On 31 October 2023, the Federal Decree-Law No. 51 of 2023 on Financial Restructuring and Bankruptcy (the Bankruptcy Law) was published in the UAE Gazette. The Bankruptcy Law replaces the Federal Law No. 9 of 2016 on Bankruptcy (as amended) (the 2016 Law).

The aim of the Bankruptcy law is to introduce a modern, streamlined and business-friendly approach to restructuring in the UAE (except for the DIFC and ADGM freezones, which have their own insolvency regimes).

Key Changes

Key Takeaways

Article 319(1) of the UAE Civil Procedure Law authorises an execution judge to imprison a debtor who fails to satisfy a judgment debt, unless the debtor is able to prove that he is insolvent.

In 2016, the United Arab Emirates (UAE) witnessed significant development in the country’s legal framework for handling corporate insolvencies with the introduction of the Federal Decree-Law No. 9/2016 on Bankruptcy (“Bankruptcy Law”).

The UAE Gazette of 31 October 2023 includes Federal Decree-Law No. 51 of 2023 on Financial Restructuring and Bankruptcy (the “New Law”). Here are some highlights:

- A section of the Courts is designated to monitor and administer bankruptcy and restructuring proceedings. This section is chaired by a Court of Appeal Judge.

- Resolution of claims between debtors and creditors is encouraged; for example, by providing wider scope to debtors seeking Protective Composition.

Routes to Reorganisation

A Comparative Study of the Insolvency Procedures Available in the United Arab Emirates, Kingdom of Saudi Arabia, United States and England and Wales

First published in the INSOL Restructuring Alert (November 2023)

Introduction

Introduction

A recent Commercial Court decision has raised an intriguing question of private international law: can a foreign judgment be enforced in England and Wales if it is not enforceable in the country where it was given?

In Dubai civil cases, if someone proves they cannot pay what the court ordered, they will normally avoid facing an arrest warrant, the emirate's highest judicial body has said.

Creditors need to demonstrate that the person who owes the money has sufficient funds to pay the debt before the court can issue an arrest warrant for unpaid dues.

Overview

This week’s Dekagram examines what happens when rules change: that transitional period between one set of rules and another, when no one is quite sure what’s happening. We seem to have had quite a few of those recently; just as we were getting over the horrors of the Withdrawal Act, along came the changes to the Fixed Recoverable Costs regime – changes which, we remind readers, remain in a state of flux, notwithstanding that the new regime is now in force.

Res Judicata and Rule Changes