Expert Interview, News from DACH
|
15.05.2024
In a noteworthy development for the business landscape of the United Arab Emirates (UAE), the 2023 Federal Law Decree No. 51 concerning Financial Restructuring and Bankruptcy was promulgated, signifying a significant shift in the nation’s insolvency framework. This new legislation, effective from May 1, 2024, replaces the prior federal law on bankruptcy and introduces several key enhancements aimed at modernizing and streamlining the insolvency regime in the UAE.
Strengthened liability measures
The updated legislation broadens the scope of liability to include not just board members but also individuals actively managing companies and those supervising liquidation proceedings. This widened liability framework emphasizes accountability and promotes responsible corporate governance practices.
Establishment of the Bankruptcy Court
A notable feature of the new law is the establishment of a dedicated Bankruptcy Court vested with jurisdiction over bankruptcy-related matters. This specialized court replaces prior judicial bodies and is empowered to adjudicate on insolvency proceedings, ensuring a focused and efficient resolution process.
Decisions rendered by the Bankruptcy Court carry immediate enforceability, eliminating procedural delays and expediting the execution of judgments. The provision for prompt enforcement enhances the efficacy of the legal framework and fosters confidence in the insolvency resolution process.
Preventive settlement mechanism
Substituting the previous preventive composition mechanism, the new law introduces a preventive settlement procedure aimed at enabling ongoing operations of debtor businesses amidst financial difficulties. Essential aspects of this procedure comprise:
Claw back provisions and set-off restrictions
Aligned with international best practices, the legislation enhances claw back provisions, reducing the timeframe for reversing transactions prior to bankruptcy proceedings. Furthermore, it imposes limitations on set-off actions following the initiation of insolvency proceedings, protecting creditors’ interests, and fostering fair asset distribution.
Conclusion
The revocation of previous insolvency laws signals a new chapter for insolvency procedures in the UAE, marked by improved efficiency, transparency, and creditor safeguards. Adherence to the new Bankruptcy Law is essential for businesses in the UAE, as failure to comply could lead to penalties.
Looking forward, we anticipate the issuance of executive regulations to supplement the new law, offering additional guidance on its implementation. In the interim, existing regulations and resolutions will remain in effect, ensuring a seamless transition and stability in the insolvency framework.
In summary, the implementation of the 2024 UAE Financial Restructuring and Bankruptcy Law signifies a significant advancement in the country’s legal framework, indicating a dedicated initiative to modernize and fortify the insolvency system. Through comprehensive reforms and procedural improvements, the law aims to foster confidence, enhance financial stability, and streamline the resolution of insolvency matters in the UAE.
| TAREK ANTAKI ASSOCIATE PARTNER LEGAL CONSULTANT – ATTORNEY AT LAW T +971 (4) 295 00-20 UAE M +971 (50) 727 4125 tarek.antaki@roedl.com www.roedl.de | BENJAMIN KOZICA LEGAL CONSULTANT ASSOCIATE T +971 (4) 295 00-20 M +971 (50) 656 3135 benjamin.kozica@roedl.com www.roedl.de |
Learn the latest about us and our projects around the world.
To never miss an opportunity, subscribe to our newsletter.
The Blue Residency will specifically be granted to supporters of environmental action, including members of international organisations, international companies, members of associations and non-governmental organisations, global award winners, and distinguished activists and researchers in environmental work,” the UAE Cabinet announcement said.
The UAE government has introduced the “Work Bundle” initiative to streamline employee residency processes and work permits for private sector companies. Initially, this program will be rolled out in Dubai, with plans to extend it to other emirates over time.
Saudi Arabia is undergoing a remarkable transformation, rapidly establishing itself as a global economic leader. With substantial progress towards its Vision 2030 goals, the Kingdom presents a wealth of opportunities for European and DACH businesses looking to expand into a dynamic and evolving market. Vision 2030: Pioneering Sustainable Growth By the end of 2023, Saudi […]
In compliance with the regulations of the Ministry of Commerce, all companies operating in the Kingdom of Saudi Arabia are required to amend their articles of association to align with the new companies system outlined in Royal Decree No. (M/132) dated 01/12/1443 AH and its executive regulations as per the decision of His Excellency the […]
The economic outlook for Saudi Arabia remains positive, with continued momentum expected in diversification efforts and economic reforms. German, Swiss and Austrian companies can capitalize on emerging opportunities in the following ways: While opportunities abound, German, Swiss and Austrian companies must navigate cultural differences, regulatory complexities, and geopolitical risks. Additionally, ensuring compliance with local laws […]
Transforming Stress into Strength for Leaders and Organizations In support of Mental Health Awareness Month, Departer – The Know-Who People presents an insightful interview with Dr. med. Anne Pfeiffer, a renowned Mind-Body Medicine Therapist, Doctor of General Medicine and Doctor of Occupational Medicine. In this expert interview, Dr. Pfeiffer addresses common health challenges in today’s […]
Are you an employee or HR decision-maker working in a German, Austrian or Swiss (DACH) company in the United Arab Emirates? If so, we have a special invitation for you! We invite you to participate in the HR & Salary Survey 2024-25, a collaborative effort between Departer and the AHK (German-Emirati Joint Council for Industry […]
Departer´s CEO & Co-Founder Norman Sterz and Regional Manager ANZ Sabina Langenhan Are Strengthening German-Australian Business Ties We are proud to announce the appointment of Norman Sterz, along with Brisbane-based Sabina Langenhan, as the Australian representatives of the prestigious German Association for Small and Medium-sized Businesses (BVMW International). In this role, Norman and Sabina will […]
Crisis times present unique challenges for companies, especially in times of employer branding. However, strong employer branding can make a significant difference by enhancing the company’s attractiveness in the job market. In this article, we explore why employer branding is crucial during crises, strategies and examples that mid-sized companies can employ to strengthen their employer […]
Saudi Arabia is swiftly evolving into a global leader. By 2023, the country achieved an impressive 87% of its Vision 2030 goals, significantly boosting non-oil revenues to $121.8 billion and reducing unemployment to 7.7%. These milestones underscore the kingdom’s dedication to sustainable growth and economic diversification.
