Federal Decree-Law No. (51) of 2023 Promulgating the Financial and Bankruptcy Law (economy and business law)

Article (1) 
The Financial Restructuring and Bankruptcy Law, attached with this Decree -Law, shall enter 
into force and e ffect.

Article (2) 
The provisions of Civil Procedure Law, as well as the provisions of Law of Evidence in Civil 
and Commercial Transactions, shall apply to all matters not specifically stipulated in the law 
attached herewith.

Article (3) 
1. The Court shall, sua sponte  and without fees, transfer all claims, legal proceedings, 
grievances and actions, which are currently pending before them and are arising out of the above -referenced Federal Decree- Law No. (9) of 2016, to the Bankruptcy Court in 
whatever condition they presently exist, as of the date on which the law attached  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  2 
 herewith enters into force.  
2. Clause (1) of this Article shall not apply to the legal proceedings and actions that are 
already adjudicated or those set for pronouncement of judgment or ruling, so that the 
judgments or rulings rendered in respect thereof shall continue to be subject to the rules 
regulating the means of challenge that are applicable on their date of issuance.

Article (4) 
The Cabinet shall, based upon the Minister's proposal,  issue the executive regulations and 
resolutions deemed necessary for the implementation of the law attached with this Decree 
Law.

Article (5) 
1.  Federal Decree -Law No. (9) of 2016 on Bankruptcy, as amended, shall hereby be 
repealed.  
2. Any provision that goe s against or conflicts with the provisions of the law attached 
herewith shall hereby be repealed.

Article (6) 
The regulations and resolutions issued in implementation of the provisions of the 
above -referenced Federal Decree- Law No. (9) of 2016 shall remain in full force and effect 
until their substitute regulations and resolutions are issued in implementation of, and to such extent that does not conflict with, the provisions of the law attached with this Decree 
Law.  
  
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  3

Article (7) 
This Decree Law shall be  published in the Official Gazette, and shall enter into force six (6 ) 
 months following the date of its publication.  
  
 
 
 
 
  
 
 
 
 
 
 
 
  
Mohamed Bin Zayed Al Nahyan  
President of the United Arab Emirates   
 
Issued by us at the Presidential Palace – Abu Dhabi  
On: 17 Rabi' I, 1445 H  
Corresponding to: October 2, 2023  
   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  4 
 Financial Restructuring and Bankruptcy Law  
Introductory Part  
Chapter One  
General Provisions  
Article (1) 
Definitions  
For the purpose of applying the provisions of this Law, the following words and ex pressions 
shall bear the meanings assigned thereto respectively, unless the context requires otherwise:  
The State  
 : The United Arab Emirates.  
 
The Ministry  
 : Ministry of Justice.  
 
The Minister  
 : Minister of Justice.  
 
The Regulatory 
Authority  
 : The f ederal or local regulatory government authority 
designated by the Executive Regulations of this Law.  
 
Competent 
Judicial 
Authority  
 : Federal judicial council and local judicial authorities, as 
the case may be.  
 
Bankruptcy Court  : The court of competent jurisdiction as specified in Article 
(5) of this Law.  
Bankruptcy : An organizational unit established at federal and local  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  5 
 Department  courts in accordance with article (9 ) of this Law.  
 
The Unit  
 : The Financial Restructuring and Bankruptcy Unit that is 
established pursuant to article ( 12) of this Law.  
Bankruptcy 
Register  
 : The register referred to in Clause (5 ) of article (13 ) of this 
Law.  
 
Roster of 
Experts  
 : A list approved by the Unit as set forth in Clause (3 ) of 
article (13)  of this Law.  
 
Debto r : The natural or legal person referred to in Clause (1) of 
article (3) of this Law and who has ceased to pay off its 
debts or is experiencing a state of insolvency or financial 
distress.  
Financial Restructuring  
 : A set of measures aimed at helping the debtor keep on 
performing its business activity and paying off its debts 
through the application of a preventive settlement or 
plan.  
Preventive 
Settlement  : A set of measures taken at the request of the debtor, creditors or the regulatory authority, with the aim of 
helping the debtor keep on performing its business 
activity and paying its debts through applying a plan. The 
debtor or its Board of Directors or its managers may be 
prevented from managing the debtor's assets and 
business. Such measures shall b e ratified and supervised  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  6 
 by the Bankruptcy Court, with the assistance of the 
Trustee, as the case may be.  
Bankruptcy  
 : A set of measures aimed at settling the debtor's debts 
vis-à-vis its creditors on a collective basis, through 
liquidating the debtor's  assets and businesses and 
distributing the liquidation proceeds to the debtor's 
creditors.  
Debtor's Debts  
 : Debts owed by the debtor on the date of issuance of the decision to initiate the proceedings in accordance with 
the provisions of this Law, or th ose arising from an 
obligation owed by the debtor before the issuance of the 
decision to initiate the proceedings.  
Cessation of Payment  
 : The failure on the part of the debtor to pay off any debt due after (10) days have passed beyond the deadline 
specif ied in the relevant notice, even if the debtor's assets 
are valuable enough to pay off its debts, and even if the 
debt that has not been paid is secured by securities that 
are valuable enough to pay off the debt.  
 
Instability of the Debtor's 
Financial 
Pos ition  
 : The debtor's failure or expected failure to pay off its due 
debts within three months as a result of an instability of 
its financial position or experiencing financial distress.  
 
Entry  : Inserting a note in the commercial register, bankruptcy  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  7 
  register or any other register designated for registering the 
traders or professionals.  
Composition  
 : An agreement between the debtor and its creditors to 
settle the debts after a final judgment establishing the 
debtor's bankruptcy is rendered.  
The Debtor 's 
Assets  
 : All movable and immovable properties owned by the 
debtor inside and outside the State, as well as all the 
financial rights owed to the debtor by third parties, 
whether payable immediately or later, and the rights 
connected with any of them, in  addition to any other item 
that may have a current or future financial value, be it in 
the debtor's possession or in the possession of third 
parties, and whether due or undue, including moral 
rights, pledged and unpledged property, but not including 
the debtor's assets that may not be attached in 
accordance with the provisions of the legislation in force 
in the State."  
Debtor's 
Business  
 : Business activities the debtor was practicing or which are 
still practiced by the debtor, at the time of performing any 
of the measures described in this Law.  
 
Bankruptcy 
Estate  
 : All of the debtor's assets that are subject to bankruptcy proceedings in accordance with this Law.  
 
