Shura Council approves draft law on mortgaging movable funds in its amended form

Shura Council

The Shura Council held its regular weekly meeting, via video conference on Monday, under the chairmanship of HE the Speaker Ahmed bin Abdullah bin Zaid Al Mahmoud, at the Council's headquarters. At the outset of the meeting, the Council discussed the report of the Financial and Economic Affairs Committee on the draft law on mortgaging movable funds .The draft law includes 9 chapters and 49 articles, which aims to give companies and individuals the opportunity to acquire bank loans guaranteed by mortgaged movables such as equipment, work tools, all kinds of devices, agricultural crops, animals and their products and intellectual rights. It also aims to facilitate financing operations and lowering the cost of loans by finding guarantees for banks that reduce the risk of default. The move will benefit small and medium-sized enterprises in playing a major role in enhancing the local economy. The draft law also includes provisions related to the scope of application, establishing an electronic record at the Qatar Central Securities Depository (QCSD) and data needed to be recorded, establishing the right to mortgage and its entry into force, establishing the rights of mortgagee and sanctions along with general provisions.