New Insolvency or Bankruptcy law for individuals has recently received quite a lot of attention from foreign expatriates living in UAE. The Cabinet of UAE has lately sanctioned a federal law to explicitly govern the cases of bankrupt individuals within the country. The law has been issued to safeguard the business interest of UAE residents, enhancing conditions of insolvent individuals and to ensure healthy competition among businesses.

The new Bankruptcy Law (Federal Law Number 9 of 2016) is seen as a strategically improved law in comparison with previous insolvency laws. Having said that the Bankruptcy Law so far covers the following:

i. Permits organizations in money related issues and provides the chance to rearrange their issues so as to stay suitable;

ii. Companies failing to stay financially viable, offers them a chance to seek liquidation;