Trustee  : The natural or legal person who is appointed to carry out  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  8 
  and bankruptcy procee dings in accordance with the 
powers conferred upon him under this Law.  
Controller  
 : A person responsible for supervising the performance of 
preventive settlement, and bankruptcy declaration 
measures.  
Insider  
 : A person who ex officio  is familiar with u ndisclosed 
information in relation to the debtor's business, assets, 
person, financial position or management. The members 
of the Board of Directors and the administrative staff of 
the debtor and its subsidiaries and the parent company 
shall all be deemed insiders.  
Announcement  
 : The publication in two widely -circulated electronic or 
paper daily newspapers released in the State; one of 
which is published in Arabic and the other in English, or in 
any other way determined by the court or the Bankruptcy 
Depa rtment.  
Related Party  
 : The Related Party shall include:  
 1. If the debtor is a natural person:  
 a. The debtor's spouse, relative by blood or affinity up to 
the third degree and persons who, by the nature of their 
activity, have access to information in relation to the 
debtor's financial situation, including the chief financial 
officer, internal and external control officers or the 
debtor's partner in a partnership.  
 b. For the purposes of this Law, the marital bond shall be  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  9 
 deemed effective even if the m arriage occurs after the 
transaction has been completed or where the marital 
bond ends during the year preceding any transaction 
related to the underlying disposition.  
 2. If the debtor is a legal person.  
 a. The subsidiaries of such legal person.  
 b. Memb ers of the Board of Directors or senior executive 
management of the legal person.  
 c. Members of the Board of Directors or senior executive 
management of the subsidiary company.  
 d. Every person who owns (5% ) or more of the shares of 
the legal person or any of its subsidiaries.  
 e. Relatives up to the third degree or partners of the 
persons and entities specified in clauses (a, b, c and d) 
above.  
 f. Savings funds for persons working in the legal person.  
 g. Enterprises, joint ventures and partnerships betw een 
the legal person and any other entity.  
 h. Companies whose members of the Board of Directors 
or of the senior executive management and their relatives 
up to the third degree have the direct or indirect ability to 
exercise effective influence over the l egal person.  
 i. A person who ex officio  is able to get access to internal 
information on the financial position of the debtor, 
including the chairman and members of the Board of  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  10 
 Directors, the Director General and the CFO, the internal 
and external audito rs or the representative of the legal 
person, as well as relatives of the above -mentioned 
persons up to the third degree.  
 j. Any natural person charged with paying off the debtor's 
debts.  
Discontinuance 
of Claims  
 : The suspension of any action or execut ive measure 
initiated against the debtor as long as the same is related 
to its assets or debts, with the exception of labor actions 
and personal status actions, provided that estate -related 
actions are excluded from personal status cases.  
Ranking  of 
Creditors  : Ranking of the categories of creditors by similarity of their 
rights with respect to the debtor as follows:  
 1. Creditors with ordinary debts.  
 2. Creditors with debts secured by a mortgage, a special 
lien over movable or immovable property or a gen eral 
lien over the debtor's assets  
 For the purpose of discussing the preventive settlement 
proposal, the plan or for any other purpose stipulated in this Law.  
Required 
Majority  
 : The majority required to consider the matter presented to the creditors' m eeting approved. Such majority is 
established when voting is made according to the ranking of creditors and the following conditions are met:  
 1. Creditors having at least more than half of the debts  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  11 
 must be attending the meeting during which the voting 
takes place.  
 2. The approval of the creditor or creditors having 
two -thirds of the debts represented at the meeting must 
be present.  
Viability of the Debtor's 
Business' 
Continuation  
 : The debtor's ability to pay off its debts or to get its business back to profitability upon approval of the 
preventive settlement or proposal. This ability is proven 
according to a technical report to be drawn up by the 
Trustee.  
Existing 
Business  
 : It is an economic enterprise that is sold on the basis of the assumption tha t it will continue to carry out its activities, 
including its physical and moral elements such as the trade name, industrial or commercial licenses or other 
licenses, real estate, movables, tools, equipment, usufruct 
or lease agreements, commercial reputat ion and contact 
with customers, in addition to other physical and moral elements that make up that business and are necessary 
for continuation of carrying out the activity.  
Precautionary Measures  
 : Measures taken by the court with the aim of safeguarding  
and managing the debtor's assets or bankruptcy estate 
and precluding all fraudulent acts to conceal the same, 
including affixation of seals on the debtor's business 
premises or appointing a temporary Trustee to manage 
the debtor's assets or setting restri ctions on the debtor or  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  12 
 any debtor -related party with regard to disposing of its 
property or preventing it and any members of the Board 
of Directors, managers, members of the Board of 
Directors or managers of any company related to the 
debtor from travelin g during a certain period or until a 
specific measure is taken.  
Financial 
Emergency  
 : An incident that befalls the debtor, resulting in a disturbance in its financial situation and its inability to 
pay off its debts or its cessation of payment as a resul t of a 
general situation that affects trade or investment in the State, such as an outbreak of an epidemic, a natural or environmental disaster, a war or other events. The reason 
for such situation and its duration shall be determined by 
a decision of the Cabinet based on the Minister's 
proposal.  
Day  : The formal working day in the State.  
Exchange Rate  : The exchange rate of the UAE dirham against foreign currencies as announced by the Central Bank of the UAE 
(CBUAE ). 
Balance Sheet  : The debtor's balance  sheet and profit and loss account.  
 
 
 
 
   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  13 
 Article (2) 
Objectives of the Law  
Upon applying or interpreting the provisions of this Law, the following objectives shall be 
observed:  
1. Maintain the vitality of the national economy.  
2. Preserve the rights of credito rs. 
3. Provide assistance to the debtor to settle its debts with its creditors, in addition to 
avoiding liquidation of its business and declaration of bankruptcy as much as possible.  
4. Enhance the proceedings in a fair, equitable, prompt and organized manner.  
5. Ensure fair distribution to creditors and ensure that creditors whose claims are of the 
same nature are treated on an equal footing.  
6. Safeguard and protect bankruptcy estate.  
7. Maximize the value of bankruptcy estate as much as practically possible.  
  
Article (3) 
Scope of Application  
1. The provisions hereof shall apply to:  
a. That companies that are subject to the provisions of Commercial Companies Law;  
b. Any natural person having the capacity of a trader; and  
c. Licensed civil company of a professional nature.  
2. The provi sions hereof shall not apply to:  
a. The companies wholly or partially owned by the federal or local government, and 
whose establishment laws, memoranda or articles of association provide that they 
are subject to special provisions that regulate their preventive settlement, or 
bankruptcy proceedings to the contrary of this law;   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  14 
 b. The companies and establishments established in the free zones that are subject to 
special provisions that regulate their preventive settlement, or bankruptcy proceedings;  
c. The banks, fin ancial institutions and insurance companies licensed by the Central 
Bank and which are subject to special legislation that regulates their preventive 
settlement, or bankruptcy proceedings, within the scope of the mechanisms 
established by such legislation;  and  
d. The debtor's debts incurred for personal, family or consumption purposes, including 
the purchase of commodities or services or the purchase of real property for the 
debtor's personal or family residence.  
  
