Dubai: The United Arab Emirates is reviewing its bankruptcy and restructuring law, introducing a dedicated court to oversee related disputes.
The legislation, formally Federal Decree Law No 51 of 2023, will come into force on May 1, 2024 and replaces the bankruptcy framework of 2016. (This was first reported by online publication AGBI.)
The UAE has been extensively rewriting its bankruptcy rules in recent years, and the creation of a specialized court will be a natural progression. It will help establish sentences that will serve as precedents, according to legal sources. The law provides for an extended moratorium period.
The bankruptcy court will have the ‘authority’ to paralyze the actions of creditors from the beginning of the procedure until the approval of the restructuring plan, without an established time limit.