Dubai Makes Moves Toward International Best Practices with New Insolvency Law

On May 30, 2019, Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum, signed DIFC Insolvency Law, Law No. 1 of 2019 (the “New Insolvency Law”) into law, thereby repealing and replacing DIFC Law No. 3 of 2009, the National Law Review reported. The New Insolvency Law, and supporting regulations (the “Regulations”), became effective on June 13, 2019, and govern companies operating in the Dubai International Financial Centre (the “DIFC”). A full analysis of the New Insolvency Law is beyond the scope of this post.  However, there are many important provisions of the New Insolvency Law that will be very familiar to U.S. bankruptcy practitioners, as well as cross-border practitioners. First, Part 2 of the New Insolvency Law provides procedures for creditors and shareholders to agree to a voluntary arrangement of a company’s affairs. The procedure for implementation of a proposed voluntary arrangement is relatively straightforward. Read more