Article (4) 
Notification of Regulatory Author ities  
No application may be filed in relation to any debt owed by any of the companies and corporate bodies that are supervised by the regulatory authorities unless and until ten (10) 
days have passed following the notification of the competent regulatory authority.  
  
Article (5) 
Bankruptcy Court  
Federal and local courts shall have the jurisdiction, according to the rules of jurisdiction set forth in the Civil Procedure Law, to adjudicate on the disputes arising out of the application of this law and shall decide on the applications submitted thereto in accordance with the 
provisions hereof. In addition, the competent judicial authority may designate the courts having the jurisdiction to adjudicate on the disputes arising out of the application of this law 
and to decide on the applications submitted thereto in accordance with the provisions  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  15 
 hereof. One or more courts or divisions shall be established within the said courts and shall 
be vested with the jurisdiction to adjudicate on such disputes and applicatio ns. Such a court 
or division, as the case may be, shall be referred to as the Bankruptcy Court.  
  
Article (6) 
Experts and Auditors Providing Assistance to Bankruptcy Court  
1. The Bankruptcy Court may seek the assistance of a sufficient number of experts and 
auditors to be selected by the competent judicial authority.  
2. If the expert or auditor is not listed in the roster of experts kept with the competent 
judicial authority, they shall take the oath before the Chief Justice of the Bankruptcy 
Court to perform the ir duties faithfully, honestly and truthfully, and to abide by the 
professional standards and ethics. An oath- taking report shall be drawn up and kept in 
the expert's file with the Bankruptcy Department.  
3. The experts and auditors shall perform expertise dut ies on every matter for which the 
court engages an expert.  
4. The experts and auditors shall be entitled to remunerations depending on the duties 
assigned to them by the Bankruptcy Court. such remunerations shall be determined 
based on a report of the compete nt judicial authority, and in light of the report to be 
issued by the Bankruptcy Court on the duties performed by the experts and auditors. The remuneration shall be disbursed from the budget of the competent judicial authority.  
  
Article (7) 
Bankruptcy Co urt's Judgments  
Judgments rendered by the Bankruptcy Court according to this law shall become immediately enforceable once rendered with no need to be served, and their stay of  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  16 
 execution may only take place in the cases prescribed under this law.

Article (8) 
Bankruptcy Court's Decisions  
Decisions issued by the Bankruptcy Court according to this law shall become writs of 
execution, and the Bankruptcy Department shall affix the executive form thereon according 
to the procedures prescribed by law. Such decis ions shall become immediately enforceable 
once issued with no need to be served, their enforcement may not be challenged or stayed unless the Bankruptcy Court decides to reverse or stay the execution of the underlying 
decision either sua sponte or at the r equest of the debtor or any of creditors, the Trustee or 
any other interested party, or based on a judgment to be rendered by the Bankruptcy Court 
on the stay of execution application that is submitted within the petition of challenging the 
decision or whi le the Court of Appeal is hearing the challenge.

Article (9) 
Bankruptcy Department  
1. An organizational unit to be known as "Bankruptcy Department" shall be established at the Bankruptcy Court's headquarters, and shall be headed a judge whose rank is not le ss 
than an appeal judge.  
2. The Bankruptcy Department shall have a sufficient number of employees to provide 
assistance to the Department's manager for carrying out its functions and competences.  
  
  
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  17

Article (10) 
Bankruptcy Department's Functions  
The Bankrup tcy Department shall perform the following functions:  
1. To receive and register the applications to be received according to the provisions of this 
law;  
2. To serve notices to the interested persons according to the provisions of this law;  
3. To ensure that the ap plications for preventive settlement,, declaration of bankruptcy and 
others types of applications satisfy the information, data and documents described in 
this law;  
4. To notify the interested persons of the decisions to be issued by the Bankruptcy Court 
unde r this law and announce the same;  
5. The oversee the management of the debtor's assets and business, ensure the speedy progress of proceedings and enforce the necessary precautionary measures established 
by the Bankruptcy Court, as described in this law;  
6. To m eet the creditors in order to discuss with them any matters considered by the 
Bankruptcy Court. Such meetings shall be chaired by the Head of the Bankruptcy Department or his designee;  
7. To summon the debtor or his heirs, clients, employees or any other pers on in order to 
hear their statements on any matter related to the debtor's debts, assets or business; and  
8. To perform any other functions defined in this law or entrusted thereto by the head of the competent judicial authority.  
  
 
 
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  18

Article (11) 
Submission to Head of Bankruptcy Department  
The Bankruptcy Department shall submit all applications, notices, objections, grievances 
and memoranda received thereby to the head of the Bankruptcy Department or his designee 
as soon as they are received, in order for the  appropriate course of actions to be taken with 
regard thereto. If the matter is related to a proceeding brought before the Bankruptcy Court, 
the Department shall submit the same to the Court not later than the day following the day 
of receipt thereof, in order for the Court to take the appropriate course of actions with regard 
thereto.

Article (12) 
Financial Restructuring and Bankruptcy Unit  
1. A unit, to be known as the "Financial Restructuring and Bankruptcy Unit", shall be 
established in the Ministry, an d shall comprise a sufficient number of employees having 
experience and specialty in financial, legal or economic affairs.  
2. The Unit shall have an administrative staff to be appointed or assigned under a 
resolution of the Minister to help perform its duties . In addition, the Unit may seek the 
assistance of any persons of experience or knowhow to help it perform its functions.

