Overview

The Mortgage Law and the recent foreclosure ruling given by the Dubai courts reduces the time spent on the litigation process and it is envisaged that the simplified method will encourage lenders to seek foreclosure on mortgaged properties.

The Mortgage Law only appears to allow judicial sale for conventional banks, and judicial sale is an auction process which may not be the preferred enforcement action of the conventional banks. Islamic financial institutions typically own the assets and can therefore take possession and rent them out or sell them in their own time.

Hadef & Partners discusses practical considerations for lenders considering executing foreclosure proceedings.

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