FNC refers two draft laws to financial committee

ABU DHABI, — The Federal National Council, FNC, agreed in its 12th meeting of the 2nd ordinary session for the 16th legislative chapter, which was held on 25th April, and headed by Dr. Amal Abdullah Al Qubaisi, Speaker of the FNC, on referring the two draft laws to the Committee on Financial, Economic and Industrial Affairs.

The two draft laws were presented by the government.

The federal draft laws regarding financial leasing and arbitration will be referred to the committee for the preparation of two reports. This will be followed by discussions within the frame of the council’s practice of its constitutional, legislative and monitoring functions.

Article 89 of the Constitution calls for referring, without breaking the provisions of the article 110, the federal draft laws including the financial draft laws, to the FNC before submitting them to the speaker to present them to the Supreme Council for ratification.

The financial leasing draft law gives industrial and commercial projects an opportunity to receive equipment and tools of production that enable them to launch their ventures and develop them.

The demonstrative memo of the federal draft law regarding the financial leasing, which included 40 clauses, stressed this legislation arose because of the positive effect of financial leasing. This includes the terms of giving industrial and commercial projects a chance to receive production equipment and tools that enable them to start the activity and develop them through renting these tools. It also avails them power of owning the equipment without having to rely on bank funding.

The federal arbitration draft law aims to attract investments and achieve growth and stability in the national economy of the country. According to the demonstrative memo of the federal draft law regarding arbitration, the government suggested this project because of the importance of arbitration in commercial disputes.

It is vital in attracting investment, achieving growth and stability in the national economy, and ensuring freedom for the arbitration in choosing referees and easing procedures, as well as maintaining friendliness among the parties. The draft law also speeds up solving disputes and reduces number of pending cases with courts. This subsequently serves the country’s interest.

Source: Emirates News Agency