Abu Dhabi - Mubasher: The UAE’s new Federal Bankruptcy Law will come into effect in 2017, the minister of state for financial affairs Obaid bin Humaid Al Tayer said during a press conference on Tuesday.
This law will add value to the business community and will be positive for both foreign and local investors. This is an important step for the UAE, said Al Tayer.
The law was set to match various bankruptcy cases, determine all legal tools to restructure the debtor’s business in accordance with specific terms and conditions as well as a legislative framework, Al Tayer said, as reported earlier by Emirates News Agency (WAM).
It also provides protection for all parties, it also plays a major role in maintaining a safe and attractive investment environment, he added.
The law works on identifying different ways to avoid bankruptcy cases and liquidation of the debtors’ funds, it also prevents individuals from bypassing the law as there is a number of punishments including a 5 year prison sentence as well as fines of up to AED 1 million.
The new law will apply for only commercial companies and not individuals, Al Tayer clarified.
