In 2018, Saudi Arabia's Ministry of Commerce and Investment (MOCI) published a new Bankruptcy Law aiming to provide bankrupt or insolvent debtors the opportunity to reorganize or rescue their business and streamlining the liquidation process to ensure fairer distribution to creditors upon liquidation. The new Bankruptcy Law is also intended to improve the investment environment and attract more investments to Saudi Arabia and reinforce confidence in the credit market and financial transactions. These goals are in line with the country's goals for Saudi Vision 2030.

The GCC Quarterly Review briefly summarises a selection of the major developments in the laws of the Gulf Cooperation Council (GCC) region (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) in the third quarter of 2018, with links to further reading, where available.

Legend International Holdings Inc (in Liquidation) v Indian Farmers Fertiliser Cooperative Limited [2016] VSCA 151

The Australian Court of Appeal refused an appeal against a winding up order made in relation to Legend in Australia where Chapter 11 proceedings were on foot in the United States.

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Edgeworth Capital Luxembourg Sarl (2) Aabar Block Sarl V Glenn Maud [2015] EWHC 3464 (Comm)

The High Court in England has ruled on whether Spanish Law has the effect of extinguishing third party guarantees when the beneficiary of the guaranteed liabilities enters into insolvency proceedings in Spain.

Saudi Arabia takes out $10 billion in bank loans

Debtors and creditors can use several options under the Insolvency Law in Saudi Arabia to address COVID-19-related difficultie

�عمل مكتب سلمان بن متعب السديري للمحاماة"مؤسسة فردية" بالتعاون مع ليثم أند واتكن� �� المملكة العر�ية السعودية. و�عمل ليثم أند واتكن� �� جميع أنحاء العالم كشراكة ذات مسؤولية محدودةمنظمة بموجب قوان�ن ولاية ديلاو�ر (بالولايات المتحدة الأمر�كية) بالتعاون مع شر�ات تضامن تا�عة ذات مسؤولية محدودة تقدم خدما��ا �� فر�سا وهونج �ونج وإيطاليا وسنغافورة والمملكة المتحدة، وتقدم الشركة خدما��ا كشركة تضامن تا�عة �� اليابان. كما �عمل الشركة �� �ور�ا ا�جنو�ية كشركة أجنبية للاستشارات النظامية. حقوق النشر لعام ٢٠٢٠ محفوظة لصا�ح ليثم أند واتكن�. جميع ا�حقوق محفوظة.

Draft new insolvency law for the UAE - is a big clean-up of delinquent debtors on the way?

It has been widely reported that the new insolvency law in the UAE is substantially progressed, with the UAE Federal Cabinet expected to review it in the early part of this year.

1 Legal Developments

1.1 New Saudization Rules Proposed

Saudization is the colloquial term used to refer to Saudi Arabia’s official government policy of encouraging the employment of Saudi Arabian nationals in the private sector. The policy of Saudization is enforced and implemented through several programs and regulations in Saudi Arabia, including the Nitaqat Program.

Saudi insolvency law has for some time been something of an unknown quantity for non-Saudis. A wide-ranging reform is due to take effect in 2016, which will express elements of the rescue culture and is likely to make restructurings more common. Increased certainty in the outcome of insolvencies will benefit both Saudi businesses and domestic and foreign creditors alike.