Dubai’s Ruler has approved a new DIFC Insolvency Law which will come into force on 28 August 2019. New Insolvency Regulations have also been approved and they will come into force on 28 August 2019 as well.
DIFC Law No. 1/2019 provides for a new administration process where there is evidence of mismanagement or misconduct. It also enhances the rules governing winding up procedures and incorporates the Uncitral Model Law on cross border insolvency proceedings with certain modifications for application in the Centre. In addition, it introduces a new debtor in possession bankruptcy regime in line with best international practices.