17 June 2019
The introduction of the new insolvency law (DIFC Insolvency Law No 1 of 2019 and the DIFC Insolvency Regulations 2019 on 13 June) is the latest in a number of law reform initiatives taking place in the Gulf. Each of the reforms are aimed at encouraging trade and investment in the region. The DIFC insolvency law follows recent bankruptcy reforms introduced in the UAE and the KSA. It shares common themes, such as the use of formal restructuring procedures as a means of allowing debtors a fresh start, provides a mechanism for binding non-consenting creditors, and seeks to promote a range of efficient and cost-effective procedures.