Dubai Chamber legal seminar examines letters of credit

Dubai Chamber of Commerce and Industry today hosted a one-day legal seminar examining the use of financial instruments, like letters of credit, in order to help local businesses avoid common pitfalls.

The Letters of Credit: Practical and Legal Issues seminar, organised by Dubai Chamber’s Legal Services Department, examined some of the lessons to be learned from cases that have materialised in recent years.

Ms. Jehad Kazim, Director, Legal Services Department, Dubai Chamber, said: “Despite trade finance instruments offering companies more secure payment and finance alternatives, the number of disputes and litigation between trading firms and banks has increased in recent years. Furthermore, the environment has become complex through obligations and issues affecting trade and finance. These are issues impacting businesses today and the seminar sought to address these challenges and offer companies solutions to enable them to enhance their business.”

The one-day seminar was designed for exporters and importers, sales and purchasing managers, custom brokers, credit professionals, insurers, trade consultants, international bankers and attorneys. It looked at how to avoid common issues when conducting international trade and finance operations under traditional finance instruments, such as letters of credit, guarantees and standbys.

It was organised into four main sessions covering the following issues; Practical Background and Legal Context, Documentary Credit - Operational Issues and Challenges, Disagreements and Official Opinions and Forensic Legal Reviews.

Speakers included Mr. Vincent O’Brien, a member of the ICC Banking Commission and chairman of the ICC Market Intelligence Group (MIG), and Mr. Robert Parson, a partner of Reed Smith’s Energy and Natural Resources Group.

Mr. O’Brien said: “This seminar helps us open a dialogue amongst the Legal practitioners on specific issues and it indicates the continuing cooperation with Dubai Chamber in organizing seminars and workshops that cover all various dimensions to promote trade finance in UAE.”