New Bankruptcy Law To Ensure Legal Sustainability

The head of Dubai Economic Council has said the country’s new financial restructuring and bankruptcy law will ensure legal sustainability.

National news agency WAM reported that Hani Al Hamli, Secretary General of DEC, told the Global Policy Conference on Monday: ”The UAE takes a step in this direction through proposing the Financial Restructuring and Bankruptcy Law that aims to increase the legal sustainability and flexibility of the economy.

“This step should enable the economy to maintain the existing businesses operating in various sectors, and attract prospective foreign investments.”

The two-day conference has been organised by DEC and the Commercial Law Development Programme of the US Department of Commerce.

Al Hamli said the UAE government was allowing both the public and private sectors to comment on new bills. ”It is advanced step towards transparency and rule of law in the economic life,” he said.

Dubai Economic Council is involved in reviewing the draft law and WAM reported that the policy conference brings together decision makers and practitioners to discuss the best practices worldwide in Financial Restructuring and Bankruptcy Law, in order to refine the proposed legislation.

Al Hamli said DEC argues that one of the main lessons learned from the global financial crisis and its implications on the national economy is that there is a pressing need to reassess the regulatory framework in the direction that enhances the business environment, hence sustains economic growth.

He added that in these times of global turbulence there are an ever increasing number of businesses at risk. Many of them have been forced to announce their insolvency, whereas others already exited from the market.

The implications of this phenomenon are not confined to the two parties, debtors and creditors, but also include other stakeholders such as financial institutions, auditors and judicial entities, he said.