Taking security over real estate in Dubai and Abu Dhabi: Recap for banks
Analysis
From a banking and finance perspective, documenting and registering rights and disposals of real estate is inextricably linked to the types of securities which can be granted (and registered) as a result. In effect, an advanced real estate registration system in which it is possible to register real estate related rights and asset security provides banks with more certainty in terms of reduced litigation risks and enforcement procedures; and reduces potential unauthorised sale or disposal of the secured property. From a borrower's perspective, the availability of an advanced registration system provides borrowers with a better negotiating position and easier access to financing generally. For both parties, a trustworthy real estate register carries significant benefits.