In the United Arab Emirates, at last, the long-awaited bill of bankruptcy is approved.
In a series of tweets its Highness the sheikh Muhammad bin Rasheed Al Maktoum, the prime minister - the minister, the vice-president of the UAE and the governor of Dubai, reported that yesterday in the country the final federal law draft about bankruptcy was approved.
"The law is directed to promotion of investment appeal of economy of the UAE and assistance to business development" — the governor of Dubai declared.
The new law opens a way for the companies experiencing financial difficulties to the procedure of restructuring which is impossible in the UAE now.
Industry bodies, including Federation of Banks of the UAE, worked on promotion of the bill within several years. In their opinion, lack of the official act of bankruptcy in the country interferes with growth of small and medium business, sector in which development the government is interested.
According to the existing legislation the non-payment of debts and invoicing of unsecured checks can lead to imprisonment.
Only last week the Minister of Economic Affairs Sultan Said al-Mansuri declared that the bill capable to help the companies to have hard economic times can be complete by the end of this year.
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