Article (13) 
Financial Restructuring and Bankruptcy Unit's Functions  
The Financial Restructuring and Bankruptcy Unit shall perform t he following functions:  
1. To coordinate with the regulatory authorities and competent Bankruptcy Courts for 
managing the financial restructuring and bankruptcy proceedings for the companies and  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  19 
 corporate bodies supervised by the regulatory authorities;  
2. To gi ve opinion on the applications filed for initiating the proceedings, preventive 
settlement proposal, plan, composition and debtor's assets liquidation and distribution 
plan, in respect of the debts of the companies and corporate bodies supervised by the 
regulatory authorities, in coordination with the competent regulatory authority;  
3. To approve the roster of experts in the financial restructuring and bankruptcy affairs to 
perform the functions of Trustees or other duties according to the provisions of this law, 
and to set the conditions and procedures of listing and registration in the roster of 
experts;  
4. To create, and submit to the Minister for approval, a reference schedule showing the fees of Trustees and controllers to be appointed according to the provis ions of this law, and 
any costs incurred by them in connection with the preventive settlement, or bankruptcy 
proceedings;  
5. To create and organize a bankruptcy register in order to record therein the applications 
filed in relation to financial restructuring and bankruptcy and which are governed by the 
provisions of this law, and any action taken with regard thereto;  
6. To create and organize a register for the persons against whom court judgments are rendered imposing or revoking any restrictions ordered by the court according to the 
provisions of this law. The Executive Regulations of this law shall specify the form of the 
register, the data to be listed therein and the persons having the right to get access 
thereto and the relevant conditions, and all other relevant provisions;  
7. To supervise the unified e -platform that is created with the aim of building an 
all-inclusive database for the purposes of this law, through coordination and electronic 
linkage with the competent federal and local courts, Bankruptcy Depar tment and other 
relevant entities;   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  20 
 8. To coordinate with the competent judicial authority for qualifying and training the 
judges, Trustees and lawyers on the and bankruptcy proceedings performed by the courts, in order to stay up -to-date with the global stand ards;  
9. To submit periodic reports to the Minister on its activities, achievements and suggestions 
on the duties entrusted thereto;  
10. To perform any other functions provided for in this law or entrusted to the unit under a 
resolution of the Cabinet.

Article (14) 
Use of Modern Technology  
All the procedures set forth in this law may be carried out through modern technology, 
including, in particular:  
1. Submission of applications;  
2. Service of notices and notification;  
3. Grievances, objections and appeals;  
4. Attending an d voting on the meetings; and  
5. Attending the hearings.  
  
Chapter Two  
Initiation of Proceedings

Article (15) 
Submission of the Application by the Debtor 
1. The debtor may submit to the Bankruptcy Department an application for the initiation of preventive settle ment, or bankruptcy proceedings, not later than sixty (60) days from the  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  21 
 cessation of payment date or from the date on which it becomes aware of information 
confirming that it would be unable to pay off its debts when they fall due, unless any of the credi tors or regulatory authorities has submitted an application for initiating the 
proceedings within the aforementioned period. Failure to submit the application within 
the deadlines stipulated in this clause does not result in the application not being 
admit ted.  
2. If the debtor submits an application to initiate bankruptcy proceedings, the debtor shall 
be prevented from disposing of its property as of the date of the application's 
submission, and any disposal of its property shall be invalidated as of that date . The 
same shall not apply to unattachable property or the property necessary to support the debtor and its dependents and the legal costs in relation to the application for the initiation of proceedings. The debtor shall manage its assets and business unless the 
Bankruptcy Court decides, sua sponte or upon motion of the debtor, any of the creditors, 
the Trustee, or the unit, if the debtor is supervised by the regulatory authority, to appoint 
a temporary Trustee to manage the debtor's assets and business.  
3. The Executive Regulations of this Law shall determine the minimum amount of debt that 
the debtor has failed to repay or would have been unable to repay when due, referred to 
in clause (1 ) of this Article.

Article (16) 
Submission of the Application by Cred itors  
1. An ordinary creditor or a group of ordinary creditors may submit an application to initiate or Bankruptcy Proceedings in the event that the debtor defaults on any or more 
debts owed to them, provided that this debt is unconditional, undisputed and payable. In 
addition, the value of the debt shall not be less than the amount determined by the  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  22 
 Executive Regulations of this Law on the date of submitting the application, provided 
that the applicant has previously served a notice to the debtor of the neces sity to pay off 
the debt owed by the latter, not later than (30) thirty days from the date of the notice and 
the debtor has not taken the necessary measures to repay such debt.  
2. The provisions of clause (1) of this Article shall apply to creditors whose deb ts are 
secured by a mortgage on the debtor's property or a transfer of a right over the cash flows generated from the debtor's property or businesses and to creditors whose debts 
are secured by a mortgage or lien, provided that the value of the securities guaranteeing 
their rights on the date of submitting the application is less than the value of the debtor's 
debt with respect to the individual creditor's application or to the collective creditors' 
application by a difference not less than the amount deter mined in the Executive 
Regulations of this Law for the individual creditor and for the collective creditors.

Article (17) 
Creditor's Discontinuance of its Claim for Debt  
If the creditor or any of the creditors refrains from claiming its debt due to the s ettlement of 
such debt or an agreement with the debtor to postpone its repayment or for any other 
reason after submitting the request, the debtor is not considered to have defaulted if the 
remaining debt to the remaining creditors is less than the prescrib ed limit.

Article (18) 
Submission of the Application by the Regulatory Authority  
1. The regulatory authority may submit an application to initiate proceedings or a bankruptcy application regarding any debtor supervised thereby. In addition, it shall 
submit evidence that the debtor is in a state of cessation of payment or in a state of  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  23 
 inability or instability in respect of its financial position, provided that it has notified the 
debtor and grant it an opportunity to respond within a period not exceeding (30)  thirty 
days from the date of notification. Failure to submit the application within the period 
stipulated in this clause shall not result in the application not being admitted.  
2. The Executive Regulations of this Law shall determine the minimum amount of d ebt that 
the debtor fails to pay off or is expected to fail to pay off, and also determine the 
minimum amount of the default in the financial position realized and is expected 
referred to in clause (1 ) of this Article.

Article (19) 
Multiple Applications  
1. If multiple applications are submitted regarding the debts of the same debtor, they shall all be combined, and a single action shall be taken regarding them altogether. If these 
applications include a preventive settlement application, a application and a bankruptcy 
declaration application, the submitted applications shall be considered a request to 
initiate proceedings as an original request and a request to initiate bankruptcy proceedings as an alternative request. The Bankruptcy Court issues its decision  not to 
admit the preventive settlement application.  
2. If there are multiple applications submitted by the debtor, the application for the 
initiation of preventive settlement proceedings shall take precedence over the 
application, and the application shall t ake precedence over the bankruptcy declaration 
application, in addition, the application submitted first shall take precedence and the applications submitted thereafter shall be deemed alternative applications. A decision 
may not be made on the alternative  application unless the court does not issue its 
decision to admit the original application.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  24

Article (20) 
Applications Filed on Corporate Debts  
1. If the debtor is a company, it is permissible to submit an application for the initiation of 
proceedings regar ding its debts, even if it is in a state of liquidation or a court order is 
issued to dissolve the company and it continues as a real company, and the provisions 
contained in article (244 ) of this Law apply to its partners.  
2. Admitting the application shall result in the suspension of cases whose subject matter is 
the liquidation of the company or its placement under judicial receivership until a final 
decision is issued, unless the Bankruptcy Court decides otherwise.

