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Friday, September 17, 2021

Qatar approves draft law on mortgaging ‘movable’ assets


Mortgaging movable assets may soon become a possibility in Qatar after the cabinet approved a draft law at a meeting held in the Amiri Diwan on Wednesday.

The draft law aims to give companies and individuals the opportunity to acquire bank loans guaranteed by their movable property. Applying this law would contribute to lowering the cost of loans by finding guarantees for banks that reduce the risk of default.

Under the law, movable assets include all tangible and intangible assets, present and future. This includes current accounts and deposit accounts, written bonds and documents, work equipment and tools, goods intended for sale or lease, raw materials and goods in the process of manufacturing or transformation and more.

Read also: Cabinet steps towards establishing Qatar ‘global standards’

The move will benefit small and medium-sized enterprises in playing a major role in enhancing the local economy, Qatar’s state news agency QNA reported in a statement.

The proposal includes “provision related to the scope of application, establishing an electronic record at the Qatar Central Securities Depository and data needed to be recorded, establishing the right to mortgage and its entry into force, and establishing the rights of mortgagee,” according to the government run Hukoomi website.  

The ministers agreed to refer the issue to the Shura Council (Advisory Council) for further discussion.

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