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Federal law Concerning The Emirates Real Estate Establishment
Number: Law No .7 of 2000 Issued On: 10 July 2000 Type: Federal law

Federal Law No. 7
Issued on 10/ 7/ 2000
Corresponding to 8 Rabi’ Al-Akhar 1420 H
We, Zayed Bin Sultan Al-Nahyan, president of the United Arab Emirates State;
Pursuant to the perusal of the constitution, and
Federal law no. 1 of 1972 concerning the Jurisdiction of the Ministries and the Powers of the Ministers and the amending laws thereof, and
Federal law no. 8 of 1973 concerning the Civil Service in the Federal Government, and
Federal law no. 7 of 1976 establishing the Audit Institution, and
Law of Salaries and Social Securities issued by Federal law no. 7 of 1999, and
Acting upon the proposal of the Minister of Finance and Industry, approval of the Council of Ministers, and the federal National Council, and ratification of the Federal Supreme Council,
Have promulgated the following Law:
Article 1 - Definitions
In the application of the provisions of this law, the following words and phrases shall bear the meaning opposite each unless the context provides otherwise:
The State: The United Arab Emirates State.
The Minister: The Minister of Finance and Industry.
The establishment: The Emirates’ Real Estate Establishment.
The Board: The Establishment‘s Board of Directors.
The President: The President of the Board of Directors.
The Committee: the Committee which is formed by the Board of Directors from among its members and which determines its competences. The board may entrust to it some of its functions.
The Manager: The General Manager of the Establishment.
Founding The Establishment And Its Objectives
Article 2 - Founding the Establishment
A public establishment shall be set up under the name of «the Emirate’s Real Estate Establishment» enjoying a juristic personality, an independent budget and reporting to the minister. Its principal seat shall be in the city of Abu Dhabi and it may by decision of the board establish branches and offices inside the state and abroad.
Article 3
The establishment shall undertake to exercise the following functions:
1- Possession of movable and non-movable property necessary to realize its objectives, or lease such property and dispose with it by all the means of legal disposition.
2- Manage the real estates owned by the establishment and perform all the works required by such management including periodic maintenance of the properties.
3- Undertake the maintenance of all the government buildings in case requested by the authorities concerned.
4- Design and execute the government departments’ buildings projects and their outfits for the purpose of leasing to the federal ministries, institutions and organizations, inside the state or abroad.
5- Perform all the works related to the nature of its activities and vital for achieving its objectives and invest its funds in the appropriate fields in accordance with the establishment’s regulations.
6- Perform all the works and activities entrusted to the establishment by a cabinet decision.
7- The establishment is allowed to issue financing bills for all the aspects of its activities and may provide all the securities the board sees appropriate. It is also allowed to borrow in order to achieve its objectives provided for in this article.
It may also conclude contracting by means of finance leasing to execute the projects that are within its domain.
Article 4
The capital of the establishment shall be fixed at (500) five hundred million Dirhams, paid by the federal government by installments in accordance to need, and the first installment of (50) fifty million Dirhams shall be paid upon the issuance of this Law.
The capital of the establishment may be increased by decision of the cabinet upon suggestion of the board and the establishment may float a portion of its capital for general subscription in the future.
Board Of Directors Of The Establishment
Article 5
The board shall be formed by the minister as president and eight members appointed by cabinet decision upon suggestion of the minister.
The board shall select from among its members a vice-president who substitutes for the president when absent.
The members’ tenure shall be three years, renewable for other similar periods.
Article 6
The remuneration of the president and members of the board shall be determined by cabinet decree.
Article 7
The board has competence in the following matters:
1-Draw up the general policy of the establishment and supervise its implementation.
2-Debate and approve the annual report submitted by the manager on the works of the establishment and its achievements.
3- Approve the establishment’s budget and final account and raise same to the cabinet.
4- Suggest draft of regulation of personnel affairs and the financial regulation to be issued by cabinet decree upon suggestion of the minister.
5-Draft the other regulations necessary for organizing work in the establishment.
6- Appoint and terminate the services of the incumbents in the principal posts of the establishment which are determined by the regulation of personnel affairs, and such upon suggestion of the manager.
