UAE Ministry of Finance reviews federal bankruptcy law

The UAE Ministry of Finance (MoF) said it has reviewed the final draft of the federal bankruptcy law recently approved by the UAE Cabinet.
 
“Mature economies have proven the need to implement a bankruptcy law in each country that wishes to strengthen its economic status,” Minister of State for Financial Affairs  Obaid Humaid Al Tayer said. “The bankruptcy law is considered as one of the most important pillars for the local economy, as it provides protection for all parties, in addition to its pivotal role in attracting capital in a safe and attractive investment environment and providing a protection legislation and legal acts.”
 
The law creates a new regulatory body called the Committee of Financial Restructuring, which will oversee the procedures of financial restructuring that exist outside the scope of the court, appointment of experts in financial restructuring and the creation of an electronic record of individuals with a bankruptcy ruling issued against them.
 
“The bankruptcy law will contribute in supporting the strategic plans adopted by UAE to develop its economic, financial and legislative structure,” Al Tayer said. “The law will also raise the UAE’s competitiveness levels in international reports, which will support the sustainable economic growth and enhance the national economy, which in return support the sustainable economic growth and promote the national economy on a global level.”