BY THE END OF 2016 IN THE UAE THE LONG-AWAITED BANKRUPCY LAW CAN APPEAR
The United Arab Emirates can finish long process of development of the bankrupcy law by the end of this year.
Earlier postponed bankrupcy law can be finally developed by the end of this year in the UAE, the Minister of Economic Affairs Sultan bin Said al-Mansuri on Wednesday declared. This step, according to him, is designed to help small private companies against the background of delay of economy because of the low prices of oil.
In the UAE at the moment there are no modern rules of bankruptcy that complicates restructuring process for the companies. According to the existing legislation, availability of unpaid debts or invoicing of checks for the amount which is absent on the account of the investor can entail hit of the entrepreneur in prison. For economy it turned back that a number of heads of the problem companies left the country, having left behind receivables.
UAE Banks Federation, the industry organization, works on acceleration of adoption of the new insolvency act by the government, the chairman Abdul Aziz al-Gkhureyr in March declared.
Mansour reported that the new investment law of the UAE can be also complete by the end of 2016. The project will be shortly provided to the government. The new investment legislation, as expected, will allow to establish the companies from mostly foreign participation in some sectors where now restriction with 49 percent is provided.
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