Latest news with #BankruptcyLaw
Arab Times
08-07-2025
- Business
- Arab Times
‘Souk-Al-Manakh' victims
The amended Bankruptcy Law, issued in 2020, introduced significant measures that go beyond merely liquidating debtors' assets. It emphasizes preventive settlement and restructuring procedures as alternatives before declaring bankruptcy, thereby increasing the chances for struggling economic projects. The important provisions of the law include the establishment of a specialized bankruptcy court and the creation of a bankruptcy administration. This administration, affiliated with the court, handles various administrative and technical tasks related to bankruptcy cases, such as receiving applications, supervising procedures, forming bankruptcy committees, proposing public policies, and developing operational guidelines. The new law also enables debtors experiencing financial difficulties, but who have not yet stopped payments, to request a preventive settlement by reaching an agreement with creditors, without needing to declare bankruptcy. If the debtor stops paying debts or if the preventive settlement proves ineffective, restructuring procedures may be initiated. These procedures aim to help the debtor continue their business through a carefully designed plan to reorganize their financial and administrative affairs under the supervision of a bankruptcy judge. Should insolvency persist and settlements fail, the debtor is formally declared bankrupt, and barred from managing or disposing of their assets. At this stage, a bankruptcy trustee is appointed, and all individual lawsuits and proceedings against the debtor are suspended. When comparing the current and previous bankruptcy laws, particularly in how they handle debtors, it becomes clear how deeply unjust the treatment of 668 citizens involved in the 'Manakh Markets' case had been. These individuals, including heirs and partners, some deceased and others still living, suffered huge losses. The value of their assets dropped to KD 500 million, while their debts ballooned to four times that amount. This dramatic decline occurred largely due to mismanagement by an inexperienced government employee entrusted with handling their assets. Allegations have long circulated that some assets were sold at suspiciously low prices. Over the span of more than three decades, their debt accumulated astronomical interest at an unsustainable rate of 15 percent, as though they were being subjected to a lifelong penalty. On top of their financial burden, they were banned from traveling except in urgent cases and only with the approval of a bankruptcy judge, who is often unavailable, especially during weekends and official holidays. These conditions have imposed not only financial hardship but also severe psychological distress and social embarrassment. The law also prohibits them from opening bank accounts or obtaining bank cards or ATMs. They are stripped of many basic rights that, in some cases, even convicted criminals are not denied. We sincerely hope that His Excellency the First Deputy Prime Minister and Minister of Interior Sheikh Fahad Yousef Al-Sabah, who is known for his commitment to reform and restoring justice, will give this issue the attention it deserves. Meeting with some of those affected could offer valuable insight into the reality of their long-standing suffering, the continuation of which defies reason or fairness. It is time for these individuals to return to a normal life, especially as many of them are now in the later stages of life, with little time left. On a personal note, I extend my heartfelt thanks to everyone who congratulated me on being named the most widely followed and influential writer in Kuwait. I am also deeply grateful to all who participated in the survey and shared their views.
Mid East Info
25-06-2025
- Business
- Mid East Info
Private Credit: The Middle East's next financial frontier
By David Beckett, Head of Origination at SC Lowy Over the past decade, the private credit industry has experienced robust growth, positioning itself as a crucial alternative to traditional bank financing. Now valued at $2 trillion in assets under management as of April 2024, this asset class has become an indispensable part of global capital markets, according to the International Monetary Fund (IMF). Concurrently, the Middle East has grown into an economic powerhouse. The region, especially Saudi Arabia and the UAE, has witnessed transformative economic shifts that have created fertile ground for private credit investment. As these nations diversify their economies and modernize their infrastructures, private credit is emerging as a key enabler of economic growth and a valuable tool for investors seeking high returns in an evolving financial landscape. Private credit is a rapidly growing asset class however this expansion remains heavily concentrated in developed markets. North America dominates with approximately $1.1 trillion in AUM, accounting for about 55% of the global total. Europe follows with roughly 23%. In contrast, Asia represents just 5.7% of global AUM — while the remaining share, covering the Middle East, Latin America and Africa, collectively accounts for less than 3% despite representing nearly 25% of global GDP. Private credit remains significantly underrepresented in the Middle East, accounting for just 0.2% of global assets under management, but this figure belies a rapidly evolving growth story. In Saudi Arabia and the United Arab Emirates, policy reforms, legal overhauls, and ambitious economic diversification plans are laying the groundwork for the region's emergence as a viable, and attractive, destination for private credit investment. Driving investor confidence Saudi Arabia and the UAE have taken major steps to modernize their financial infrastructure, laying critical foundations for private credit. Saudi Arabia's 2018 Bankruptcy Law introduced structured insolvency and restructuring procedures, with over 850 cases processed to date, many under the Financial