Decretal Federal Law No (9) of 2018, Regarding Public Debt (finance and banking law)

Article (1) 
Definitions  
In the implementation of provisions of this decretal law, and unless the context otherwise 
requires, the following words and  expressions shall have the meaning cited against each:  
The State:  : The United Arab Emirates.  
The 
Government  : The UAE Federal Government.  
The Local 
Government  : The Government of any of the Union member emirates . 
The Minister  :  The Minister of Finance.  
The Ministry  : The Ministry of Finance.  
The Central 
Bank  : The Central Bank of the United Arab Emirates  
The Governor  : The Governor of the Central Bank  
The Office  : The Public Debt Management Office  
Public Debt  : Direct and indirect outstanding obligations, denominated in the UAE 
Dirham or any other foreign currencies, owed by the Government, in 
accordance with the provisions of this decretal law.  
Local Public 
Debt  : Direct and indirect outstanding obligations, denominated in the UAE 
Dirham or any other foreign currencies, owed by one Local Government or 
more, in accordance with the provisions of this decretal law.  Decretal Federal Law No (9) of 2018 Regarding Public Debt  3 
 Public Debt 
Instrument  : Any debt instrument issued by the Government or which is a party of, in 
accordance with this decretal law, and contains a commitment by the 
Government to pay a certain amount of funds, including Islamic financial 
instruments, treasury bonds, promissory notes, treasury bills, debt 
rescheduling bills, government bonds, general or commercial loans, credit 
facilities, or payment guarantees.  
Local Public Debt 
Instrument  : Any debt instrument issued by the Local Government of any emirate or 
which is a party of, in accordance with this decretal law, and contains a 
commitment by the Local Government to pay a certain amount of funds, 
including but not limited to financial instr uments referred to in the 
definition of Public Debt Instrument.  
Outstanding 
Public Debt  : The total current and outstanding balance of the issuances of the 
Government and its related entities, which has not been paid.  
Public Debt 
Surplus  : The remaining of the amount of the value of issued Public Debt 
Instruments, which has not been committed in accordance with the 
provisions of this decretal law.  
Government 
Own -Stable 
Revenues  : Fiscal revenues resulting from the provision of Government s ervices and 
the carry -on of its various activities, for which no fixed and compulsory 
amount is required to deem such a revenue as stable. This revenue may 
vary between specific percentages, up or down, but not exceeding 10% of 
the arithmetic average for t he last three (3) years.  
Government 
Entities  : Public authorities and institutions, and corporations that are wholly owned 
by the Government or owned wholly by a Government owned entity.  
The Electronic 
Registry  : The electronic registry established at the Ministry for registering the 
ownership of Public Debt Instruments.  
  
 Decretal Federal Law No (9) of 2018 Regarding Public Debt  4

Article (2) 
The Purposes of This Decretal Law  
1. This Decree -Law regulates the general rules governing the issuance and management of 
Public Debt in accordance with a prudent and safe policy, to manage its risks and minimize 
its cost.  
2. The Government may issue or be a party to one or a group of Public Debt Instruments to 
achieve any of the following:  
a. Support and develop a highly efficient financ ial market in the State.  
b. Finance infrastructure projects and governmental development projects as approved by 
the Cabinet.  
c. Contribution of Public Debt Instruments to the development and diversification of 
primary and secondary financial markets in the Stat e. 
d. Support the implementation of the Central Bank's monetary policy.  
e. Refinance or substitute an outstanding Public Debt.  
f. Cover any financial guarantee issued by the Government in accordance with the 
provisions of this decretal law.  
g. Settlement of any other emergency government financial obligation approved by the 
Cabinet, based on a proposal by the Minister.  
h. Any other objectives that are consistent with the purposes of this decretal law, approved 
by the Cabinet.

