Islamic Finance News Publishes Akin Gump Article on UAE’s New Movable Assets Security Law
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Islamic Finance News has published the article “New UAE moveable assets security law: Implications for Islamic finance transactions,” written by Hamed Afzal and Sahar Abas, counsel and associate, respectively, at Akin Gump. The article examines a new United Arab Emirates law pertaining to Islamic finance transactions in the UAE.
Adapted from an Akin Gump client alert that Afzal and Abas co-authored with partner Rizwan Kanji, the article states that the new law, which took effect in June, requires that parties to Islamic finance transactions “must now turn to the New Law to determine the formality and registration requirements for security interests, the possible enforcement mechanisms and priority rights for creditors.”
The authors write that the law also provides “that a wide range of moveable assets may be subject to a security interest, including accounts receivables, deposits at licensed banks, written bonds and documents and goods intended for sale or lease.” In addition, they note that parties to a deal “may register security rights resulting from any Islamic finance transactions made prior to the issuance and effectiveness of the implementing regulations without the need to seek approval from the pledger.”
To read the entire article, which was first published in Islamic Finance News Volume 17 Issue 41 on October 21, 2020, please click here.
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