Restructuring Procedure (FRP). These outcomes are creating legal precedent and boosting investor confidence that distressed situations can be resolved through enforceable, negotiated recoveries. In parallel, the UAE overhauled its bankruptcy framework in 2024, introducing specialized courts, clearer timelines, and formal mechanisms for restructuring and debtor-in-possession (DIP) financing, already tested in landmark cases like Emirates Hospital Group and JBF RAK. Other GCC countries including Bahrain, Kuwait, and Oman are following suit with reforms aimed at improving creditor protection. Meanwhile, financial free zones like ADGM (Abu Dhabi) and DIFC (Dubai) provide international investors with the legal certainty of English common law, arbitration capabilities, and a neutral legal environment, further strengthening the region's appeal for structuring and enforcing private credit deals. India offers a useful point of comparison. Since the introduction of its Insolvency and Bankruptcy Code (IBC) in 2016, the country's private credit market has expanded from under $1 billion to more than $25 billion in AUM. Despite some procedural inefficiencies, the IBC has significantly strengthened creditor rights, attracting both global and domestic private lenders. Analysts forecast this momentum could push India's private credit market to $60-70 billion by 2028, demonstrating how regulatory reform can rapidly scale an alternative credit ecosystem. The GCC, particularly Saudi Arabia and the UAE, appear poised for a similar trajectory with some clear advantages. These markets are well-capitalized, their economic diversification plans are state-backed, and sectors such as infrastructure, tourism, healthcare, digital services, and clean tech are rapidly expanding. This wave of mid-market businesses urgently requires flexible, non-bank financing that traditional lenders, often focused on sovereign or GRE clients, are unable or unwilling to provide. At the same time, local banks are beginning to offload non-performing loan portfolios, signaling the emergence of a more active secondary market for distressed credit. Adding further momentum, regional sovereign wealth funds and family offices are increasingly backing private credit strategies as LPs or co-investors – deepening liquidity and institutionalizing the asset class. Real demand, real collateral While legal reforms provide the foundation, demand-side dynamics in Saudi Arabia and the UAE are equally compelling. In Saudi Arabia, the industrial sector, especially manufacturing, logistics, and downstream petrochemicals, is expanding rapidly, yet traditional banks remain focused on sovereign-led mega projects. Private credit can bridge this gap, funding mid-sized corporates with asset-backed loans that offer downside protection and strong risk-adjusted returns. In the UAE, smaller developers and businesses in real estate, hospitality, and services are underserved as banks hit exposure limits. Private lenders are stepping in with mezzanine and senior-secured loans backed by hard assets. Across both markets, tangible collateral, conservative LTVs, and clearer enforcement mechanisms are creating compelling private credit opportunities with attractive yields and real downside protection. Foundation to frontier The private credit story in the Middle East is still in its early chapters, but the narrative is taking shape. Legal and institutional reforms are aligning with macroeconomic transformation, creating a fertile environment for private credit to scale. If India's experience over the last decade demonstrates how market evolution can accelerate with the right reforms, then Saudi Arabia and the UAE are following a similar, perhaps faster, path. For global and regional investors, the Middle East presents a compelling case: strong macroeconomic backdrop, rising demand for alternative capital, improved legal protections, and untapped market potential. Those who position early may benefit most as the region matures into the next global hub for private credit. ENDS About SC LOWY SC Lowy is a leading alternative asset manager with $1.6 billion in assets under management, specializing in opportunistic credit, special situations, and private credit across Asia Pacific, the Middle East, and Europe. Founded in 2009, the firm operates out of nine global offices with a team of over 50 experienced professionals. At SC Lowy, we leverage our deep market expertise and local presence to overcome barriers to entry in fragmented markets. Our dedicated local teams cultivate long-standing relationships, granting us prime access to untapped investment opportunities. We focus on solid, cash-generating businesses and prioritize capital preservation, with a strong emphasis on downside protection through senior secured lending backed by hard assets. With a proven track record in both private credit closed-end and open-ended funds, SC Lowy is committed to delivering innovative financial solutions that maximize value for our investors. Our approach combines rigorous credit analysis with a focus on mitigating risk, ensuring robust returns while safeguarding capital. For more information, visit
Gulf Insider
29-04-2025
- Business
- Gulf Insider
Saudi Arabia: Bankruptcy Committee Handles 16 Court Decisions To Resolve Defaults Of Medical, Aviation, And Car Rental Companies
