By Barnaby Chesterman
Legal consultant, Al Tamimi & Company, is hosting a seminar aimed at unveiling the legal pitfalls associated with the security of loans in UAE law
Delegates from the top banks in the UAE and the Gulf have been invited to attend a seminar on securities in the UAE, hosted by Al Tamimi & Company at the Emirates Towers hotel on April 11. The non-affiliated local advocates and legal consultants, has designed an intensive one-day programme to provide the banking and financial community with strategic information on creating, perfecting and enforcing securities in the UAE.
The seminar will include information to help banks increase their functional knowledge of securing loans, an overview of the laws regulating the assignment of rights and obligations and the issues concerning pledge over moveables. The aim is to help banks avoid the potential legal pitfalls and understand how to mitigate the risks and reap the rewards from this complex area of the law.
The seminar is of particular interest due to the very complex nature of UAE law which greatly increases the risks taken by banks in issuing loans. The inability of non-nationals to own property or land means that banks have very little assets of tangible value to secure against loans.
The issue of securities has been particularly prevalent in the minds of UAE banks ever since the UAE Solo Industries company created losses of over AED 1 billion for the banking industry in 1999. Banks are still smarting from their losses and the seminar should help them to guard against such damaging fraud in the future.