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

The current legislation, particularly the Coronavirus (Scotland) Act 2020; Coronavirus (No 2) (Scotland) Act 2020 and the Corporate Insolvency and Governance Act 2020, contain measures to protect debtors affected by Covid-19.

These measures restrict the options available to landlords and creditors and have been extended to remain in force until 30 September 2021, although some measures will cease on 30 June pending subject to any further extension which may be granted.

Commercial Leases

Irritancy