UAE Federal Law 20 of 2016 (Regarding the pledge of moveables as a security for debts) (the Pledge Law) introduced a new regime for registering a pledge over moveable assets which are pledged as security for the repayment of a debt. We reported on this law in our inBrief of January 2017, New UAE Pledge Law Over Moveable Assets.
The actual registration of pledges was subject to establishment of a security register pursuant to the implementing regulations issued under the Pledge Law. This security register has now been established by the Emirates Development Bank and is known as the Emirates Movable Collateral Registry.
The Emirates Movable Collateral Registry allows:
1. free public searches of registered securities;
2. certified searches of registered securities;
3. registration of notices of security interests against assets of the primary obligors as well as third party security providers, including non-resident foreign persons (legal or natural) and UAE entities incorporated by federal decrees, for a minimal fee; and
4. registration of notices of termination of security interests (whether by mutual consent of the parties or by way of a court order) free of charge.
All parties holding pledges over moveables in the UAE by way of possession have until 15 March 2018 to register their precedence with the Emirates Movable Collateral Registry. To our knowledge, it is unlikely that an extension of time will be granted. Therefore, we recommend this is done as a priority. ■