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We are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.Read the full edition
The Qatar Central Securities Depository (“QCSD”) has finally launched the much awaited Security Register pursuant to the Law No. 16 of 2021 on the Mortgage of Movable Assets (“Movable Assets Security Law”) and Decision No.1 of the QCB Governor on the procedures for regulating the moveable assets security register (the “Security Register Regulations”). The QCSD has issued a statement on its website announcing the launch of the Security Register.
In relation to the launch of the Security Register, Sheikh Saif Al Thani, Acting CEO of QCSD commented that … “the MCR is a vital system that contributes to protecting the rights of creditors, enabling participants in the Qatari, and regional market to access information on the rights of movable assets and enhancing transparency and confidence among users.”
The Register can be accessed online here. As a reminder, the Security Register is an electronic register that will maintain public database and information on security interests on movable property granted in favour of the relevant entities or individuals. It will relate to the movable assets that fall within the purview of the Movable Assets Security Law.
We have previously issued two alerts on this topic which can be accessible here and here.
Account registration is linked via the National Authentication System (NAS) in Qatar. The persons registering on behalf of the legal entity would have to provide their own NAS account details for activating a Security Register account. Relevant details of the legal entity would have to be provided along with supporting documents such as commercial registration and ID copies of the relevant persons.
The account registration process is user friendly and prompt.
The account holder and users would be able to do the following via the registered account:
For the account related services, certain fees will be payable. The schedule of fees is available here.
When opening the account, the user is required to pay a deposit on the QCSD’s account, and a minimum balance is required to be maintained. For each chargeable service availed by the account holder, the QCSD will automatically deduct the fee for that services from the total amount of the paid deposit.
It should be noted that the QCSD has announced that the Security Register is launched in two stages, The first stage will involve providing the services to banks, financial institutions, and financial leasing companies. The second stage will offer the service to individuals and businesses that provide credit secured with movables, creditors practicing fiduciary transfer of titles and consignment arrangements, and any person regardless of his/her nationality as long as he/she has the right over the movable asset.
Given this two-stage launch, we are undertaking an assessment on the potential impact this may have on the priority and ranking of the secured parties (see below) who are unable to register their security interest during the first stage.
According to the terms and conditions of the Security Register, the account holder and the user are legally responsible for the accuracy and correctness of the data and documents uploaded onto the Security The account holder and the user shall also be responsible for the manner in which the data and certificates are accessed via the Security Register and the use of such data and certificates. The main account holder shall also be responsible for the sub-accounts permitted under the main account holder.
The Movable Assets Security Law allows secured parties to publish their existing unperfected security interests in the Security Register within a period of one year from the effective date of the Movable Assets Security Law. While that one year period set out under the law has recently expired, Since the Security Register has just been launched, it is expected that a notification would be issued by the QCSD or the Qatar Central Bank to extent such time period.
Secured parties (banks, financial institutions, and financial leasing companies) should start compiling a list of security documents and the relevant security interests that are required to be registered on the Security Register and start registering those security interests as soon as possible. The Movable Assets Security Law states that priority in respect of prior unperfected security interests would start from the date of registration of that security interest on the Security Register.
We are attempting to undertake a test run on the Security Register and aim to provide further updates and a user guide(s) to our clients on the registration process. We will also provide feedback and guidance to our clients on the practical issues that need consideration when creating user accounts and registering the security interests on the Security Register.
Al Tamimi & Company can assist and provide necessary support to our clients to them guide through the account registration process and to register the security interest on the Security Register.
Our Banking & Finance and Litigation teams in Qatar are also able to support you in the following ways:
If you require further information, please feel free to contact us.
Partner, Head of Office, Head of Banking & Finance - Qatarm.firstname.lastname@example.org
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