/By Arabian Post Staff/The UAE moved a step closer to a federal bankruptcy law when the country’s Cabinet approved the final draft of the new law.
The law, which will help companies facing financial difficulties to restructure and avoid arbitrary liquidation and criminal proceedings by the state. Companies and individuals are now able to restructure their debt while avoiding bankruptcy liquidation.
The law contributes to strengthening the financial, economic and legislative system in the UAE, through putting in place a separate and modern law to avoid bankruptcy cases, including financial restructuring, composition procedures, restructuring debts and liquidation funds. Companies and individuals are now able to restructure their debt while avoiding bankruptcy liquidation.
According to Finance Minister Sheikh Hamdan bin Rashid Al Maktoum, the bankruptcy law is one of the most important foundations of the UAE legislative system considering its role in strengthening the investment environment for the UAE economy and increase the security level for creditors through implementing transparent, fast and flexible rules and procedures.
This will support sustainable business development in the state. The bankruptcy law helps in attracting foreign investments due to the increased trust in the economic environment and the flexible legislative infrastructure that protect investors’ assets and facilitate business for commercial companies by adopting international legislative and economic practices which result in raising UAE’s competitiveness globally.
The new draft law was built based on modern legal and economic principles, distinguishing it from similar laws in other Arab countries