The UAE's Specialised Bankruptcy Court

On 15 July 2025, the UAE's Federal Judicial Council issued Decision No. 39/2025 (the Decision) setting out the framework for the Emirates' specialised Bankruptcy Court.

The establishment of a new dedicated Bankruptcy Court was envisaged in the new Bankruptcy Law (Law No. 51/2023; the Bankruptcy Law), which became effective on 1 May 2024 and represented a significant progression in the development of the UAE's bankruptcy regime. The concept of the dedicated Bankruptcy Court is therefore not new, but the Decision establishes the specialised judicial infrastructure required to operationalise it. This infrastructure, together with dedicated supporting resources, is a welcome evolution in the UAE's restructuring and insolvency ecosystem.

Although the judges joining the ranks of the Bankruptcy Court are yet to be named, the Decision reflects the commitment to assign senior and dedicated judicial resources to cases to be determined under the Bankruptcy Law. The Decision provides that the Bankruptcy Court, which will be based in Abu Dhabi with provisions for additional judicial circuits to be established in other Emirates, will be presided over by a judge with the rank of at least an appellate judge and will be composed of specialised judges. We anticipate that this will instil stakeholder confidence in the Court.

The Decision sets out the structure and responsibilities of the infrastructure supporting the Bankruptcy Court: a “Bankruptcy Administration” to be established at the Court's headquarters, also headed by a judge with the rank of at least an appellate judge, and a secretariat to conduct clerical work. Setting out the support functions of the Bankruptcy Court, and detailing their respective roles and responsibilities, indicates the intention of the UAE to clarify and streamline the complex procedures associated with insolvency proceedings, and its intention to provide the efficient case management which complex insolvency proceedings need.

Importantly, the Bankruptcy Court should inherit a live caseload from day one: under the Bankruptcy Law, all proceedings arising out of its predecessor, Law No. 9/2016 (the 2016 Law), are automatically transferred to the Bankruptcy Court.

The Decision also contains provisions envisaging the engagement of experts by the Bankruptcy Court. Again, the involvement of experts is not a new concept, with the 2016 Law legislating for their role in bankruptcy proceedings. However, the specification in the Decision of the tasks that may be assigned to experts should create greater clarity around their role, and provide assurances for stakeholders that complex financial concepts will be dealt with appropriately by experienced professionals.

The establishment of the Bankruptcy Court demonstrates a maturing insolvency regime in the UAE. International companies should take comfort from the predictable and efficient insolvency process that the Bankruptcy Court seeks to administer, and the expertise of the Court and the wider administrative infrastructure.