Article (21) 
Applications filed on Debt s of a Deceased, Retired or Incapacitated Debtor  
1. Subject to the provisions of article (16 ) of this Law, an application to initiate the 
proceedings may be submitted after the death of the debtor, its retirement from trade or 
its loss of capacity within the two years following the death or the removal of the trader's 
name from the commercial register or its loss of capacity. Notices shall be sent to the 
deceased debtor to its last domicile without the need to designate heirs.  
2. Subject to the provisions of Arti cle (15) of this Law, the debtor's heirs may submit an 
application for the initiation of proceedings within the two years following death. If the 
heirs do not agree to submit the application, it may be submitted by any of them. In this case, the Bankruptcy  Court may decide to save the application or admit the application 
for the initiation of proceedings according to what it deems to serve the interest of the creditors of the deceased debtor and the heirs.  
3. The debtor's heirs or their legal representatives s hall a person to represent them in the  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  25 
 proceedings in accordance with this Law. Failure to do so within (10)  ten days from the 
date of notification thereof by the Bankruptcy Department, the Bankruptcy Court shall 
designate any of the heirs to represent the m, and the court may dismiss the heirs' 
representative and appoint another of the heirs or a person acting on their behalf.  
4. If the application is submitted by or against an incapacitated debtor, it shall be 
represented by the Trustee.

Article (22) 
Data o f the Application  
The application shall be submitted by the debtor or the regulatory authority, indicating the 
required proceedings and its reason, the previously -submitted applications and the related 
measures, if any. The following documents shall be att ached to the application:  
1. A statement that includes a brief description of the debtor's economic and financial 
situation and information about its property, in addition to detailed data about its 
employees, as well as a statement of the value of their dues  owed by the debtor, if any.  
2. A copy of the debtor's commercial or industrial license and commercial register.  
3. A copy of the commercial books or financial statements in relation to the debtor's 
business for the three (3) fiscal years preceding the date of s ubmitting the application.  
4. A statement of the cases filed by and against the debtor, and the estimated amount for each. This statement shall not constitute an acknowledgment by the debtor of the 
validity of these debts.  
5. A statement of all cases, execution proceedings or other proceedings to be halted as a 
result of the issuance of the decision to initiate the proceeding, in accordance with this 
Law or based on the Bankruptcy Court's decision.  
6. A report including the following information:   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  26 
 a. The debtor's cash f low expectations and profit and loss expectations for the one -year 
period following the submission of the application.  
b. A statement of the names of known creditors and debtors, their electronic and 
physical addresses, their telephone numbers, the value of t heir rights or debts and 
the guarantees provided therefor, if any, as well as the ranking of these creditors and 
debtors.  
c. A detailed statement of the debtor's property and the approximate value of each of such property on the date of submitting the application, as well as a statement of any 
guarantees or rights of third parties arising therefrom.  
d. A statement of real estate dispositions or dispositions of movable and immovable property based on the debtor's records and commercial books, as well as the value of each disposition, its date and the person to whom it was disposed of, within (3 ) three 
years before the date of submitting the application, accompanied by a statement from the competent authorities regarding the dispositions of movable or immovable 
prop erty that have been recorded in the registers of those authorities.  
7. Nominate a Trustee nominated by the applicant to assume the duties of the Trustee or bankruptcy Trustee, in accordance with the provisions of this Law.  
8. A statement of whether the debtor is  able to manage its property and desires to manage 
the same and the supporting documents thereof, or whether the interest of the creditors 
requires appointing a Trustee to assume management and the justification and 
supporting evidence therefor.  
9. A statemen t of any precautionary measures that the interest of creditors requires to be 
taken, and whether the interest of creditors requires taking them urgently, as well as 
justification and supporting evidence therefor.  
10. A statement of whether or not the debtor fo r whom an application for a preventive  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  27 
 settlement or is submitted is in need of obtaining financing during the period following 
the date of issuance of the decision to initiate the proceedings until the approval of the preventive settlement or plan or not,  in which former case, a statement of the estimated 
total value of the financing required during the aforesaid period, its purposes, duration, 
guarantees and its consequences on the preventive settlement or plan and on the rights 
of creditors whose debts a re secured and other creditors.  
11. If the applicant is a representative of the legal person, the application shall be 
accompanied by a copy of the decision of the competent authority in the company 
authorizing him to submit an application to initiate the proc eedings and a copy of the 
company's incorporation documents and articles of association and any amendments thereto.  
12. Any other information, data or documents that support the information contained in the 
application or requested by the Bankruptcy Department . In case the applicant fails to 
provide any of the data, information or documents required in accordance with the 
provisions of this Article, it shall state the justifications for such failure in his application.

Article (23) 
Submission of Data, Information and Documents  
1. If the applicant fails to submit data, information and documents in accordance with article (22) of this Law due to its inability to obtain them from the entity holding the 
same, the Bankruptcy Court may order any person who has the requ ired information, 
data and documents to submit them within a period it specifies if it deems them 
necessary to decide on the application.  
2. No person or entity may refrain from submitting the data, documents, and information 
requested by the Bankruptcy Court  to be submitted on the grounds that the law requires  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  28 
 such person or entity to maintain their confidentiality.

Article (24) 
Application Submitted by the Creditor  
The application submitted by the creditor shall contain a statement of the reasons and shall 
be accompanied by a copy of the notice described in article (16) of this Law and any data, 
information and documents in relation to the debt and its guarantees.

Article (25) 
Costs and Guarantee  
1. Except for the applications submitted by regulatory authorities, the applicant shall 
deposit with the court treasury a sum of money or a bank guarantee. The Executive 
Regulations of this Law shall determine its rate based on the total debts or assets of the 
debtor on the date of submitting the application or the t otal debts owed to the creditor 
submitting the application if the application is submitted by the latter, in order to cover 
the expenses and costs of the initial proceedings for deciding on the application.  
2. The Head of the Bankruptcy Department may decide to determine the deposit of a smaller amount, and he may also postpone the deposit of the amount or guarantee set 
forth in Clause (1 ) of this Article in the event that the applicant is the debtor and does not 
have the necessary liquidity for deposit on the  date of submitting the application, or 
where the initial proceedings do not require any costs.  
3. The applicant may request a refund of the deposited sum of money or the bank 
guarantee if the application is dismissed, in accordance with the procedures and 
provisions set out in the Civil Procedure Law.  
   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  29

Article (26) 
Notifying the Financial and Bankruptcy Unit  
The Bankruptcy Department shall notify the Unit of application for initiation of the 
proceedings and their attachments and of every decision and proceed ings taken therein, not 
later than (10) ten days from the date of submitting those applications to the Bankruptcy 
Department or from the date of taking the decision or proceedings.

