Dubai-Mubasher: The UAE Cabinet adopted on Sunday the final draft of the federal law on bankruptcy in UAE to strenghten the UAE’s economic and legislative system, according to an official statement.
The law will contibute to avoiding bankruptcy cases, including financial restructuring, composition procedures, restructuring debts and liquidation funds.
“The bankruptcy law helps in attracting foreign investments due to the increase 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 results in raising UAE’s competitiveness globally,” the statement highlighted.
Companies and individuals are now able to restructure their debt while avoid bankruptcy liquidation.
The new draft law was built based on modern legal and economic principles, distinguishing it from other laws in Arab countries and other developed countries.
