UAE's Movable Security Law – An Overview

Introduction

The UAE promulgated Federal Law No. 4 of 2020 on Securing Interests in Movable Property ("Movables Security Law") and Cabinet Resolution No. 29 of 2021 on the executive regulations of Federal Law No. 4 of 2020 ("Executive Regulations"). This legislation repealed Federal Law No. 20 of 2016 on Mortgaging Movable Property as Security for a Debt, establishing a comprehensive framework for the creation, perfection, and enforcement of security interests over movable property.

The Movables Security Law applies to any security interest established under its provisions for civil and commercial transactions. The right of the purchaser in a sale of receivables is also considered a security interest and is subject to the provisions of the Movables Security Law, with certain exceptions.