UAE amends bankruptcy law to include pandemics

UAE amends bankruptcy law to include pandemics

The UAE Cabinet on Wednesday amended the country's bankruptcy law to provide protection to businesses and individuals during 'emergency situations' including pandemics, natural and environmental disasters, and wars, among others.

The amendments are aimed at helping them overcome credit challenges due to the nature of these events that consequently impinge on trade or investments.

Accordingly, the debtor shall be exempted from commencing procedures to declare bankruptcy.

Should the debtor file an application, which is then approved by the courts, he may reach a settlement with creditors wherein he may request a grace period, or negotiate a debt settlement within a period of not more than 12 months.

The court, in case of approving the bankruptcy application, would not take any proceedings involving the debtors' funds that are needed to keep businesses running during