Obaid Humaid Al Tayer, minister of state for financial affairs, told Gulf News that the law is likely to take effect early in 2017 after its publication in the official gazette which will be issued in the coming weeks.
The draft law was approved by the UAE's cabinet on 4 September. It is designed to improve business confidence and the attractiveness of the UAE to investors, Gulf News said.
The law is expected to allow the liquidation of assets, and the possibility of new loans, the news site said. It will apply to companies established under commercial company laws, semi- or fully-owned companies by the federal or local government, companies in free zones which do not have provisions to regulate composition procedures or restructuring bankruptcy, and any trade and licensed company.
The law, however, will not help individual bankrupts as it only relates to companies, a person familiar with the draft legislation told The National.
