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Time of India
6 days ago
- Business
- Time of India
No more delays: UAE sets up Bankruptcy Court to fast-track financial disputes, what it is, how it works, and more
The UAE has set up a specialized Bankruptcy Court aimed at speeding up the handling of financial disputes/ Representative Image TL;DR A new Bankruptcy Court is being launched, based at Abu Dhabi Federal Court of First Instance. It will handle all disputes under the UAE's updated bankruptcy laws. Specialized judges and financial experts will manage complex insolvency and restructuring cases. The UAE has introduced a specialized Bankruptcy Court to handle financial distress and insolvency cases. The decision, issued by Minister of Justice, is part of broader efforts to strengthen the country's legal system and support economic stability. By setting up a central court in Abu Dhabi and allowing for additional branches across other emirates, this move aims to streamline how bankruptcy cases are handled. It ensures businesses and individuals facing financial challenges have a clear, structured legal path, whether that's restructuring debt, preventing liquidation, or settling disputes. This decision aligns with Federal Decree-Law No. (51) of 2023, which lays out the country's financial restructuring and bankruptcy rules. 'This step aims to develop the judicial structure that supports the national economy and enhance the effectiveness of the justice system in dealing with cases of financial distress and bankruptcy,' said the Ministry of Justice, in an official post. Bankruptcy Court Explained: How It Works and What to Expect 1. Based in Abu Dhabi, With Flexibility to Expand The main Bankruptcy Court will be based at the Abu Dhabi Federal Court of First Instance. But it's not limited to the capital. The authorities can open branches in other emirates if needed. No matter where they're located, these courts will have the same power to handle cases. 2. Handles All Kinds of Bankruptcy Disputes The court will deal with everything that falls under the UAE's updated bankruptcy law, officially known as Federal Decree-Law No. 51 of 2023. That includes: Financial restructuring requests Preventive settlement plans Bankruptcy filings Any disputes, objections, or complaints tied to these processes Basically, if it has to do with financial distress or insolvency, this court is where it goes. 3. Run by Judges Who Know the Job This won't be a general court. It's staffed with specialized judges, including a chief judge who holds a rank no lower than that of an appeals judge. These judges are appointed by the Federal Judicial Council, and they'll be supported by a dedicated team that handles all the paperwork, case registration, and official notifications. 4. Expert Help for Complex Cases The court isn't working alone. It can bring in financial experts and consultants to assist on cases. Their job? Manage the debtor's assets and operations Meet with creditors Apply urgent measures when needed Help move things along faster This makes it easier to deal with complicated cases that need both legal judgment and financial know-how. The Bigger Picture: Why This Matters Bankruptcy laws are often misunderstood or seen as a last resort. But in reality, a solid bankruptcy framework can keep businesses afloat, protect jobs, and preserve creditor rights, all without shutting a company down. With the new court in place, the UAE is: Making it easier for companies and individuals to manage debt legally. Providing alternatives to liquidation, like out-of-court settlements or structured repayment plans. Improving investor confidence by ensuring transparent and fair processes. Understanding UAE Bankruptcy Law The UAE's bankruptcy law applies to registered companies that fall under the Commercial Companies Law, as well as traders and licensed professionals operating through civil companies. Before reaching the stage of liquidation, the law offers several legal options. These include out-of-court financial restructuring, negotiated settlements with creditors (also known as composition procedures), and formal restructuring supervised by the court. In some cases, the court may allow the debtor to secure new loans to help keep the business running. If none of these solutions work, the final step is declaring bankruptcy and proceeding with the liquidation of assets. FAQ 1. Who can file for bankruptcy in the UAE? Companies, traders, and licensed professionals facing financial distress can file under the law. 2. Will the Bankruptcy Court handle both companies and individuals? Yes. As long as they fall under the categories outlined in the law, both businesses and individuals can file. 3. How does this help businesses? It gives them a structured way to deal with debt, avoid liquidation, and possibly continue operating through financial restructuring or settlements.
