The UAE does not impose stamp duty or taxes simply on signing aircraft or engine ‎sale agreements, including sales of ownership interests in entities. However, if an ‎aircraft is physically located in the UAE at the time of sale, local laws may impose ‎taxes or duties related to the transaction. The place of delivery usually determines ‎tax liability, so parties often arrange for delivery in jurisdictions with favourable tax ‎treatment. Typically, the buyer bears taxes and duties arising after delivery, as ‎agreed in the contract. Clear allocation of tax responsibilities in the sale agreement ‎is crucial to avoid disputes.‎

In the UAE, notarising a sale agreement is advisable to ensure enforceability against a domestic party, as the Federal Supreme Court has ruled that failure to meet mandatory notarisation requirements can render a contract invalid. While translation, certification or legalisation are not strictly required, they are prudent – particularly where parties use different languages or court reliance is anticipated to avoid disputes over interpretation and recognition.

In the UAE, title to an aircraft or engine transfers upon execution and delivery of a bill of sale, subject to payment and any conditions precedent, and generally includes installed parts such as the Auxiliary Power Unit (APU), unless excluded. A sale of shares in an owning entity is not treated as a sale of the aircraft or engine, and legal title remains with the entity, with only change of control carrying separate legal and regulatory implications.

The UAE generally recognises title transfers of aircraft or engines physically delivered in its jurisdiction, even if governed by English or New York law, under the lex situs principle, meaning that UAE law governs the transfer’s validity. Under the Cape Town Convention (CTC), transfers must be in writing, identify the aircraft by serial number, and the seller must have the right to sell, with both debtor and registry in Contracting States. The General Civil Aviation Authority (GCAA)requires notarised and legalised bills of sale, deregistration/reregistration documents, and an IDERA (Irrevocable Deregistration and Export Request Authorisation) if applicable, ensuring title transfer and deregistration only occur once prior interests are cleared or consented.

In the UAE, a bill of sale for an aircraft must generally be translated, certified, notarised and legalised to be enforceable against a domestic party. This is because the UAE legal system requires documents in foreign languages to be translated into Arabic by a certified translator for use in legal proceedings or official transactions. Additionally, notarisation and legalisation are necessary to ensure the document’s authenticity and compliance with UAE legal standards.

In the UAE, there is no legal requirement to file or register a bill of sale for aircraft or engines with any government authority for it to be valid or enforceable. Execution and delivery of the bill of sale do not require prior government approval or consent. However, the bill of sale is typically used to update ownership records with the relevant aviation authority.

Neither the execution and delivery of a bill of sale nor the sale of ownership interests in an aircraft owning entity trigger stamp duty, customs duty or automatic tax liabilities in the UAE. VAT and corporate tax may apply, depending on the structure and status of the transaction and the parties involved. GCAA procedures and compliance with the CTC must be considered where aircraft registry actions are needed.

Leases for engines, APUs and other major components are common, and follow the same legal and commercial principles as full aircraft leases – whether structured as operating or finance leases. These agreements are tailored to the specific technical, maintenance and usage needs of the assets, covering aspects such as off-wing handling, maintenance reserves, usage metrics and return conditions. Separate engine leasing offers operational flexibility and aligns with the maintenance and overhaul cycles of individual components.

An aircraft lease involving a domestic party or an asset located in the UAE may be ‎governed by a foreign law, such as English law. However, the enforceability and ‎recognition of the lease within the UAE will depend on the interaction between the ‎chosen governing law and applicable UAE legal provisions.‎

In the UAE, there are no material legal barriers to domestic lessees paying foreign lessors in USD or other foreign currencies under aircraft leases. The following conditions apply.

• Currency flexibility – the AED is pegged to the USD, making USD payments common and commercially accepted.
• Regulation – the UAE Central Bank oversees cross-border payments but allows foreign currency transactions if Anti-Money Laundering (AML) and Know Your Customer (KYC) rules are met.
• Banking – UAE banks support USD transfers; leases should specify currency and payment terms.
• Tax – no withholding tax applies to lease payments to foreign lessors.

The UAE operates a liberal foreign exchange regime with no substantive exchange controls that would prevent or restrict rent payments made by UAE lessees to foreign lessors under aircraft lease agreements, or repatriation of proceeds arising from enforcement or realisation of lease related rights by a foreign lessor.

There is no stamp duty, registration tax or documentary tax imposed in the UAE on the execution of an aircraft lease, even if signed within the UAE. The execution of a lease involving a domestic lessor or lessee (whether an individual or a corporate entity registered in the UAE) does not trigger any taxes or duties. There are no customs duties or taxes applied to bringing lease documents into the UAE and no restrictions, duties or taxes on transmitting or storing an aircraft lease electronically within or across UAE borders.

An aircraft lessor does not need to be licensed ‎or registered in the UAE solely by virtue of entering into an aircraft lease agreement ‎with a domestic lessee. A foreign lessor can legally lease an aircraft to a UAE-based ‎lessee without needing to establish a presence or obtain a commercial licence in ‎the UAE.‎

Under both English and New York law, there are no statutory provisions that mandate the inclusion of specific terms in an aircraft lease or its ancillary documents. However, certain provisions are widely considered essential to address regulatory, operational and financial considerations, and to ensure compliance with applicable laws and industry practices. Industry standard provisions typically include:

• insurance requirements;
• compliance with airworthiness and regulatory obligations;
• maintenance and return conditions (often including maintenance reserves); and
• use and operation restrictions.

While not legally required, these are essential to protect the lessor’s interests and to ensure regulatory compliance.

