The new bankruptcy law and the overhauled version of the UAE Companies Law are expected to turn Dubai into a magnet for investments and a desired business destination, according to Hisham Abdulla Al Shirawi, chairman of Free Zones World and vice-chairman of the Dubai Chamber of Commerce and Industry, Khaleej Times reports. Both laws are expected to be revealed in the near future.
Al Shirawi told Khaleej Times that the bankruptcy law will attract a bigger investment flow into the UAE as it gives businessmen security, and provides them with a dignified passage out of a business collapse situation. The law follows international best-practice and will serve to regulate lending. It is expected that it will give entrepreneurs the courage to think big and create grand initiatives.
Added to the effects of the bankruptcy law, the revamped Companies Law will serve to stimulate new investment and enhance Dubai's competitiveness. Moreover, it gives companies a contemporary set of standards and makes sure they stick to it, Al Shirawi says.
As Al Shirawi says, the law will help simplify the process of setting up a business. It will protect shareholders and will establish a framework defining how public companies will be governed.
Additionally, the Companies Law will have the important role of ensuring transparency and disclosure of financial data. It will promote efficiency and integrity among the board of directors.
Al Shirawi is convinced that turning Dubai into the most popular investment destination in the world is totally attainable. And the new laws will put Dubai a step closer to achieving it.