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In a recent editorial “The Gulf Today” newspaper commended the new bankruptcy law recently passed by UAE authorities. The law is designed to encourage investment in the region making the UAE a more attractive place to invest, while reducing the barriers to entry inside the new Business 24 news.
Rather than punish investors who previously faced the threat of jail, the new law aims to assist a company and give it a longer time period to recover. “Vice President and Ruler Of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, tweeted on Sunday that the law is aimed at promoting investment and the ease of doing business.”
This is a sensible move and should encourage business owners to try and solve their problems and move forward, rather than in previous years where the fear of jail simply encouraged business owners to abandon the country and their business. Although not substantiated it is believed that some business owners have previously fled the country owing debts of around AED 5 billion. The harsh reality is that these debts will likely never be repaid, but hopefully this new legislation will prevent the situation from occurring in the future. Prior to the launch of the new bankruptcy law, the law almost forced business owners in debt to flee the country as the only solution to their problem inside your own updates.
Business 247 Emirate News About the Latest Bankruptcy Law Changer
The majority of business owners are proud men who want to make their business a success following the latest emirate news. Now that this new law has come into place they have the opportunity to restructure their business, and hopefully improve their chances of obtaining funding from banks and investors who can see the future potential of the business, if it can get over the rocky period inside.
It is vitally important to the future development and prosperity of the UAE that we are able to attract investment and be competitive within the global economy and aue news. Analysts agree that the new law will improve business confidence and perhaps more importantly encourage banks to start lending to SME’s again with updates. Sme’s account for 60 percent of UAE’s Gross Domestic Product so it is obvious how significant they are to the economy and UAE business news.
With many banks suffering from defaulters who have fled the country, the old system was simply not working, and so this new law is seen as a bright light and a positive way for the government to make an impact on business and the economy. It remains to be seen whether the legislation will have the desired effect, but commentators across the region have reacted positively.