In a follow-up action to its 2020 amendment to the 2016 Corporate Bankruptcy Law (that defined an Emergency Financial Crisis as “A general situation that affects trade or investment in the country, such as a pandemic, natural or environmental disaster, war, etc.”) the UAE Cabinet has now officially declared that an Emergency Financial Crisis shall be deemed to exist during the period from 1 April 2020 until 31 July 2021 due to COVID-19 with various implications for businesses distressed as a result of the pandemic.

Further to our previous update, the UAE Cabinet has announced the existence of an Emergency Financial Crisis through the Official Gazette dated 31 January 2021.

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In this webinar, Ahmed Al Barwani, Head of Office – Oman & Richard Baxter, Senior Associate, Corporate Commercial – Oman discussed the following topics:

• The new Bankruptcy Law (Royal Decree 53 of 2019)
• Force Majeure
• Labour Law Update

As announced this week, the UAE Cabinet has approved a further amendment (Amendment Law) to Federal Law No 9 of 2016 (the Corporate Bankruptcy Law). The Amendment Law follows the previous amendment of the Corporate Bankruptcy Law in 2019 (pursuant to Federal Law No 23 of 2019).

The Amendment Law is yet to published in the official gazette, and therefore its effective date is yet to be confirmed. However, in this alert we look at the anticipated content of the Amendment Law.

Primary Change – Emergency Financial Crisis

In line with Bahrain’s Economic Vision 2030, the Kingdom of Bahrain recently introduced Law No. (22) of 2018 promulgating the Restructuring and Insolvency Law (‘New Law’), as a step towards strengthening the legal framework and business ecosystem in Bahrain. The New Law is expected to boost transparency and efficiency in the insolvency process and improve the ease of doing business in Bahrain.

Published on 30 May 2018, and coming into force on 30 November 2018, the New Law repeals the old Bankruptcy and Composition Law (Law No. (11) of 1987).

These days it seems as if all roads in Saudi Arabia lead to Saudi Vision 2030 and the National Transformation Programme (NTP), the government’s strategy to modernise and diversify the Saudi economy.

Amongst other things, the government has signalled that it wants to see a far greater level of private sector participation in many areas of the economy than has previously been the case. This has led to a number of reforms designed to facilitate and pave the way for that investment and especially foreign investment.

These days it seems as if all roads in Saudi Arabia lead to Saudi Vision 2030, the government’s strategy to modernise and diversify the Saudi economy. Amongst other things, the government has signalled that it wants to see a far greater level of private sector participation.  This has led to a number of reforms designed to facilitate and pave the way for that investment, especially foreign investment.

What is the Cape Town Convention?

The Convention on International Interests in Mobile Equipment (“Convention”) and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (“Aircraft Protocol”) were signed in Cape Town, South Africa, on 16 November 2001.

Article 295 of the Jordanian Commerce Law 1966 allows a merchant on the verge of bankruptcy to avoid bankruptcy and gain protection from creditors executing judgments against the merchant by initiating a court-sponsored settlement process with the creditors (‘preventive composition’).

Kuwait is now considering a new law that will bring its bankruptcy and insolvency legal regime closer to Chapter 11 of Title 11 of the United States Bankruptcy Code.

The proposed Law on Bankruptcy (the “Draft Law”) is currently being reviewed by the Department of Legal Opinions & Legislation of the State of Kuwait.