Project Finance in the United Arab Emirates (UAE) – Q&A – STA Law Firm

Project Finance – Q&A – Practical Guide – UAE

What are the key difference in the legislation in this jurisdiction and other key international jurisdiction?

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In comparison with other jurisdictions, the laws regulating the project financing in UAE are not too strong. The Federal Law Number 18 of 1993 concerning the Commercial Transactions Law (the commercial law) and the Federal Law Number 5 of 1985 concerning Civil Code (the civil code) governs the project finance in the country. However, these laws are not at par and are in comparison with other major countries are not too detailed. Further, concerning the civil code and the commercial code, the following are the main transactions which are not regulated by security laws of UAE:

The first and the principal difference in UAE and other jurisdictions is the lack of a concept of floating charges, the security law in UAE do not recognize the creation of security interest, either by mortgage or through the pledge. The security interest can only be created for assets that can be identified and ascertained.

In several jurisdictions, the court or the relevant government authority of that country requires them to register a mortgage over a movable property to allow for filling financing documents. However, UAE does not need parties to record for pledges over the movable property.

The UAE imposes a mandatory requirement on the parties to register the mortgage at Lands Department in the relevant Emirate and depositing documents of title in the bank is not sufficient.

In other jurisdictions, the assignor, and assignee enters into an assignment to notify the assignment debtor, however, under UAE law debtor’s consent is required for that particular assignment to be created.

Are there differences in the way project finance operates in the free zones and secondary jurisdictions?

Yes,  there are variations in the operation of project financing in free zones and other jurisdiction since the free zone is in itself a separate jurisdiction in UAE. Henceforth, all the free zones have their own rules and regulations governing the project finance. The first difference that in most of the free zone the mortgages over land is not possible, however, the Jebel Ali Free Zone (JAFZA) passed Law Number 1 of 2002 concerning the lease of immovable property in JAFZA which allows for a mortgage over a building but still not over a land.

Within UAE, different Emirates have promulgated their local laws which govern the mortgage and pledge apart from the commercial code and the civil code. The Emirate of Dubai has implemented its own real estate law, Dubai Law Number 13 of 2008 concerning the Interim Real-Estate Register, this law conforms with the UAE laws to facilitate the registration of a security interest in the land.

It is advisable to operate in the free zones rather than the mainland because of the ownership restriction in the mainland. The foreign investors can enjoy hundred (100) percent ownership in the free zone as opposed to forty-nine (49) percent in the mainland.

Source: Project Finance in the United Arab Emirates (UAE) – Q&A – STA Law Firm

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Speedy Criminal Justice in Dubai’s Legal System – STA Law Firm

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William E. Gladstone once said in a public gathering that ‘justice delayed is justice denied.’ But neither the person nor the concept was new to the anxious crowd. Regarding the person, Mr. Gladstone has served as the Prime Minister of United Kingdom more times than any anyone else. And regarding the phrase, the cumbersome process and delay in obtaining judgments have been an age-old issue in the litigation arena. Both the former and the latter had an enduring effect on the minds of the crowd present at that gathering.

Since we all know the reason of the former, let’s try and understand the importance of the term ‘justice delayed is justice denied.’ It is not because courts do not provide equitable judgments or fail to exercise its authority to implement the rights of the people. But it is due to the time taken by the courts to pronounce these equitable judgments to enforce the rights of the citizens. Therefore, even a fair and just decision from the court may deny a party of his right due to the procedural delay in adjudication.

A unique characteristic of the law is its ability to be general as well as abstract. Hence, the law applies to everyone without any discrimination and therefore, in legal proceedings that require the separation of the case there is no difference between a case and another unless within the law. However, the adverse effects of lengthy and multiple litigation proceedings on the status quo of the matter(s) in both civil and criminal cases are common knowledge to us.

Source: Speedy Criminal Justice in Dubai’s Legal System – STA Law Firm

Who Will Survive Between the Man, the Law and Artificial Intelligence – STA Law Firm

MAN, the Law, and Algorithms!

“Computers will overtake humans with Artificial Intelligence within the next 100 years. When that happens, we need to make sure that computers have goals aligned with ours.”

  • Stephen Hawking
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A few years ago, I used to take the morning bus to reach College. During that ride, I would look at my fellow passengers, and notice a decent number of people holding books of various genres and authors. Whereas today, as I take the metro to work, I observe that most of the people are indulged in their mobile devices or e-books to read from their favorite authors. Anyone who stops for a moment to see this transition in lifestyle would be amused at the extent that technology has influenced us in our daily chores! Who would have thought that we would hold devices that can speak to us and show thousands of books and authors in just one click! Then I wondered… What if the people of tomorrow use similar devices to read novels and short stories that are authored by computers? What if tomorrow we were able to (and we will) create a technology that is progressively intelligent and can produce a novel as good as J.K Rowling, Stephen King or Charles Dickens? Should the law consider a computer, in that case, as an author and give it ownership of its copyright? Continue reading to fabricate an opinion on the subject.

A Global KO!

Although, in my view, all kinds of intellectual work should be conferred with legal protection to avoid any misuse by third parties, be it the work of a human or nonhuman (or artificial beings). However, many believe that intellectual property that is created by artificial beings should not be subject to copyright protection since humanity of the applicant is the basis of conferring these rights rather than intelligence and creativity of the work. The most suitable example in this regard is the famous ‘Monkey Selfie case’ that was filed by PETA[i] in a Federal Court in San Francisco in 2015. In this case, a British photographer lost his camera in the Indonesian forest when the star-studded ‘Naruto’ (monkey) came along, grabbed the camera and took a selfie. However, the story does not end there. Viewing this bizarre accident as a queer marketing strategy, the photographer and many other online outlets published Naruto’s picture on various social media websites as a publicity stunt; leading to the filing of a suit by PETA to establish Naruto’s copyright over the image.