Vision 2030 has propelled Saudi Arabia to third place among G20 countries in economic competitiveness. This remarkable ascent is driven by comprehensive reforms in performance, infrastructure, and efficiency, firmly positioning Saudi Arabia as a key global economic player.
China is updating its rules for companies and one big change is how they involve employees in decision-making. Starting July 1, 2024, companies with over 300 employees must include employee representatives in their management teams. This is a departure from the old rule, which mainly applied to state-owned companies. Now this will impact not only […]
Dubai’s booming economy continues to be a magnet for businesses around the globe. The city’s strategic location, bridging the East and the West, coupled with its world-class infrastructure, creates an ideal environment for businesses to thrive. This cosmopolitan city has become a global hub for trade, finance, tourism and innovation, attracting entrepreneurs, investors and professionals.
Two months ago, the European Union has celebrated the opening of the European Chamber of Commerce in the Kingdom of Saudi Arabia (ECCKSA). This strategic move is set to significantly enhance economic ties between the EU and the Gulf region, offering new possibilities for businesses across Europe, particularly those from the DACH region, looking to […]
Empowering SMEs: The Impact of Executive Search Firms on Talent Acquisition In today’s competitive landscape, Small and Medium Enterprises (SMEs) across the world face critical challenges in securing top-tier executive talent. These challenges are combined with time constraints, access to specialized skills and the need for confidentiality in sensitive hires. Executive Search firms, like Departer […]
India’s thriving economy has attracted global attention, presenting enticing opportunities for foreign investors. Leading the G20 nations in economic expansion, India boasted a remarkable 7.2% growth in the fiscal year 2022-23 and is poised to sustain this momentum with a projected GDP growth rate of 6.9% in 2023-24. As the top economy in the European […]
Departer is a leading German Executive Search company with more than two decades of experience in multinational leadership recruitment. We specialize in placing executives in medium-sized enterprises and private equity portfolio firms across DACH, MEAI, ASIA and ANZ. Our in-depth understanding of the DACH economy forms the cornerstone of international success stories. Contact Departer today […]
by Sabine Higgen Is Your Company Prepared to Lead Your Team into the Future of Hybrid and Remote Work? As an expert in Executive Search, Private Equity and Organizational Development, I have witnessed the transformative impact of remote and hybrid work models firsthand. The pandemic accelerated this shift, but remote work has now become a […]
From our market expert ANZ Sabina Langenhan – she interviewed Stefan Augustin (Investment Director for Trade and Investment Queensland) […]
In today’s dynamic job market, HR Managers play a pivotal role in shaping an organization’s success by attracting, hiring and retaining top talent. …
Valuable Insights from the CEO of AHK – Interview with Oliver Oehms, CEO of the German Emirati Joint Council for Industry & Commerce (AHK). Marie-Christin Gabel, our Managing Partner MEAI, conducted an interview […]
As we celebrate Labour Day, it’s time to pause and celebrate the heartbeat of our organizations: Our workforce, our employees! At Departer – The Know-Who People, we’ve seen firsthand the transformative power of strong HR leadership, especially after our recent Conference in Rome, where we had the privilege of meeting all incredible team members face-to-face […]
by Marie-Christin Gabel Partnering for Progress: German Contributions to Saudi Arabia’s Economic Transformation Interview with Dr. Dalia Samra-Rohte (Delegate of the German Industry for Saudi Arabia) and Marie-Christin Gabel (Managing Partner MEAI, Departer) Saudi Arabia’s ambitious Vision 2030 plan aims to diversify its economy, reduce its dependence on oil and transform various sectors, creating a […]
Valuable insights for german-speaking companies: An interview with Senior Vice President of WIKA, Tino Reppe […]
by Departer’s editorial team For companies in Germany, Austria and Switzerland, the role of Human Resources has drastically changed, transforming HR professionals into strategic superheroes. Once merely a back-office function, HR now wields the power to drive business strategy, foster innovation and lead organizational change. Understanding and capitalizing this newfound strength is crucial for staying […]
by Departer’s editorial team Southeast Asia is no longer the quiet sibling overshadowed by the economic giants of China and Japan. Instead, it has emerged as a vibrant and thriving economic powerhouse, offering unparalleled opportunities for companies from Germany, Austria and Switzerland. This region, with its dynamic workforce, rapid urbanization and robust digital economy, is […]