Tax and withholding gross-up provisions are permissible and enforceable in aircraft leases governed by English law. These provisions are standard in cross-border leasing arrangements and are designed to ensure that the lessor receives the full amount of rent and other payments, without any deductions on account of taxes or withholdings.

Aircraft leases typically cover parts installed or replaced after execution by including clear provisions requiring lessees to maintain the aircraft, engines and components in accordance with OEM, regulatory and agreed standards. Replacement parts must meet airworthiness conditions and be properly documented (eg, FAA Form 8130-3, EASA Form 1) to protect the lessor’s interest and asset value.

Under the CTC, there is no risk of title annexation for aircraft engines installed on an airframe. Article 29(7) ensures that engine ownership remains distinct and unaffected by installation or removal, supporting practices such as engine pooling, where engines are frequently swapped without affecting legal title or proprietary rights.

The concept of trusts and the role of an owner trustee under an aircraft lease are firmly recognised and well established under the laws of England and Wales. Trust structures, whereby a trustee holds legal title to property for one or more beneficiaries, who hold equitable interests, are a core feature of English law. This framework is widely used in aircraft leasing and financing transactions, particularly under initiatives such as the Global Aircraft Trading System (GATS).

In the UAE, the GCAA Aircraft Register primarily records the legal owner or operator, but may also note lessor or security interests where needed for enforcement or financing compliance. Legal titleholders, including lessors, can register ownership with the GCAA, though there is no public register for beneficial ownership and trusts are not generally recognised under UAE law. Priority and enforceability of international interests in aircraft, airframes and engines are mainly established through CTC registration.

The UAE Aircraft Register, maintained by the GCAA, is primarily an owner registry, with the Certificate of Registration listing the aircraft’s owner. While the aircraft must be registered in the UAE, the operator need not be the owner, and the operator can be separately identified in the GCAA’s records.

The UAE has no separate national register for aircraft or engine leases. However, international interests from qualifying leases should be recorded on the International Registry under the CTC (“CTC IR”), which covers airframes (meeting specified capacity thresholds), helicopters, and certain aircraft engines.

In the UAE, there is no legal requirement to register an aircraft or engine lease, or a lessor’s interest with the GCAA, and failure to do so does not affect the lease’s validity or enforceability between the parties. The GCAA registry records ownership and airworthiness details, but not contractual or financial interests. However, as a Cape Town Convention State, the UAE allows registration of qualifying leases on the IR to secure priority and give constructive notice to third parties. No government consent is required to execute or deliver such leases for UAE registered aircraft.

In the UAE, an aircraft lease does not need to follow a specific form or be translated, certified, notarised or legalised to be valid, registrable on the CTC IR or recognised by the GCAA. It must simply be prepared in writing and signed. English is accepted, with Arabic only required for court use. Notarisation or legalisation is unnecessary unless for court or certain government processes. The GCAA does not register leases, but may request basic supporting documents in limited cases, while Cape Town Convention registrations are completed electronically without submitting the lease.

There are no taxes or duties payable for registering an aircraft lease in the UAE because no domestic registry is maintained for aircraft leases. The UAE GCAAdoes not register or record lease agreements (whether for aircraft or engines). As a result, no local registration tax, duty or fee is imposed for lease registration.

The two most common offshore registries for UAE-based aircraft are Bermuda (VP-B/VQ-B) and the Cayman Islands (VP-C). Both comply with the requirements of the International Civil Aviation Organization (ICAO), are lender friendly, and are compatible with the CTC. Bermuda is FAA Category 1 rated and widely used for commercial leases and private jets, while the Cayman registry is known for flexibility and strong financing structures. Offshore registration is often chosen because the UAE registry is limited to UAE entities or holders of air operator certificates (AOCs),whereas these jurisdictions permit non-resident ownership and offer streamlined lien enforcement.

The UAE GCAA requires certain documents to be in original form and, in many cases, translated, notarised and legalised for aircraft registration. These typically include the bill of sale (original, sometimes notarised and legalised), any lease agreement submitted in support of ownership or operational structure (which may need notarisation and be translated into Arabic), corporate documents of the owner or operator (notarised, legalised up to UAE Embassy level, and translated), Powers of Attorney (original, notarised, legalised, and translated), and the Certificate of Deregistration from the previous registry (original, possibly translated). All documents in a foreign language must be translated into Arabic by a UAE Ministry of Justice-approved legal translator, and foreign documents often require notarisation in their country of origin, legalisation by the UAE Embassy there, and attestation by the UAE Ministry of Foreign Affairs upon arrival.

As of now, the UAE does not impose withholding tax on cross-border lease payments. Therefore, no UAE tax should generally be payable by the foreign lessor in respect of lease rentals received from a lessee domiciled in the UAE. That said, it is prudent for lessors to ensure that this position is confirmed in the lease documentation, and that no withholding is made unless legally required.

Under current UAE law, a foreign lessor is not deemed to be resident, domiciled, or carrying on business in the UAE merely by entering, or enforcing, an aircraft or engine lease with a domestic lessee. The presence of the leased asset in the UAE, or the performance of the lease within the UAE, does not, in itself, constitute a sufficient nexus to establish local tax residency or create a permanent establishment.

Mere enforcement of a lease, such as through repossession or legal action in the UAE courts, does not, either, amount to “carrying on business” in the UAE, nor does it create a tax presence or trigger licensing obligations.

Under typical leasing structures, including both operating and finance leases, the lessee assumes full responsibility for the maintenance, operation and use of the aircraft and its engines. The foreign lessor is not ordinarily subject to operational liabilities, provided the lease includes industry-standard indemnification, risk allocation, and maintenance provisions.

