BANK­RUPTCY LAW IS AP­PROVED BY UAE CAB­I­NET

7 Days in Dubai - - FRONT PAGE -

The UAE Cab­i­net last night ap­proved the fi­nal draft of a bank­ruptcy law. HH Sheikh Mo­hammed bin Rashid, UAE Vice Pres­i­dent and Prime Min­is­ter and Ruler of Dubai, con­firmed the rat­i­fi­ca­tion of the law. HH Sheikh Mo­hammed said on Twit­ter: “We passed the fi­nal ver­sion of the new Fed­eral Law on bank­ruptcy, which aims to pro­mote both in­vest­ment and ease of do­ing busi­ness.” There have long been calls from se­nior fig­ures in the fi­nan­cial sec­tor for a bank­ruptcy law fol­low­ing nu­mer­ous cases in­volv­ing small busi­ness own­ers flee­ing the coun­try over un­paid debt and the fear of go­ing to prison. The im­ple­men­ta­tion of a law, which is un­der­stood to just be a mat­ter of months away fol­low­ing the Cab­i­net’s ap­proval of the draft law, will be a pos­i­tive step, par­tic­u­larly for small busi­ness own­ers or those con­sid­er­ing start­ing a busi­ness. UAE news agency WAM re­ported that the “Fed­eral Law on Bank­ruptcy aims to strengthen the le­gal sus­tain­abil­ity and at­trac­tive­ness of the in­vest­ment en­vi­ron­ment in the UAE, and to in­crease the ease of do­ing busi­ness. “This will have a pos­i­tive im­pact on the na­tional econ­omy en­abling it to adapt to changes, and sup­port busi­nesses to achieve op­ti­mum per­for­mance, thus driv­ing eco­nomic growth.” Rashid Al Balushi, CEO of Abu Dhabi Se­cu­ri­ties Ex­change, said in a state­ment is­sued via WAM: “The Cab­i­net’s adop­tion of the bank­ruptcy law was timely and will make the na­tional econ­omy more com­pet­i­tive and in­vest­ment en­vi­ron­ment more at­trac­tive.” He added that the law would also en­sure the con­ti­nu­ity of com­pa­nies and give them the flex­i­bil­ity needed to man­age their fi­nances.

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