Overview. The first Bankruptcy Law was introduced in 1993 (“1993 Law”). It remained in place for 10 years and was replaced in 2003 (“2003 Law”). Subsequently, the National Assembly adopted an entirely new bankruptcy law in 2014 (“2014 Law”[1]).

Highlights

A Petition for Writ of Certiorari has been granted by the U.S. Supreme Court in Keathley v. Buddy Ayers Construction, Inc., Case No. 25-6, on a ruling from the U.S. Fifth Circuit Court of Appeals.[Fn. 1]

The Question Presented in Kethley v. Buddy Ayers is this:

Corporate restructuring is a complex process that involves significant changes in the ownership, operations, or structure of a company. In the United Arab Emirates (UAE), the legal paths and procedures for corporate restructuring are well-defined and strictly regulated. Understanding these processes is crucial for businesses looking to navigate the intricate landscape of corporate law in the UAE.

What is Corporate Restructuring?

The casual dining and hospitality sector is navigating a period of profound upheaval, driven by macroeconomic pressures, regulatory uncertainty, and shifting consumer preferences. In this context, private equity and credit funds also face mounting distress, divergent brand fortunes, and a growing need for legal and transactional agility.

In autumn of 2025, the English High Court decided that liquidators have unlimited personal exposure: they cannot contractually limit or exclude their personal liability for breach of duty. An application for permission to appeal that decision is now before the Court of Appeal.

In a move that exemplifies the flexibility of the UAE’s judicial system, the Dubai Court has issued a landmark ruling declaring the insolvency of an Arab national. The individual had accumulated civil debts totaling AED 736,000, leading to a complete inability to meet financial obligations.

Declaring bankruptcy for a Limited Liability Company (LLC) in the UAE entails several legal, financial, and commercial consequences that affect the company itself, its partners, creditors, and the overall market. The most prominent effects include:

Freezing of Assets and Accounts: Upon the issuance of a bankruptcy judgment, the company's assets are frozen and placed under the management of a Bankruptcy Trustee, for the purpose of liquidation or restructuring in favor of the creditors.

11 U.S.C. § 365(c)(2) says (emphasis added):

The English Court of Appeal has recently provided important guidance on transactions at an undervalue pursuant to s.238 of the Insolvency Act 1986 (“IA 86”) in the case of TAQA Bratani Ltd v Fujairah Oil and Gas UK LLC.