Unified UAE Legislation Database

FAQ: Can a financial institution enforce a loan and guarantees if the loan was granted before new regulatory requirements came into force?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Answer:

Yes. If the loan and guarantee agreements were executed before the new law (e.g., Article 121 bis of Federal Decree-Law No. 23 of 2022), then the law has no retroactive effect and cannot invalidate prior arrangements.

 

Legal Basis:

- General legal principle: laws apply prospectively unless explicitly stated otherwise.

- Article 121 bis of Federal Decree-Law No. 23 of 2022.

 

Relevant Case Law:

Case No.39 of 2025 / Dubai Court / Commercial