The UAE Bankruptcy Law: Stepping up to the challenges raised by the COVID-19 crisis

April 09, 2020

With the significant strain placed on market participants as a result of the combined impacts of the global COVID-19 pandemic, the oil price war and the ensuing liquidity and credit crunches, we expect that a number of enterprises in the United Arab Emirates ("UAE") will either be forced to carry out restructurings or otherwise undergo formal court-supervised insolvency processes. As a response to the 2008 Global Financial Crisis (which highlighted that the previous UAE insolvency regime was not adequate in that it did not provide a robust framework for the rescue of distressed businesses), and in line with the UAE Government’s push to modernize its business legal framework, the UAE overhauled its bankruptcy regime on December 29, 2016 with the introduction of the New UAE Bankruptcy Law (the "Bankruptcy Law").

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