Overview

Commercial mortgages in the United Arab Emirates are governed by the UAE Commercial Code and are the type of security registered over business premises in the UAE in relation to the tangible and intangible assets of a business necessary for commercial activity.

Commercial mortgages can only be mortgaged to banks and financing institution, and as a form of security that can be registered, must be notarised and registered to be perfected.

Parties’ contractual and legal obligations under a commercial mortgage are continuous, and both parties should be aware of their ongoing obligations to ensure the mortgage is fully perfected and enforceable according to the terms of the financing documentation. This short briefing from UAE law firm Hadef & Partners walks you through the essentials – including a 10-point checklist.