News and developments

Netting arrangements in Qualified Financial Contracts made enforceable

Federal Decree-Law 10

of 2018 on Netting (the Netting Law)

was published in the UAE Federal Gazette on 30 September 2018 and will take

effect on 30 October 2018 (the Effective

Date). It is a significant

development to the derivatives framework in the UAE, in terms of both the legal

enforceability of such arrangements and the ability to implement close-out

netting (i.e., netting of obligations

following an event of default or termination event), particularly following the

bankruptcy of one of the parties.