Oman’s Bankruptcy Law is now effective – ZAWYA

Oman’s Bankruptcy Law is now effective – ZAWYA

Bankruptcy is a proceeding under law that grants partial or complete relief from the payment of your debts. Is it good or bad?Bankruptcy law, promulgated by Royal Decree No. 53/2019, will be effective from July 7, 2020, in Oman. This is an important enactment during this time of financial crisis due to the pandemic and low oil price. Economic slowdown or total breakdowns are happening all over the world. Business failures are inevitable, and the law will promote more robust legal framework for the entrepreneurs in distress. By legal and legislative support, the interests of all parties will be safeguarded in an amicable manner.A Bankruptcy Law is in action in many other GCC countries. The United Arab Emirates enacted the Bankruptcy law in September 2016, which came into effect subsequently. Later in 2018, Bahrain and Saudi Arabia enacted their bankruptcy laws respectively. The new law gives clear and definite measures to help businesses in distress, especially preventive and restructuring possibilities to continue their business ventures. This will be of great assurance to the investors, especially foreign investors.Bankruptcy law, promulgated by Royal Decree No. 53/2019, will be effective from July 7, 2020, in Oman. This is an important enactment during this