BANKRUPTCY LAW IS APPROVED BY UAE CABINET
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.