Sheikh Hamdan bin Mohammed amended the resolution on payment of outstanding public funds by instalments. Photo: Dubai Media Office
Sheikh Hamdan bin Mohammed amended the resolution on payment of outstanding public funds by instalments. Photo: Dubai Media Office
Sheikh Hamdan bin Mohammed amended the resolution on payment of outstanding public funds by instalments. Photo: Dubai Media Office
Sheikh Hamdan bin Mohammed amended the resolution on payment of outstanding public funds by instalments. Photo: Dubai Media Office

Sheikh Hamdan amends resolution on payment of outstanding public funds by instalments


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Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, on Wednesday amended the resolution on payment of outstanding public funds by instalments, empowering heads of government entities to make the decision on it.

Following the amendment, “the head of a government entity or their authorised representative has the authority to allow payment by instalments of any public funds outlined in a list submitted by such entity to the Department of Finance (DoF)”, the Dubai Media Office said in a statement.

According to the resolution, payment of public funds by instalments is subject to several conditions: public funds must be due by the date on which the application for payment by instalment is submitted, and the amount of public funds to be paid by instalments must not be less than the minimum amount prescribed by the DoF.

The rule also stipulates that the applicants must prove their inability to pay the total outstanding amount in one payment.

The applicant must make an initial payment of at least 25 per cent of the outstanding amount of public funds requested to be paid by instalments, according to the resolution.

"If an applicant cannot make the minimum payment of 25 per cent of the outstanding amount before applying for the payment by instalments, the head of the government entity or their authorised representative may reduce the minimum payment after reviewing the reasons behind the request," the statement said.

However, some of the conditions are unchanged even after the amendment.

“The instalment period must not exceed five years, or the period in which the public funds are due, whichever is shorter,” the statement said.

Additionally, instalments must be paid by bank cheques or by providing other guarantees or security as prescribed by the DoF and any other conditions set by the DoF must be satisfied.

According to the new resolution, an applicant for payment by instalments must, within 15 days of being notified of the decision approving the application for payment by instalments, submit the guarantees or security prescribed by the DoF.

The guarantees or security must be valid throughout the instalment period, until full payment is made, the statement said.

If an applicant fails to pay the instalments by the prescribed deadlines, the decision approving the application for payment by instalments will be deemed null and void.

The resolution shall be effective from the date of its publication in the official gazette.

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Updated: August 17, 2022, 12:35 PM`