The lease agreement usually includes:

• indemnities in favour of the lessor for all claims, damages and liabilities arising from the lessee’s possession, operation, and maintenance of the aircraft;
• provisions placing exclusive operational and maintenance obligations on the lessee, in accordance with applicable laws and manufacturer’s specifications; and
• “hell or high water” clauses, ensuring that the lessee’s obligations to pay rent and perform maintenance are absolute, and not contingent upon the aircraft’s condition or usability.

Under UAE law, a foreign owner, lessor, or financier is not generally subject to strict liability solely by virtue of holding title to an aircraft or engine that causes damage or loss, so long as operational control rests with the lessee. Liability typically attaches to the operator, defined under UAE aviation law as the party exercising operational control at the relevant time. Nonetheless, there is a theoretical risk of a lessor or financier being drawn into liability proceedings, particularly in tort, if it can be shown that they exercised control or influence over the operation or maintenance of the aircraft – a risk that increases where the lease is not an arm’s length, long-term finance or operating lease.

Under UAE law, creditors of a domestic lessee generally cannot attach an aircraft leased but owned by another entity, as legal ownership remains with the lessor. The lessee’s rights are limited to possession and use. However, creditors may pursue claims over the lessee’s receivables, insurance proceeds, or related economic interests, so lessors typically require assignment notices and restrict lessee transfers contractually.

Under UAE law and the CTC, registered lessor interests generally have priority, but certain third-party rights may still take precedence regardless of lease registration. These include possessory liens by repairers for unpaid charges, detention or sale by authorities (such as airports or the GCAA) for unpaid fees, court-imposed delays during insolvency proceedings, and regulatory claims such as customs or sanctions enforcement.

Under UAE law, aviation insurance covering risks within the country must generally be placed with UAE licensed insurers, as mandated by Federal Decree Law No 48 of 2023 and Central Bank regulations. Primary coverage such as hull and liability must be local, though local insurers often reinsure abroad. Contingent or lessor insurance can be placed offshore under foreign law, but lease agreements typically require compliance with UAE regulations and international standards.

Aircraft operators in the UAE are subject to mandatory insurance requirements, including third-party liability for all aircraft, passenger, baggage, and cargo liability for commercial operators (in accordance with the 1999 Montreal Convention), and compulsory war-risk coverage. Minimum coverage levels depend on factors such as maximum take-off weight, seat capacity, and operation type. Primary insurance must be placed with UAE licensed insurers, and compliance is closely monitored by the GCAA to ensure airworthiness and operational safety.

Reinsurance can be placed outside the UAE for up to 100% of the risk, provided local insurance regulations and Central Bank guidelines are followed. Primary coverage must be issued by a UAE licensed insurer, but foreign reinsurers are permitted if reputable and meeting credit standards. This practice is common in aviation to access global markets such as London or Bermuda. Reinsurance contracts are between the UAE insurer and the reinsurer, so lessors often seek cut-through clauses for added security. The Central Bank oversees and may audit large reinsurance deals. This setup ensures local compliance while leveraging international reinsurance capacity, though lessors and financiers should secure contractual protections against counterparty risks.

Under UAE law, cut-through clauses granting third parties (eg, lessors or financiers) direct rights to reinsurance proceeds are generally unenforceable due to the principle of privity of contract, so that only parties to the contract can enforce its terms. Unlike some jurisdictions, UAE law does not recognise third-party beneficiary rights. Instead, practical workarounds include loss payee endorsements on primary policies, assignment of proceeds, tripartite or collateral agreements, and commercial acknowledgments from reinsurers, although these are not legally binding. Lessees also have obligations to maintain acceptable policy terms.

Assignments of aircraft insurance policies are generally permitted and commonly used in aviation finance to transfer rights to lessors, financiers, or security trustees. Assigning reinsurance contracts is technically possible, but less common and more complex. To address this, financiers typically rely on assignments of proceeds rather than full policies, reinsurance acknowledgments or tripartite/collateral agreements among insurers, reinsurers, and beneficiaries. All assignments are subject to formalities, contractual terms, and regulatory requirements under UAE law.

Under UAE law, a lessor may terminate an aircraft lease without statutory restriction, provided termination complies with the lease terms, follows a defined event of default, and observes contract law and good faith under the Civil Code. Repossession and re-export are permitted subject to General/Dubai Civil Aviation Authority procedures, the CTC (Federal Decree No 50 of 2008), an IDERA on file and UAE customs clearance. Once it has been repossessed, the lessor may sell the aircraft freely via private sale, auction, or lease. The aircraft’s physical location is critical, and while self help is theoretically allowed, enforcement depends on practical access and cooperation from UAE authorities, and is often timed to coincide with the aircraft’s presence in a friendly jurisdiction or accessible UAE facility.

Under UAE law, a lessor’s ability to repossess an aircraft without lessee consent depends on the lease terms, aircraft location and CTC applicability. As a CTC state (Federal Decree No 50 of 2008), the UAE permits self-help repossession if the lease provides for it and a valid IDERA is filed with the GCAA. In practice, access may be hindered by airport authority cooperation, lessee refusal, or security/regulatory constraints, often necessitating a court order despite legal self help rights.

The UAE has no courts exclusively for aviation matters, but disputes are heard by various forums depending on governing law, jurisdiction clauses, and party or asset location. Onshore civil courts handle UAE law disputes involving airlines, aircraft, leases, sales, and insurance. The DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market) courts, operating under English common law, are often used for English law-governed aviation finance and leasing disputes. The GCAA addresses regulatory issues, such as deregistration, but not contractual claims. Jurisdiction is determined by contract terms, and clear clauses are recommended, with UAE courts generally supporting party autonomy and international aviation instruments, including the CTC.

