Netting arrangements in Qualified Financial Contracts made enforceable

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Federal Decree-Law 10
of 2018 on Netting (the Netting Law)
was published in the UAE Federal Gazette on 30 September 2018 and will take
effect on 30 October 2018 (the Effective
). It is a significant
development to the derivatives framework in the UAE, in terms of both the legal
enforceability of such arrangements and the ability to implement close-out
netting (i.e., netting of obligations
following an event of default or termination event), particularly following the
bankruptcy of one of the parties.

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