Law No. (1) of 2017 Concerning the Financial System of Abu Dhabi Government

Article 1 — • The definition of the “Financial Policy” in Article (1) of the aforesaid Law ¶

No. (1) of 2017 shall be replaced by the following definition:
“Financial Policy: The rules and provisions set by the Supreme Council for
the regulation of the establishment, operation and management of the
government company.”
• The following definition shall be added to the definitions mentioned in
Article (1) of the aforesaid Law No. (1) of 2017:
“Supreme Council: The Supreme Council for Financial and Economic Affairs
established pursuant to the aforesaid Law No. (24) of 2020.”

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Article 2 — The following Articles no. (3/ Clause 4), (4), (5/ Clauses 1, 6, 9), (6), (7), ¶

(8/ Clause 9), (11/ Clauses 2, 3), (12/ Clauses 2, 5, 6), (13), (14/ Clause
4), (15), (16/ Clauses 2 and 3/b), (18), (19 / Clause 3/c), (23/ Clause
1), (27/Clause 7), (31/Clause 2), (33), (35/Clause 1/f), (35/Clause 2),
(36/Clause 3), (43) and (53) of the aforesaid Law No. 1 of 2017, shall be
replaced by the following texts:

Article 4 — The Department ¶

• The Department shall be affiliated to the Ruler. Its main office shall be in
Abu Dhabi City and a resolution may be issued by the Ruler to establish
branches thereof based on the recommendation of the Chairman of the
Department.
• The expression (Executive Council) or (Chairman of the Executive Council)
shall be replaced by the word (Ruler), wherever either of them appears
in any other legislation, with regard to any approvals, appropriations or
resolutions related to the Department, including executive, administrative,
financial, human resources, retirement, contracts and procurement of the
Department.

Article 5 — 1. Preparing the organisational structure of the Department and overseeing ¶

the preparation of the draft annual budget thereof and submitting them
for approval by the Ruler.
6. Submitting an annual report on the Department's operations to the Ruler.
9. Any other tasks assigned by the Ruler.

Article 6 — Full-Time Role of the Chairman of the Department ¶

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The Chairman of the Department shall not combine his job with any other
private job without the approval of the Ruler and shall be prohibited from
engaging in any financial, commercial or professional works that conflict
with his work duties or impair his appearance and credibility.

Article 7 — Competencies of the Department ¶

The Department shall be in charge for the preparation and implementation
of an integrated financial system that is efficient, effective and economic
in accordance with the provisions of this law by assuming the following
competencies:
1. Preparing the Financial Policy of the Emirate and submitting it to the
Supreme Council for approval.
2. Preparing the public budget and specifying the types of government
expenditures and revenues and the categories included within each
type, and taking the necessary measures to get it approved according
to the provisions of this Law.
3. Following up on the implementation of the public budget and taking
necessary actions to verify compliance therewith.
4. Managing the treasury and organising the bank accounts of the
Government and the governmental entities.
5. Organising the tax and non-tax government revenues.
6. Organising and managing the public debt and government guarantees
in accordance with the provisions of this Law.
7. Overseeing and managing the general reserve account in accordance
with the provisions of this Law.
8. Preparing and issuing the “Financial Control System” following the
approval by the Supreme Council.
9. Issuing the unified accounting policies, unified chart of accounts
and general rules to regulate and close the accounts and accounting
records in light of the approved accounting standards, and issuing the
necessary instructions for this purpose.
10. Issuing the instructions and forms of financial reports for the

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governmental entities, to be prepared pursuant to this Law.
11. Preparing and issuing the financial statements and other reports of the
Government in accordance with the provisions stated in this Law.
12. Issuing the government services pricing guide following the approval
of the Executive Council and studying the pricing requests by the
governmental entities.
13. Determining and evaluating the governmental financial support and
raising recommendations to the Executive Council.
14. Determining and assessing the financial risks of the Emirate and
suggesting ways to address or reduce the same.
15. Studying and evaluating the financial position of the troubled
governmental companies and institutions and raising recommendations
thereon to the Supreme Council.
16. Lending on behalf of the Government following the approval of the
Supreme Council or Executive Council, as the case may be, and
managing the same.
17. Developing and updating the five-year and ten-year financing plans and
budgets for the Emirate.
18. Collecting government debts and other debts owed to the Emirate.
19. Providing necessary guidance, support and training to the employees
of the financial departments at the governmental entities, companies
and institutions with regard to the implementation of this Law and the
regulations and resolutions issued pursuant thereto.
20. Conducting studies related to taxes, fees and other resources in order
to develop the same in a way that is in line with the interest of the
Emirate and raising recommendations thereon.
21. Studying and suggesting appropriate financing means for major
government projects.
22. Studying the financial cases that give rise to rights or obligations for
the Emirate and that require filing of lawsuits before the Courts and
referring the same to the authority competent to file cases and defend
such rights.
23. Preparing and studying the agreements related to the avoidance of

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double taxation, taking into account the agreements entered into by the
State.
24. Any other competencies set forth in this Law or any other legislation or
entrusted to the Department by the Ruler or Supreme Council.

Article 8 — 9. All other powers set forth in this Law and any other powers issued by ¶

resolutions of the Ruler or Supreme Council or any other legislation.

Article 11 — 2. The governmental institutions and companies shall prepare their annual ¶

budgets in light of their ownership policy, provided that their budgets
are approved by their Boards of Directors and a copy thereof is sent to
the Department, within a period not exceeding the end of December of
every fiscal year.
3. The governmental institutions and companies and the subsidiaries may
not increase the capital, borrow, provide debt guarantees or lend, except
in accordance with the rules issued by the Department and approved by
the Supreme Council.