In the UAE, lessors can seek interim relief to protect aircraft pending final proceedings. Onshore courts do not offer summary judgment but can issue urgent orders, such as grounding or asset freezes, within two to seven days if urgency, prima facie rights and irreparable harm are shown, often ex parte with security. The DIFC and ADGM Courts allow summary judgment and injunctions, typically within one to three weeks, requiring proof of serious issues, risk of harm and balance of convenience. Under the CTC, preservation, possession and IDERA enforcement are also available. Forum choice depends on urgency, aircraft location, and the lease’s jurisdiction clause.

The UAE courts generally recognise and may uphold (i) choice of foreign law as governing an aircraft lease, (ii) submission to a foreign jurisdiction, and (iii) waiver of immunity clauses, subject to certain limitations and public policy. While onshore UAE courts respect foreign law clauses, they may still apply mandatory UAE rules on registration, safety and public policy. Offshore courts such as the DIFC and ADGM Courts consistently enforce governing law and jurisdiction clauses according to international standards. Submission to foreign jurisdiction is accepted, but onshore courts retain discretion, particularly if UAE assets or parties are involved. Waivers of sovereign immunity are acknowledged, but enforcement against sovereign assets in the UAE can remain limited.

Domestic courts in the UAE will recognise and enforce the final judgment of a foreign ‎court or an arbitral award without re-examination of the matter, provided certain ‎conditions are met. For arbitral awards, the UAE is a signatory to the New York ‎Convention, which obliges contracting states to recognise and enforce foreign ‎arbitral awards as binding, subject to the procedural rules of the enforcing ‎jurisdiction and the grounds for refusal outlined in the Convention. These grounds ‎include issues such as incapacity of the parties, invalidity of the arbitration ‎agreement, lack of proper notice, or enforcement being contrary to public policy.

UAE courts, including offshore courts such as the DIFC and ADGM Courts may grant judgment in a foreign currency, particularly where the underlying contract (eg, an aircraft lease) expressly provides for payment in that currency.

Lessors can recover default interest, compound interest, and additional rent or damages following termination, the enforceability of such provisions depends on their compliance with the penalty doctrine and the clarity of the contractual terms.

Under UAE practice, lessors are not typically required to pay significant taxes or fees when enforcing an aircraft lease. Instead, lessees usually indemnify lessors for all enforcement-related costs, including legal and professional fees. Lessees also bear expenses related to regulatory compliance, which helps preserve the aircraft’s value and the lessor’s interests.

In the UAE, there is no statutory mandatory notice period for terminating an aircraft lease whether the aircraft is operated domestically or leased by a domestic operator except in insolvency cases where the CTC imposes a 60-day stay. Termination procedures and notice periods are governed by the lease terms, which should be clearly defined. Lessors should also ensure international interests are registered under the CTC and consider local enforcement processes, including coordination with the GCAA, when planning termination timing.

An airline lessee may claim sovereign or other immunity from suit under an aircraft ‎lease if it qualifies as a state or state-owned enterprise. However, such immunity can ‎be waived, provided the waiver is explicitly agreed upon in the contractual ‎documents. The waiver must be sufficiently broad to encompass immunity from suit, ‎enforcement and execution. It is advisable to ensure that the waiver is binding ‎under the applicable local law, as the host state or state-owned enterprise may ‎resist granting such a waiver.

The United Arab Emirates acceded to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) in 2006. As a result, UAE domestic courts are generally required to recognise and enforce arbitral awards made in other contracting states, subject to the provisions of the New York Convention and applicable national procedural.

A lessor enforcing its rights should be mindful of key issues such as strict compliance with legal and regulatory requirements, risks of disputes over security deposits and maintenance reserves, and the possibility of possessory liens or statutory detention powers by repairers or authorities. Additionally, insolvency proceedings can complicate repossession efforts, and competing claims may arise, making careful navigation of legal, regulatory, and practical challenges essential.

The UAE recognises both contractual assignment and novation in aircraft transactions, subject to legal and formal requirements. Assignment, governed by the CTC, involves transferring rights via a written agreement that specifies assigned rights and, for security assignments, the secured obligations. Novation, requiring consent of all parties, substitutes one party for another and creates a new contract transferring both rights and obligations. In aviation finance, assignment is common for purchase agreement rights, while novation is used for lenders stepping into buyers’ positions. Both require careful attention to consent, governing law, and insolvency considerations.

Under UAE law, assignments or novations of a lessor’s rights under an aircraft lease governed by New York or English law are generally recognised if they comply with that governing law and do not violate UAE public policy. The lessee’s consent is typically required since such transfers affect their rights and obligations. While UAE law does not impose mandatory terms for these agreements, they must adhere to general contract principles such as lawful purpose, clarity, mutual consent, and any lease-specific procedural rules (eg, notice or consent clauses). Additionally, registration of the assignment or novation with the CTC IR may be necessary to ensure enforceability and priority.

While aircraft or engine lease assignments and novations governed by foreign law are generally recognised in the UAE, for enforceability, particularly before UAE onshore courts or authorities, certain formalities are advisable. These include translating documents into Arabic by a certified legal translator, notarising and legalising them through the UAE Embassy, and obtaining a UAE Ministry of Foreign Affairs attestation. Signature certification may also be needed for GCAA registration or enforcement. However, if the lease falls under DIFC or ADGM jurisdiction, translation and legalisation may not be required unless enforcement in UAE onshore courts becomes necessary.

