Chinmayi Sharma Authors Practice Note on the Enforcement of Security in the Abu Dhabi Global Market (ADGM)

In a new article for Practical Law, Chinmayi Sharma explores the options available to a lender for enforcing security interests in the ADGM. This Practice Note provides guidance on the ADGM’s distinct legal framework, which applies English common law, and its implications for various types of security, including mortgages, fixed and floating charges, pledges, and liens. It outlines key pre-enforcement considerations for lenders, such as assessing the debtor’s solvency and reviewing the validity of security documentation under ADGM law.

The practice note examines different enforcement procedures, alternatives to enforcement and addresses critical insolvency and jurisdictional considerations, including the cross-border recognition of judgments between the ADGM and onshore UAE courts. The note also discusses potential defences a security provider might raise and offers practical insights on strategy, costs, and timing.

Read the full article here.