The UAE Federal Supreme Court’s January 2024 decision (Case No. 1254 of 2023) marks a watershed moment in financial jurisprudence, reaffirming the ๐ฉ๐ซ๐จ๐ก๐ข๐๐ข๐ญ๐ข๐จ๐ง ๐จ๐ ๐๐จ๐ฆ๐ฉ๐จ๐ฎ๐ง๐ ๐ข๐ง๐ญ๐๐ซ๐๐ฌ๐ญ and anchoring lending practices in fairness and legal clarity.
๐๐๐ ๐๐ฅ ๐
๐จ๐ฎ๐ง๐๐๐ญ๐ข๐จ๐ง๐ฌ
• ๐๐ซ๐ญ๐ข๐๐ฅ๐ ๐๐๐(๐), ๐
๐๐๐๐ซ๐๐ฅ ๐๐๐๐ซ๐๐-๐๐๐ฐ ๐๐จ. ๐๐ ๐จ๐ ๐๐๐๐ (๐๐๐ง๐ญ๐ซ๐๐ฅ ๐๐๐ง๐ค ๐๐๐ฐ)
• ๐๐ซ๐ญ๐ข๐๐ฅ๐ ๐๐, ๐
๐๐๐๐ซ๐๐ฅ ๐๐๐ฐ ๐๐จ. ๐๐ ๐จ๐ ๐๐๐๐ (๐๐จ๐ฆ๐ฆ๐๐ซ๐๐ข๐๐ฅ ๐๐ซ๐๐ง๐ฌ๐๐๐ญ๐ข๐จ๐ง๐ฌ ๐๐๐ฐ)
These provisions prohibit ๐ข๐ง๐ญ๐๐ซ๐๐ฌ๐ญ ๐จ๐ง ๐๐๐๐ฎ๐ฆ๐ฎ๐ฅ๐๐ญ๐๐ ๐ข๐ง๐ญ๐๐ซ๐๐ฌ๐ญ,
mandate ๐ฌ๐ข๐ฆ๐ฉ๐ฅ๐ ๐ข๐ง๐ญ๐๐ซ๐๐ฌ๐ญ ๐จ๐ง๐ฅ๐ฒ, and
cap total interest at the ๐จ๐ซ๐ข๐ ๐ข๐ง๐๐ฅ ๐ฉ๐ซ๐ข๐ง๐๐ข๐ฉ๐๐ฅ ๐ฏ๐๐ฅ๐ฎ๐—even
when delay interest is applied.
#UAELendingReform
#NoCompoundInterest #EthicalBanking #UAEFederalCourt#BucksCapitalNetwork #LegacyInvesting
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