UAE Announces New Legislation for Optimized Management of Federal Properties

The UAE Ministry of Finance recently unveiled Federal Decree-Law No 35 of 2023, a significant legislative step aimed at enhancing the management and development of federal properties. This new law encompasses a broad spectrum of federal assets, including real estate and other forms of government properties. Its primary goal is to refine the legislative framework governing the inventory and administration of these assets, both within the UAE and internationally.

One of the key features of this decree-law is its focus on adopting leading global practices to ensure efficient governance, optimal use, and sustainable growth of federal assets. This initiative is expected to elevate the UAE's position in global competitiveness rankings and improve its credit rating. A notable innovation introduced by this law is the establishment of an advanced electronic platform dedicated to the cataloguing of federal real estate properties, which will play a crucial role in enhancing asset protection, management, maintenance, and transparency.

The legislation provides a clear definition and registration process for federal real estate assets, addressing previous uncertainties in asset management and utilization. It introduces strategies for maximizing government asset returns through effective leasing and usage policies. Furthermore, it offers flexibility to meet the specific needs of federal entities, aligning with their roles and responsibilities.

Under this new law, federal government assets are defined to include real estate used for public services such as roads, railways, and bridges, along with movable assets supporting these properties, termed real estate by allocation. It also covers other non-real estate federal properties and personal property of the federation not intended for public use, whether movable or immovable.

The decree-law elaborates on the rights related to any federal property and introduces a clear definition for intangible assets as recognized properties belonging to the federation. It sets forth guidelines for managing private federal properties and non-real estate assets not dedicated to public service, detailing processes for their acquisition, use, and sale. Additionally, it mandates the establishment of a registry for federal real estate properties and coordinates with relevant local authorities for asset recovery or transfer to local governments.

Moreover, the law outlines comprehensive management strategies for federal properties both within and outside the state, including leasing rules for private properties and stipulations for using and benefiting from federal assets. It underscores the importance of complying with local urban planning and building regulations to ensure these properties are utilized optimally.

This transformative legislation is set to replace the federal Decree-law No 16 of 2018 concerning federal government real estate properties when it becomes effective on 28th March 2024. The full text of this decree-law can be accessed on the UAE Legislation platform.

With inputs from WAM