will be published in the Official Gazette. Mohammed bin Rashid Al Maktoum Ruler of Dubai Issued in Dubai on 6 December 2022 Corresponding to 12 Jumada al-Ula 1444 A.H.

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Law No. (23) of 2022 Approving the General Budget Cycle of the Government of Dubai for the Financial Years 2023 to 2025 and the General Budget of the Government of Dubai for the Financial Year 2023 Page 6 of 7 Schedule (1) Allocation of Estimated Expenditure and Revenue General Budget Cycle of the Government of Dubai for the Financial Years 2023 to 2025 Description Financial Year (in dirhams) Total (in dirhams) 2023 2024 2025 Estimated Expenditure 67,500,000,000.00 68,213,000,000.00 69,295,000,000.00 205,008,000,000.00 Estimated Revenue 69,000,000,000.00 70,000,000,000.00 73,100,000,000.00 212,100,000,000.00

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Law No. (23) of 2022 Approving the General Budget Cycle of the Government of Dubai for the Financial Years 2023 to 2025 and the General Budget of the Government of Dubai for the Financial Year 2023 Page 7 of 7 Schedule (2) Allocation of Estimated Expenditure and Revenue for the Financial Year 2023 Description Approved Budget (in dirhams) Percentage I. Estimated Government Revenue Foreign Bank Branches Tax 400,000,000.00 1% Customs Duties 6,051,000,000.00 8% Value Added Tax and Excise Tax 12,300,000,000.00 18% Fees and Fines 40,159,000,000.00 58% Returns on Government Investments 6,790,000,000.00 10% Oil Revenue 3,300,000,000.00 5% Total Estimated Government Revenue 69,000,000,000.00 100% II. Estimated Government Expenditure Salaries and Wages 19,978,000,000.00 30% General and Administrative Expenses 16,250,000,000.00 24% Grants and Government Support 16,150,000,000.00 24% Capital Expenditure 2,527,000,000.00 4% Payment of Liabilities and Bank Interests 4,100,000,000.00 6% Construction Projects 5٬000,000,000.00 7% Special Reserve 3,495,000,000.00 5% Total Estimated Government Expenditure 67,500,000,000.00 100%

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