The New Law (as defined below) was issued on 28 May 2020, came into effect in June 2020 and replaces the Old Law (as defined below). This memorandum is the second in a series of four memoranda and summarises the positive changes brought in by the New Law. Our previous memorandum covered a summary of issues that have not changed and our subsequent memoranda will cover key issues for financiers and (for those wanting to get into the detail) a more detailed summary of the New Law.
UAE federal law No.20 of 2016 in relation to the charging or pledging of movables as security for indebtedness (the Old Law) was a significant development in the UAE banking and finance legal landscape. It gave rise to a significant change in the practice of taking security over movable property in UAE banking and finance transactions.
UAE federal law No.4 of 2020 in relation to securing the rights in movables (the New Law) repealed the Old Law (as amended by UAE federal law No.24 of 2019 (the Old Amendment Law)). It makes further positive changes to the Old Law including:
The rest of this memorandum sets out the positive changes brought in by the New Law. To download the full article, click here.