Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates, issued Federal Decree-Law No. (16) of 2018 yesterday regarding the real estate holdings of the federal government.

The decree stipulates that no federal government entity may dispose of any federal property without the approval of the Ministry of Finance, unless a decision to that effect is issued by the Cabinet, as the Ministry of Finance is responsible for determining which government entities may benefit from any federal property, in accordance with the provisions of this Decree-Law and the decisions implementing it.

According to an official statement, the provisions of this Decree-Law apply to all federal property within and outside the country, including real estate, including vacant land registered in the name of the government or a federal government entity and designated for public use, or any real right over real estate, unless this conflicts with bilateral or international agreements in force in the country.

Excluded from the application of the provisions of this decree are properties under endowment, the administration of which is entrusted to the General Authority for Islamic Affairs and Endowments or to any other federal government agency, as well as any federal agency or federal property for which a decision is issued by the Council of Ministers.

The Decree-Law defines federal property as follows:

– Real estate and vacant land granted by one of the Emirates to the government or any federal government entity.

– Properties owned by the government or any federal government entity.

– Properties granted or transferred by any natural or legal person to the government or any federal government entity.

The key provisions of the Decree-Law are as follows:

– Prior approval from the Ministry of Finance is required for a request by a federal government entity to lease real estate used by that entity, in accordance with policies and procedures regarding the leasing of government buildings adopted by the Cabinet.

– Federal property shall be registered in the name of the government in the real estate registries of the competent local authority or the state in which the property is located.

– The Ministry of Finance must maintain a special registry of federal property, with the exception of certain cases involving the State’s diplomatic missions abroad, in which the headquarters of diplomatic missions may be registered in the name of the Ministry of Foreign Affairs and International Cooperation, in accordance with the laws in force in the country where the mission is located.

– Under this law, no entity other than federal government agencies may dispose of any federal property except with the approval of the Cabinet, which also has the authority to decide on the demolition, reconstruction, expansion, or alteration of the specifications of any federal property, or to transfer it to third parties.

The Decree-Law clarified the mechanisms for cooperation and coordination between the federal government and the emirates regarding property transferred from any of the emirates to federal ownership, and established regulations for the recovery of such property.

The law prohibits any natural or legal person from disposing of any part of the Union’s property except in accordance with the provisions set forth in the decree-law, providing for a penalty of imprisonment for a term not exceeding one year and a fine not exceeding one hundred thousand dirhams, or either of these two penalties, for anyone who violates this provision.