Floating Charges In Egypt Law

Egypt has finally passed The Security Over Movables Law in November 2015 which introduced a regime similar to fixed and floating charges as applicable under the UK law. The Executive Regulation (ER) of the Law was passed in December 2016¹. Taking into consideration novelty of the legislation, it has yet to be implemented on the ground and results to be evaluated. However, the main provisions of the Law can be discussed and outlined.

Movables subject to a security interest can be existing or future, tangible or intangible duly owned by the borrower; such movables may be pledged to secure an obligation, a debt, a loan or a credit instrument, provided such movables meet the following conditions: a) it can be legally tradable in Egypt; b) is in the possession of the borrower; and c) for the purpose of enforcement can be detached from other classes of assets. Creditors, benefiting from the security can be banks and other financial institutions holding licenses to operate