Operating Aircraft in the UAE: Registration, Leasing, and Security Under GCAA Rules

Does your aircraft need to be registered with the GCAA to operate in the UAE?

• Yes. Any civil aircraft operating in UAE airspace or based in the UAE must be registered with the General Civil Aviation Authority (GCAA) under Federal Law No. 20 of 1991, unless it holds a valid foreign registration and the required operating permits.
• Registration is restricted. Only UAE nationals, companies with a principal place of business in the UAE, or UAE government departments qualify to register an aircraft on the UAE register.
• Leasing triggers registration obligations. If a foreign-owned aircraft is leased to a qualifying UAE person, the GCAA can register that aircraft for the duration of the lease.
• The Cape Town Convention applies. The UAE ratified the Cape Town Convention under Federal Decree No. 32 of 2006. A 2024 amendment to Article 19 of the Civil Aviation Law gave international conventions primacy over domestic provisions, and the UAE joined the Cape Town Discount List in April 2025.
• No self-help remedies. Under the UAE's Article 54(2) declaration, repossession of an aircraft requires a court order. The GCAA recognises the IDERA mechanism but, in contested cases, expects judicial backing.

Who this applies to

This article is for airlines, aircraft leasing companies, aviation financiers, corporate jet owners, and MRO operators that register, lease, finance, or operate aircraft in the UAE. It also applies to foreign entities that structure ownership through DIFC, ADGM, or Dubai South SPVs.

If you are a company or fund considering holding structures in DIFC, ADGM, or a mainland free zone for an aviation asset, the structuring and registration requirements overlap with the rules explained in this article.

Operators that lease aircraft to UAE carriers, or financiers that take security over UAE-registered aircraft, face specific registration, perfection, and enforcement rules that differ between the GCAA register, the Emirates Movable Collateral Registry (EMCR), and the Cape Town International Registry.

The GCAA regulatory framework

The GCAA is the federal regulator for civil aviation in the UAE. It was established by Federal Law No. 4 of 1996 to implement and enforce the Civil Aviation Law (Federal Law No. 20 of 1991). The GCAA sets safety standards, issues Civil Aviation Regulations (CARs), maintains the aircraft register, certifies operators, and oversees airworthiness.

Dubai also has a local regulator. The Dubai Civil Aviation Authority (DCAA), established under Dubai Law No. 19 of 2010, manages Dubai's airspace and supplements GCAA rules with emirate-specific requirements for operations at DXB and DWC airports.

The principal legislation for aviation in the UAE includes:

• Federal Law No. 20 of 1991 (the Civil Aviation Law)
• Federal Law No. 4 of 1996, as amended by Federal Law No. 20 of 2001 (the Aviation Authority Law)
• Federal Decree-Law No. 26 of 2022 (unmanned aircraft)
• Federal Decree No. 32 of 2006 (accession to the Cape Town Convention and Aircraft Protocol)
• Federal Law No. 8 of 2018 (finance leases)
• Federal Law No. 20 of 2016, as amended by Federal Decree-Law No. 24 of 2019 (movable property mortgages and the EMCR)

The GCAA's CARs cover airworthiness, flight operations, personnel licensing, maintenance organisations, dangerous goods transport, and air accident investigation.

Aircraft registration: who qualifies and what is required

The GCAA maintains the UAE Aircraft Register. Under the Civil Aviation Law, an aircraft can only be entered on the register if the owner is a "qualifying person," defined as:

• A UAE national
• A company with its principal place of business in the UAE
• A UAE government department

A foreign entity cannot register an aircraft in its own name. Foreign owners that want UAE registration must establish a local vehicle, either a mainland company, a free zone company, or an SPV in DIFC or ADGM, that meets the qualifying person test. Some foreign owners use a local entity as a legal title holder while the beneficial owner remains offshore. The GCAA accepts this arrangement, provided the ownership chain is documented.

To register an aircraft, the owner submits the following to the GCAA:

• A contract or title document (bill of sale, delivery deed, or lease agreement)
• Proof of the legal entity's status and good standing
• Operational licences and permits
• A copy of the insurance policy
• Technical specifications and airworthiness documentation

On registration, the GCAA issues a Certificate of Registration that records the owner, the lessee (if applicable), and any mortgagee. The aircraft must display UAE nationality and registration marks as specified by the GCAA.