[i] People for the Ethical Treatment of Animals (a non-profit organization that campaigns for animal rights and their ethical treatment).

Source: Who Will Survive Between the Man, the Law and Artificial Intelligence – STA Law Firm

Legalities Surrounding Aircraft Leasing in Dubai and UAE – STA Law Firm

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TECHNICAL ASPECTS OF AIRCRAFT LEASING

(Part 1 of 2)

In the first issue of this two-part series, aviation lawyers at STA discuss the types of aircraft leasing and the legal aspects therewith. Our lawyers have on many occasions advised clients on the legalities surrounding different types of aircraft leasing and their benefits.

The diverse interest prices and the difference in legal aspects of leasing (in general) have become one of the major issues which make the aviation industry just as uncertain as the shipping industry. It thereby becomes necessary to consider different financial structures and options for maintaining business income and tax considerations of owning an aircraft has led aviation industry to consider financing structures like leasing an asset rather than purchasing. Leasing is not for everyone, and hence the purpose and utility of an asset needs to be assessed before leasing an asset like aircraft. Factors that may lead to consideration of leasing an aircraft rather than buying is to provide temporary augment in the fleet capacity of the airlines due to season or economic conditions, the cost of operating an aircraft for short term, maintenance liabilities, anticipated revenue generation, so on and so forth. Though the process seems to be a financially convenient option for airlines, it is important to note that this process, in reality, is time consuming, cumbersome and complicated with the regulations in place to ensure technical aspects for ascertaining the safety of airlines service users.

Complexities in lease agreements arise due to maintaining asset value (by addition of details of the value of aircraft and audit records), adding pre-mitigation clause for any adverse events, legal jurisdictions, multi-jurisdictional use of aircraft, protection in any events of default in payments, maintaining records of total operational life of the part as required by regulatory authorities, maintenance or servicing and repairs, airworthiness of the aircraft, insurance provisions, operation expenses, delivery conditions, re-delivery conditions, end of lease compensation, so on and so forth. It is therefore pertinent to understand the types of the lease as the legal aspect revolves around this technicality.

Source: Legalities Surrounding Aircraft Leasing in Dubai and UAE – STA Law Firm

Legal Liabilities – Bounced Cheques

STA Law Firm | Lawyers in Dubai & UAE

Legal Liabilities – Bounced Cheques

We all know writing a bad cheque is against the law, at least in the United Arab Emirates, but sometimes you write a post-dated cheque, and the cheque bounces for entirely innocent reasons. Sometimes the person or company who tried to cash the cheque will be forgiving and allow you a grace period. However, if your payment doesn’t go through in the first instance, you could be liable for a lot more than a damaged reputation. Read more about the legal implications of bad cheques with our team of top lawyers in UAE in our article Implications of Bounced/Dishonored Cheques Under UAE Law.

So, here you are. You’ve either received or written a bad cheque, and you don’t know where to go from here. If you’ve received the invalid cheque, you must be rather upset, and want to ensure that you get your legal entitlements…

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The Law on Maritime Arbitration

STA Law Firm | Lawyers in Dubai & UAE

downloadThe Modern world require quick legal mechanism  to address the Maritime disputes and International arbitration ready to provide answers. Arbitration is one of the main alternative dispute resolution method recognised for its unique awards that binds the parties to the disputes. Sea related trade matters are well known for its demand from the law to provide efficient and quick response for their disputes. One of the main reason is these businesses more often involved with trade of goods that can expire does the matter go to the litigation and take more time. therefore, this specific part of the business always demand arbitration rules and institutional procedures to change and shape according their new requirements. In response, International Arbitration provide such flexible and speed awards to find amicable solution on different situations.

Maritime disputes are mostly in between two countries. The vessels travelling from one country to another country does…

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Real consequences of new VAT Law in UAE.

STA Law Firm | Lawyers in Dubai & UAE

downloadUAE government decided to impose new VAT to all the imports and supply of goods and services starting from the new year. Decades ago, UAE government invited all the investors to start business in UAE for the outstanding facility they provided. Similarly, they invited the new business establishments such as entrepreneurs and professional service providers with providing low rated license fees and office spaces for flexible rate. In overall, Dubai turned from desert to a corporate heaven in very quick time.

Every investor started building their own name and started to run business in UAE for the aforementioned reasons. There was always a rumor that Dubai may also improse VAT on Business such as in other countries. However, this becomes true from 2018 effecting all the underlying purpose of the Dubai of making corporate heaven.

There were many Tax related crimes founded in many other countries in recent times. Also…

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It opens in one tap, but a mobile App is certainly more than that.

STA Law Firm | Lawyers in Dubai & UAE

app-softwareWhy would someone want to worry about something if it opens in a one tap and work as you required? Yes, still there are some reasons one must be responsible and thoughtful about mobile apps. Mobile apps are simply used in every day of our life. In basic, the first thing in the morning the average percentage of modern human’s touch is a mobile app when they wake up in the morning. Starting from that, to connect with families and friends on social media, to purchase clothes from online, to write down emails, book a car service, to make video calls, to pay banks and companies, and many other apps used on everyday basis. However, the legal aspect in relation to Information and technology has certain developments which require the regulations in the relation of developing an app, relationship between the developer and the customer, and responsibility of an app…

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