New employment law will come into effect on August 28. Courtesy DIFC
New employment law will come into effect on August 28. Courtesy DIFC
New employment law will come into effect on August 28. Courtesy DIFC
New employment law will come into effect on August 28. Courtesy DIFC

DIFC issues new insolvency law to address distressed and bankruptcy related matters


  • English
  • Arabic

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has enacted a new insolvency law for companies operating in Dubai International Financial Centre.

The Law – No. 1 of 2019 – will come into effect on August 28 and aims to “balance the needs of all stakeholders in the context of distressed and bankruptcy related situations in DIFC, facilitating a more efficient and effective bankruptcy restructuring regime”, according to a statement on the Ruler's website.

The law “introduces a new debtor in possession bankruptcy regime … which will also place the DIFC at the forefront of complicated debt restructurings”, according to the statement.

The latest measure by Dubai comes after the high-profile collapse last year of Abraaj Group. It was once the region’s biggest private equity company which claimed to manage almost $14 billion (Dh51.42bn) of assets at its peak before investors such as the World Bank’s International Finance Corporation and the Bill and Melinda Gates Foundation questioned the use of their money in the company's $1bn Abraaj health fund.

An ensuing investigation uncovered corporate governance issues at Abraaj and led to the arrest of its founder, Arif Naqvi, in the UK, and other executives.

“Ensuring that businesses and investors can operate across the region with confidence is crucial,” said Essa Kazim, Governor of DIFC. “We are committed to continuously enhancing our legislative infrastructure in order to give leading global institutions the certainty and access they need.”

The new law provides for an administration process where there is evidence of mismanagement or misconduct. It also strengthens the rules governing insolvency procedures, and incorporates the UNCITRAL Model Law on cross-border insolvency proceedings with certain modifications to its application in DIFC.

Mr Naqvi, who is out on $20 million bail, along with two other executives, are being investigated by the US Securities and Exchange Commission over allegations of fraud and other charges.

In April, the Dubai Financial Services Authority, which regulates more than 500 companies registered at DIFC, said it was in contact with the SEC and had been investigating Abraaj Capital, the only Dubai-registered entity of the collapsed company.

In the The National in April, the DFSA's chief executive Bryan Stirewalt said the regulator had taken appropriate measures against Abraaj in the months after the allegations came to light last year and was preparing to introduce tougher policies with regard to corporate transparency and risk management.

Any company that fails to satisfy the toughened controls could be struck out or forced to amend their business model, Mr Stirewalt said.

Indika
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%2011%20Bit%20Studios%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Odd%20Meter%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%205%2C%20PC%20and%20Xbox%20series%20X%2FS%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
MATCH INFO

West Ham United 2 (Antonio 73', Ogbonna 90 5')

Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

LILO & STITCH

Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders

Director: Dean Fleischer Camp

Rating: 4.5/5

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

WOMAN AND CHILD

Director: Saeed Roustaee

Starring: Parinaz Izadyar, Payman Maadi

Rating: 4/5

The specs

Engine: 5.2-litre V10

Power: 640hp at 8,000rpm

Torque: 565Nm at 6,500rpm

Transmission: 7-speed dual-clutch auto

Price: From Dh1 million

On sale: Q3 or Q4 2022 

MATCH INFO

Sheffield United 3

Fleck 19, Mousset 52, McBurnie 90

Manchester United 3

Williams 72, Greenwood 77, Rashford 79

UAE currency: the story behind the money in your pockets

1,000 Books to Read Before You Die: A Life-Changing List
James Mustich, Workman

Leaderboard

63 - Mike Lorenzo-Vera (FRA)

64 - Rory McIlroy (NIR)

66 - Jon Rahm (ESP)

67 - Tom Lewis (ENG), Tommy Fleetwood (ENG)

68 - Rafael Cabrera-Bello (ESP), Marcus Kinhult (SWE)

69 - Justin Rose (ENG), Thomas Detry (BEL), Francesco Molinari (ITA), Danny Willett (ENG), Li Haotong (CHN), Matthias Schwab (AUT)

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.