Loan? Moveable assets can now be collateral

SourceKhaleej Times
SectorFinancial Services
CountryUnited Arab Emirates

Companies in the UAE, especially small and medium businesses, can now secure bank loans by using their moveable properties as collateral in order to help them meet their cash-flow needs amidst tough situation due to the pandemic.  The UAE has issued Federal Law No.(4) of 2020, which expands the scope of including more assets that can be used as collateral and through other amendments that improve enforcement in the case of defaults.  Generally, small businesses find it tough to secure bank loans due to their size and lack of financial history.  The law will also strengthen the UAE's competitiveness, ease of doing business ranking and attract more foreign direct investment.  Younis Haji Al Khoori, Under-secretary at the Ministry of Finance, also announced the ...read more...