United Arab Emirates—cross border banking and finance guide
Produced in partnership with Amir Ahmad and Umbreen Meenai of Pinsent Masons
United Arab Emirates—cross border banking and finance guide

The following Banking & Finance practice note produced in partnership with Amir Ahmad and Umbreen Meenai of Pinsent Masons provides comprehensive and up to date legal information covering:

  • United Arab Emirates—cross border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.
  • Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.
  • Lending
  • Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities that are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees (Mainland UAE)
  • More...

United Arab Emirates—cross border banking and finance guide

At the outset, it is pertinent to note that when dealing with a particular Emirate in the United Arab Emirates (UAE), the laws and regulations prescribed at both the Federal level and at the relevant Emirate level need to be considered. Further, in the UAE, there are several free zones and each free zone may have its own set of governing laws and regulations, Dubai International Financial Centre (DIFC) being the most important one. Therefore, prior to any entry into dealings associated with a particular free zone, specific advice should be sought.

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.

The UAE banking sector is presently experiencing a rise in the rate of non-performing loans. The lower oil prices are having an impact on the level of liquidity and tightening of margins. Despite the comparatively low oil prices, the UAE's economy remains resilient. Islamic syndicated loans are doing especially well amid a tightening supply of cash to lend as demand outstrips appetites for traditional bank loans, bonds or sukuks.

Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.

The new UAE Bankruptcy Law, Federal

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