After days of uncertainty over the debt of some large corporations, the Dubai ruler has announced a new legislation to regulate the funds of the government bodies.

To improve transparency and control of public spending, the Dubai ruler Sheik Mohammed bin Rashid Al Maktoum on Thursday issued a law ordering government departments to transfer any 2009 surplus revenues to the emirate’s treasury.

The new law aims to regulate government departments’ public spending “and control government revenues (and) provide an accurate database for revenues and expenditures,” the statement said.

This will cover the regulation of the preparation of annual budgets of all governmental bodies, including those whose annual budgets are listed in the government’s budget, those who enjoy fiscal independence or those entities who receive financial support from the government.

The legislation allows profits and revenue surpluses to be reinvested, with the approval of the Supreme Fiscal Committee, in consultation with Investment Corporation of Dubai, which oversees the Emirate’s investment portfolio.

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