Article 12 — 2. The Department shall prepare the draft Public Budget after completion ¶

of the study and discussion of the draft budgets of the governmental
entities, provided that it submits the same to the Supreme Council not
later than the end of the eleventh month of every fiscal year.
5. Except as otherwise decided by the Supreme Council, the validity period
of the financial appropriation shall expire by the end of the fiscal year.
6. No type of revenues or expenditures shall be created without the
approval of the Supreme Council or Executive Council, as the case may
be.

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Article 13 — Approval of the Public Budget ¶

1. The Public Budget as well as the financial competencies related thereto
shall be approved by a resolution of the Supreme Council. In case the
Public Budget was not approved before the start of the fiscal year, the
Department shall be allowed to allocate financial appropriations to the
governmental entities for disbursement according to the applicable
rules of disbursement and within the limits of the value of financial
appropriations granted to the entity during the elapsed fiscal year,
provided that it issues the instructions required thereto.
2. The approved Public Budget shall be amended with the financial
appropriations issued during the fiscal year pursuant to Amiri Decrees,
or resolutions of the Ruler, Supreme Council, Crown Prince of the
Emirate of Abu Dhabi or Executive Council, as per the affiliation of the
entity requesting the approval.

Article 14 — 4. The governmental entity shall not commit or disburse without a financial ¶

appropriation and shall not amend its financial appropriations except
within the limits of the powers assigned thereto by the Supreme Council.

Article 15 — Expenses in Emergency Cases ¶

1. The Chairman of the Department may agree to incur expenses to face
emergency situations without the need for a financial appropriation
and in accordance with the powers delegated to him by the Ruler or
the Supreme Council, provided that these expenses are included in the
Government’s financial statements for approval.
2. If during the implementation of the Public Budget of any year, exceptional
circumstances arise, or a decrease appears in the collected public
financial resources compared to the estimated financial resources
for the same year, the Chairman of the Department may lay down the
necessary measures and procedures to confront such exceptional
circumstances or such decline, including the reduction of the Public
Budget and restriction of spending for all or some of its items, provided

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that these measures and procedures are submitted to the Ruler or the
Supreme Council for approval.

Article 16 — 2. No fees shall be imposed, modified or cancelled except by virtue of a ¶

Law, Amiri Decree or a resolution of the Supreme Council or Executive
Council.
3-b. Entities decided by the Supreme Council or Executive Council to be
exempt, in whole or in part, from the taxes and fees for charitable,
humanitarian, educational, cultural, national or any other reasons.

Article 18 — Bank Accounts ¶

1. The Chairman of the Department may open bank accounts in the name
of the Emirate or the Government and enter into agreements with banks
to collect, pay and transfer funds inside or outside the Emirate, pay and
collect interests and any other banking transactions.
2. The Chairman of the Department may specify the conditions and
restrictions to open and close bank accounts for the Emirate and
Government as well as the governmental entities, institutions and
companies.

Article 19 — General Reserve Account ¶

3- c. Any other objectives suggested by the Chairman of the Department
and approved by the Supreme Council.

Article 23 — 1. The Chairman of the Department may, on behalf of the Government, ¶

borrow money from any person or entity inside or outside the Emirate
for the benefit of the Government or governmental entities following the
approval of the Supreme Council.

Article 27 — 7. Any other cases specified by the Supreme Council. ¶

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Article 31 — 2. The Chairman of the Department may provide government guarantees ¶

on behalf of the Government following the approval of the Supreme
Council. The beneficiaries of such government guarantees shall
notify the Department of the settlement of the debts related to these
guarantees on a periodic basis.

Article 33 — Sovereign Lending ¶

The Chairman of the Department may lend on behalf and in the name of the
Government after the approval of the Supreme Council or Executive Council,
as the case may be, and may exercise any powers or rights related thereto
in accordance with the powers granted to him.

Article 35 — 1-f. Any other financial reports suggested by the Chairman of the Department ¶

and approved by the Supreme Council.
2. The standards for the preparation of the Government's financial
statements shall be approved by a resolution of the Supreme Council,
based on a recommendation from the Chairman of the Department
and the Chairman of Abu Dhabi Accountability Authority. The resolution
shall specify the government sectors and activities to be used for the
purpose of preparing the financial statements of the Government.

Article 36 — Financial Statements of the Government ¶

3. The Chairman of the Department shall submit the financial statements
of the Government along with the report of Abu Dhabi Accountability
Authority to the Supreme Council and Executive Council within a period
not exceeding 15 days from the date of issuance thereof.

Article 43 — Exemption from the Amounts due to the Government ¶

No exemption may be made for all or some of the amounts due to the
Government for any reason without the approval of the Supreme Council

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or Executive Council, as per the affiliation of the entity requesting the
exemption, or whomever delegated thereby by any of them.

Article 53 — Issuance of the Rules, Regulations and Resolutions ¶

The Chairman of the Department shall issue the necessary rules, regulations
and resolutions for the implementation of the provisions of this Law after the
approval of the Supreme Council.
Article (3)
• Articles (30), (38) and (45) of the aforesaid Law No. (1) of 2017 shall be
repealed.
• Any provision contrary to the provisions of this Law shall be repealed
Article (4)
This Law shall be effective from the date of its issuance and published in the
Official Gazette.
Khalifa bin Zayed Al Nahyan
Ruler of Abu Dhabi
Issued by us in Abu Dhabi
On: 5 January 2022
Corresponding to: 2 Jumada Al-Akhar 1443 Hijri

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United Arab Emirates
The Emirate Of Abu Dhabi
Issued By The Gereral Secretariat of The Executive Council
of The Emirate Of Abu Dhabi
Office of Legal Affairs
Abu Dhabi - P.O. Box: 19
Tel: +971 26688446 Fax: +971 26669981

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