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Movable Collateral Registry

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Effective secured transactions laws and collateral registries are a crucial component of a healthy financial sector and business climate. In their absence, entrepreneurs are unable to leverage movable assets into capital for investment. Modern secured transactions systems allow the use of movable assets (both tangible and intangible) such as equipment, inventory, accounts receivable, cash flows, livestock, crops and others as collateral in exchange for loans. Economic analysis also suggests that small and medium-sized businesses in countries that have stronger secured transactions laws and registries have greater access to credit, better ratings of financial system stability and a lower cost of credit.

Recognizing the need to reform secured transactions framework in the United Arab Emirates, the government of the UAE embarked on the reform project, which included the enactment of UAE Movable Assets Collateralization Law (Laws 20 for 2016).

Emirates Development Bank in its capacity as the Registrar was appointed to lead the implementation of the secured transactions reform in the UAE, which includes the implementation of Electronic Movable Assets Securitization Registry.