Dubai issues new financial center insolvency law after Abraaj collapse

Dubai International Financial Center (DIFC) is the largest financial hub in the Middle East, Africa and South Asia. (Courtesy of DIFC)
Updated 11 June 2019

Dubai issues new financial center insolvency law after Abraaj collapse

  • New procedures in line with global best practices introduced as a first for the region
  • The new Insolvency Law and Regulations will come into effect on Aug. 28, 2019

DUBAI: Dubai’s ruler Sheikh Mohammed bin Rashid Al-Maktoum issued a new insolvency law on Tuesday for companies operating in the Dubai International Financial Center (DIFC), the largest financial hub in the Middle East, Africa and South Asia.
The new law, due to come into effect in August, has been issued following the collapse of Dubai-based private equity firm Abraaj, which had a DIFC-regulated entity Abraaj Capital.
The firm that had been the Middle East and North Africa’s biggest buyout fund unraveled after a row with some investors over the use of money in a $1 billion health care fund.
The new law introduces a “new debtor in possession bankruptcy regime” for debtors that have filed for bankruptcy but still hold assets, according to a statement on the Dubai’s ruler official website.
Abraaj, its founder Arif Naqvi and a former executive are being investigated by the US Securities and Exchange Commission (SEC) on US charges that they defrauded investors, including the Bill & Melinda Gates Foundation.
The Dubai Financial Services Authority (DFSA) said in April it was in touch with the SEC and had been investigating Abraaj Capital Ltd, an entity of the collapsed firm, over a range of matters but has not specified what they are.


Emirates launches airbridge between Dubai, Lebanon emergency relief 

Updated 14 August 2020

Emirates launches airbridge between Dubai, Lebanon emergency relief 

  • Customers of Emirates will be able to donate cash or pledge their Skywards Miles to the airline for the aid
  • Emirates SkyCargo will also provide 20 percent reduction on air freight transportation charges for approved shipments

DUBAI: UAE national carrier Emirates SkyCargo plans to ramp up its freighter operations to Lebanon with 50 flights to deliver emergency relief in the wake of the Beirut port blast that killed nearly 200 people.
Customers of Emirates will be able to donate cash or pledge their Skywards Miles to the airline for the aid, state news agency WAM reported.
The Emirates Airline Foundation will coordinate shipments of urgent food, medical supplies with NGO partners to ensure donations directly help those affected on the ground.
Emirates SkyCargo will also provide 20 percent reduction on air freight transportation charges for approved shipments, underscoring its commitment to expedite emergency relief efforts to Beirut.
“Today, the world is banding together to stand in solidarity with Lebanon, providing urgent relief and immediate recovery support to those affected by this tragic disaster,” Chairman and Chief Executive of Emirates Airline & Group, Sheikh Ahmed bin Saeed Al-Maktoum, said. 
“Emirates supports the UAE’s ongoing humanitarian efforts to support Lebanon and is committed to bolster its global emergency response to ensure that it can support organizations which provide urgent care, shelter, food and medical support to the Lebanese people,” he added. 
Emirates said that it had dispatched several charter flights carrying food, clothing and medical supplies donated by various grassroots organizations in the UAE to Lebanon.