The UAE leadership has made the reform of insolvency laws a "policy priority" and a new framework is being established, a senior government official says. "A clear framework for the financial restructuring and reorganisation of companies, based on international principles, is being put in place," said Sheikh Ahmed bin Saeed al Maktoum, the chairman of the Supreme Fiscal Committee, in a speech inaugurating the MENASA Forum at the Dubai International Financial Centre yesterday.
There have been increasing calls for reform to the country's insolvency laws during the downturn. It takes an average of five years to close a business in the UAE because of inadequate insolvency laws, the World Bank says. The country ranked 143rd in the Doing Business 2010 report for ease of closing a business. It rose to 33rd from 47th among 183 economies worldwide in terms of the overall ease of doing business.
Sheikh Ahmed said the Dubai Government's restructuring proposal for Dubai World's debt had been "widely welcomed by local and international markets". "The proposal demonstrates Dubai's commitment to ensuring the success of government-related entities, while at the same time treating both foreign and local creditors equitably and fairly," he said. "The proposal took into account the interests of all stakeholders, including customers, contractors, employees and creditors."
The country and Dubai as an emirate would set up debt-management offices to keep risk in control, Sheikh Ahmed said. @Email:bhope@thenational.ae