The Bankruptcy Committee has received 16 judicial decisions issued by five commercial courts with regard to liquidation, financial restructuring, and administrative liquidation lawsuits during the last one month period. Okaz/Saudi Gazette has learned from sources that the commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha have issued decisions regarding the rescheduling of bad debts, addressing any financial or administrative difficulties, and protecting creditors' assets. The Bankruptcy Committee is examining decisions issued for medical, operation, and maintenance companies, construction and development companies, contracting and aviation companies, minerals materials companies, a medical complex, and engineering companies, as well as contracting, industrial, and industrial mineral materials companies, and a car rental company. According to the sources, the Bankruptcy Committee announced the names of a number of creditors who could not be notified due to the lack of contact information and a lack of response. These creditors include three government entities. In sessions held virtually, the Bankruptcy Committee announced to creditors that commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha had issued rulings initiating administrative liquidation procedures, and financial restructuring procedures, as appropriate, for each company. The Bankruptcy Committee called on creditors to submit their claims within a period not exceeding 60 days. Creditors should submit their claims against the debtor using the claims service on the committee's website, ensuring that the creditor's claim form is completed, signed, and attached to the claim documents. The Bankruptcy Committee has initiated procedures to enable bankrupt or distressed debtors, or those expected to suffer financial distress, to benefit from procedures to regulate their financial situation and resume their activities, while respecting the rights of creditors. Several court rulings have been issued initiating administrative liquidation procedures, financial restructuring, debt rescheduling, and other rulings appointing trustees to conduct the liquidation of distressed companies. Lawyer Saad Misfer Al-Maliki said that the Bankruptcy Law is formulated as part of the legislative measures to safeguard rights and improve the investment environment in general. He said that the law aims to regulate procedures, including preventive settlement, financial restructuring, liquidation, preventive settlement for small debtors, financial restructuring for small debtors, liquidation for small debtors, and administrative liquidation. The Bankruptcy Law defines a bankrupt person as a debtor whose debts have consumed all of his assets. A defaulter is defined as a debtor who has failed to pay a debt on its due date. Al-Maliki said that the law stipulates the formation of a committee called the Bankruptcy Committee, which enjoys financial and administrative independence. It is responsible for establishing, maintaining, and managing the bankruptcy registry, licensing bankruptcy trustees and experts in accordance with the regulations, preparing a list of bankruptcy trustees and experts, and issuing regulatory rules, inspections, and verifications related to any bankruptcy procedures. Al-Maliki explained that the law has identified four main procedures aimed at achieving its overall objectives. The first is the preventive settlement procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to settle debts, while the debtor retains control over his business. The second procedure is the financial restructuring procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to restructure his business financially under the supervision of a financial restructuring trustee. The third is the liquidation procedure, which aims to limit creditors' claims, sell the bankruptcy assets, and distribute the proceeds to creditors under the management of a liquidation trustee. The fourth procedure aims to sell bankruptcy assets whose sale is not expected to generate sufficient proceeds to meet the costs of the liquidation procedure.
Zawya
29-04-2025
- Business
- Zawya
Saudi: Bankruptcy Committee handles 16 court decisions to resolve defaults
RIYADH — The Bankruptcy Committee has received 16 judicial decisions issued by five commercial courts with regard to liquidation, financial restructuring, and administrative liquidation lawsuits during the last one month period. Okaz/Saudi Gazette has learned from sources that the commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha have issued decisions regarding the rescheduling of bad debts, addressing any financial or administrative difficulties, and protecting creditors' assets. The Bankruptcy Committee is examining decisions issued for medical, operation, and maintenance companies, construction and development companies, contracting and aviation companies, minerals materials companies, a medical complex, and engineering companies, as well as contracting, industrial, and industrial mineral materials companies, and a car rental company. According to the sources, the Bankruptcy Committee announced the names of a number of creditors who could not be notified due to the lack of contact information and a lack of response. These creditors include three government entities. In sessions held virtually, the Bankruptcy Committee announced to creditors that commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha had issued rulings initiating administrative liquidation procedures, and financial restructuring procedures, as appropriate, for each company. The Bankruptcy Committee called on creditors to submit their claims within a period not exceeding 60 days. Creditors should submit their claims against the debtor using the claims service on the committee's website, ensuring that the creditor's claim form is completed, signed, and attached to the claim documents. The Bankruptcy Committee has initiated procedures to enable bankrupt or distressed debtors, or those expected to suffer financial distress, to benefit from procedures to regulate their financial situation and resume their activities, while respecting the rights of creditors. Several court rulings have been issued initiating administrative liquidation procedures, financial restructuring, debt rescheduling, and other rulings appointing trustees to conduct the liquidation of distressed companies. Lawyer Saad Misfer Al-Maliki said that the Bankruptcy Law is formulated as part of the legislative measures to safeguard rights and improve the investment environment in general. He said that the law aims to regulate procedures, including preventive settlement, financial restructuring, liquidation, preventive