UAE keen to issue bankruptcy law: DEC
The Third Regional Judicial and Financial Colloquium on Insolvency and Restructuring in the Middle East and North Africa came to closed on Wednesday.
The event was organized by the Hawkamah Institute in partnership with the Dubai Economic Council (DEC), in collaboration with the Dubai Judicial Institute, INSOL International and the World Bank Group. The conference was held over a span of two days.
Hani Al Hamli, Secretary General of the DEC, indicated that the Hawkamah Institute’s cooperated with the Council in organizing this seminar, particularly through the deployment of its network of relationships.
With a large number of relevant organizations and world legal consultancies, Hawkamah Institute has provided the groundwork for surveying the most important global experiences in the field of financial restructuring and bankruptcy.
Al Hamli further mentioned that in the near future it is important to deploy these practices when developing local legislative frameworks due to their importance in enhancing the business environment and investment climate.
This will motivate all participants in the economic process in the country to work, increase productivity, and sow a spirit of creativity, leading to both stimulating business environment and an investment climate characterized by transparency, governance, and justice. Enhanced economic growth will result.
The DEC Secretary General stressed that the Financial Restructuring and Bankruptcy Draft Law which the UAE Government is keen to issue in the near future will serve as added momentum for efforts aimed at modernizing and reinforcing the legislative frameworks which enhance sustained development in the UAE and consolidate the nation’s standing on the world economic map.
Dr Sameer Al Ansari, Acting CEO of the Hawkamah Institute, said that “The aim of this colloquium is to provide an interactive platform for bringing together the Insolvency professionals and financial institutions across the globe as well as representatives of MENA regulators and policy makers to discuss and debate and most importantly share experiences of dealing with Insolvency and restructuring cases in their respective jurisdictions.”
The session helped to identify best practice in the field of insolvency and restructuring. The Colloquium further shed light on restructuring of Shariah-compliant debt and the duties and liabilities of directors of parent companies in case of insolvency of a subsidiary.
Dr Al Ansari added that “ This colloquium has been held under the umbrella of the Forum For Insolvency Reforms in MENA (the FIRM) which is the only regional platform dedicated to discuss and debate Insolvency and Restructuring reforms in MENA.
The FIRM was founded by Hawkamah, INSOL International, the World Bank Group and the OECD and has consistently spread awareness among members of the business community, jurists and policy makers about the importance of having modern and effective Insolvency and Restructuring frameworks in place which are in turn necessary for having sound financial systems.”
Today, the Bankruptcy and Insolvency law is considered as one of the most important commercial laws, and Al Ansari stressed the importance of taking a holistic approach when revising any Country’s existing Bankruptcy and Insolvency Laws.
A Mock Court session was also conducted at the colloquium where globally renowned Insolvency practitioners and esteemed Judges from the DIFC Courts and the High Court of Justice of England and Wales conducted a Court hearing of a regional restructuring case.
James Sprayregen, President INSOL International said that, “Restructuring and insolvency laws have become more sophisticated and complex than ever before as countries around the world have addressed the fallout from the global economic slowdown and dislocation of the capital markets. As the world economy rebounds, it is vital for global businesses to understand the new and varied restructuring and insolvency regimes around the world, and the obstacles and opportunities that those regimes present."
The Colloquium concluded by stressing on the importance of carrying out legal reform in a well thought out manner compatible with international best practice but tailored to the region and to consider the Shariah law when dealing with restructuring of Shariah compliant debt.