The report, part of an analysis of the insolvency regimes in 30 different countries, examined how well developed the UAE’s laws are for dealing with issues of insolvency.

“While it would be an overstatement to claim that the UAE is an unfriendly jurisdiction for secured creditors, the laws and regulations addressing creditors’ rights are not as evolved as those in many other jurisdictions,” says the report.

It adds that because the laws remain untested by any case of insolvency, lenders should consider the extent to which they expect to be repaid in the event of a default by a borrower.