The United Arab Emirates enacted Federal Decree Law No. 51 of 2023 on Financial Restructuring and Bankruptcy (the “New Bankruptcy Law”).

It is worth noting that the New Bankruptcy Law established special courts to adjudicate on bankruptcy applications, and will be referred to as the bankruptcy courts (“Bankruptcy Courts”)

The New Bankruptcy Law addresses many important issues which a debtor might encounter if it is to initiate bankruptcy proceedings or if bankruptcy proceedings have been initiated against it. One of such important issues is the lease.  

United Arab Emirates enacted Federal Decree Law No. 51 of 2023 on Financial Restructuring and Bankruptcy (the “New Bankruptcy Law”). The New Bankruptcy Law replaced Federal Decree Law No. 9 of 2016 on Bankruptcy and has come into force from May 1, 2024.

The New Bankruptcy Law aims at preserving the stability of the national economy, protect rights of creditors and helping debtors to maintain their business to the extent possible, while improving the restructuring and bankruptcy proceedings in the UAE.

The United Arab Emirates legislators have enacted Federal Decree Law No. 51 of 2023 on Financial Restructuring and Bankruptcy (the “New Bankruptcy Law”).

It is worth noting that the New Bankruptcy Law established special courts to adjudicate bankruptcy applications which will be referred to as the bankruptcy courts (“Bankruptcy Courts”).