Bankruptcy
Bankruptcy is a legal process that allows an insolvent company or individual to restructure or liquidate their assets to repay debts under court supervision. In the UAE, bankruptcy is governed by Federal Decree-Law No. 9 of 2016 on Bankruptcy, which applies to companies regulated under the UAE Commercial Companies Law, as well as free zone entities (except DIFC and ADGM, which have their own insolvency laws). The law offers mechanisms like preventive composition, restructuring, and liquidation to help businesses settle debts while protecting creditors’ rights. Given the UAE’s strong financial regulations, bankruptcy proceedings require strict compliance with legal provisions to avoid criminal liability for fraudulent financial practices.
