In the implementation of provisions of this decretal law, and unless the context otherwise requires, the following words and expressions shall have the meanings cited against each:
The State: The United Arab Emirates 
The Ministry: The Ministry of Finance 
The Minister: The Minister of Finance 
The Committee: Committee for Designation of Qualified Financial Contracts 
The Regulatory Authorities in the State: The Central Bank of the United Arab Emirates, the Securities & Commodities Authority, and the Insurance Authority 
Financial Free Zones: Financial free zones established in accordance with provisions of Federal Law No (8) of 2004 referred to 
Qualified Financial Contracts: Financial contracts established under an agreement, contract or any transaction, including any terms and conditions attached thereto 
Cash: Money credited to an account in any currency, or any other monetary claim for repayment of money, including money market deposits 
Multi-Branch Netting Agreement: A Netting Agreement between two parties under which any of the parties enters into a Qualified Financial Contract through its Home Office in addition to one or more of its branches or agencies located in countries other than its Home Country 
Person: A natural person or a judicial person 
Insolvency and Bankruptcy Procedures: Any procedure under the provisions of laws relating to bankruptcy, insolvency, liquidation including any compulsory winding up procedure, reorganisation, composition with creditors, receivership, conservatorship or any other similar procedures in force in the State 
Insolvent: The Person in respect to whom Insolvency and Bankruptcy Procedures have been initiated under laws in force in the State 
Liquidator: The Person who is in charge of liquidation or receivership procedures, or nominated to carry out such procedures; or the trustee, conservator, supervisor for such procedures or other Person or entity, which administers the affairs of an Insolvent during Insolvency and Bankruptcy Proceedings under the laws in force in the State 
Collateral: All that is provided to secure or enhance a right or obligation arising out of a Netting Agreement or a contract of Qualified Financial Contracts, and including any of the following: 
- Cash in any currency;
- Securities, and any rights or claims related thereto;
- Guarantees, letters of credit and obligations to reimburse; and
- Any asset commonly used as collateral in the State.
Collateral Arrangement : Any margin, variation margin, collateral or security procedures or other credit enhancement tools related to, or forming part of a Netting Agreement or one or more 
Qualified Financial Contracts entered into thereunder, or to which a Netting Agreement applies, including:
- A pledge, mortgage, charge or any other form of security interest in Collateral, whether possessory or non-possessory;
- A title transfer Collateral Arrangement; and
- Any guarantee, letter of credit or reimbursement obligation by or to another party to a Qualified Financial Contract, in relation to those contracts.
Title Transfer Collateral Arrangement : A margin, Collateral or security procedures related to a Netting Agreement based on the transfer of title to Collateral, whether by outright transfer or by way of security, including a sale and repurchase agreement, securities lending agreement, securities buy/sell-back agreement or a pledge or mortgage in accordance with special terms and conditions 
Home Country: The jurisdiction where any of the parties to a Netting Agreement is incorporated, regulated or duly registered 
Home Office: The office at the Home Country of any party to a Netting Agreement 
Foreign Party: A party whose Home Country is outside the State or within the Financial Free Zones 

1.  An agreement is considered a Netting Agreement in any of the following cases:
  a. Any agreement between two Parties that provides for Netting of present or future payment or delivery obligations or entitlements or obligations, or entitlement to make, receive or require payment or delivery, arising under or in connection with one or more Qualified Financial Contracts entered into under such agreement by the parties to the agreement referred to as a "Master Netting Agreement";
  b. Any master agreement between two parties that provides for Netting of the amounts due under two or more Master Netting Agreements;
  c. Any Collateral Arrangement such as credit support annexes or credit support deed related to or forming part of one or more of the foregoing agreement referred to in paragraphs (a) and (b) of this article; and
  d. Any agreement or arrangement in accordance with Shari'ah rules, with a view to having similar purposes as any Netting Agreements or arrangement referred to in paragraphs (a), (b), and (c) of this article.
  e. If it includes agreements, contracts or transactions, which fall within the framework of Qualified Financial Contracts referred to in Article (5) of this decretal law.
2. Any arrangement shall be deemed to be a Collateral Arrangement if it includes agreements, contracts or transactions that fall within the framework Qualified Financial Contracts referred to in Article (5) of this decretal law or within the definition of Netting Agreements referred to in this article.
3. Any Netting Agreement and all Qualified Financial Contracts to which such netting agreement applies shall constitute a single agreement.
4. A "Netting Agreement" shall include "Multi-Branch Netting Agreement"; however, the provisions of the Multi-Branch Netting Agreement referred to in this decretal law shall be enforceable on the Foreign Party's Branch/Agency, in case of its separate insolvency.

Netting Agreements shall be final and enforceable in accordance with their terms, including against an Insolvent, a guarantor, or any other Person providing security for any party to this agreement, even if this Person becomes Insolvent. The execution of a Netting Agreement shall not be suspended or stopped or otherwise impose conditions on its execution based on:
1. The appointment of, or any application for the appointment of a Liquidator or any action of the Liquidator;
2. Any other provision of law relating to Insolvency and Bankruptcy Procedures; or
3. Any other provision of law that may be applicable to an Insolvent.

During Insolvency and Bankruptcy Proceedings relating to a party to a Netting Agreement, the obligations of any party to make payments or deliveries, which pursuant to that agreement are converted into net claims or obligations or otherwise netted – including through entry by the parties into a transaction of the kind referred to in item (5) of the definition of Netting referred to in Article (3) of this decretal law – shall take effect, in accordance with the terms of the applicable Netting Agreement.
The same applies to Qualified Financial Contracts and to financial contracts and transactions to which such Netting Agreement applies.

