Q: I have a house in Dubai worth 6 million (mortgaged 3.8 million). I am an investor and have taken a business loan of 2 million. I want to sell the house but the real estate market is slow. Business is slow. If I am not able to pay the business loan EMI on time, what will happen? Will the bank give me time to sell the house and regularise the EMI payments?

Q: What happens if I failed to pay 3 instalments from my personal loan from the bank?

Q: Hi. I would like to ask a question. I had a bank loan in 2013, and due to crises, I lost my job in 2015 and couldn't continue my loan instalments. But now, I got a job in Dubai, and before coming to Dubai I spoke to the bank from my home country to remove police case and allow me to come to Dubai. The outstanding amount was AED 68K. The bank gave me a release letter with the help of Central Bank on the condition that I will continue my loan instalments, but my salary is not that big to be able to continue. So now the bank is telling me they will make a travel ban and civil case against me. My question is if bank files a case and I pay a fine in court against the cheque bounce, will the central bank or local bank still make another case or travel ban? Please help me and give your advice. Thank you

Q: I have a mortgage of 1.3m with a bank. It is a lease and the property is registered on my name. At the moment, I live outside the UAE and cannot sell the property because of COVID-19. There is a 40-day delay with payments - 1.5 installment is due. The bank sent me information to clear the outstanding amount within 1 day or they will start a police case and repossess the property. Is a 40-60-day payment delay long enough to start a police case and repossess the property? What can I do to avoid consequences? I can settle the outstanding amount within 15 days. I plan to sell the property when the borders get reopened.

Q: Dear Sir/Madam, I have a loan secured against my property and the bank wants to take the property, which is almost the same value as the loan. However, the bank has initiated legal proceedings in Dubai Courts to obtain a judgment. Should I contest the case if the value of the property can cover the bank loan? Do you know how much the court fees typically are?

The UAE has taken a bold step toward legislating the mortgage of movable assets after it was completely regulated by the Civil Code. The Federal Law No. 20 of 2016 Concerning the Mortgage of Moveable Assets, which came into effect 90 days after it was published in the Official Gazette on December 15, 2016, was a welcomed change by lenders after it gave them the ability to secure their debts with movable assets.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.