In co-operation with the Bahrain Economic Development Board (EDB), the Central Bank of Bahrain and The Judicial & Legal Studies Institute organized two specialized workshops on the Secured Transactions Law. Both workshops were attended by lawyers and professionals from the banking sector.
In cooperation with its partners, the EDB is advancing the Kingdom’s progressive legislative environment as a competitive asset to attract direct investment and create quality jobs. The Secured Transactions Law and its workshops are just the latest efforts from the EDB and its stakeholders to advance emerging investments and protect key economic sectors, all while raising awareness and knowledge.
The aim of the workshops was to provide in-depth awareness and understanding of the Secured Transactions Law, which is based on the legal model adopted by the United Nations Commission on International Trade Law (UNCITRAL). The workshops introduced participants to lending opportunities that may become available under the draft secured transactions law. The workshops also shed light on the types of assets that can be taken as collateral, how to take security right under the law and make it enforceable against third parties as well as explaining the enforcement provisions within the law in the event of the debtor’s default.
A number of legal and other experts spoke at the workshops, including David Carey, legal adviser at the US Department of Commerce and a specialist in commercial law development; Joseph U Schürer, lawyer at Kirkland & Ellis International, based in Chicago; and Mr Jae Sung Lee, a legal expert from UNCITRAL, the legal body of the UN system for international trade law. This was in addition to Blake Candler, a legal expert on commercial law development (CLDP) at the US Department of Commerce and Dr Jameel Alalawi, Senior Legal Advisor at the EDB.
Observers expect the law to positively impact the financial services sector in a number of ways. In particular, banks involved in the lending process and SMEs stand to benefit, as the law seeks to improve access to finance.