General UAE Legal Questions LawCabinet Resolution No. (11) of 2022 Regarding the Adoption of the Procedures Manual for the Establishment of Private Funds in the Federal Government

Article (1) The procedures manual for establishing Private Funds in the Federal Government, attached to this Resolution, is hereby approved.

Article (1) Definitions For the purposes of the provisions of this Resolution, the following words and expressions shall have the meanings assigned to each of them, unless the context requires otherwise: State : The United Arab Emirates. General Budget Committee : The Committee established by Cabinet Resolution No. (11/7W) of 2020. Ministry : The Ministry of Finance. Minister : The Minister of Finance. Federal Entity : Any ministry established under Federal Law No. (1) of 1972 Regarding the Competences of Ministries and Powers of Ministers, as amended, and the federal government bodies and authorities classified under Article (3) of Federal Decree by Law No. (26) of 2019 Regarding Public Fin…

Article (2) The Federal Entities that have funds established prior to the issuance of this Resolution, shall regularize their status in accordance with the provisions of the Manual attached hereto, except for the provisions related to determining the size of the Private Funds.

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Cabinet Resolution of 2022 Regarding the Adoption of the Procedures Manual for the Establishment of Private Funds in the Federal Government 2

Article (2) Scope of Application The provisions of this Manual shall apply to all Private Funds established to support the federal entities, with the exception of Zakat Funds and Charitable Associations. The Cabinet may, upon the proposal of the Minister, exempt certain funds from the application of all or some of the provisions of this Manual.

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Cabinet Resolution of 2022 Regarding the Adoption of the Procedures Manual for the Establishment of Private Funds in the Federal Government 5

Article (3) This Resolution shall be published in the Official Gazette, and shall enter into force from the day following the date of its publication. Mohammed bin Rashid Al Maktoum Prime Minister Issued by Us: Dated: 15 Rajab 1443 A.H. Corresponding to: 11 February 2022 A.D

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Cabinet Resolution of 2022 Regarding the Adoption of the Procedures Manual for the Establishment of Private Funds in the Federal Government 3 Procedures Manual for the Establishment of Private Funds in the Federal Government, Approved by Cabinet Resolution No. (11) of 2022

Article (3) Objectives of Private Funds The Private Funds shall aim to achieve any of the following objectives: ▪ Support rehabilitation, awareness and education initiatives that target UAE nationals. ▪ Support various sectors of the federal government's activities such as education, health, sports, scientific research and others. ▪ Support sectors that are not covered by the appropriations of the federal general budget.

Article (4) Specifications of Private Funds 1. Size of Private Funds: The minimum size of the Fund shall be AED (25,000,000) twenty-five million dirhams or more upon its establishment, or this size shall represent the expected target size of the Fund within one year from the date of its establishment. 2. Financial Independence of Private Funds: The Private Funds shall enjoy the financial independence that enables them to perform their functions and competences, separately from the budget and bank accounts of the entity to which they are affiliated, in accordance with the legislation and provisions stipulated in this Manual. 3. Types of Private Funds: Private Funds may take one or more of the…

Article (5) Steps to Establish Private Funds 1. The federal entity wishing to establish a Private Fund, for developmental reasons, shall submit a request to the Ministry expressing its desire to establish the fund. The request

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Cabinet Resolution of 2022 Regarding the Adoption of the Procedures Manual for the Establishment of Private Funds in the Federal Government 8 shall fulfill all the requirements for establishing the Fund referred to below, as well as any other requirements requested by the Ministry. 2. The federal entity shall comply with the following requirements when submitting its request to establish the Fund: a. Indicate the details of the entity to which the fund…

Article (6) Aspects of Evaluating the Establishment of Private Funds The following are considered the key evaluation criteria for the establishment of Private Funds: 1. Details of the Sponsoring Entity of the Private Fund and confirmation of its support:

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Cabinet Resolution of 2022 Regarding the Adoption of the Procedures Manual for the Establishment of Private Funds in the Federal Government 10 This includes the main concerned entities (names of the sponsoring institutions and other relevant stakeholders related to the Fund), their documented support for the Private Fund and the consistency of their objectives and primary function with main those of the Fund. 2. Vision and Ma…

Article (7) Documents Required for Evaluation Upon submitting a request, the sponsoring entity shall provide all documentary evidence to support each of the aspects outlined above and included in the evaluation process, which sufficiently respond to all relevant inquiries. Article (8) of this Manual sets out a detailed

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Cabinet Resolution of 2022 Regarding the Adoption of the Procedures Manual for the Establishment of Private Funds in the Federal Government 11 checklist of the evaluation aspects and the preparation of the necessary documents.

Article (8) Roles and Responsibilities of the Main Stakeholders in the Process of Establishing Private Funds (Governance Mechanism) 1. The Federal Entity: The Federal Entity that desires to establish Private Funds for developmental purposes, such as advancing the sectors in which it operates or developing the target groups/beneficiaries thereof, or otherwise. Its role in the process of establishing Private Funds: a. Preparing a strategic plan for the Fund, and aligning its functions with the objectives of the plan and the related priorities. b. Filling out the relevant form (approved by the General Secretariat of the Cabinet) and submitting it to the Ministry, an accompanying memorandum conf…