January 10, 2020
The New Insolvency Law: A breath of fresh air for Debtors and Creditors
With a more defined and consolatory legal and regulatory framework in place, the UAE’s financial sector now rates parri-passu with other well-regulated global jurisdictions. Having been approved by the UAE cabinet, the new Insolvency law will take effect from January, 2020 and with it comes many benefits for both creditors and debtors.
Benefits of the New Insolvency Law
As the UAE advances its positioning as a regional economic hub and financial safe haven, gradually, laws are being enacted to support entrepreneurs and business owners which in turn improve the ease of conducting business in the country. Some of the benefits of the Insolvency Law are as follows:
To have a better understanding, here’s how it works:
On a final note, the insolvency law will indeed prove to be mutually beneficial to business owners and the banking sector as it offers individuals the opportunity to restructure their finances and also helps lenders reduce their cost of bad debt.