Emirates Development Bank Holds A Workshop On The Electronic Registry Of Mortgaging Of Movable Properties As Security For Debts

Emirates Development Bank, in cooperation with the International Finance Corporation (IFC), member of the World Bank Group, held a dedicated workshop in Abu Dhabi and Dubai  about the UAE law for mortgaging of movable properties as security for debts.   Attended by over 150 representatives from the UAE banks and financial institutions, the workshop reviewed the UAE law for mortgaging of movable properties as security for debts and examined its objectives. It also looked at the registry of mortgaged movable assets, and the law’s main role and mechanism in publicizing and prioritizing lenders’ rights through the electronic registry of mortgaged movable properties as security for debts and its benefits for lenders and borrowers. The aim of the workshop was to ensure a swift and successful transition of mortgage of movable properties towards electronic registration.

The workshop was organized following the UAE’s Federal Law No. 20 of 2016, which was issued last December concerning the mortgaging of movable properties as security for debts, which entailed the establishment of a registry to regulate the registration process of movable assets, publicize and prioritize lenders’ rights and cover the processes of terminating or transferring the possession of moveable assets as well as their penalties and compensations. The Law’s objective is to provide a legislative framework for the mortgaging of moveable assets as security for debts in order to encourage lenders to accept these assets as collateral in exchange for loans.  In addition, to offer establishments greater opportunities to receive financing at a lower cost, which ensures better evaluations in relation to business transactions, global competitiveness, innovation, entrepreneurship and development’s indicators.