Al Etihad
18-07-2025
- Business
- Al Etihad
Aldar welcomes new UAE tax depreciation decision as a positive step for real estate sector
18 July 2025 15:15 ABU DHABI (ALETIHAD)Aldar has welcomed the UAE Ministry of Finance's new Ministerial Decision on Depreciation Adjustments for Investment Properties held at Fair Value, calling it a positive and progressive development for the real estate sector under the UAE Corporate Tax decision, issued under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, allows taxpayers who elect the realisation basis to deduct tax depreciation from their taxable income on investment properties held at fair value. The depreciation amount permitted will be the lower of the tax written down value or 4% of the original cost of the property per 12-month tax period, or prorated for shorter Ministry's move ensures tax neutrality by aligning deductions with those available to businesses using historical cost accounting, thereby promoting equity across different reporting standards. The decision also clarifies the application of tax depreciation in various scenarios including property transfers between related or third parties, developments, and claw-back events. This is expected to support clearer compliance planning and improved financial foresight for Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, praised the decision, saying: 'Aldar expresses its gratitude for the UAE Ministry of Finance for this progressive and well-calibrated step, which reflects a deep commitment to fairness, clarity, and international best practices in the implementation of the Corporate Tax Law. By enabling depreciation deductions for investment properties held at fair value, this decision creates parity between different accounting treatments, helping companies plan long-term capital deployment more effectively. It will also reinforce investor confidence, attract institutional capital, and enhance the UAE's standing as a transparent, competitive, and globally integrated investment destination—particularly for the real estate sector.' Aldar, which operates through two primary divisions—Aldar Development and Aldar Investment—holds a significant income-generating property portfolio across commercial, retail, residential, and logistics segments. As of 31 December 2024, Aldar Investment's portfolio had a gross asset value of Dh25.8 billion and generated Dh2.5 billion in EBITDA for the year.
Gulf Today
17-07-2025
- Business
- Gulf Today
MoF issues Decision on Depreciation Adjustments for Investment Properties held at Fair Value
The UAE Ministry of Finance (MoF) has issued a new Ministerial Decision regarding Depreciation Adjustments for Investment Properties held at Fair Value for the Purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. Under this decision, taxpayers (who elect for the realisation basis) can elect to deduct depreciation from their taxable income (hereafter known as 'tax depreciation') for investment properties that are held on a fair value basis. The tax depreciation deduction available will be the lower of the tax written down value of the investment property or 4 percent of the original cost of the investment property, for each 12-month tax period or otherwise prorated for part of the tax period, during which the relevant investment property is held, and will be available to taxpayers who hold investment properties prior to and/or after the introduction of corporate tax. The decision provides clarity as to the value upon which tax depreciation can be claimed depending on whether the investment property is transferred between related parties or third parties or has been constructed/developed by the taxpayer. The decision provides parity between taxpayers who hold investment properties on a historical cost basis, who can already benefit from a deduction for accounting depreciation, with those who hold investment properties on a fair value basis. To avail this benefit, this decision therefore requires taxpayers to make this irrevocable election in their first Tax Period beginning on or after 1 January 2025 in which they hold an investment property and such election will apply to all investment properties going forward. Given the realisation basis must have been elected for by taxpayers wanting to benefit from the tax depreciation election, and that the realisation basis election is generally made in the first Tax Period, the decision also allows for an exceptional window for taxpayers to opt in to elect for the realisation basis to avail the tax depreciation deduction. Finally, the decision provides guidance on when the claw-back of tax depreciation may occur in instances outside of a disposal of an investment property such that taxpayers are aware of their tax compliance obligations and are able to accurately assess their returns on investment property. The release of this decision reflects the Ministry's commitment in ensuring a level playing field for all taxpayers, thus enhancing the principles of tax neutrality and equity in the UAE Corporate Tax regime and ensuring such deductions are aligned with international best practice. WAM
Al Etihad
17-07-2025
- Business
- Al Etihad
Ministry of Finance issues ministerial decision on Depreciation Adjustments for Investment Properties held at Fair Value
17 July 2025 17:02 ABU DHABI (WAM)The UAE Ministry of Finance has issued a new Ministerial Decision regarding Depreciation Adjustments for Investment Properties held at Fair Value for the Purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and this decision, taxpayers (who elect for the realisation basis) can elect to deduct depreciation from their taxable income (hereafter known as 'tax depreciation') for investment properties that are held on a fair value tax depreciation deduction available will be the lower of the tax written down value of the investment property or 4 percent of the original cost of the investment property, for each 12-month tax period or otherwise prorated for part of the tax period, during which the relevant investment property is held, and will be available to taxpayers who hold investment properties prior to and/or after the introduction of corporate decision provides clarity as to the value upon which tax depreciation can be claimed depending on whether the investment property is transferred between related parties or third parties or has been constructed/developed by the decision provides parity between taxpayers who hold investment properties on a historical cost basis, who can already benefit from a deduction for accounting depreciation, with those who hold investment properties on a fair value avail this benefit, this decision therefore requires taxpayers to make this irrevocable election in their first Tax Period beginning on or after 1 January 2025 in which they hold an investment property and such election will apply to all investment properties going the realisation basis must have been elected for by taxpayers wanting to benefit from the tax depreciation election, and that the realisation basis election is generally made in the first Tax Period, the decision also allows for an exceptional window for taxpayers to opt in to elect for the realisation basis to avail the tax depreciation the decision provides guidance on when the claw-back of tax depreciation may occur in instances outside of a disposal of an investment property such that taxpayers are aware of their tax compliance obligations and are able to accurately assess their returns on investment property. The release of this decision reflects the Ministry's commitment in ensuring a level playing field for all taxpayers, thus enhancing the principles of tax neutrality and equity in the UAE Corporate Tax regime and ensuring such deductions are aligned with international best practice.
