Over the past years, the UAE has fundamentally modernized its insolvency framework and moved away from its historically more restrictive approach. In particular, Federal Decree-Law No. (51) of 2023 Promulgating the Financial Reorganization and Bankruptcy Law introduced a more comprehensive and business-oriented regime that places greater emphasis on restructuring, financial recovery and business continuity rather than focusing solely on liquidation.
Purpose and function of the UAE insolvency law
Today, insolvency law in the UAE serves as a structured legal framework for addressing financial distress, stabilizing businesses and preserving enterprise value. It provides companies facing financial difficulties with legally regulated…