Registration does not create a public security register in the way that a land registry does. Information noted on the aircraft register does not, under UAE law, constitute constructive notice to third parties for the purposes of security interests. The exception is a duly registered finance lease under Federal Law No. 8 of 2018, which can be used as evidence against third parties.

Aircraft leasing in the UAE

Aircraft leasing is the dominant transaction structure in global aviation, and the UAE is a major hub for both operating and finance leases. Dubai Aerospace Enterprise (DAE), headquartered in Dubai, is one of the world's largest aircraft lessors.

Under Articles 28 and 29 of the Civil Aviation Law, if an aircraft is leased to a qualifying person, the GCAA can register that aircraft in the lessor's name for the duration of the lease. There is no legal requirement to register a lease or a lessor's interest with the GCAA, and failure to register does not affect the lease's validity between the parties.

An aircraft lease does not need to follow a prescribed form. It must be in writing and signed. English-language leases are accepted by the GCAA and the Cape Town International Registry, though Arabic translation is required for enforcement in UAE onshore courts.

The UAE allows parties to choose a foreign governing law for their lease or finance documents. The GCAA and UAE courts will recognise a foreign choice of law, provided the choice is express and does not contravene public policy or Sharia principles.

Structuring through DIFC and ADGM

Both the DIFC and ADGM have positioned themselves as aviation finance hubs. ADGM enacted the Cape Town Convention and Aircraft Protocol into its insolvency framework and offers a competitive SPV regime for leasing transactions. DIFC is used for aircraft leasing funds and structured finance.

Advantages of structuring through DIFC or ADGM include full foreign ownership, English common law, independent courts that recognise and enforce arbitral awards under the New York Convention, and a 0% corporate tax rate on qualifying income (ADGM's exemption runs to 2063). The UAE's network of more than 80 double tax treaties also supports tax-efficient leasing structures, with particular strength in Central Asia, Africa, India, and Indonesia.

Dubai South Aviation District

Dubai South (formerly Dubai World Central) offers a dedicated 6.7 sq. km. Aviation District with designated areas for MROs, FBOs, light manufacturing, and aviation education. The district is co-located with Al Maktoum International Airport and provides a streamlined licensing process for aviation activities. Corporate owners that register aircraft through Dubai South benefit from proximity to airport infrastructure, GCAA-licensed operations, and free zone tax treatment.

The Cape Town Convention and the 2024 amendment

The UAE acceded to the Cape Town Convention on International Interests in Mobile Equipment and its Aircraft Protocol under Federal Decree No. 32 of 2006. The Convention creates an international framework for recognising security interests, conditional sales, and leasing interests in aircraft, and establishes the International Registry (IR) maintained by Aviareto in Dublin.

For years, a provision in Article 19 of the Civil Aviation Law created uncertainty. The old wording treated international conventions as "complementary" to domestic law, raising questions about whether UAE courts would apply the Convention where it conflicted with local rules. The Aviation Working Group (AWG), which maintains the Cape Town Discount List under the OECD, concluded that the old Article 19 did not meet its eligibility criteria.

On 28 August 2024, the UAE amended Article 19 to establish the primacy of international aviation conventions over domestic law. The new provision states that where a domestic provision contradicts an international convention ratified by the UAE, the convention prevails. As of 22 April 2025, the UAE was added to the Cape Town Discount List.

The practical effect: UAE airlines and operators can now access discounts of up to 10% on Export Credit Agency premium rates for aircraft debt and lease structures. This reduces the cost of capital and makes the UAE more competitive as a base for fleet expansion.

IDERA: deregistration and export

The GCAA recognises the Irrevocable De-Registration and Export Request Authorisation (IDERA), which allows the person in whose favour it is issued (usually the lessor or secured creditor) to request deregistration and export of the aircraft from the UAE. The Civil Aviation Advisory Publication No. 58 sets out the GCAA's procedure for enforcing an IDERA.

