Decree-Law Issued Authorizing Borrowing from the Future Generations Fund to Support the State's General Reserve
A decree-law numbered 81 of 2026 was issued, amending certain provisions of Decree-Law No. 106 of 1976 concerning the Future Generations Reserve, following a review of the Constitution, the Emiri Order issued on 2 Dhu al-Qi'dah 1445 AH (corresponding to 10 May 2024), Decree-Law No. 106 of 1976 concerning the Future Generations Reserve and its amended laws, Decree-Law No. 31 of 1978 on the rules for preparing general budgets, supervising their implementation, and the final account, along with its amended laws, and Law No. 47 of 1982 establishing the Public Authority for Investment, and after approval by the Council of Ministers, and based on a proposal from the Minister of State for Economic Affairs and Investment.
Article One stipulated the replacement of the text of the first paragraph of Article One and the text of the second paragraph of Article Two of the aforementioned Decree-Law No. 106 of 1976 with the following texts:
Article One (First Paragraph): In the event that annual revenues exceed expenditures, a percentage of the actual surplus from the state’s final account results shall be deducted annually. This percentage shall be determined based on a proposal from the Minister responsible for presiding over the board of directors of the Public Authority for Investment and with the approval of the Council of Ministers, effective from the results of the fiscal year 2018/2019.
Article Two stipulated the addition of two new paragraphs to the text of Article Three of the aforementioned Decree-Law No. 106 of 1976, and a new article numbered “Third Bis” to the same decree-law.
Article Three, in its two new paragraphs, stated that as an exception, the Council of Ministers may, by decision, upon a proposal from the Minister responsible for presiding over the board of directors of the Public Authority for Investment and after approval by the board, borrow from the Future Generations Reserve to support the state’s general reserve. This decision must guarantee the following:
In accordance with the aforementioned provisions, the loan amount and accrued interest shall be recorded as a receivable asset in the Future Generations Reserve account. The loan shall have priority for repayment from state revenues in the event of a surplus in the general budget after the approval of the state’s final account. Under no circumstances may the loan be written off or reduced except by law.
Article “Third Bis” stipulated that borrowing from the Future Generations Reserve shall adhere to the following controls:
1. The total loans during a single fiscal year shall not exceed 100% of the average returns achieved by the reserve over the last five audited fiscal years.
2. The total accumulated outstanding loan balance shall not exceed 10% of the net asset value of the reserve according to its audited financial statements for the last fiscal year.
3. No new loans shall be contracted if either of the ceilings specified in paragraphs (1) and (2) of this article is exceeded. This prohibition shall not be lifted until borrowing ratios fall to the prescribed limits.
Article Three also stipulated the repeal of any provision contrary to the provisions of this decree-law.
Article Four stipulated that the Prime Minister and the ministers, each within their respective jurisdictions, shall be responsible for implementing this decree-law, and that it shall be published in the Official Gazette and take effect from the date of its publication.
