UAE To Allow Loans Secured By Movable Property
Lorys Charalambous, Tax-News.com, Cyprus
22 September, 2020
The United Arab Emirates has released a new law that would allow businesses to use movable property to secure bank and commercial loans.
The UAE Government said Federal Law no. 4 of 2020, on Securing Interest with Movable Property, would enable companies operating in various business sectors, especially SMEs, to benefit from their movable properties to secure their bank and commercial loans. The move, it said, is intended to strengthen the UAE's global competitiveness and the ease of doing business there.
The UAE is considering the creation of an electronic registry in the country to record assets to ensure project financing. This register would allow the use of tangible and intangible movable property to secure loans, the Government said.