Article (3) 
The Public Debt Management Office  
1. An office for the management of Public Debt, shall be established, under the name of 
"Public Debt Management Office", in the Ministry, which is directly subordinate to the 
Minister, and shall have the following jurisdictions:  
a. Propose strategies and policies of Public Debt management in coordination with the 
Central Bank and submit them to the Minister for approval by the Cabinet.  Decretal Federal Law No (9) of 2018 Regarding Public Debt  5 
 b. Implement strategies and policies approved by the Cabinet in coordination with the 
Central Bank.  
c. Provide advice to the Minister regarding the preparation of proposals related to the 
issuance of Public Debt Instruments to be submitted to the Cabinet, in coordination with 
the Central Bank.  
d. Monitor financial risks and any other risks related to the issuance and trading of any Public Debt Instrument, and propose solutions to manage and monitor such risks.  
e. Provide advice to the Minister regarding investment options for any Public Debt Surplus 
through safe and highly liquid investment instruments, in coordination with the Central 
Bank and the Emirates Investment Authority.  
f. Provide advice to the Minister to determine the level of acceptable risks when borrowing or issuing any guarantees for the purpose of implementing any of the governmental 
development projects.  
g. Coordinate with the Central Bank regarding the management of issuance and sale of 
Government bonds, treasury bills, and any other government securities.  
h. Manage the issuance and sale of any other Public Debt Instruments, in coordination with the Central Bank.  
i. Coordinate with t he Local Government in each emirate to support and develop highly 
efficient primary and secondary financial markets, through the issuance of Public Debt Instruments in the State.  
j. Provide advice to the Minister on policies and procedures to be undertaken in order to 
reduce the costs of Public Debt portfolios, and to maintain the levels of associated risks 
within acceptable levels.  
k. Prepare the annual debt issuance plan.  
l. Identify clear short - and long -term objectives for Public Debt management in the State.  
m. Provide necessary reports regarding the proper management for the implementation of 
Public Debt in the State.  
n. Any other functions that are assigned to the Office by the Minister within the framework Decretal Federal Law No (9) of 2018 Regarding Public Debt  6 
 of the purposes stipulated in this decretal law.  
2. The Minister shall issue a resolution regarding the organizational structure of the Office and 
the bylaws governing its functions.

Article (4) 
Issuance of Public Debt Instruments  
1. A law shall govern the issuance of Public Debt. This law shall specify the followin g: 
a. The purposes of issuing the instrument(s).  
b. The ceiling of the total amount for the instrument(s) to be issued.  
c. The period of issuance and offering of the instrument(s) and the maturity date for 
payment.  
2. The Cabinet, based on a proposal by the Minister, may issue resolutions on the following:  
a. Type of the Public Debt Instrument(s).  
b. The way the Public Debt Instrument(s) is(are) to be offered.  
c. Reissuance of the Outstanding Public Debt within the limits specified in the issuance law.  
and may delegate the Minister to take necessary measures to implement the provisions of this 
law regarding the management of the Public Debt Instrument(s) and the resolutions of the 
Cabinet in this regard.

Article (5) 
The terms of any Public Debt Instrument shall not be amended after announcing the conditions 
of its offering and trading.

Article (6) 
The Total Maximum Amount for Outstanding Public Debt  
The total amount of Outstanding Public Debt shall not, at any time, exceed the amount determined by the Cabinet, at a maximum of  Two Hundred Fifty per cent (250%) of the Decretal Federal Law No (9) of 2018 Regarding Public Debt  7 
 Government Own-  Stable Revenues. For the purposes of this article, neither the Public Debt 
Surplus nor the proceeds of its investment shall be included in the total Outstanding Public Debt.

Article (7) 
The share of Public Debt that is allocated for infrastructure projects or their financing shall not 
exceed Fifteen per cent (15%) of the total Outstanding Public Debt at any time.

Article (8) 
Management of the Public Debt Surplus  
The Minister shall be authorized to conclude one agreement or more with the Central Bank and the Emirates Investment Authority or with both parties to invest any funds that have been 
registered by the Ministry as Public Debt Surplus.

Article (9) 
The Strategy of Public Debt Management  
1. The Minister shall prepare a strategy and an action plan for the management of the Public 
Debt and shall update it annually or whenever it deems necessary, in coordination with the Governor to achieve the objectives of this decretal law.  
2. The Minister shall submit the strategy and the action plan for Public Debt Management to 
the Cabinet for approval.  
3. The strategy and the action plan for Public Debt Management shall be published in the 
Official Gazette, following its approval by the Cabinet.