Under UAE law, assigning, assuming, or novating an aircraft or engine lease does not require registration with the GCAA for contractual validity. However, registration on the CTC IR is essential to secure priority and enforceability of international interests, and failure to register risks losing priority to third parties. The GCAA does not maintain a public registry for lease assignments or novations, but may require notification if changes affect operator, lessor, or financier details, which can also impact aircraft registration or the Certificate of Airworthiness. No prior government approvals are needed to execute the assignment or novation. Registration with the CTC’s IR typically completes within 24–72 hours, while any GCAA filings may take one to three weeks. Parties must also observe lease provisions regarding lessee or authority consent.

In the UAE, no taxes, duties, or stamp duties are payable on the assignment, assumption, or novation of an aircraft or engine lease agreement. The UAE does not impose stamp duty, nor are customs duties or fees triggered by executing or importing such agreements whether original or copies physically or electronically into the jurisdiction.

In the UAE, the transfer of ownership or beneficial interest in an entity or trust owning an aircraft while legal title remains with that entity or trustee is generally recognised. Under frameworks such as GATS, legal title is held by a trustee for the beneficial owner, so transferring beneficial interest does not affect legal ownership or require lease novation. This structure preserves existing leases and registrations, allowing ownership changes without disruption, aligning with common market leasing and financing practices.

An aircraft may be deregistered only at the request of the registered owner, lessee, mortgagee, trustee or any holder of an IDERA recognised by the GCAA. Submit the GCAA application with consent from all interest-holders, return required documents or declare them lost, clear registry fees, cancel codes and marks, and provide IR confirmation.

Deregistration cannot proceed without the lessee’s/operator’s written consent, except where an IDERA is enforced via obtaining a UAE court order to compel deregistration without the lessee’s/operator’s consent.

The following documents will be required:

• the original Certificate of Registration;
• any Letters of Undertaking;
• written consent from all registered interest-holders;
• proof of removal of nationality and registration marks and cancellation of Mode S and ELT codes;
• a copy of the mortgagee or lessor’s passport or UAE residence permit;
• evidence of full payment of outstanding registry fees; and
• an IR extract confirming the IDERA record with the UAE AEP code.

The deregistration process typically takes five working days.

IDERA recorded in the IR pre-authorises deregistration without further consents.

The GCAA does not issue advance assurance letters or time-bound guarantees.

Costs include pro-rated GCAA annual registry fees (AED250–AED3,000, based on maximum takeoff weight), IR fees and VAT.

A POA granting authority to de-register an aircraft is valid in the UAE, provided that it is drawn up in Arabic or another relevant language (with a certified translation) and is duly notarised.

The following additional documents are required.

• POA.
• Board resolution or shareholders’ resolution authorising the granting of the POA.
• Certificate of Incorporation and valid Trade License.

A deregistration POA does not necessarily have to be governed by UAE law, but it must be legally recognised and enforceable under UAE aviation regulations if it is being used to de-register an aircraft from the UAE registry.

In the UAE, POA is presumed revocable by its grantor unless it forms part of a genuine security arrangement in which the agent holds a vested interest.

An aircraft owner or lessor cannot not export the aircraft without lessee consent while the lessee lawfully possesses the aircraft, unless an IDERA is on file naming the owner/lessor or a UAE court order is obtained.

It is possible for a mortgagee to export an aircraft without owner/lessor consent if the mortgagee is the IDERA authorised party.

The GCAA issues aircraft export permits. The applicant must complete the deregistration procedure, provide necessary clearances, including IDERA, and submit documents to UAE customs. The process takes five to ten working days, and permits can be issued in advance.

Costs include administrative fees charged by the GCAA. UAE customs may also impose clearance fees. Exports are zero-rated for VAT.

Physical removal of registration marks is not a precondition for deregistration, and must be completed before export and confirmed during the aircraft’s final inspection. Stakeholders must ensure that any recorded interests are properly addressed to avoid delays.

The UAE’s legal framework relevant to lessees includes the Civil Transactions Law and the Commercial Transactions Law. For aircraft lessees, the UAE adheres to the CTC, the UAE Civil Aviation Law and GCAA regulations. Lessees must also comply with VAT Law.

Federal Law No 51 of 2023 on Financial Restructuring and Bankruptcy applies to lessees domiciled in the UAE, excluding entities in the DIFC and ADGM, which have separate regimes. A specialised Bankruptcy Court and Bankruptcy Administration oversee filings, creditor arrangements and asset management.

Onshore UAE does not follow the UNCITRAL Model Law. Foreign insolvency orders are treated as foreign judgments, and may be recognised under the Civil Procedure Law if conditions are met. By contrast, the DIFC and ADGM apply modified Model Law regimes allowing foreign insolvency recognition and court cooperation. Soft-law protocols are not prohibited, but depend upon court acceptance. Relief routes include exequatur onshore and recognition applications in the DIFC/ADGM.

Liquidation of the lessee does not invalidate a GCAA-filed IDERA; the authorised party may still pursue deregistration and export under the UAE’s CTC regime, subject to moratorium rules and formalities. A standard POA ends on liquidation unless it is tied to a genuine security interest. An IDERA ends upon full performance and formal release; a non-security POA lapses on insolvency or once its purpose is fulfilled.

In UAE insolvency, aircraft leases are not automatically voided; they are only rejected if legally voidable. Repossession may be paused by a moratorium; however, under a valid IDERA and Alternative A protocol, the creditor regains possession after the waiting period. The aircraft remains the lessor’s asset unless the lease is false, and unsecured creditors cannot override secured interests, except for certain approved or priority claims.

