The Dubai Economic Council (DEC) in strategic partnership with Hawkamah, and in collaboration with Dubai Judicial Institute, the World Bank Group, and INSOL International organized the" Third Regional Judicial Colloquium in the MENA Insolvency and Restructuring", on 18-19 March, 2014, at Conference Center, DIFC, Dubai. The event is an initiative of the Forum for Insolvency Reform in the Middle East and North Africa (FIRM).
The Colloquium aims to provide an interactive platform for regional judges, practitioners, Islamic and conventional bankers and restructuring professionals in MENA and from all over the world to discuss the regional restructuring and insolvency practices and the latest trends and developments in the field of legal and financial restructuring and insolvency.
Moreover, the theme for this year's colloquium is to hold a Mock Court session on restructuring, discussion on restructuring of Shari’a complaint debt vs a conventional finance debt, the responsibility of the parent company with regards to the insolvency of the subsidiary, the fiduciary duties of the directors in subsidiaries undergoing insolvency/restructuring.
Hani Al Hamli “the design and implementation of sound insolvency systems are key components of building effective business enabling environments”
H.E. Hani Al Hamli, DEC Secretary-General stated that this colloquium stems from the policy-oriented awareness campaign that the DEC conducts in terms of its advisory role to develop and promote the laws and regulations that have direct impacts on the national economy. “The sound framework of financial restructuring and bankruptcy is with exceptional importance to the UAE economy.. it stimulates all parties in the market to raise the productivity, innovation and thus to provide enhanced investment climate in more transparent and fair practices”. Al Hamli added.
Al Hamli points that bankruptcy laws would avail the trust of investors, foreign or local, on investment environment, to work on more protected atmosphere, mitigating risks and secure rights. Al Hamli also argue that having such law in place the country could raise its competitiveness edge in the global markets, and also maintain the financial market, and augment the SMEs.
Under a changing world economy, risks are increased as well as the defaults of companies. Some of these companies tend to declare their bankruptcy, hence impacting the market particularly the creditors. Accordingly, with an enhanced financial restructuring and bankruptcy law and given effective and fair jurisdictions to settle the disputes, we can secure the rights of debtors and creditors, meaning more flexibility in the economy and added value of businesses to the economy” Al Hamli stated.
In this context, the DEC Secretary-General stressed that financial restructuring and bankruptcy law project drafted by the UAE government which is currently under the process of development is an episode of series laws and regulations that aim to align the UAE economy to the best international practices. “The stated law would be a paradigm shift in the regulatory framework of the UAE, opening new horizons of development and growth” Al Hamli stressed.
Al Hamli ended that our collaboration with Hawkamah, beside other partners of international organisations and reputable legal firms would enhance the current debate about the prerequisites of having sound financial and regulatory frameworks to sustain our economies.
Dr. Sameer Al Ansari, Interim CEO Hawkamah expressed his delight to organize the third MENA Judicial and Financial Colloquium in partnership with the DEC, the Dubai Judicial Institute, INSOL International and the World Bank Group. He stated that the colloquium has been organized at a very opportune time as the UAE is in the process of issuing a new Insolvency Law. By organizing this event, we aim to emphasize the fact that effective and orderly Insolvency and Restructuring Frameworks are critical for having sound and reliable financial systems.
Dr Al Ansari said that in today’s financial world the transactions are becoming increasingly complex, hence it is imperative to modernize the legal framework in order to keep up with the rapid pace of development of the financial markets, legal structures and increasingly complex financial products.
“This colloquium provides a platform for MENA Regulators and Global Insolvency Professionals to be able to discuss and share their experiences about the Insolvency and Restructuring regimes prevalent in their respective countries and compare and contrast regional practices with International best practice” Al Ansari added.
Al Ansari concluded that during the course of the two day event, the participants will learn about the complex organizational as well as financial restructuring deals that have taken place not just in the UAE but globally and how the respective jurisdictions dealt with these restructurings.”