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13 April 2024

UAE bankruptcy draft law on anvil

By Wam

Younis Haji Al Khouri, the undersecretary of the Ministry of Finance, has said the Ministerial Council for Services had issued the decision, authorising the Ministry of Finance to study how best to implement the bankruptcy law in line with the UAE strategy 2021.

He added the ministry had surveyed the opinions of competent authorities in this respect.

Al Khouri told Abu Dhabi TV in an interview that the new draft law was prepared two years ago, noting that the main point in the new draft law is the issuance of a decision by the Council of Ministers to form a committee, which will include an expert listed in the Ministry of Justice.

He explained that the expected bankruptcy draft law would be different from the commercial transactions act issued in 1993, especially regarding a shifting from the criminal procedure to civil proceedings in accordance with the best practices and the financial sequence proposed by a debtor, in addition to the committee, which will review the debt through the assistance of an expert, as well as consent of the majority of creditors.

Al Khouri said the draft federal bankruptcy law will be applicable nationwide, indicating that the new law includes over 430 articles.