The UAE updated the country’s bankruptcy law to help businesses deal with financial crises in "emergency situations".
On Wednesday, the Cabinet approved the changes to help businesses and individuals in the trade and investment sector, state news agency Wam reported.
The new amendments will help individuals and businesses if they cannot repay their debt or keep up with financial payments because of pandemics, natural disasters or wars.
The changes will help cash-strapped debtors avoid declaring bankruptcy and, instead, opt for reaching a settlement with their creditors and negotiate debt restructuring.
It will also make sure the creditors do not take a hit.
Earlier, businesses that were unable to pay their creditors had to file for bankruptcy proceedings immediately.
The new regulations give a lifeline of up to 12 months during which debtors can renegotiate their debt, consolidate their business, sell assets or secure additional funding to clear their loans and payments.
They have to simply file an application in court and reach a settlement with their creditors.
The court services will be free of charge to reduce the burden on the debtors.
Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, chaired the Cabinet meeting.
Since the Covid-19 outbreak began, the UAE government has launched economic stimulus packages worth billions of dirhams to help businesses and citizens.
The laws governing insolvencies of UAE companies were overhauled in 2016 when the country introduced the Bankruptcy Law.
It covers all UAE companies, except those in the Dubai International Financial Centre or Abu Dhabi Global Market.
The law helped in the early restructuring of indebtedness for distressed companies. It offered support and, in certain cases, temporary financial relief to financially distressed businesses.
It will also help in removing the stigma surrounding business failure and encourage more investors to grow their businesses.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey
Rating: 3.5/5 stars
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
UAE currency: the story behind the money in your pockets
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
PREMIER LEAGUE FIXTURES
Tuesday (UAE kick-off times)
Leicester City v Brighton (9pm)
Tottenham Hotspur v West Ham United (11.15pm)
Wednesday
Manchester United v Sheffield United (9pm)
Newcastle United v Aston Villa (9pm)
Norwich City v Everton (9pm)
Wolves v Bournemouth (9pm)
Liverpool v Crystal Palace (11.15pm)
Thursday
Burnley v Watford (9pm)
Southampton v Arsenal (9pm)
Chelsea v Manchester City (11.15pm)
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The view from The National
