The UAE has established a new Bankruptcy Court at the Abu Dhabi Federal Court of First Instance to handle financial disputes and bankruptcy cases. The move aims to support economic stability, improve legal efficiency, and protect businesses facing financial distress.
Abu Dhabi – In a major step to improve how financial disputes are resolved in the country, the UAE has announced the creation of a specialised Bankruptcy Court. The new court will handle all legal matters related to bankruptcy and financial restructuring, helping businesses and individuals navigate financial distress more efficiently.
The Ministry of Justice confirmed that the court will be headquartered at the Abu Dhabi Federal Court of First Instance, with the authority to open additional branches in other emirates as needed.
Table of contents [Show]
The court has been set up under the guidance of Abdullah Sultan bin Awad Al Nuaimi, the Minister of Justice and Chairman of the Federal Judiciary Council. The goal is to strengthen the UAE’s legal infrastructure and support a healthy, transparent financial system.
It will deal specifically with applications and disputes arising from the Federal Decree-Law on Financial Reorganisation and Bankruptcy. The new legal body is expected to enhance trust in the justice system and boost investor and business confidence in the UAE.
The new court will have a chief judge who holds a rank not lower than that of an appellate judge. It will also include several specialised judges, all appointed by the Federal Judiciary Council.
To manage the workload efficiently, a dedicated bankruptcy division will be created within the court. This division will be responsible for:
Receiving and reviewing bankruptcy applications
Handling objections and grievances
Registering new cases and managing their progress
This structure ensures that financial disputes are handled by experienced legal professionals familiar with the complexities of bankruptcy law.
An important part of the decision includes the appointment of bankruptcy experts and consultants. These are professionals who can be brought in to assist the court with complex financial matters.
Their roles may include:
Managing the debtor’s finances or business operations
Applying urgent or precautionary measures
Holding meetings with creditors
Reviewing the debtor’s assets, liabilities, and operations
Ensuring fair treatment of all parties involved
By allowing the court to work with skilled financial professionals, the process becomes more transparent, accurate, and fair to both debtors and creditors.
The Ministry of Justice says this move is part of a broader effort to support financial stability and economic continuity in the country. With businesses facing increasing pressure due to changing global conditions, having a specialised court to resolve bankruptcy cases will speed up legal procedures and help distressed companies recover or exit the market properly.
The decision also reflects the UAE’s ongoing focus on developing a legal system that balances the needs of justice and economic progress. It sets a clear path for handling financial failures without damaging long-term economic growth.
This development comes at a time when economies around the world are working to improve laws that support struggling businesses. The UAE’s move to establish a standalone court for bankruptcy is expected to make the country even more attractive to global investors and entrepreneurs.
