In UAE business bankruptcy is governed by  Federal Law by Decree No. 9 of 2016 on Bankruptcy which came into force on December 2016.  to avoid bankruptcy and liquidation through different mechanisms, this law provides a legal framework to help distressed companies in the UAE.The mechanism includes

• consensual out-of-court financial restructuring
• composition procedures
• financial restructuring
• the potential to secure new loans under terms set by the law
• conversion to declaration of bankruptcy and liquidation of the debtor’s assets.

 

The law applies to:

• companies and establishments in the free zones that are subject to the provisions of Federal Law No. 8 of 2004 on Financial Free Zones and which are not governed by particular provisions regulating protective composition procedures, financial restructuring and/or bankruptcy
• any individual who is a trader as defined in the Commercial Transactions Law (Available in Arabic only).
• licensed civil companies carrying out professional activities.
• companies governed by the Commercial Companies Law
• companies which are not established under the Commercial Companies Law and which are wholly or partly owned by the federal or local government, stipulating that Federal Law by Decree No. 9 of 2016 on Bankruptcy applies.

This law increases the business stability in the UAE and investors’ confidence in the UAE market.

Leading Practices for finance litigation and dispute regulation

According to the latest court decisions and legal developments, the banking and finance disputes reports are aimed to determine the future trends and comment on it. We assist clients in the litigation process and dispute resolution from Detailed investigation preferably the major one and high-profile disputes to issues related to reputation of risk management.

Depending on cases variations there are certain circumstances wherein its complicated and are beyond the grasping capacity of judge or arbitrators. However, in such condition before leading to any specific decision a professional banking/ accountant expert is appointed to give his opinions and advice on the subject matter. A court expert can be anyone with knowledge or experience of a particular field or discipline beyond that to be expected of a layman.

Al Jazeera Advocates are associated with top tier practice to deal with finance litigation and regulatory disputes our lawyer expertise is considered as one of the best lawyer particularly in Dubai and across UAE.

For a new Financial Consumer Protection Regulatory Framework, consultation process launched.

As per the new guidelines being drafted by the Central Bank of the UAE(CBUAE) Bank consumers and financial institution will have greater protection in UAE.

For developing a new Financial Consumer Protection Regulatory Framework, CBUAE has launched process for consultation. Which will result into resolving complaints faster as well as consumers will also receive “effective dispute resolution services”

The Governor of CBUAE, Mubarak Rashed Al Mansoori exclaimed.” Through this process, CBUAE will move forward with the development of a new Financial Consumer Protection Regulatory Framework to protect financial consumers”

The principle of the framework includes market conduct, business conduct and protection of consumer data and privacy as well as disclosure and transparency, regulatory supervision and corporate governance too.

Moreover, this particular principal is also responsible for finance practices, consumer education, awareness, financial inclusion, complaint management and dispute resolution. However, for the development of comprehensive framework in financial service Shariah compliance is essential.

Furthermore, the new regulations and standards will apply to all existing agreements, products and services of licensed financial institutions.