The UAE Ministry of Finance has announced plans to set up a panel to standardise policies and procedures relating to the leasing of federal properties as well as to implement and monitor such operations by federal entities.

The move come following the Cabinet’s decision to implement the Policies and Procedures Manual for Federal Property Leases which has been developed by the ministry.

It will replace all previously issued decisions regarding property rental systems in federal government entities, and will act as an essential reference for all ministries and federal entities, said the ministry in a statement.

As per the new plan, the finance ministry will form a group of specialised property management committees across each federal entity.

The Policies and Procedures Manual for Federal Property Leases provides a framework for leasing operations such as price planning, leasing policies and procedures, rent collections, contract issuance and renewals, delivering possession of rental properties, late payment procedures, contract terminations, tenant relationship management, property maintenance and the insurance of federal properties, said the ministry.

The cabinet’s decision also allows for the formation of a specialised committee within the Federal Property Department in the finance ministry, which will monitor the performance of property rental committees and present its reports to the cabinet.

The committee will serve as a liaison between local governments and the federal government for property grants and withdrawals in cooperation with relevant bodies, said a senior official.

Mariam Mohammad Al Amiri, the assistant undersecretary for the management of financial resources at the Ministry of Finance, said: "Policy development and co-ordination is vital for promotion of a culture of transparency and optimisation of the use of government property as well as enhancing the efficiency of financial practices and legislation."

"The Policies and Procedures Manual for Federal Property Leases is designed to provide equality and uniformity amongst investors, and allow SMEs (small and medium enterprises) to take advantage of investment opportunities available in the federal government," stated Al Amiri.

According to her, the committees have stressed their commitment to implementing the manual, monitoring any violations, and providing recommendations for enhancing internal control over property rental.

This will be achieved by co-ordinating with internal auditing organisations within federal entities as well as the State Audit Institution, noted Al Amiri.

The ministry, she stated, was working closely with its partners in the preparation and standardisation of financial policies and legislation.

"The aim is to develop and diversify federal government revenues, manage and oversee their properties, as well as regulate their return on investments in order to manage public money effectively and contribute to sustainable economic development in the UAE," she added.-TradeArabia News Service