The long-awaited law on financial regulation and bankruptcy, which is widely hoped to have a far-reaching positive impact on the UAE’s business environment, is getting closer to reality with the Cabinet approving a draft proposal. The draft of the landmark legislation that seeks to decriminalize bounced cheques and help bail out businesses facing financial troubles or bankruptcy would now go to the Federal National Council for the next level of approval.
His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai said the proposed draft law presented flexible strategies to bailout businesses faced with financial troubles that might lead to bankruptcy. The draft law aims to regulate accumulated debts, ease restructuring of companies as well as support troubled businesses. The law also aims to mitigate risk of bankruptcy and ensure a safe and attractive business environment in the UAE that nurtures and supports investments. In light of its global investment position, the UAE government seeks to provide incentives to investors to invest in the country by ensuring a supporting environment and benefits to develop businesses in the UAE.