Leading UAE law firm Baker McKenzie Habib Al Mulla and Deloitte recently co-hosted seminars in Abu Dhabi and Dubai to discuss the impact of the UAE's new Bankruptcy Law and the commercial implications of doing business in the UAE, for both creditors and debtors. Recognised as a pre-requisite to the UAE’s future development and an essential tool to maintain the well-being of the economy, the new Bankruptcy Law is expected to reinvigorate the country’s business environment.
Published in the Official Gazette of 29 September 2016, it is the UAE’s first ever standalone bankruptcy legislation, replacing the bankruptcy provisions incorporated in the UAE’s Commercial Transactions Code. The Bankruptcy Law will come into force by end December 2016 and introduces a number of modern concepts to support businesses facing financial difficulties.
The interactive discussion was led by Baker McKenzie Habib Al Mulla lawyers Mazen Boustany (UAE Head of Banking & Finance) and Ghada El Ehwany, together with Deloitte’s Paul Leggett, Director of Reorganization Services in the Middle East. Issues such as the structures available under the new law, and the practicalities of the preventive composition, debt restructuring and financial reorganization rescue regimes were debated at length.
The UAE's new Bankruptcy Law is a major step forward in supporting economic sustainability in the UAE, improving the country’s competitiveness and boosting credit markets,
said Mazen Boustany.
However, its true impact will depend on the courts’ application of the law, the infrastructure necessary for effective implementation, and the actual use by businesses.