The new amendments to the UAE's bankruptcy law offer companies and debtors more flexibility, allowing them to combat challenges while protecting their own and others' rights. According to Jehad Kazim, vice-president, Legal Services at Dubai Chamber, who spoke on the sidelines of a recent webinar hosted by Dubai Chamber of Commerce and Industry in collaboration with BSA Ahmad Bin Hezeem & Associates LLP.

The amendments help to boost trust in the UAE's market climate, as well as businesses and the private sector's ability to meet all obstacles, including the Covid-19 pandemic and its impact on the business sector.

The webinar gathered 251 participants from different economic industries, including company owners, administrators, attorneys, legal professionals, corporate counsel, financial managers, chartered accountants, risk managers, financial auditors, and investors. Lara Barbary, Partner at BSA Ahmad Bin Hezeem & Associates LLP, Barry Greenberg, Counsel at BSA Ahmad Bin Hezeem & Associates LLP, and Musab Iftikhar, Associate at BSA Ahmad Bin Hezeem & Associates LLP, positively influenced the discussion.

“Many businesses are facing rising financial challenges in these difficult economic times. The UAE passed a law in late 2016 to provide relief, but some have been reluctant to bring its provisions to the test. Confronted with the Covid-19, the UAE revised its bankruptcy legislation in 2020, possibly providing more relief to businesses facing difficulties as a result of the pandemic. “We addressed the bankruptcy law in general, the recent changes, and the concerns that may still trigger hesitation to use the bankruptcy law in this webinar,” said Lara Barbary, partner at BSA Ahmad Bin Hezeem & Associates LLP.

The webinar was designed to help business owners and investors to understand the legislative changes to the UAE's bankruptcy law that were implemented late last year, enabling international investors to learn about the legal mechanisms that safeguard their interests and provide them with security as a result of the Covid-19's economic effect.

The speakers provided a summary of the most recent changes to the UAE bankruptcy law, including protocols for filing bankruptcy, suspension of the debtor's responsibilities, the Director's duties and liabilities, settlement with creditors, restructuring mechanisms, and capital backing.

Dubai Chamber holds training seminars and workshops regularly to raise awareness about important matters and issues affecting Dubai's business community, with the strategic goal of establishing a favorable business climate and promoting the emirate's economic development in mind.