Law.com International quotes Nicola Jackson on the launch of a specialised federal bankruptcy court to streamline insolvency cases in the UAE

The United Arab Emirates is launching a specialised federal bankruptcy court to streamline insolvency cases, a step that could increase investor confidence, reduce cross-emirate confusion, and create opportunities for legal and financial professionals.

It is expected that the new court will give businesses and lenders clearer rules on which court to approach and more predictable rulings in bankruptcy cases.

Nicola Jackson, Partner, shares her thoughts with Law.com International:

"The establishment of the UAE Bankruptcy Court means an important step in the right direction as regards providing consistency in terms of resolving bankruptcy-related disputes and interpreting the UAE Bankruptcy Law. You have the Bankruptcy Unit which is an administrative function and the Bankruptcy Administration that deals with day-to-day matters, and then you have the Bankruptcy Court, which will handle disputes. With the establishment of this court, I’m hoping it will facilitate consistency in dealing with disputes, which will naturally involve interpretation of the bankruptcy law. This will help build and increase domestic and foreign stakeholder and investor confidence in the UAE.

"Hopefully, the establishment of the UAE Bankruptcy Court will increase stakeholder confidence once we start seeing consistency coming through. Ultimately, the UAE Federal Reorganization and Bankruptcy Law, and how that operates, is key to whether we will see an uptick in bankruptcies in the UAE, whether debtor-led applications or creditor-led ones. The Bankruptcy Court is part of that, but on its own, I don't think it will necessarily impact the volume of bankruptcy filings for the short to medium term."

Read the full piece in Law.com International here.