Author

Mazen Boustany

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Background Just when creditors in the UAE got used to Law No. 20 of 2016 concerning the Pledge of Moveable Assets as Security (“Old Pledge Law”), and the amendment that was introduced in 2019, the winds slightly changed course when Law No. 4 of 2020 on the Pledge of Rights in Moveable Assets (“New Pledge Law”) was introduced  in May 2020. Since then, creditors were not so sure in what direction the new breeze was…

On 31 January 2021, the United Arab Emirates (UAE) Central Bank (CBUAE) publicly announced that it had sanctioned 11 banks in the UAE a total of AED 45.76 million (approx. USD 12.46 million) for failures to achieve appropriate levels of compliance with regards to Anti-Money Laundering (AML), Combatting the Financing of Terrorism (CFT) and local UAE sanctions compliance. The sanctions, imposed on 24 January, were imposed pursuant to Article 14 of the Federal Decree Law…

In brief In addition to the comprehensive economic support and stimulus program launched by the UAE Central Bank to curb the financial impact of the COVID-19 pandemic, the UAE has introduced radical amendments to the UAE Bankruptcy Law, offering distressed debtors with some level of leniency during these times of economic uncertainty and market disruption caused by circumstances outside of their control. Key changes include: adding new provisions to the law related to “emergencies” such…

Leading international law firm Baker McKenzie Habib Al Mulla has advised Dar Al Takaful (DAT), an innovative Islamic insurance company in the UAE, on its acquisition of the entire share capital of Noor Takaful General and Noor Takaful Family for a total consideration of AED 215 million in cash. The transaction has been approved by DAT shareholders, the Emirates Securities and Commodities Authority (ESCA) and the Insurance Authority, and is expected to be concluded by…

A recent judgment by the Dubai Court of Cassation has concluded that for a contract to be Shari’a compliant, an Islamic bank or financial institution is required to do more than just to name that contract as a Murabaha contract (Cassation Appeals Nos. 898-927/2019). The Court of Cassation ruled that a Murabaha contract has to meet certain objective criteria to be considered as Shari’a compliant. These criteria are subject to review by the court and,…