Revealed: UAE insolvency law explained during coronavirus crisis

Revealed: UAE insolvency law explained during coronavirus crisis

Plans by UAE building giant Arabtec to enter the company into liquidation will be the first real test of the country's new bankruptcy laws.

It may be the most high profile case of note, to date, but the onset of the Covid-19 pandemic earlier this year has piled huge pressures on businesses.

Daniel Xu, partner at King and Wood Mallesons, explains how the law impacts companies during the current pandemic.

What is the insolvency law for companies impacted by the COVID-19 pandemic in the UAE?

For those companies adversely impacted by COVID-19, the UAE's legal framework includes two major laws that govern insolvency, both of which aim to assist businesses when they are navigating commercial difficulties. The UAE Federal Law No 2 of 2015, commonly known as the Commercial Companies Law (CCL), allows companies