Article (10)  
Settlement of Public Debt Instruments  
1. A Public Debt Instrument shall be considered as an absolute and unconditional obligation 
on the Government to be settled from its resources, and shall has a privilege right for Decretal Federal Law No (9) of 2018 Regarding Public Debt  8 
 settlement before all other debt.  
2. Funds req uired for the settlement of Public Debt and its service shall be included, annually, 
in the State's general budget.  
3. The Minister may delegate the Central Bank to withdraw, automatically, from the 
Government's accounts held at the Central Bank for the settl ement of any of the Public Debt 
Instruments.  
4. Should the settlement date for Public Debt or any of its obligations fall on an official holiday of the government or banks operating in the State, the first following business day shall be 
the due date for settlement, unless otherwise stated in the loan agreement, entered into by 
the Government or any of the Government Entities.

Article (11)  
Financial Guarantees of the Government  
1. Without prejudice to the text of article (6) of this Decree by Law, the Gove rnment may 
provide one governmental financial guarantee or more on behalf of any of the Government Entities, based upon a recommendation from the Minister and the Cabinet's approval.  
2. The Cabinet shall, based upon a proposal by the Minister, issue a resolut ion to specify the 
terms and conditions governing the issuance of the governmental financial guarantee.  
3. The Minister shall be authorized, by virtue of this Decree by Law, to issue the required 
governmental financial guarantee to implement the Cabinet resolution referenced in clause 
(1) of this article.  
4. The Minister shall notify the Federal National Council of the guarantees provided by the 
government, when implementing the provisions of this article, within (30) thirty days –  at 
most – from the date of its provision.

Article (12)  
Re-lending Borrowed Funds  
Re-lending of collected funds from the issuance of any Public Debt Instrument may be approved, Decretal Federal Law No (9) of 2018 Regarding Public Debt  9 
 by a Cabinet resolution in order to achieve any of the objectives specified in article (2) of this 
decretal law. Such a resolution shall specify the category of eligible parties to borrow, total 
amount allocated for re -lending, and the terms of settlement for the amount borrowed.

Article (13)  
Public Debt Management Report  
1. The Minister shall submit an annual re port regarding the management of the Public Debt to 
the Cabinet for endorsement within the first three months of the beginning of each financial 
year for the Government. The report shall include a review of the activities of the previous 
financial year com pared to the approved strategy for the management of Public Debt along 
with an overview for the current financial year's borrowing plans based on expectations 
referred to in the State's annual budget.  
2. The report shall be published in the Official Gazette o nce endorsed by the Cabinet.

Article (14)  
Audit  
1. The Office shall have one external auditor or more selected from the pool of licensed audit 
firms in the State. The Minister shall issue a resolution to appoint the external auditor for a 
one -year term, renewable, and shall determine in this resolution the applicable fees.  
2. The external auditor shall conduct the audit of the accounts of the Office and shall prepare a 
report every three (3) months regarding the extent to which the Office implements the 
prov isions of this decretal law and the resolutions in implementation thereof with respect to 
these accounts, and shall submit the report to the Minister.  
3. The external auditor may, at any time, review records of the Office, its accounts, and all 
other document s; and may request clarifications as deemed necessary for the performance 
of its functions, review the outstanding rights and obligations related to the activities of the Office, in accordance with the provisions of this decretal law and the resolutions in  
implementation thereof.  Decretal Federal Law No (9) of 2018 Regarding Public Debt  10

