Debenture
A debenture is a type of debt instrument that companies use to raise capital from investors, typically without offering collateral. While debentures are more commonly issued by public joint-stock companies (PJSCs), their issuance in the UAE is governed by the UAE Commercial Companies Law (Federal Decree-Law No. 32 of 2021) and additional regulations set by the Securities and Commodities Authority (SCA). Unlike traditional loans, debentures provide long-term financing and often carry a fixed interest rate. Businesses in regulated sectors, such as banking and insurance, may require special approvals before issuing debentures in the UAE.
