Security Enforcement in Dubai
Type
E-journal
Date
1 Apr 2016
Jurisdiction
Dubai
Taxonomy
Lending & Security
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
A slowdown in an economy is commonly followed by a tightening of liquidity and an increase in credit losses in the banking market.
Recent reports from publicly listed UAE banks reflect that Dubai and the UAE are not immune from this reality with the disclosure of increased loss provisions. Where customers get into difficulty, a bank may need to protect its investment through enforcement action in local courts. Below is an overview of common issues that arise which may impede or delay the enforcement of the two most typical credit support instruments in the Dubai context: the property mortgage and personal guarantee.
Property Mortgage
1. Enforcement Challenges