MoF organises workshops on practical applications of the federal decree no. (9) of 2016 concerning bankruptcy

The Ministry of Finance (MoF), in collaboration with Dubai Courts, recently organised a workshop on the practical applications of the Federal Decree No. (9) of 2016 concerning bankruptcy. The workshop came as part of a series organised by the Ministry to follow-up on the post-issuance phase of federal law. MoF also organised a similar workshop in Abu Dhabi, in collaboration with Abu Dhabi Judicial Department, which was held on 24^th of May, to reflect its commitment to train concerned parties on bankruptcy law and review the law’s modern standards.

Dr. Hussam Al Talhouni, Legal Advisor at the Office of the Minister of Finance, represented MoF at the workshop in the presence of HE Judge Mohammed Al Sabousi, Deputy Chairman of Dubai Courts and the Official Representative of the Conference’s Sponsor, alongside a select group of judges from the First Instance Court and Appeal Court of Dubai Courts, who have experience in commercial, civil and bankruptcy law.

Dr. Hussam Al Talhouni stressed the importance of the Federal Decree No. (9) Of 2016 as an important addition to the UAE legislative system. The law is not only distinguished amongst other laws from Arab nations, but even against many developed countries in the sector, as it regulates various cases of bankruptcy and creates legal tools to restructure the debtor's business according to a clear legal framework.

Dr. Al Talhouni said: “The Ministry has taken into consideration all local, regional and international challenges alongside recent economic and social changes in preparing the law. It has been developed based on the trials and experiences of the UAE, alongside reviewing legal texts, notices have also been exchanged between different economic and local legal bodies in the UAE making it possible to reach a realistic law that provides legislative protection for investments and supports the sustainable economic development of the country. It is expected that this law will contribute to support the country's global competitiveness, helping to achieve a mature economy that guarantees the rights of individuals and institutions and meets the requirements of modern business models, in promoting credit and supporting confidence in business dealings.”

The workshop aimed to ensure cooperation between all concerned entities with regards to the successful implementation of the law which will help improve the UAE’s opportunity to be included in the World Bank Report based on the implementation of international best practice. The workshop considered the most important issues covered by the law.

The workshop covered a number of elements, including clarity with regards to the role of judiciary in activating the necessary procedures as stated by the law. Participants were also introduced to the powers of the court as well as flexibility when evaluating all cases to achieve balance between debtors and creditors.

The workshop offered participants practical examples on eliminating excessive indebtedness through financial restructuring, the points to be considered in similar cases, including the rights of various parties, time and cost factors, returns expected from the adoption of legal proceedings, ways of managing the property and finances of the debtor, financial restructuring and the role and contributions of creditors in the proceedings.