Article (15)  
Listing and Registration  
1. Public Debt Instruments shall be issued in electronic forms (book -entry) and shall be 
registered in an Electronic Registry. Public Debt Instruments may also be issued in the form 
of paper certificates.  
2. Public Debt Instruments offered for public subscription shall be listed on one financial market or more operating in the State, in accordance with the provisions of the Federal Law 
No. (4) of 2000 , Regarding the UAE Securities and Commodities Authority & Market, and 
amendments thereto. As an exemption from the provisions referred to in the aforementioned law an d the decisions issued pursuant thereto, Public Debt Instruments 
shall be traded in accordance with the trading provisions issued for the implementation of 
the provisions of this decretal law.  
3. The Minister shall issue, in coordination with the Securities and Commodities Authority and 
the Central Bank, all executive bylaws and resolutions that concern the issuance and 
registration of Public Debt Instruments as well as the provisions of trading, clearing and 
settlement, and the registration of any liabilitie s thereon, within six (6) months from the 
date of this decretal law comes into effect.  
4. Data and records in the registry of Public Debt Instruments, held in accordance with the 
provisions of item (1) of this article, including records related to the trading  of the Public 
Debt Instrument, shall have authoritative legal power as granted by the decretal law to the 
official documents.  
5. As an exemption from the provisions and rules of evidence set forth in any other law, claims 
that pertain to Public Debt Instrume nts may be documented by all legally recognized 
methods of proof, including electronic data, telephone records, facsimile mailings, and e -
mail; provided that any of these correspondence methods is supported by the recipient of 
the subject communication.  
  
 Decretal Federal Law No (9) of 2018 Regarding Public Debt  11

Article (16)  
Public Debt Management Offices in the Emirates  
1. The Local Government in each emirate shall, in case of issuing Local Public Debt 
Instruments, establish an office that has, at least, the same competencies as provided in 
article (3) of this decre tal law, at the level of the concerned administration.  
2. Each Public Debt Management Office in the concerned emirate shall take necessary measures to implement the provisions of item (1/i) of article (3) of this decretal law, and 
shall, as requested, provide  the Public Debt Management Office established in accordance 
with this decretal law all the data, information, and statistics necessary for the preparation and issuance of reports, data, statistics, resolutions, and recommendations referred to in this 
decr etal law.

Article (17)  
Statute of Limitations for Claims  
1. No claim by the Government for any dues that are owed by any party in accordance with 
the provisions of this decretal law shall be heard beyond five (5) years following the 
emergence of the claimed right.  
2. No claim by any party for any dues that are owed by the Government in accordance with 
the provisions of this decretal law shall be heard beyond five (5) years following the 
emergence of the claimed right.

Article (18)  
Exemption from Fees and Taxes  
Issuance of any Public Debt Instrument, payment of its value, its returns, interest, or profits resulted therein shall not be subject to any federal or local fees or taxes.  
 
 
 Decretal Federal Law No (9) of 2018 Regarding Public Debt  12

Article (19)  
Issuing of Loan Bonds by Government Entities  
No Government Entity shall issue loan bonds or Islamic financial instruments without the prior 
approval of the Cabinet. The request for approval shall include the amount of the loan bonds or 
the Islamic financial instruments to be issued, the purpose of issuing them, and the financial 
sources or the investments to be allocated for the settlement of incurred debt.

Article (20)  
Oversight of Government Entities' Borrowing  
Without prejudice to the provision of article (19) of this decretal law, the Office shall oversee the  
borrowing or financing arrangements made by Government Entities, provided that the sum of 
such arrangements, in any year, exceeds the capital of the relevant entity for the given year. The Office shall be authorized to request and receive necessary inform ation related to such 
arrangements; and shall determine, upon receipt of such information, the policies and procedures to be considered by the concerned entity to manage its borrowing or financing arrangements.

Article (21)  
Executive Bylaws  
The Cabinet s hall issue necessary resolutions to implement the provisions of this decretal law.  
  
  
 
  
 
 Decretal Federal Law No (9) of 2018 Regarding Public Debt  13

Article (22)  
Decretal Law Publication and Application  
This decretal law shall be published in the Official Gazette, and shall come into force on the day 
following t he date of its publication.  
 
 
 
   
Khalifa Bin Zayed Al Nahyan  
President of the United Arab Emirates  
 
 
Promulgated by us at the Presidential Palace, Abu Dhabi on:  
Muharram 10, 1440 Hijri  
September 20, 2018 Gregorian