Friday 19 July 2024

UAE cabinet approves new bankruptcy law

ABU DHABI, September 5, 2016

The UAE cabinet has adopted the final draft of the federal law on bankruptcy which allows companies and individuals to restructure their debt while avoiding bankruptcy liquidation.

The bankruptcy law is one of the most important foundations of the UAE legislative system considering its role in strengthen the investment environment for the UAE economy and increase the security level for creditors through implementing a transparent, fast and flexible rules and procedures, said Sheikh Hamdan bin Rashid Al Maktoum, the Deputy Ruler of Dubai and UAE Minister of Finance.

It was drafted based on the directives of HH Sheikh Khalifa bin Zayed Al Nahyan, UAE President, and HH Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, stated Sheikh Hamdan.

According to him, the new draft law was built based on modern legal and economic principles, distinguishing it from other laws in Arab countries and other developed countries.

It will help strengthen the financial, economic and legislative system in the UAE by putting in place a separate and modern law to avoid bankruptcy cases, including financial restructuring, composition procedures, restructuring debts and liquidation funds.

Under the new system, companies and individuals will now be able to restructure their debt while avoiding bankruptcy liquidation.

Sheikh Hamdan said this will support sustainable business development in the state.

"The bankruptcy law helps in attracting foreign investments due to the increase trust in the economic environment and the flexible legislative infrastructure that protect investors’ assets and facilitate business for commercial companies by adopting international legislative and economic practices which results in raising UAE’s competitiveness globally," he noted.

Approving the law comes as a result of the Ministry of Finance’s continuous efforts in the field of financial regulation and bankruptcy over the past few years, he added.-TradeArabia News Service

Tags: UAE | law | Bankruptcy |

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