Article (27) 
Evaluation of the Debtor's Position  
Within (10) ten days fro m the date of being notified of the application or within the period 
specified by the Bankruptcy Court, the Unit shall evaluate the debtor's position with respect 
to the debts owed to institutions and companies supervised by the regulatory authorities. 
Furthermore, the Unit shall submit a report to be drawn up thereby in coordination with the 
competent regulatory authority at the Bankruptcy Department, provided that the report 
includes the following elements:  
1. Explain the extent to which a preventive settlem ent or is possible or not.  
2. State whether the debtor's property is sufficient to cover the costs or not.  
3. State whether or not precautionary measures are required to be taken urgently and the 
justification therefor.  
4. State whether the debtor is able to manage  its business and assets on its own or whether 
its interest and the interest of the creditors require that the management of the debtor's business and assets be entrusted to the Trustee.  
5. Nominate the Trustee recommended to be appointed to complete the or bankruptcy 
proceedings and his fees.  
6. Any other recommendations that the Unit deems appropriate.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  30

Article (28) 
Notification of the Application  
1. The Bankruptcy Department shall notify the debtor of the application, not later than (10) 
ten days from the date o f its submission if the application was not submitted by it, and 
the debtor shall provide its response to the application not later than (10) ten days from 
the date of its notification. In addition, it shall submit all the information, data and 
documents s tipulated in article (22 ) of this Law, unless the debtor requests from the 
Bankruptcy Court to exempt it from submitting the data, documents and information 
due to the lack of conditions for admitting the application and the court approves its 
request. If the Bankruptcy Court obligates the debtor to submit the required data, 
information and documents, the latter shall submit the same not later than the date 
specified by the court.  
2. During the period referred to in Clause (1) of this Article, the Bankruptcy D epartment 
shall notify the creditors whose details are included in the application, who may provide 
their response to the application, not later than (10)  ten days of the day of their 
notification.  
3. During the period referred to in Clause (1) of this Articl e, the Bankruptcy Department 
shall notify the Unit and the regulatory authority if the debtor is supervised by the 
regulatory authority. The Unit and the regulatory authority may submit what they deem 
appropriate, not later than (10) ten days from the date  of their notification.

Article (29) 
Waiver of the Application  
1. Except for the cases where an application to initiate the proceedings is submitted by the  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  31 
 debtor, the applicant may waive the same at any time before the Bankruptcy Court 
issues a decision th ereon or before taking any precautionary measures with regard 
thereto.  
2. The Bankruptcy Court shall issue its decision to dismiss the application without 
prejudice, unless any other person who may submit the application in accordance with 
this Law has submit ted another application or submitted a memorandum of its response 
to the application and expressed its desire to proceed with the proceedings.

Article (30) 
Subpoena and Impleader of Persons 
In accordance with conditions that provide for appropriate and adequate protection for 
creditors, the Bankruptcy Court may order the impleader of any natural or legal person into 
the proceedings stipulated in this Law if that person's assets are intertwined with the 
debtor's property in such a way that is difficult to separate them or if the court considers that 
it would not be practical or cost -effective to initiate separate proceedings with respect to 
such persons.

Article (31) 
Setting the Cessation of Payment Date  
1. The Bankruptcy Court shall decide on the applicatio n within (10) ten days from the 
expiry of the periods specified for responding thereto, by issuing a decision to initiate 
preventive settlement, or bankruptcy proceedings. In addition, it shall specify in its 
decision a temporary cessation of payment date.  
2. If the decision to initiate the proceedings fails to designate the date on which the debtor defaults, the date on which the decision to initiate the proceedings is issued shall be  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  32 
 considered a temporary cessation of payment date.  
3. If the decision to initiate the proceedings was issued after the death of the debtor or after 
its retirement from trade or loss of capacity, and the cessation of payment date was not 
specified, the date of death, retirement from trade or loss of capacity shall be considered 
a temp orary cessation of payment date.

Article (32) 
Amendment of Cessation of Payment Date 
The Bankruptcy Court may, sua sponte or upon motion of the debtor, any of the creditors, 
the Trustee or other relevant parties, amend the temporary cessation of payment date until 
the date of approving the list of debts. After the expiration of this period, the date designated 
for cessation of payment shall be considered final. In all cases, the cessation of payment date 
may not be backdated to more than two years prior t o the date of issuance of the decision to 
initiate the proceedings.

Article (33) 
Inadmissibility or Dismissal of the Application  
1. The Bankruptcy Court shall issue its decision not to admit the application if the 
documents, data and information stipulated in article (22)  of this Law are not submitted, 
or if they are submitted incomplete without an excuse acceptable to the court.  
2. The court issues its decision to dismiss the application if its conditions are not met.  
3. If it becomes clear that the application s ubmitted by the creditor was intended only to 
cause harm the debtor, the debtor and anyone aggrieved by the application may claim 
for compensation for the damage, and a liability case shall be filed before the Bankruptcy 
Court.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  33 
 4. If it becomes clear that the  request submitted by the debtor was intended only to harm 
the creditors and discontinue their claims, the creditors and anyone aggrieved by the 
application may claim for compensation for the damage, and a liability case shall be filed 
before the Bankruptc y Court.

Article (34) 
Precautionary Measures  
1. The Bankruptcy Court may, sua sponte or upon a motion submitted thereto by the Unit, 
if the debtor is supervised by the regulatory authority, by the regulatory authority or by 
any relevant party, may decide to  take any precautionary measures.  
2. The Bankruptcy Court may, sua sponte or upon a motion submitted thereto by the 
debtor, issue its decision to discontinue claims.  
3. The decisions of the Bankruptcy Court referred to in Clauses (1 ) and (2) of this Article 
shall be reasoned.

Article (35) 
Announcement of the Decision  
1. The Bankruptcy Department shall, not later than (10) ten days following the date of 
issuance of the Bankruptcy Court's decisions relating to application to initiate the 
proceedings, dismissal, inad missibility or termination of proceedings, announce the 
decision, notify the relevant parties and request the securities markets to disclose the 
decision if the debtor is listed there, in addition to requiring the debtor to publish the 
same on its website,  unless the court decides to suffice with any of these methods.  
2. The Bankruptcy Court may decide to announce the decision in any of the daily newspapers issued in a foreign country if a large number of the debtor's creditors,  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  34 
 property or businesses are loca ted in that country or for any other reason determined by 
the court.  
3. In all cases, the decision issued with regard to the application to initiate the proceedings 
shall be recorded within the period stipulated in Clause (1 ) of this Article.  
4. All decisions st ipulated in the provisions of this Law and its Executive Regulations shall 
be announced, not later than (10) ten days following the date of issuance of the decision, 
and the court may suffice with recording the decision in the bankruptcy register and the 
commercial register.  
  
