Bankruptcy law under study — official

Abankruptcy draft law is currently under consideration by the UAE Ministry of Finance ( MoF) after soliciting the opinion of relevant financial and specialised auditing companies. The announcement was made by Younis Al Khouri, Undersecretary at the MoF, during an interview on Oloom Al Dar programme on Abu Dhabi TV.

Al Khouri said the ministry had studied standard benchmarks similar to this law, such as bankruptcy and restructuring laws in France and Germany, and added that the Ministerial Services Council issued an order to the ministry to study methods for introducing the law.

He said the introduction of the law is in line with the UAE’s strategy to be among the top three governments in 2021.

Al Khouri pointed out that the law that’s currently being drafted is different to the commercial procedures law issued in 1993, especially with regards to the importance of moving from penal procedures to civil measures in accordance with the highest practiced standards, and the financial serial proposed by debtors.

He added that a committee will review cases with the assistance of experts and approval of majority of creditors.