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.”