Mid East Info
26-06-2025
- Business
- Mid East Info
UAE showcases its experience in developing legislative framework for competition protection at 6th Arab Competition Forum in Iraq
The United Arab Emirates, represented by the Ministry of Economy and Tourism, participated in the 6th Arab Competition Forum held in Baghdad, Iraq, under the theme 'Competition Law Enforcement in the Arab Region.' The delegation engaged in high-level discussions aimed at strengthening collaboration with Arab competition authorities, with a particular focus on recent market developments – especially in mergers and acquisitions M&As, cross-border anti-competitive practices, and regulatory frameworks. The forum served as a significant platform to explore the pivotal role of competition policy in fostering innovation and attracting foreign investments. It underscored the importance of establishing institutions for competition and strengthening investigative capacities in line with global best practices. Through a series of engaging discussions, participants explored key topics such as the enforcement of competition law, the transformative impact of technology on markets, and strategies for improving coordination among Arab competition authorities. Additionally, the event highlighted successful experiences and best practices from member states. In his keynote address at the forum, Mohammed Sultan Janahi, Director of the Competition Department at the UAE Ministry of Economy and Tourism, highlighted the UAE's pioneering efforts in establishing a robust legislative framework to safeguard competition. 'By aligning with global best practices, this framework fosters fair business practices, drives sector-wide productivity, and reinforces the UAE's position as a highly competitive and attractive destination for both regional and international investors,' he added. The Federal Decree-Law No. (36) of 2023 on Competition Regulation marks a transformative advancement in the UAE's competition protection framework. This landmark legislation significantly strengthens the legal system's autonomy while broadening its jurisdictional reach to encompass all activities affecting UAE markets – including cross-border operations and digital marketplaces. The new law reaffirms the UAE's commitment to aligning with global best practices by limiting exemptions exclusively to fully government-owned entities that play a vital role in the national economy. To ensure effective implementation, the Ministry of Economy and Tourism, in partnership with key government stakeholders, will conduct a nationwide series of workshops in 2025, engaging judicial authorities, local economic departments, legal experts, and private sector representatives. These initiatives aim to deepen understanding of the new legislation and its compliance requirements, directly supporting the 'We the UAE 2031' vision. In this regard, Cabinet Decision No. (3) of 2025 concerning the thresholds for notification of economic concentration operations reinforces the role of the Ministry of Economy and Tourism in monitoring and supervising economic concentration activities of establishments in the country, ensuring compliance with fair competition rules. This is achieved by specifying the thresholds and controls related to dominant positions and the obligatory notification of economic concentration operations implemented under the Competition Regulation Law. These measures are designed to strengthen fair competition, ensure market stability, deter monopolistic practices, and promote market access for new entrants – an essential step given that the UAE is home to over 1.1 million companies and economic institutions. The Cabinet's decision establishes clear notification thresholds based on two key financial criteria: when the combined annual local sales of the parties in the relevant market exceed AED 300 million in the preceding fiscal year, or when their aggregate market share surpasses 40 per cent of total transactions in that market. To ensure thorough evaluation, the review period for such transactions has been extended to 90 days, allowing for comprehensive technical and economic analysis. The UAE will host the 7th Arab Competition Forum in 2026, which is one of the most important regional platforms dedicated to enhancing Arab and international cooperation in the field of competition protection and anti-monopoly efforts. This forum supports the objectives of the 'The UAE Charter of Economic Principles,' which aims to build a competitive national economy that provides a thriving business environment filled with opportunities and possibilities.
