A long pending bankruptcy law may be finalized by the UAE by the end of this year; the economy minister said on Wednesday 31st of August, a move that could benefit smaller companies in particular as the economy slows because of low oil prices.
The UAE does not have modern bankruptcy regulations, making it complex for companies to restructure or wind themselves up. Under current legislation, unpaid debt or the issue of a bounced cheque can land businessmen in jail. Smaller companies have found this difficult as some executives or troubled firms have fled the country, with bad debts left behind. This new law would allow the cash-strapped companies to become more secure and revive their fortune.
