Bankruptcy Law Decreed

The President of the UAE His Highness Shaikh Khalifa Bin Zayed Al Nahyan has issued Federal Decree No 9 for 2016 that concerns bankruptcy.

It was approved by the Cabinet last month and will come into effect three months after being published in the official gazette.

The law contains elements of bankruptcy protection laws from jurisdictions including France, Germany and the Netherlands, and provides, for the first time, a comprehensive legal framework to help distressed companies in the UAE avoid bankruptcy and liquidation. The law contains provisions to safeguard the rights of creditors and debtors, including measures that prioritise secured creditor rights and enable companies to restructure without unanimous creditor approval. The law applies to companies established under the commercial companies law, companies that are partly or fully owned by the federal or the local government, and companies and institutions established in free zones that are not governed by existing bankruptcy provisions.