The proposed changes of the United Arab Emirates insolvency law is set to decriminalize the bankruptcy process.
One of the most noteworthy amendments in the draft includes moving away from a court-driven insolvency procedure.
A new commission may be established by the UAE Council of Ministers to encourage private, out of court settlements between the debtors and collectors.
Although the new law may not be implemented for several months, if passed the legislation would replace the existing insolvency law and would affect businesses established under the United Arab Emirates Commercial Companies Law. Government entitles, companies operating in Free Zones with their own insolvency laws will not be affected by this change.