The New Bankruptcy Law (Federal Law Decree No 51 of 2023) came into effect in UAE on 1 May 2024, replacing the previous law (Federal Decree-Law No 9 of 2016). While maintaining much of the old law's structure, it introduces significant changes for creditors and debtors, including the recognition of both natural and legal persons as 'debtors'. The law retains emergency financial crisis provisions from the old law and is expected to impact restructuring and insolvency cases in the UAE.

Introduction

Termination for insolvency: a clause for concern?

Perhaps influenced by the fall of some significant UK brands in recent years, the actions of suppliers of insolvent firms have long been on the radar of the Government, initially through the introduction of The Insolvency (Protection of Essential Supplies) Order 2015 and most recently through the consultation and consideration relating to the Corporate Insolvency and Governance Act 2020, which came into force on 26 June 2020.