UAE approves draft law on bankruptcy

Dubai: The UAE cabinet on Sunday approved the much-awaited draft law on bankruptcy.

“Today we approved the final draft of the Federal law on Bankruptcy. The law aims to enhance the investment attractiveness of the UAE’s economy and facilitate the work of commercial companies,” said His Highness Shaikh Mohammad bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai, via a tweet.

The new law paves the way for companies in financial distress to restructure. A number of industry bodies such as the UAE Banks Federation have been lobbying the government to expedite the new insolvency law for some time.