The main risks are potential invalidation of recent security or guarantee arrangements if deemed preferential or undervalued; delays or restrictions in enforcement due to insolvency moratoriums; and subordination of claims to court-approved expenses or statutory liens.

A moratorium is imposed once insolvency proceedings commence. In preventive settlement cases, the Bankruptcy Court grants an initial stay of three months, extendable by one-month increments for up to a maximum of six months.

Domestic lessees in the UAE (onshore) can be liquidated voluntarily or through bankruptcy. Administration exists only in the DIFC/ADGM. Onshore receivership arises via security enforcement, court appointment or out-of-court realisation under relevant laws.

Ipso facto lease events are valid, but subject to a bankruptcy moratorium. Under CTC’s Alternative A, the lessor can repossess and deregister/export after 60 days if defaults are not cured, with no extra default needed. The DIFC/ADGM apply the same approach.

A leased aircraft remains the lessor’s property but is subject to a 60-day stay under CTC rules; repossession via IDERA follows if defaults are not cured. Pre-bankruptcy rent is unsecured; post-bankruptcy rent is a priority estate expense. Security deposits and maintenance reserves may be applied or offset per contract, but some require oversight, and their treatment depends on classification.

CTC and Aircraft Protocol are in force in the UAE, and the UAE has not designated an Authorised Entry Point, so no AEP codes are required. International interests may be registered directly on the IR by the consenting party without a UAE entity making the filings; registrations are made immediately once user accounts and consents are in place.

The UAE has made several declarations pursuant to Article 39(1)(a); Article 39(1)(b); Article 40; Article 52; and Article 53 of the Cape Town Convention & Aircraft Protocol – Alternative A (Article XI).

Article XIII applies in the UAE. IDERAs are recorded on the Civil Aircraft Registry at GCAA.

There are no reported UAE court decisions on enforcing the CTC or Aircraft Protocol. In practice, remedies are implemented administratively through the GCAA using Article XIII/IDERA and, in insolvency, via Alternative A after the 60‑day waiting period, subject to any Article 39 non‑consensual liens and public law detention rights.

The UAE is not a party to either, but has adopted the Cape Town Convention, which supersedes both.

Foreign lenders can finance aircraft offshore in the UAE without a local licence, but onshore lending or dealing with UAE-based borrowers requires Central Bank authorisation. The DIFC and ADGM allow foreign lenders under their own rules. Loan proceeds must align with public policy, AML laws, and contract terms.

The UAE has no exchange controls, and loans and proceeds can be freely remitted in foreign currency via licensed banks. No prior approval is needed for repayment or enforcement, aside from routine formalities. Transfers must still comply with AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) requirements, sanctions rules, and any insolvency or sector-specific restrictions. There is no federal withholding tax on interest or principal.

UAE borrowers can grant security to foreign lenders. The DIFC and ADGM allow direct security registrations under their own rules.

Guarantees must have a valid obligation and be issued by a capable entity. Corporate benefit is not mandatory by law, but is evaluated in practice. Approvals and proper documentation are key. No registration is needed for the guarantee itself, though related security must be registered.

Share pledges over UAE SPVs owning aircraft are valid and enforceable if documented, notarised and registered in accordance with company law. They offer control without asset-level security.

A negative pledge is recognised under UAE law and may be contractually enforced. The DIFC and ADGM, likewise, uphold negative pledges under their respective contract and insolvency laws.

UAE law allows intercreditor freedom. Agreements are enforceable onshore and in the DIFC/ADGM, with security priority based on registration and contract rather than statute.

Facility agents are recognised under UAE law. They act on behalf of syndicate lenders based on contract terms, with no fiduciary duties unless agreed. The DIFC and ADGM follow common law and enforce agency roles in accordance with the facility agreement.

Debt subordination is recognised in the UAE via enforceable contract clauses, including in the DIFC and ADGM. Structural and payment subordination are used, with priority based on contract and registration, not law. No registration is required.

UAE law recognises debt assignments under English/New York law if compliant with public policy. Onshore, they are enforceable with notice to the debtor, with no consent needed. The DIFC and ADGM fully recognise such assignments under common law.

UAE law does not cap interest rates. Interest must be agreed by contract, and only compounded if explicitly allowed. The courts may reduce rates if they are excessive. Tax rules limit deduction – ie, general interest deduction limitation rules (GIDLR) and special interest deduction limitation rules (SIDLR) – not pricing.

Aircraft mortgage (GCAA and CTC filings), lease and insurance assignments, registered pledges over accounts and parts, and SPV share pledge with sponsor support. Recourse involves repossession/export via IDERA, sale of movables, set-off, guarantee enforcement, and unsecured claims – subject to liens and insolvency stays.

UAE law permits security over aircraft, engines, parts, and related receivables through mortgages and assignments. However, it excludes non-transferable public-law rights and off-wing engines unless separately secured. Assignments depend on contract terms, with insurer consent often needed. Future assets can be covered if clearly described and registered.

UAE law permits security trustees under the Trusts Law and Movables Security Law. The DIFC/ADGM also recognise common law trustees. If registration limits apply (eg, for real estate), market uses parallel debt, agency appointments, or local agents holding security with contractual turnover.

A borrower may assign aircraft lease rights (including rent and insurance proceeds) to a trustee/agent, perfected via EMCR (Emirates Movable Collateral Registry), GCAA, and CTC filings. Recognised under UAE laws and DIFC/ADGM, insurance assignments require policy compliance. If registry wording is limited, market uses parallel-debt or agent-held security with lender turnover.

