Host
There’s just so much more to hear. Download our podcast at DubaiI1038.com.
Claire Sharick is here, and we are also joined by Ludmila Yamalova, our legal expert. How nice it is to see you. A very warm welcome to the studio. Did I catch you drinking water?
Ludmila Yamalova
No, no, not at all.
Host
She just took a pre-broadcasting slurp as you introduced her. Always bad timing!
Ludmila Yamalova
Pre-broadcasting slurp? Don’t give away the behind-the-scenes stuff!
Host
We got asked about that yesterday, didn’t we?
Ludmila Yamalova
Actually, yeah.
Host
Was that yesterday? A listener asked if it’s allowed to eat or drink before broadcasting.
Ludmila Yamalova
That was Thursday.
Host
Well, it’s not advisable because, as we see, that can happen. Anyway, thank you for putting me on the spot.
Ludmila Yamalova
Salty stuff, chocolate, and coconut—never have that.
Host
So, have you had a Bounty bar today?
Ludmila Yamalova
No.
Host
No? Good. We should be okay then. Let’s start by talking to Ruby. Lots of questions to get to today. Ruby should be on line five. While you’re getting Ruby, a reminder to text your questions to 4001. Ruby, how are you?
Ruby
Hi, I’m fine. Good afternoon.
Host
Good to have you on. Hello, Ludmila.
Ludmila Yamalova
Hello, Ruby.
Ruby
I have a question about bank loans—specifically offshore loans. I have a loan here in Dubai, but I’ve received an opportunity with one of my subsidiaries outside the UAE. My personal loan is ongoing, with two years left to pay. Is it possible to pay it from outside the country?
Ludmila Yamalova
In short, yes. However, you should discuss this with your bank in advance. In the past, it was more difficult for debtors to continue servicing obligations if they exited the country, but today banks are more flexible and understanding. As long as you continue paying your obligations, the bank should have no issues.
You do need to inform them ahead of time to avoid concerns about a potential flight risk once your visa expires or is canceled. Some loans are secured against end-of-service benefits, and banks might automatically use that payment to settle your loan. So, it’s important to discuss expectations with your bank.
Host
How’s that, Ruby?
Ruby
Yes, that’s helpful.
Host
Good to talk to you, Ruby. Appreciate your call.
Host
It’s an interesting question because, depending on how the loan is structured, the bank might use end-of-service benefits to settle it. Is it legal or allowed to ask your company to give that part in cash or transfer it to another account to prevent that?
Ludmila Yamalova
It depends on the loan agreement and your relationship with your company. Legally, the company isn’t obligated to transfer end-of-service payments to a specific bank unless they are a party to the agreement.
Host
So, the bank should really handle this with the employee rather than involving the employer.
Ludmila Yamalova
Exactly. It’s best to keep it clean and avoid bringing the company into the arrangement unless they are acting as a guarantor, which is uncommon in such cases.
Host
That makes sense. Ludmila, what’s your take on how banks have changed their approach over time?
Ludmila Yamalova
Banks today are less reactionary. They no longer automatically close accounts just because a visa expires or someone leaves the country. As long as there’s no default, the relationship can continue. It’s important to assure the bank of your commitment to paying off the loan to avoid unnecessary concerns.
Host
One last question on this: Is a company obligated to notify the bank if an employee resigns?
Ludmila Yamalova
No, there’s no legal obligation unless the company explicitly agreed to such terms in the loan agreement.
Host
That’s good to know. Ludmila Yamalova is here for Drive Live Talks Legal. Let’s move to Ali on line two. Ali, good afternoon.
Ali
Good afternoon. I have a question about the new mortgage law. Is it in force, and where can I get a copy?
Ludmila Yamalova
The new mortgage law has not yet come into force. It’s been announced but hasn’t been published. Once it’s available, we’ll update listeners and guide you on where to access it.
Host
Thanks, Ali. Appreciate your call. Ludmila, what’s your view on the mortgage law so far?
Ludmila Yamalova
The law aims to introduce alternative sources of financing for the real estate sector, moving beyond traditional bank financing. It’s an encouraging development, but until it’s published, we can only speculate on the specifics.
Host
Thank you, Ludmila. Always a pleasure to have you on the show.
Ludmila Yamalova
Thank you. Always good to be here.
Host
There’s just so much more to hear. Download our podcast at DubaiI1038.com.