Sheikh Khalifa issues federal law on netting

ABU DHABI / WAM

President His Highness Sheikh Khalifa bin Zayed Al Nahyan has issued Federal Decretal Law No.10 of 2018 on Netting, where its provisions shall apply to all qualified financial contracts, netting agreements specified under this law or collateral arrangement, which are entered into by any person in the state.
This decretal law does not apply to the Financial Free Zones and financial institutions licensed thereby to the extent where there are similar legislations governing similar cases referred to in this law. The promulgation of this law is also aimed at strengthening the legislative framework for the settlement of obligations arising from qualified financial contracts through set-off, offset, or net out obligations.
HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, said, “The UAE is proceeding today, in accordance with the directives of the wise leadership, in a steady step towards developing the legislative and legal structure of the State; and the integration of all necessary aspects and provisions to ensure the rights of all concerned parties, protect investors and raise their confidence in order to support financial stability, and enhance the competitiveness of the state internationally.”