Chapter Three  
Appointment of the Trustee and Controller

Article (36) 
Appointment of the Trustee  
If the Bankruptcy Court decides to admit the application to initiate or bankruptcy 
proceedings, the Trustee nominated by the Unit shall be  designated in the same decision, 
and his fees shall be estimated in accordance with the provisions of this Law.

Article (37) 
Appointment of Multiple Trustees  
1. The Bankruptcy Court may, sua sponte or upon motion of the debtor or the Unit, if the 
debtor is  supervised by a regulator authority, assign the Unit to nominate more than a 
Trustee and suggest the amount of their fees, and it shall issue its decision to appoint them and approve their fees.  
2. If there are multiple Trustees, they shall work together, and the Trustees shall be jointly  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  35 
 responsible for their work, and it is permissible for them to act on behalf of each other. 
However, they may not delegate third parties without obtaining the permission from the Bankruptcy Court, and the Trustee and whoever represents him shall be jointly 
responsible. The court may divide the duties among the Trustees or entrust any of them 
with a specific mission. In which latter case, the Trustee shall only responsible for the 
mission he is assigned to perform.

Article (38) 
Appointment of Trustee Following Approval of Creditors List  
1. In all cases in which a decision is issued to appoint a Trustee after approving the list of 
creditors, or in cases in which the Bankruptcy Court issues a decision to replace the 
Trustee or appo int a new Trustee, the Bankruptcy Department shall call all creditors 
within (10) ten days following the date of issuance of the decision, including creditors 
with secured debts, to nominate a Trustee and estimate his fees. The Bankruptcy 
Department may, i n coordination with the Unit, develop a list of not less than (3 ) three 
candidates to be selected from. The Head of the Bankruptcy Department or his 
representative shall chair this meeting, and the nominated Trustee shall be appointed 
based on the approval  of the required majority.  
2. If the Creditors' Committee stipulated in article (63 ) of this Law approves the selection of 
the Trustee as described in Clause (1) of this Article and his fees are estimated, the 
Bankruptcy Department shall, not later than (10) ten days of the creditors' meeting, 
announce the outcome of the meeting to the Bankruptcy Court so that the latter can 
approve the selection of the Creditors' Committee and issue a decision to appoint the 
Trustee and estimate his fees.  
3. In the event that th e Creditors' Committee does not agree on appointing the Trustee and  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  36 
 determining his fees, the Bankruptcy Court may appoint the Trustee and determine his 
fees from a list prepared by the Bankruptcy Department in coordination with the Unit, in which the numb er of candidates shall not be less than three (3 ).

Article (39) 
Appointment of Legal Person as Trustee  
If a legal person is appointed as a Trustee, it shall nominate one or more representatives to 
assume the duties of the Trustee, and the Trustee shall be  responsible for its representative. 
In all cases, the Trustee's representative shall be a person registered in the Unit's Roster of 
experts.

Article (40) 
Applications of the Trustee  
The Trustee appointed in accordance with the provisions of this Law may  submit to the 
Bankruptcy Department any application to take a decision that would help him perform his 
mission in the appropriate manner, and the same includes, for example, an application to 
appoint or delegate one or more Trustees to assist him in any o f the matters for which he is 
responsible.

Article (41) 
Persons Prohibited from Being Appointed as Trustees  
The following persons may not be appointed as Trustees:  
1. Any of the creditors.  
2. Debtor -related party.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  37 
 3. Any person against whom a final judgment has b een issued in a felony or misdemeanor 
of theft, embezzlement, fraud in commercial transactions, breach of trust, fraud, forgery, 
perjury, bribery or any of the crimes stipulated in this Law or any misdemeanor affecting 
the national economy, even if he has been acquitted.  
4. Any person who, during the last two years preceding the submission of the application 
to initiate the proceedings, was a partner of the debtor, an employee thereof, an auditor 
of its accounts or its attorney.

Article (42)  
Duties of the T rustee  
The Trustee shall carry out his duties under the supervision of the Bankruptcy Department, 
and he shall follow up on the proceedings promptly and ensure that he takes all measures 
that provide protection for the interests of both the debtor and cred itors.

Article (43) 
Powers of the Trustee  
1. In cases where the Trustee is entrusted with the management of the debtor's assets and business, the Trustee shall safeguard those funds and act on behalf of the debtor in all 
actions required to manage the debto r's assets and business.  
2. If the debtor is supervised by the regulatory authority, the Trustee shall coordinate with the regulatory authority and the Unit, to ensure that the funds deposited in the debtor's account represent its own funds and not clients' f unds deposited therewith as a trust or 
to perform an agreement concluded between the debtor and its clients.  
3. If the debtor is a company, the Trustee shall have the same powers stipulated in the 
company's articles of association for the board of directors, the chairman of the board,  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  38 
 the CEO and the company director.  
4. If any of the management's duties or any of the company's actions require the approval 
of the General Assembly, the Trustee shall submit to the Bankruptcy Department an 
application to present the  matter to the Bankruptcy Court for approval, and the court 
shall issue its decision on the application, not later than (10) ten days from the date of its 
submission.

Article (44)  
Trustee's Powers on Legal Proceedings Relating to Debtor's Assets and 
Bus iness  
In the cases referred to in article (43) of this Law, the Trustee may, with permission from the 
Bankruptcy Court issued after hearing the debtor's statements or notification thereto, accept 
settlement or accept arbitration in any dispute in relation to the debtor's property or 
business, give up the debtor's right and admit the right of third parties.

Article (45) 
Trustee -Debtor Relationship  
Once appointed to take over the management of the debtor's assets and business, the Trustee shall take the following measures:  
1. Receive, review and keep the debtor's correspondence in relation to the latter's business, 
and he shall enable the debtor to review the same and hand over to the debtor any 
correspondence of a personal nature or the correspondence that are  subject to the rules 
of professional confidentiality and are not related to the proceedings.  
2. Estimate the reasonable amount of money to fulfill the necessary needs of the debtor 
and its dependents. The Bankruptcy Court shall issue a decision approving or amending  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  39 
 the estimate as a matter of urgency, and its decision in this regard shall be deemed final. 
This amount shall not be considered among the debtor's property guaranteeing its debts.

Article (46) 
Trustee's Handover of Amounts Received  
1. The Trustee s hall credit any amount he receives with regard to the proceedings to a 
special account in the bank determined by the Bankruptcy Court, not later than (2 ) two 
working days from the date he receives that amount. In addition, he shall submit to the court a st atement of account of those amounts, not later than (5 ) five days from the date 
of deposit.  
2. In the event that the Trustee delays the deposit of any amounts he has received, which was required to be deposited, without justification acceptable to the court, it may oblige 
him to pay a fine for each day of delay, not exceeding (9% ) on an annual basis of the 
value of the amounts whose deposit is delayed. This fine shall be deposited in the account referred to in Clause (1 ) of this Article and shall be included in the general 
guarantee for creditors.  
3. In the event that the Trustee delays the deposit of any amounts he has received, which was required to be deposited, without justification acceptable to the court, the 
Bankruptcy Court may decide to replace him with another Trustee.