7-Approve draft contracts and agreements in which the establishment is a party, and such in accordance with the conditions and situations determined by the establishment’s objectives.
8- Accept donations and contributions not in contradiction with the establishment’s objectives.
9- Appoint auditors and determine their remuneration.
10- Any other tasks related to the competences determined for the establishment in accordance with this law.
Article 8 - Meeting of the Board of Directors
The board shall meet every three months at the least and it may be called for an extraordinary meeting upon request from the president or his vice-president. The meeting shall not be valid except with the presence of the majority of its members. Decisions are issued by the majority of votes of the present members, in case of a tie the side with the president of the meeting shall prevail. The manager has no counted vote in the decisions of the board.
Article 9
The president of the board shall represent the establishment in its relations with third parties and before the judiciary and the president of the board shall have the right to sign on behalf of the establishment alone, as it shall be for any member of the board delegates for this purpose.
Article 10
The board shall form, from among its members, a committee by the name «executive committee» whose competences shall be determined by its own decision, and the board may delegate to it some of its functions.
Article 11
It is not allowed for any member of the board or any incumbent in the establishment’s posts that he have any direct or indirect interest in any project or agreement made with it nor may he participate in the administration of a company or institution doing works similar to its activities.
Administration Of The Establishment
Article 12
The establishment shall have a director appointed by decree from the board upon nomination of the president, as well as a number of employees and experts appointed in accordance with the regulation of personnel affairs.
Article 13
The director shall exercise the following functions:
1- Manage the establishment and execute the decisions and the general policy set up by the board; and he shall be responsible to the board.
2- Suggest the board’s agenda.
3- Appoint and terminate the staff and employees’ services in the establishment save those stipulated for in item 6 of article 7 in accordance with the stipulations of the regulation of workers’ affairs.
4- Prepare the annual draft budget of the establishment and its final account and present same to the board.
5- Prepare the periodic reports on the progress of work in the establishment and present same to the board.
6- Prepare the annual report on the works of the establishment and its accomplishments and raise same to the board for approval.
7- Any functions entrusted to him by the board.
Financial Affairs Of The Establishment
Article 14
The revenues of the establishment shall consist of:
1- The sums allotted to it in the general budget of the state.
2- The revenues accruing from the activities of the establishment.
3- Donations, contributions, grants and wills not in contradiction with the establishment’s objectives and approved by the board.
Article 15
The financial year of the establishment shall begin on the first of January and end on the thirty first of December of each year, the first financial year of the establishment shall begin as of the effective date of this law and end on the thirty first of December of the next year.
Article 16
The funds of the establishment shall be deemed public funds and shall be subject to the rules related to the public funds.
Article 17
A proportion of 10% of the establishment’s net profit shall be deducted annually to form a general reserve to the capital, and this deduction shall continue until this reserve reaches 200% of the capital; deduction is resumed any time the reserve goes below this proportion.
Article 18
Without prejudice to the provision of article 17 of this Law the net profit of the establishment shall devolve to the federal government and, in case the legal reserve for any year proves insufficient to cover the losses of the establishment, the federal government shall cover the resulting deficit.
Article 19
The establishment shall be exempted from the prior control of the audit institution.
Article 20
One or more auditors shall undertake to supervise and audit the establishment’s accounts in accordance with the customary principles and rules, and the auditors must present to the board their report within four months at most from the end date of the outgoing financial year.
The auditors may not combine between their work and membership of the board or any other work in the establishment.
Final Provisions
Article 21
The establishment shall be exempted from all the taxes and fees decided in the federal government or the local governments in the emirates of the state.
Article 22
The employees of the establishment shall be subjected to the laws and regulations of the civil service applied in the federal government until the issuance of the regulation of the establishment personnel affairs.
Article 23
This law shall be published in the Official Gazette and shall come into force as of the date of its promulgation.
Issued by Us at the Presidential
Palace in Abu Dhabi
On 8 Rabi’ Al Akar 1420H.
Corresponding to 10 June 2000
Zayed Bin Sultan Al Nahyan
President of the United Arab Emirates State
This Federal Law has been published in the Official Gazette, issue no. 350 p.15