The United Arab Emirates is set to establish a dedicated Bankruptcy Court in Abu Dhabi to manage all issues related to bankruptcy under the new laws, aimed at fortifying the legal system and backing economic stability. This initiative will provide a systematic legal avenue for businesses and individuals encountering financial difficulties.
A new Bankruptcy Court is being introduced, headquartered at Abu Dhabi Federal Court of First Instance, to oversee disputes according to the updated bankruptcy regulations of the UAE. The court will be managed by specialized judges and financial experts who will handle intricate insolvency and restructuring matters.
The specialized Bankruptcy Court in the UAE has been instituted to address financial problems and insolvency cases, in line with efforts to enhance the country’s legal structure and stimulate economic stability. By establishing a primary court in Abu Dhabi with prospects for branch expansion across other emirates, this step is geared towards streamlining the management of bankruptcy cases. It assures that entities and individuals grappling with financial challenges have a distinct, orderly legal path, whether it involves debt restructuring, forestalling liquidation, or resolving disagreements.
Aligned with Federal Decree-Law No. (51) of 2023 outlining the financial restructuring and bankruptcy guidelines of the country, this move is designed to advance the judicial system supporting the national economy and bolster the efficiency of the justice system in addressing financial distress and bankruptcy cases.
