DUBAI 28 March 2017: The new UAE Bankruptcy Law has provisions for new loans to firms that are facing insolvency, according to a gathering in Dubai of financial experts and business leaders.
The Federal Bankruptcy Law was issued under the federal decree No. (9) for 2016. It identifies different ways to avoid bankruptcy cases and the liquidation of debtors’ assets, including consensual out-of-court financial restructuring, composition procedures, financial restructuring and the potential to secure new loans under terms set by the law.
The law is implemented on: companies that were established under commercial company laws, companies that were not established under the commercial company law, semi or fully owned companies by the federal or the local government with legislatives for establishment that fall under this law, companies and institutions established in free zones and which do not have provisions to regulate composition procedures or restructuring bankruptcy according to the Federal law No. (8) of 2004 concerning financial free zones, any trader or civil licensed company.
“The bankruptcy law provides protection to all parties involved, and helps in attracting foreign investments due to the increased trust in the economic environment and legislative and legal protection for businesses,” said Younis Haji Al Khoori, Undersecretary of the Ministry of Finance.
He was speaking during a Dubai Chamber of Commerce and Industry’s Talk Business at Breakfast event, which aimed to provide more clarity on the UAE’s new bankruptcy law and its impact on businesses in the country.
The briefing was attended by H.E. Younis Haji Al Khouri, Undersecretary of the UAE Ministry of Finance, who met with members of the local business community, and spoke about the dynamics of the law.
The event was attended by H.E. Majid Saif Al Ghurair, Chairman, Dubai Chamber, H.E. Hamad Buamim, President and CEO, Dubai Chamber, representatives from Dubai’s private sector, and members of business groups and councils that operate under the umbrella of the Chamber.
Hamad Buamim, President and CEO, Dubai Chamber, said the law reflects the UAE’s commitment to enhancing the competitiveness of its business community.
“The law sends a clear message to investors and key stakeholders in the private sector that the government will adapt regulation to meet their requirements and ensure their rights. It should improve ease of doing business, and will likely boost business confidence and foreign investment in the UAE,” said Buamim.
Talk Business at Breakfast is a quarterly business briefing event aimed at strengthening ties between the business community and government authorities in the UAE. It is also a great opportunity to listen to key speakers that will highlight the major issues on current affairs and their impact on the country’s business environment.
– By Rajive Singh