UAE law, including the DIFC/ADGM, allows assignment of lessor rights under aircraft leases (eg, rent, repossession, insurance) without transferring obligations – if clearly limited and documented. The CTC supports this, and courts uphold it when disclosed to counterparties.

Security assignments or guarantees may be governed by English/New York law and are generally upheld in UAE courts unless contrary to public policy. Onshore enforcement may need document legalisation, and foreign judgments follow treaty and UAE procedure rules. Local law governs registration and priority.

Security assignment must be in writing, specify assigned rights and secured obligations, and be filed with the EMCR (for receivables/insurances), the GCAA (for aircraft interests), and the CTC IR. Failure to comply risks loss of priority and enforceability. For onshore parties, translation, notarisation, and legalisation are advisable.

UAE aircraft financing requires GCAA mortgage/EMCR filings plus any foreign-law security to ensure enforceability and priority. CTC filings do not need UAE filings, but domestic registry is key for third-party and insolvency protection. Costs are typically low-to-mid four figures AED, plus legal formalities.

An UAE-law security instrument is registrable domestically with the GCAA and EMCR. An English or New York law-governed security assignment may also be registered domestically if it meets UAE registry formalities (eg, notarisation, legalisation, Arabic translation). While governing law may be foreign, registration and perfection are governed by UAE law.

UAE law allows transfer of security interests over aircraft and engines under the Movables and Civil Aviation Laws. Validity depends on documentation and registration with the GCAA, CTC IR and, possibly, the EMCR for engines.

Under UAE law, a change in the identity of secured parties (eg, via assignment or transfer) does not jeopardise existing security interests, provided the security assignment includes a parallel debt or agent structure and the change is properly documented. For perfection and enforceability, updated filings or notices may be required with EMCR, GCAA, and insurers. Failure to update may affect priority or recognition against third parties.

UAE financings often use parallel debt structures, giving the trustee a separate claim against the borrower to ensure enforceability. The borrower acknowledges a debt equal to lender obligations, allowing the trustee to hold security directly – an approach upheld by UAE courts.

Mere entry into or enforcement of a security assignment does not, by itself, make a secured party UAE‑resident, domiciled, “carrying on business,” or subject to UAE taxes. Non‑residents are within UAE corporate tax space only if they have a permanent establishment or nexus (eg, immovable property), or are subject to withholding tax (currently 0%). There is no stamp duty, and any VAT on imported services is typically reverse charged by the UAE borrower (no local VAT registration absent a permanent establishment, or PE). Routine filings, court actions, or temporary title on enforcement do not create a PE; this differs if the financier maintains a UAE branch/fixed place or a dependent agent habitually concluding contracts.

A domestic aircraft or engine mortgage is perfected by registering the instrument with the GCAA, which records the mortgagee’s interest on the aircraft’s certificate of registration. While not mandatory for validity, GCAA registration ensures priority and protects against deregistration or sale without mortgagee consent. For international recognition, parallel filing at the CTC IR is also recommended.

Aircraft security is perfected by GCAA registration and CTC filings, while spare engines, treated as movable assets, are typically perfected via EMCR and CTC filings if qualifying as “aircraft objects”. The GCAA does not register engine mortgages separately, so perfection relies on movables registry and international filings. Form and process differ due to asset classification.

Typically, a UAE-law bank account pledge/charge over the designated account (often paired with a blocked or springing control agreement/deposit account control agreement (DACA) with the account bank) is used. Perfection is by EMCR filing under the Movables Security Law, with practical priority achieved by “control” via the DACA (which is automatic if the account bank is the secured party). For lease receivables paid into the account, a security assignment of receivables is also taken and notice given to lessees to redirect payments. If the account sits in the DIFC/ADGM, the charge must be registered with the relevant free‑zone registry in addition to (or instead of) the EMCR, as applicable. Arabic translation and notarisation/legalisation are advisable for onshore enforcement, but are not a condition for creation of the security.

UAE law recognises non‑consensual and possessory liens over aircraft/engines, including statutory detention/privilege for unpaid airport and air navigation charges, taxes/customs dues, and possessory repairers’ liens; these may take priority over consensual security pursuant to the UAE’s Cape Town Article 39 declaration and applicable domestic law. Such liens are not typically registrable with the GCAA (which registers mortgages) but can be protected/enforced via court precautionary attachment and execution.

• Repairers’ liens are possessory, and cover only the specific asset and the reasonable value of work/materials on that asset; they do not extend to other assets or the full contract price, and are lost on surrender of possession.

• A general “fleet lien” is not recognised for private creditors; however, airport operators, the GCAA, Air Navigation Service Provider (ANSP) and customs/police may detain aircraft for unpaid public charges, which can operate fleet‑wide in practice against the operator’s aircraft present in the UAE.

• Remedies include administrative/civil detention and grounding, refusal of services/permits, court‑ordered precautionary attachment and judicial sale; repairers may retain possession until paid, but generally require court process to sell.

Discharging a mortgage or lien over an aircraft typically takes five to ten business days, depending on GCAA processing, document completeness and whether consular legalisation or Cape Town deregistration is required. Delays may arise if third-party consents or court orders are involved. EMCR releases for receivables or engine liens are usually faster (two to five days).

The GCAA maintains the national aircraft register; aircraft mortgages (including those governed by English/New York law) can be recorded there, and the mortgagee/security trustee noted on the Certificate of Registration. Notation is not a condition to inter partes validity, but gives public notice, supports priority against third parties in the UAE, and effectively blocks deregistration/transfer without the mortgagee’s written consent; CTC IR filings are separate for international priority. There is no separate GCAA charges register for engines; security over spare engines is typically perfected via the Emirates Movables Collateral Registry (EMCR) and, if qualifying, the CTC IR.