In practice, the GCAA is unlikely to act on an IDERA in a contested case without a court order. The UAE's Article 54(2) declaration means that Cape Town Convention remedies that do not expressly require court approval may still only be exercised with the leave of a UAE court. The UAE has also adopted Article X of the Protocol in full, which provides for "speedy relief" in insolvency proceedings, though these provisions have not been tested in UAE courts.

Security interests and enforcement

A mortgage over a UAE-registered aircraft must be registered with the GCAA. The GCAA issues a new Certificate of Registration reflecting the mortgagee. Required documents include a certified copy of the entity's commercial registration, the mortgage instrument, and evidence of the existing registration.

For engines and spare parts, there is no separate GCAA engine register. Security over engines must be perfected through the Emirates Movable Collateral Registry (EMCR) under Federal Law No. 20 of 2016. Filing on the Cape Town International Registry does not replace domestic perfection, though it establishes priority and gives constructive notice to third parties under the Convention.

A security package for an aircraft financing in the UAE typically includes:

• A mortgage over the aircraft, registered with the GCAA
• A security assignment of the owner's rights under the lease
• A security assignment of hull and war insurance proceeds
• A pledge over the bank account receiving lease rentals (registered with the EMCR)
• An IDERA in favour of the secured creditor
• Registration of international interests on the IR

Repossession

The UAE does not permit self-help repossession. Seizing or moving an aircraft requires a court order, obtained through precautionary attachment proceedings under Federal Decree-Law No. 42 of 2022. The applicant must demonstrate urgency, a prima facie entitlement, and a risk that the asset will be dissipated.

Summary judgment is not available in UAE onshore courts but is available in the DIFC and ADGM courts. For this reason, aviation finance documents frequently include a submission to DIFC or ADGM jurisdiction, or an arbitration clause with a seat in one of those centres.

UAE courts recognise statutory liens over aircraft for unpaid airport charges, air navigation fees, taxes, and customs duties. Possessory repairers' liens also apply. These non-consensual rights may take priority over consensual security under the UAE's Cape Town Article 39 declaration and domestic law. Financiers should account for this risk in their structuring.

VAT and tax treatment

Under Federal Decree No. 8 of 2017, a 5% VAT applies to goods and services supplied in the UAE. Several aviation-related supplies qualify for zero-rate treatment, including the supply of aircraft used to transport passengers and goods, and related parts and maintenance.

The 9% UAE corporate tax applies to taxable income exceeding AED 375,000. Companies established in qualifying free zones (including ADGM, DIFC, and Dubai South) may benefit from a 0% rate on qualifying income, subject to meeting substance and activity conditions. Large multinational groups face a 15% domestic minimum top-up tax (DMTT) from January 2025 under the UAE's implementation of OECD Pillar Two, which affects aircraft lessors and lenders with a UAE nexus.

Structuring the ownership and domicile of the leasing SPV is a tax-sensitive decision. The UAE's expanding double tax treaty network, combined with zero withholding taxes and no restrictions on profit repatriation, makes ADGM and DIFC competitive against Ireland, Singapore, and Hong Kong for aircraft leasing structures.

What companies should do next

Companies that register, lease, finance, or operate aircraft in the UAE should review their existing arrangements against the post-2024 legal position. Specific steps include:

• Confirm that ownership structures meet the GCAA's qualifying person requirements and that all IDERA documentation is current.
• Assess whether existing security is perfected on both the EMCR and the Cape Town International Registry. Filing on one does not substitute for the other.
• Review choice of law and jurisdiction clauses. Arbitration with a DIFC or ADGM seat, or submission to DIFC or ADGM court jurisdiction, offers more predictable enforcement than onshore civil courts for aviation finance disputes.
• Evaluate whether current corporate structures capture the Cape Town Discount and the UAE's double tax treaty benefits. The 2024 Article 19 amendment changed the cost-of-capital calculation for UAE-based operators.
• For lessors with aircraft on the ground in the UAE, confirm that insurance policies, airport charge accounts, and MRO contracts do not create unanticipated lien exposure that could subordinate security interests.

The UAE carrier liability framework for cargo is covered separately in our article on cargo claims and carrier liability caps in the UAE.

Legal advice may be required to assess how these obligations apply to your structure, and how the interaction between federal law, free zone rules, and international conventions affects your position.

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