Specialized Bankruptcy Court Established in the UAE
The United Arab Emirates is set to launch a dedicated Bankruptcy Court located in Abu Dhabi. This court is designed to address all bankruptcy-related disputes in accordance with the revised laws, ultimately reinforcing the legal framework and promoting economic stability. It will provide a systematic legal avenue for businesses and individuals navigating financial difficulties.
Key Points
1. Centralized Location with Expansion Flexibility: The primary Bankruptcy Court will be situated at the Abu Dhabi Federal Court of First Instance but is not limited solely to the capital. Additional branches may be established in other emirates as required, all with equal authority in handling cases.
2. Comprehensive Management of Bankruptcy Disputes: This specialized court will address all matters falling under the UAE’s updated bankruptcy law, including financial restructuring requests, preventive settlement plans, bankruptcy filings, and any related objections or complaints.
3. Expert Judicial Oversight: The court will be staffed by specialized judges, led by a chief judge not below an appeals judge’s rank. These judges are appointed by the Federal Judicial Council and supported by a dedicated team managing case documentation and notifications.
4. Assistance from Financial Experts: In dealing with complex cases, the court can engage financial experts and consultants to aid in managing debtor assets, interacting with creditors, implementing urgent measures, and expediting processes.
Conclusion
The establishment of a specialized Bankruptcy Court signifies the UAE’s commitment to providing legal mechanisms that support businesses, individuals, and economic stability while ensuring transparency and fairness in the judiciary system. This initiative aims to promote legal debt management, offer alternatives to liquidation, and enhance investor confidence through clear and equitable procedures.
The new court will cater to registered companies under the Commercial Companies Law, traders, and licensed professionals, providing a range of legal solutions before resorting to liquidation. By enabling structured financial restructuring and settlements, the court aims to help entities facing financial distress continue operations while complying with legal requirements.
Both companies and individuals falling under the law’s stipulations can seek recourse through the Bankruptcy Court, offering structured guidance in navigating debt challenges and exploring reorganization possibilities.