Under the UAE’s Cape Town declarations, specified non‑consensual rights with priority include post‑default wage liens, post‑default state tax/charge liens and possessory repairers’ liens; UAE/state entities and public-service providers may arrest or detain an aircraft for unpaid charges relating to services rendered in respect of that aircraft, and certain non‑consensual rights (eg, court attachments, pre‑default wages and taxes) are registrable as international interests. A “fleet‑wide” lien is not recognised; such rights attach to the relevant aircraft, not the entire fleet.

The following registers could be searched:

• the GCAA Aircraft Register (ownership and recorded mortgages);
• the CTC IR (international interests/assignments);
• the EMCR (engines, receivables and insurance); and
• if a free‑zone entity is involved, the DIFC/ADGM security registers.

No public register exists for statutory liens or court attachments; no‑dues letters (airport/ANSP/customs) must be obtained and UAE court searches.

Enforcement of a security assignment typically involves asset‑specific remedies (eg, repossession, sale of receivables or aircraft) and may require EMCR/GCAA deregistration or CTC filings; it is governed by the Movables Security Law and relevant aviation regulations. Loan enforcement is contractual, and may require court judgment or arbitration. Guarantee enforcement requires formal demand and court proceedings, unless waived, and must comply with Civil Code formalities (eg, specific debt, written form). Security assignments may be enforced without judgment if properly perfected; guarantees and loans generally require judicial process.

A notice and lessee acknowledgement make the assignment effective inter partes to enable redirection of rents/insurance proceeds, but these are not sufficient alone to exercise coercive remedies (termination, repossession, deregistration). For effectiveness against third parties, the security must be perfected (eg, via EMCR/CTC filings), and for aircraft‑related remedies onshore, a UAE court order is generally required under the UAE’s Article 54(2) Cape Town declaration. Limited out‑of‑court enforcement may apply to registered receivables under the Movables Security Law upon notice of default, but physical remedies still require judicial relief; security POA and parallel‑debt/agency language are advisable, but not a substitute.

UAE domestic courts generally uphold (i) a foreign governing law in finance or security documents and (ii) submission to a foreign jurisdiction, provided the choice does not conflict with UAE public policy or mandatory laws. The DIFC/ADGM Courts routinely enforce such choices under their common law frameworks. Onshore courts may decline foreign jurisdiction clauses if UAE courts have exclusive jurisdiction (eg, over UAE assets or parties), but otherwise respect them under Federal Decree‑Law No 42 of 2022 (Civil Procedure Law). Enforcement of foreign judgments/arbitral awards is subject to treaty or reciprocity, and procedural compliance uses carry weight – primarily as a matter of comity rather than absolute protec­tion.

UAE courts will generally recognise and enforce final foreign judgments and arbitral awards without re-examination, provided they meet treaty or reciprocity conditions, are not contrary to UAE public policy, and comply with procedural requirements under Federal Decree‑Law No 42 of 2022 (Civil Procedure Law) and UAE Arbitration Law. Awards under the New York Convention are enforceable via petition to the Court of Appeal without substantive review.

Under UAE law and its Article 54(2) Cape Town declaration, self-help remedies are not permitted for aircraft; physical possession requires a UAE court order. Even if the security is perfected and default occurs, repossession or sale must follow judicial procedures, including precautionary attachment and enforcement proceedings. EMCR-registered movables may allow limited out-of-court enforcement, but aircraft require court authorisation.

UAE onshore civil courts are competent to hear enforcement actions under aircraft mortgages and security agreements involving UAE-registered aircraft. The DIFC and ADGM Courts may also have jurisdiction if the parties have contractually submitted to them or if the security is structured through those free zones. Enforcement typically requires a court order, particularly for repossession or sale, in line with UAE’s Article 54(2) Cape Town declaration.

UAE courts may grant precautionary attachment, injunctive relief, or interim measures (eg, grounding, asset freeze) pending final judgment under Federal Decree‑Law No 42 of 2022 and Civil Aviation Law. Summary judgment is not available onshore, but may be granted in the DIFC/ADGM Courts. Applicants must show urgency, prima facie entitlement, and risk of dissipation; courts may require a bond or bank guarantee to secure damages if the relief is later found unjustified. Aircraft repossession or sale still requires final judgment unless Cape Town self-help is expressly permitted (not applicable onshore).

UAE courts may issue judgments in foreign currency if the obligation is denominated accordingly and evidenced in the contract. However, enforcement typically converts the amount into AED at the prevailing exchange rate on the date of payment or execution, unless the parties agree otherwise or the court orders payment in the original currency. The DIFC/ADGM Courts routinely enforce foreign currency judgments without conversion.

UAE law does not impose stamp duty or significant taxes on enforcement of security agreements or aircraft mortgages. Court filing fees, precautionary attachment costs, and GCAA deregistration fees may apply, but these are generally nominal or mid-triple figures AED. VAT may apply to legal services, and a bond or guarantee may be required for interim relief, but no substantial tax is triggered solely by enforcement.

Lenders should ensure that they are properly licensed under UAE law if conducting financing activities onshore; unlicensed lending may trigger penalties under the law. Enforcement may be delayed by court backlog or procedural formalities, and precautionary attachment requires specific documentation and urgency. Security checks are no longer reliable enforcement tools due to recent judicial reforms. Lenders should also monitor regulatory changes affecting enforcement, such as updates to banking and insolvency laws, and ensure security documents are robust against evolving legal frameworks.