ICAEW: New bankruptcy law is vital for continued development of UAE economy

• But greater understanding of the reformed law will be necessary if it is to be effective

Dubai, UAE, October 27, 2016:  Responding to the publication of the new bankruptcy law for the UAE, which aims to enable businesses to restructure their debt while avoiding liquidation, Michael Armstrong, FCA, Regional Director ICAEW Middle East, Africa and South Asia, said:
“The implementation of a modern bankruptcy regime is a key part of the continued development of the UAE’s economy. These reforms will prove vital for doing business and attracting international investors.

“However, there is still a relatively low level of knowledge regarding insolvency in the UAE, if not the region in general. This is certainly true of the long and sometimes complex legal process, where many businesses are not clear on procedures or what they should be doing. Improving understanding of the reformed law will be critical if it is to be effective. One of the most crucial factors in rescuing any business that has got into difficulties is recognising that there is a problem at the earliest possible stage, and seeking help or intervention.”