Bankruptcy Law In U.A.E.

Practice Areas

The highly anticipated bankruptcy law of the U.A.E. provides a complete legal framework to assist the companies at the verge of a financial breakdown. Since the law only provides protection from arrest to commercial firms, government-owned companies, and individual traders, the non-trader entities remain susceptible to penal provisions. As such, insolvent individuals cannot avoid criminal proceedings and the bounced personal Cheque continue to be subject to the general rules under the U.A.E. Civil Code.
 
The firm meets clients’ bankruptcy and restructuring needs. We prefer negotiated settlements and often are in search of a business solution first. Obaid Al Falasi & Saeed Bin Ghulaita Advocates &Legal Consultants has earned a reputation for winning trials and we also represent equity firms and hedge funds that are trying to enhance their financials in insolvency proceedings, contentious out of court settlements, distressed asset sales, etc. Our deep legal understanding of the law also enables us to offer our clients a full range of recovery options through bankruptcy-related litigation.

Federal Law by Decree No. (9) of 2016 on Bankruptcy

The law stipulates the role of the “Committee of Financial Restructuring”. The UAE Cabinet will decide on the number of members and entities that will represent the committee, and will administer the committee’s law and its procedures. The Committee is responsible for: overseeing the procedures of any consensual out-of-court financial restructuring, preparing an approved list of bankruptcy experts, appointing Trustees in Financial Restructuring procedures, who will also be available for all court proceedings. The Committee is also responsible for establishing as well as maintaining a national electronic database of individuals who have had bankruptcy rulings against them, including restrictions set by the court or loss of eligibility.

 

The law is implemented on: companies that were established under commercial company laws, companies that were not established under the commercial company law, semi or fully owned companies by the federal or the local government with legislatives for establishment that fall under this law, companies and institutions established in free zones and which do not have provisions to regulate composition procedures or restructuring bankruptcy according to the Federal law No. (8) of 2004 concerning financial free zones, any trader or civil licensed company.

Federal Law by Decree No. (9) of 2016 on Bankruptcy

Federal Law by Decree No. (9) of 2016 on Bankruptcy – Download