Sheikh Hamdan issues resolution on financial regulations in emirate

New rules regulate the collection and management of public funds

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, issued a resolution that streamlines the procedures to be followed when making government payments. Chris Whiteoak / The National

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, issued a resolution to regulate the collection and management of public revenue in the emirate.

Resolution No 5 of 2021 on the Executive Regulation of Law No 1 of 2016 on the Financial Regulations of the Government of Dubai streamlines the procedures to be followed by public-sector departments when paying suppliers and contractors, the Dubai Media Office said in a statement on Monday.

All payments to the suppliers need to be made within 90 working days from the date of the final handover or according to the timetable specified in the contract.

The resolution will be valid from the date of its publication in the Official Gazette and any legislation that contradicts or challenges it will be annulled.

Authorities in the UAE have taken various measures to expedite payments to suppliers and small businesses it works with.

Last year, both the Dubai and Abu Dhabi governments pledged to cut the average time to make payments to small and medium enterprises to 30 days.

The Dubai government’s latest resolution also outlines the responsibilities of the finance department’s director general in managing the budget.

It specifies the systems, applications and smart financial solutions to be used in the government’s financial planning.

All departments are required to use systems approved by the Department of Finance.

Government departments can also adopt their own financial and accounting systems, “on the condition that they comply with the laws and regulations” issued by the emirate’s finance department. They should be compatible with the department’s systems.

Such systems must be approved by the Department of Finance and Smart Dubai.