UAE to Set up Bankruptcy Courts to Rule on Disputes

UAE to Set up Bankruptcy Courts to Rule on Disputes

The UAE will set up specialised courts to handle bankruptcy cases as the government seeks to overhaul the restructuring and insolvency legal framework, streamlining the process to enhance investor trust further. A federal law on financial restructuring and bankruptcy was published in the UAE Gazette on October 31 and will come into effect from May …

The post UAE to Set up Bankruptcy Courts to Rule on Disputes appeared first on Gulf Insider.The UAE will set up specialised courts to handle bankruptcy cases as the government seeks to overhaul the restructuring and insolvency legal framework, streamlining the process to enhance investor trust further.

A federal law on financial restructuring and bankruptcy was published in the UAE Gazette on October 31 and will come into effect from May 1, 2024, according to legal experts.

Currently, a dedicated section of the Courts is led by a Court of Appeal judge responsible for overseeing bankruptcy and restructuring matters. The new law protects and streamlines the process and avoids separate enforcement proceedings for creditors.

“The court can impose a moratorium on creditor actions from the commencement of judicial and execution measures against debtors until the restructuring plan is ratified, without a specified time limitation. Exceptions are made for