Mortgage law expected to reduce number of defaults



The chances of property buyers taking out multiple mortgages and then defaulting on their payments will be reduced under Dubai's new mortgage law, analysts believe. Under the law, which could be in force within three months, mortgages will be considered null and void unless they are registered with the Dubai Land Department.
By creating a database of mortgages in the emirate, lenders will be able to assess whether clients already have large debts with other financial institutions. "At this point in time, the market is not linked," said Peter Penhall, the chief executive of the property portal Gowealthy.com. "With the greatest respect to the banking system, Amlak might not be in a position to know what I've done with HSBC."
Mr Penhall said lenders were able to take out mortgages with a variety of banks and become "completely over-geared", but the new law would ensure this did not happen. "It will prevent the situation where someone buys 40 properties, where he is clearly unable to finance and service those 40 bonds, but just hopes that he can flip out of any potential problem," he said. In mature markets, property transactions are processed through a lawyer and a conveyancing firm. Both the transaction and the mortgage are officially registered in a deeds office, while credit-rating agencies assess a borrower's risk.
The Emirates Credit Information Company Limited (Emcredit) was formed in Dubai in Jan 2006 to perform this function, but according to analysts, it did not yet have a sufficiently comprehensive database. Chris Green, the managing director of Independent Finance, a Dubai-based mortgage adviser, said banks were unable to access details of an individual's debts with other lenders as easily as they would like.
"Even though they have the Emcredit bureau, it is still in its infancy stage and until more people contribute towards the information base, it's going to be difficult," he said. In the absence of a central database of mortgages, banks rely on borrowers' bank balances to identify existing loans and debits. According to Mr Green, this method gives banks "a pretty good feel" of an individual's monthly exposure, but not to the level they would like.
The new requirement for mortgages to be registered would give lenders the publicly accessible information they needed, he said. The mortgage law, which will come into effect within 60 days of being published in Dubai's official gazette, will also introduce a process to deal with foreclosures in the event of borrowers seriously defaulting on their repayments.
rditcham@thenational.ae

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Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla

Director: Raed Zeno

Rating: 4/5

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4.30pm: Maiden Dh80,000 1,400m
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7pm: Wathba Stallions Cup Handicap (30-60) Dh80,000 1,600m
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COMPANY%20PROFILE
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4.30pm: Sheikh Ahmed bin Rashid Al Maktoum Cup (TB) Dh200,000 (D) 2,000m
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Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone

Rating: 3/5

Profile of Tamatem

Date started: March 2013

Founder: Hussam Hammo

Based: Amman, Jordan

Employees: 55

Funding: $6m

Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media

COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

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Traits of Chinese zodiac animals

Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
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ESSENTIALS

The flights 
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The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.

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In Dubai:

Dh200 for littering or spitting in the Dubai Metro

Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle. 
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle

In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
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COMPANY PROFILE

Company name: Happy Tenant

Started: January 2019

Co-founders: Joe Moufarrej and Umar Rana

Based: Dubai

Sector: Technology, real-estate

Initial investment: Dh2.5 million

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Total customers: 4,000

Scores

Day 2

New Zealand 153 & 56-1
Pakistan 227

New Zealand trail by 18 runs with nine wickets remaining

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

The 12

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

Leap of Faith

Michael J Mazarr

Public Affairs

Dh67
 

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Company%20profile
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