settlement for small debtors, financial restructuring for small debtors, liquidation for small debtors, and administrative liquidation. The Bankruptcy Law defines a bankrupt person as a debtor whose debts have consumed all of his assets. A defaulter is defined as a debtor who has failed to pay a debt on its due date. Al-Maliki said that the law stipulates the formation of a committee called the Bankruptcy Committee, which enjoys financial and administrative independence. It is responsible for establishing, maintaining, and managing the bankruptcy registry, licensing bankruptcy trustees and experts in accordance with the regulations, preparing a list of bankruptcy trustees and experts, and issuing regulatory rules, inspections, and verifications related to any bankruptcy procedures. Al-Maliki explained that the law has identified four main procedures aimed at achieving its overall objectives. The first is the preventive settlement procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to settle debts, while the debtor retains control over his business. The second procedure is the financial restructuring procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to restructure his business financially under the supervision of a financial restructuring trustee. The third is the liquidation procedure, which aims to limit creditors' claims, sell the bankruptcy assets, and distribute the proceeds to creditors under the management of a liquidation trustee. The fourth procedure aims to sell bankruptcy assets whose sale is not expected to generate sufficient proceeds to meet the costs of the liquidation procedure. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Saudi Gazette
28-04-2025
- Business
- Saudi Gazette
Bankruptcy Committee handles 16 court decisions to resolve defaults of medical, aviation, and car rental companies
Okaz/Saudi Gazette RIYADH — The Bankruptcy Committee has received 16 judicial decisions issued by five commercial courts with regard to liquidation, financial restructuring, and administrative liquidation lawsuits during the last one month period. Okaz/Saudi Gazette has learned from sources that the commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha have issued decisions regarding the rescheduling of bad debts, addressing any financial or administrative difficulties, and protecting creditors' assets. The Bankruptcy Committee is examining decisions issued for medical, operation, and maintenance companies, construction and development companies, contracting and aviation companies, minerals materials companies, a medical complex, and engineering companies, as well as contracting, industrial, and industrial mineral materials companies, and a car rental company. According to the sources, the Bankruptcy Committee announced the names of a number of creditors who could not be notified due to the lack of contact information and a lack of response. These creditors include three government entities. In sessions held virtually, the Bankruptcy Committee announced to creditors that commercial courts in Riyadh, Dammam, Madinah, Jeddah, and Abha had issued rulings initiating administrative liquidation procedures, and financial restructuring procedures, as appropriate, for each company. The Bankruptcy Committee called on creditors to submit their claims within a period not exceeding 60 days. Creditors should submit their claims against the debtor using the claims service on the committee's website, ensuring that the creditor's claim form is completed, signed, and attached to the claim documents. The Bankruptcy Committee has initiated procedures to enable bankrupt or distressed debtors, or those expected to suffer financial distress, to benefit from procedures to regulate their financial situation and resume their activities, while respecting the rights of creditors. Several court rulings have been issued initiating administrative liquidation procedures, financial restructuring, debt rescheduling, and other rulings appointing trustees to conduct the liquidation of distressed companies. Lawyer Saad Misfer Al-Maliki said that the Bankruptcy Law is formulated as part of the legislative measures to safeguard rights and improve the investment environment in general. He said that the law aims to regulate procedures, including preventive settlement, financial restructuring, liquidation, preventive settlement for small debtors, financial restructuring for small debtors, liquidation for small debtors, and administrative liquidation. The Bankruptcy Law defines a bankrupt person as a debtor whose debts have consumed all of his assets. A defaulter is defined as a debtor who has failed to pay a debt on its due date. Al-Maliki said that the law stipulates the formation of a committee called the Bankruptcy Committee, which enjoys financial and administrative independence. It is responsible for establishing, maintaining, and managing the bankruptcy registry, licensing bankruptcy trustees and experts in accordance with the regulations, preparing a list of bankruptcy trustees and experts, and issuing regulatory rules, inspections, and verifications related to any bankruptcy procedures. Al-Maliki explained that the law has identified four main procedures aimed at achieving its overall objectives. The first is the preventive settlement procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to settle debts, while the debtor retains control over his business. The second procedure is the financial restructuring procedure, which aims to facilitate the debtor's reaching an agreement with his creditors to restructure his business financially under the supervision of a financial restructuring trustee. The third is the liquidation procedure, which aims to limit creditors' claims, sell the bankruptcy assets, and distribute the proceeds to creditors under the management of a liquidation trustee. The fourth procedure aims to sell bankruptcy assets whose sale is not expected to generate sufficient proceeds to meet the costs of the liquidation procedure.
