The call by the International Monetary Fund (IMF) to facilitate small and medium-sized enterprises (SMEs) and start-ups' access to finance in the UAE is expected to expedite the implementation of the long-pending bankruptcy law.
The landmark legislation, passed by the UAE cabinet in July 2015 but not yet enforced, is expected to decriminalise bounced cheques and facilitate corporate bankruptcies.
Legal experts said the long-awaited law would be implemented after ratification by the consultative Federal National Council and the Supreme Council.
Experts say the new law, which has been in the pipeline since 2009, will have a major impact on easing the business ecosystem in the country. It is expected to enable both listed and privately-owned companies that get into difficulties the option of restructure and rescue rather than being forced to wind up.