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Find out moreThe final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.
Read the full editionAfter many years of consultation and calls for regulating finance lease activity in the UAE, the draft finance lease law which was approved by the UAE’s National Council in 2018 is now in force by publication in the Official Gazette.
The Law will be supplemented by a set of implementing regulations applicable to the licensing of finance lease activities in the UAE. The Law mandates the Central Bank of UAE (CBUAE) to regulate the lease financing and accordingly the CBUAE shall issue its regulations or circulars to licence finance lease activities in the UAE.
We enclose with this update an Arabic version of the Law.
Salient provisions of the Law are set out below:
It is important to note that the Law stipulates a grace period of one (1) year for full compliance with the provisions of the Law. Therefore, all concerned parties need to register the existing finance lease contracts before the end of 2019 and all entities carrying out financial leasing in the UAE must approach the CBUAE for guidance on adjusting their licences.
It is not clear whether UAE-licenced financial institutions will be required to apply for a separate licence from the CBUAE to carry out financial leasing activities. It is expected that the CBUAE will issue implementing regulations and/or notices to clarify the steps to be taken during the transition period.
Given the importance of this much awaited Law to banks, finance companies and captive financiers, we will circulate further updates in due course.
Jody Waugh
Partner, Head of
Banking & Finance
Mamoon Khan
Partner,
Banking & Finance
Sarah El Serafy
Senior Associate,
Banking & Finance
Ali Awad
Senior Associate,
Banking & Finance
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