The Regulations are now more specific over the types of assets that may be secured and in whose favour. Land mortgages and share pledges may still only be registered in favour of a UAE financial institution; a foreign lender to a foreign parent company will therefore still need to involve a local security agent to include JAFZ company assets within their security net, involving extra time and cost. No UAE financial institution is required for an assignment, however.
The Registrar needs to approve the security and this may increase the overall transaction timetable.
Security granted over non-JAFZ assets does not appear to be registerable with JAFZA. Therefore, if there is a pledge over the shares in a subsidiary of the JAFZ company, or over assets held by a JAFZ company in another jurisdiction, this will not be registerable with JAFZA. However, it may be registrable in the relevant overseas jurisdiction.
Provided that there is a court order, it would appear that a conditional assignment of a lease will allow the security holder to transfer the asset into their own name. This is unusual in the UAE, as normally the only right is to sell the relevant asset by way of an auction and receive the cash as compensation.