Dubai: The Dubai Chamber of Commerce and Industry hosted an event to provide more clarity on the UAE’s new bankruptcy law and its impact on businesses in the country.
The event was attended by Younis Al Khouri, undersecretary of the Ministry of Finance, who met with representatives of the local business community, and discussed the dynamics of the law.
Al Khouri said the bankruptcy law was part of the Ministry’s plan to develop new legislation to help ensure financial stability and develop the UAE’s economic and financial legislative structure.
“The bankruptcy law provides protection to all parties involved, and helps in attracting foreign investments due to the increased trust in the economic environment and legislative and legal protection for businesses,” the undersecretary said in a statement issued by the Chamber on Monday.
At the event, Hamad Bu Amim, president and chief executive officer of the Dubai Chamber, said the law will also improve ease of doing business in the UAE, and is likely to boost business confidence.
The UAE’s government late last year issued the bankruptcy law, which came into effect on December 29. The law will facilitate the work of commercial companies by paving the way for businesses in financial distress to restructure. It also identifies ways to avoid bankruptcy cases and the liquidation of debtors’ assets, including consensual out-of-court financial restructuring, and the potential to secure new loans under terms set by the law.
The adoption of the law is widely expected to improve businesses’ access to bank funding while improving the asset quality of the UAE banking sector.
