Move on bounced cheques to boost investor confidence
dubai — The decision by Dubai Courts to issue fines instead of jail sentences for bounced cheques will help instill confidence among the business community and ensure that those in debt can resolve their issues, Hamad Buamim, president and CEO of Dubai Chamber of Commerce and Industry, said on Monday.
Speaking to reporters on the sidelines of an event, Buamim said the new bankruptcy law, which is getting implemented, is having a positive impact on the UAE’s business environment. He noted that its introduction has boosted investor confidence and improved ease of doing business in the country.
Last week, Dubai Attorney General Essam Al Humaidan said the Dubai Public Prosecution had activated a new penal order system that would allow minor misdemeanours and offences to be dealt with through fines rather than the court system.
Under the new rule, a range of minor offences, including bouncing cheques and failing to pay rent, will no longer be put through the court system and instead be treated as a misdemeanour subject to a financial penalty.
The ruling, which will come into effect on December 4, means those responsible for bounced cheques of up to Dh50,000 will be fined Dh2,000, while those who bounce cheques of between Dh50,000 and Dh100,000 will have to pay a Dh5,000 fine, and for cheques between Dh100,000 and Dh200,000 a fine of Dh10,000.
Legal experts said the success of the bankruptcy law would depend on the courts’ efficiency and on an insolvency-specialised judiciary.
“It is heartening to see the law is starting to be implemented and that the applications to the courts so far are proving positive,” Mazen Boustany, partner, Baker McKenzie Habib Al Mulla, said at a workshop organised by the chamber.
Speaking at a ‘Meet the CEO’ event organised by the Government of Dubai Media Office, Buamim said the UAE has a clear and comprehensive vision to diversify its economy and achieve an optimal balance between its various sectors to ensure sustainability and create new business opportunities.
Buamim said that analysis conducted by Dubai Chamber has projected steady growth in Dubai’s markets in 2018. Expressing his optimism about Dubai’s prospects, he noted that the emirate’s economy is expected to grow by three to four per cent in the 2017-2018 period.
“Dubai’s competitive advantages have enabled it to attract a high volume of foreign direct investment that exceeded $3 billion in the first half of 2017,” he said.
Praising Dubai’s transition into a diversified and resilient economy that serves as an international business hub, Buamim pointed out that 98 per cent of the emirate’s GDP comes from non-oil sectors.
He highlighted the important role of the media as a strategic partner in economic growth. The media, he said, plays a significant role in supporting Dubai’s development by raising awareness of new legislation and business opportunities and encouraging entrepreneurs to invest in new ventures.
On Dubai Chamber’s strategy, Buamim said it is working to reinforce its role as a trusted partner to Dubai’s business community and a bridge between business and government. The Chamber’s new customer-oriented strategy aims to boost competitiveness and growth in the private sector.
— issacjohn@khaleejtimes.com