The provisions of a Netting Agreement, which provide for the determination of a net balance of the close-out values, shall be enforced in respect of an Insolvent and any other party in accordance with its terms. The same shall apply in respect of market values, liquidation values and replacement values calculated in respect of accelerated and/or terminated payment or delivery obligations or entitlements under one or more Qualified Financial Contract entered into under or in connection with a Netting Agreement.
The provisions of a Netting Agreement shall not be suspended, resolved, made conditional or not performed in any manner based on the provisions of the Insolvency and Bankruptcy laws in force, which limit the exercise of rights to set-off, offset or net out obligations, entitlements, payment amounts or termination values owed between an Insolvent and another party.

1. The Liquidator shall not annul, stop or refuse the performance of any of the following operations, on the grounds of it constituting a preference due to a non-Insolvent:
  a. any payment, transfer, delivery, substitution or exchange of cash, Collateral or any other interests, property, asset, or financial instruments, both conventional and Shari'ah-compliant, under or in connection with a Netting Agreement made from the Insolvent party to the non- Insolvent party;
  b. any obligations incurred under or in connection with a Netting Agreement by the Insolvent and owing to the non-Insolvent to make any payment, transfer, delivery, substitution or exchange of cash, Collateral or any other interest or property; or
  c. any transaction entered into by the Insolvent in accordance with the terms of any Netting Agreement in order to give effect to the netting provisions of this agreement.
2. As an exemption to the provisions of item (1) of this article, the Liquidator may have the right to annul or stop or refuse the performance of the operations mentioned in it, where there is clear and convincing evidence that the non-Insolvent party made such operations with the intention to hinder, delay, or defraud any party to which the Insolvent party was indebted or became indebted, during or after the date such operations were made.

1. The liability of a Foreign Party's Branch/Agency, in case of insolvency, or the liability of its Liquidator in the State under a Multi-Branch Netting Agreement shall be calculated as of the date of the termination of the Qualified Financial Contracts entered into under such Multi-Branch Netting Agreement in accordance with the terms of this agreement. The non-Insolvent's right to receive payments shall be limited to the lesser of either (i) the Foreign Party Net Payment Obligation or (ii) the Foreign Party's Branch/Agency Net Payment Obligation.
2. The liability referred to in item (1) of this article otherwise paid to or received by the non-Insolvent shall be reduced by any amount in respect of the Foreign Party Net Payment Obligation pursuant to such Multi-Branch Netting Agreement, which if added to the liability of the liquidator would exceed the Foreign Party Net Payment Obligation, under this article.
3. The liability of the liquidator of an Insolvent branch or agency of a Foreign Party to the non-Insolvent under a Multi-Branch Netting Agreement shall be reduced by the fair market value of, or the amount of any proceeds of, Collateral that secures or supports the obligations of the Foreign Party under the Multi-Branch Netting Agreement and has been applied to satisfy the obligations of the Foreign Party pursuant to the Multi-Branch Netting Agreement to the non-Insolvent.
4. The Foreign Party's rights to receive payment based on payments made in accordance with its Insolvency and Bankruptcy Proceedings in other jurisdictions shall be limited as follows:
  a. The liability of the non- Insolvent shall be reduced by any amount otherwise paid to or received by the Liquidator or any other liquidator or receiver of the Foreign Party in its Home Country or any other country in respect of the Foreign Party Net Payment Entitlement pursuant to such Multi-Branch Netting Agreement, which if added to the liability of the non-Insolvent under this article would exceed the Foreign Party Net Payment Entitlement.
  b. The liability of the non-Insolvent to the Liquidator pursuant to such Multi-Branch Netting Agreement also shall be reduced by the fair market value of, or the amount of any proceeds of the Collateral that secures or supports the obligations of the Non-Insolvent and has been applied to satisfy the obligations of the non-Insolvent to the Foreign Party pursuant to such Multi-Branch Netting Agreement.
5. The non-Insolvent to a Multi-Branch Netting Agreement which has a perfected security interest in Collateral, or other valid title, lien or security interest enforceable against third parties pursuant to such Multi-Branch Netting Agreement, may retain all such Collateral and upon termination of such agreement in accordance with its terms apply such Collateral in satisfaction of any claims secured by the Collateral, provided that the total amount so applied to such claims shall in no event exceed the Foreign Party Net Payment Obligation, if any. Any excess Collateral shall be returned.

1. A Foreign Party's Branch/Agency Net Payment Entitlement shall be the amount that would have been owed by the non-Insolvent Party, if any, to a Foreign Party, under a Multi-Branch Netting Agreement, after Netting that Qualified Financial Contract entered into by the non-Insolvent with the branch or agency of the Foreign Party, which takes place in the State under such an agreement.
2. A Foreign Party's Branch/Agency Net Payment Obligation shall be the amount that would have been owed by the Foreign Party, if any, to the non-Insolvent, under a Multi-Branch Netting Agreement, after Netting those Qualified Financial Contracts entered into by the non-Insolvent with the branch or agency of the Foreign Party, which takes place in the State under such an agreement.
3. A Foreign Party Net Payment Entitlement shall be the aggregate amount owed by the non-Insolvent – including all its subsidiaries and affiliates, if any, to the Foreign Party. This shall apply after giving effect to the Netting provisions of a Multi-Branch Netting Agreement with respect to all Qualified Financial Contracts subject to Netting under such agreement – or the aggregate amounts that would be owed if the relevant Multi-Branch Netting Agreement provided for any payments to either party, upon termination of Qualified Financial Contracts thereunder, under such agreement.
4. A Foreign Party Net Payment Obligation shall be the aggregate amount owed by the Foreign Party – including all its subsidiaries and affiliates to the non-Insolvent after giving effect to the Netting provisions of a Multi-Branch Netting Agreement with respect to all Qualified Financial Contracts subject to netting under such agreement.