On 24 October 2020, the UAE Cabinet announced its decision to amend Federal Law No. 9 of 2016 (the “Bankruptcy Law”) by adding certain provisions to allow for business continuity during emergency situations, including pandemics and natural disasters. This is a timely amendment to the Bankruptcy Law and has been introduced in response to the COVID-19 global pandemic.
The Bankruptcy Law is amended by a Federal Decree Law (the “Amending Law”). The overarching aim of the Amending Law is to provide assistance to debtors, both companies and individuals, facing financial distress to enable them to continue operating in emergency situations.
In this update, we look at the changes made to the Bankruptcy Law.