To ensure the optimal application of federal laws and to strengthen the commitment of national institutions to international best practices, the Financial Restructuring Committee organised a workshop recently in Abu Dhabi.
The workshop focused on explaining the local bankruptcy law and financial restructuring procedures, with the participation of representatives from the Ministry of Finance, MoF, judges and those involved in bankruptcy cases in the Dubai Courts, Abu Dhabi Judicial Department and Ras Al Khaimah Courts.
The workshop highlighted Federal Law No. (9) Of 2016 on bankruptcy and its added value to the legal and legislative system in the country. This law supports the nation’s legislative structure, protects its investors, strengthens the nation’s position in various global competitiveness indices and contributes to attracting more investments – especially from abroad.
Younis Haji Al Khoori, Undersecretary of MoF and Chairman of the Financial Restructuring Committee, praised the cooperation of all concerned parties and their enthusiasm for implementing the law in an optimal manner that ensures the achievement of the objectives for which it was issued.
He said: “Federal Law No. (9) of 2016 on bankruptcy stands out from its regional and global counterparts in that it regulates various bankruptcy cases and identifies the legal tools necessary for restructuring the debtor’s business in accordance with clear conditions and rules as defined by the law.”
He added: “Achieving a comprehensive and sustainable development at the national level requires an integrated and fair legal system. The bankruptcy law contributes to this aim by providing a safe investment climate that encourages investment in the country and strengthens the UAE’s leading position in various indicators of global competitiveness.”
Dr Hussam Al Talhouni, legal advisor at the Office of the Minister of Finance, Secretary of the Financial Restructuring Committee also attended the workshop which also covered the importance of the bankruptcy law and the various frameworks that were considered when preparing and issuing it. These frameworks allow for the restructuring of debtors’ businesses in accordance with a clear legal framework, which is an important addition to the legislative system of the UAE.
Based on well-established legal and economic principles, the law helps in supporting nation’s competitiveness globally, building a mature economy that guarantees the rights of individuals and institutions, and balancing interests and justice for both creditors and debtors.
The Bankruptcy Law contributes to raising the level of credit and financial security in the country by enhancing investor confidence and stimulating the nation’s economy by allowing people in financial difficulty to reorganise their financial affairs and repay their debts. The application of transparent, clear and fair rules preserves the rights of investors and has a positive impact on investment and liquidity in the country.
The workshop reviewed a practical example of the elimination of excessive debt while highlighting key considerations from the case. These included including the rights of the various parties, the time and cost factor, the expected returns from the adoption of legal proceedings, the management of the debtor’s property and finances, the financial restructuring procedure, and the role and contribution of creditors in the proceedings.