Law Informations
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
Federal law no. 1 of 1972 concerning the Jurisdiction of the Ministries and the Powers of the Ministers and the amending laws thereof, 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,
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 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.
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.
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.
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.
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.
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.
2-Debate and approve the annual report submitted by the manager on the works of the establishment and its achievements.
4- Suggest draft of regulation of personnel affairs and the financial regulation to be issued by cabinet decree upon suggestion of the minister.
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.
10- Any other tasks related to the competences determined for the establishment in accordance with this law.
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.
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.
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.
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.
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.
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.
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.
3- Donations, contributions, grants and wills not in contradiction with the establishment’s objectives and approved by the board.
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.
The funds of the establishment shall be deemed public funds and shall be subject to the rules related to the public funds.
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.
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.
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.
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.
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.
This law shall be published in the Official Gazette and shall come into force as of the date of its promulgation.