Article (47) 
Recording the Trustee's Activities  
1. The Trustee shall record all actions taken in connection with the management of the 
debtor's assets and business in the books and registers prepared for this purpose. The 
notation may be ele ctronic, and the Unit, the creditors and representatives of the  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  40 
 Creditors' Committee, as the case may be, and the debtor may review these books and 
registers.  
2. The Unit, the creditors and representatives of the Creditors' Committee, as the case may 
be, and the debtor may request that they be provided with copies of the documents 
available to the Trustee whenever they relate to the debtor's property or business, or that they be provided with data or information based on the books and registers referred to 
in Clause (1) of this Article.  
3. In the event that the Trustee refrains from providing the Unit or the creditors and representatives of the Creditors' Committee, as the case may be, or the debtor with 
copies of the documents available thereto, any relevant part y may request the 
Bankruptcy Court to order the Trustee to provide such party with the documents or 
enable him to review them. In this case, the court shall issue its decision on the 
application, not later than (10) ten days from the date of its submission .

Article (48) 
Objection to Trustee's Acts  
1. In the event that the debtor is supervised by the regulatory authority, the debtor, the 
creditors and the Unit may object before the Bankruptcy Court to the Trustee's activities 
before they become effective. The objection shall result in a cessation of the objected 
activity if the objection is submitted by the Unit.  
2. In this case, the court shall issue its decision on the objection, not later than (10) ten days 
from the date of its submission.  
  
   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  41

Article (49) 
Rep ort of the Trustee  
The Trustee shall submit to the Bankruptcy Department and to the Unit, where the debtor is 
supervised by the regulatory authority, a report on a monthly basis or on any other date 
determined by the Bankruptcy Court on the status of the m anagement of the debtor's assets 
and business and the progress of the and bankruptcy proceedings.

Article (50) 
Determination of Scope of Trustee's Powers  
The Trustee, the debtor, any creditor or the Unit, where the debtor is supervised by the 
regulatory authority, may petition the Bankruptcy Court to issue a decision determining the 
scope of the Trustee's powers regarding a specific issue or issues, provided that the same does not result in a cessation or disruption of the proceedings. In all cases, the B ankruptcy 
Court has jurisdiction to issue whatever decisions it deems appropriate regarding the 
Trustee's powers.

Article (51) 
Fees of the Trustee  
The Trustee shall receive his fees specified in the decision to appoint him, as well as the 
necessary expen ses he incurs from the debtor's known property to manage the bankruptcy, 
and the Bankruptcy Court may release payment -on-account of those fees and expenses.  
  
   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  42

Article (52) 
Appointment of the Controller  
1. The Bankruptcy Court may, sua sponte or upon motion of the debtor, the creditors or the 
Unit, where the debtor is supervised by the regulatory authority, assign the Unit or 
creditors to nominate one or more controllers from among the persons registered in the 
Roster of Experts and determine their fees, and the court shall issue its decision to 
appoint them and approve their fees.  
2. The controller shall, without interfering in the proceedings, draw up a report on the 
progress of the proceedings in the event that the Bankruptcy Court requests so. The 
provisions of Articles (39, 41 and 51) of this Law shall apply to the controller.

Article (53) 
Replacement or removal of Trustee or Controller  
1. The Bankruptcy Court may at any time, after taking the opinion of the Unit, where the debtor is supervised by the regulato ry authority, decide to replace the Trustee or 
controller. The debtor and any creditor may also petition the court to replace any of them, if it is proven that his continued appointment causes damage to the interests of 
the creditors or the debtor. The req uest shall not result in a cessation of the proceedings, 
and the court shall issue its decision on the request within (10) ten days.  
2. The Trustee or controller whom the Bankruptcy Court decides to replace shall cooperate 
to the extent necessary to enable his substitute to assume his duties, and this provision shall apply to Trustees and controllers appointed before the entry into force of this Law.  
3. The Trustee or controller may request the Bankruptcy Court to relieve him of his duties, and the court may appr ove such request and appoint a substitute, and it may determine 
fees for the Trustee or controller whose request was approved against the services he  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  43 
 performed.

Article (54) 
Notices  
1. Notifications and notices made in accordance with the provisions of this  Law shall be 
deemed effective if they are sent via e -mail or any other method agreed upon or 
determined by the Bankruptcy Court, the Bankruptcy Department or the Court of 
Appeal.  
2. With the exception of notifications sent by the debtor, the representative o f the 
Creditors' Committee, and representatives of the categories of creditors, the notice may be sent through means of notification.  
3. The Bankruptcy Department, the Unit, the Trustee, the controller, the debtor, the representative of the Creditors' Committ ee, and the representatives of the categories of 
creditors shall save the notices made via e -mail in the form in which they were sent, in a 
paper or electronic record designated therefor.

Article (55) 
Confidentiality of Debtor -Related Information and Dat a 
1. The Trustee, the controller, the creditors, the Creditors' Committee and all proceeding -related parties shall be prohibited from disclosing any information, data or 
accounts in relation to the debtor's financial position, its commercial relations or its 
business secrets, of which they become aware during or because of their engagement in 
the proceedings. Moreover, they shall be prohibited from using any of this information, 
data or accounts for their personal benefit.  
2. This information and data includes tr ade secrets and information of interest such as  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  44 
 clients and supplier lists, research and development information, professional secrets 
and other information of similar nature.  
  
Part One  
Preventive Settlement  
Chapter One  
Application for Initiation of Preve ntive Settlement Proceedings

Article (56) 
Debtor's Submission of Application for Initiation of the Preventive 
Settlement Proceedings  
1. Subject to the provisions set forth with regard to the application for the initiation of 
proceedings in the Preliminary Part of this Law, the debtor may submit an application for 
the initiation of the preventive settlement proceedings if its business is vulnerable to any 
of the following cases:  
a. If he has defaulted or there are reasons that make it expect or fear inability to repay 
all or any of its debts when they fall due.  
b. If its creditors had previously disapproved a proposal for a preventive settlement or a 
plan, or the Bankruptcy Court had decided not to ratify any of them, even if the same 
was made for other debts of the debtor, for which the application was not submitted, 
after three (3) months have passed from the date of the creditors' meeting or the 
Bankruptcy Court's decision.  
c. If a decision or judgment has previously been issued by the Bankruptcy Court to terminate th e preventive settlement proceedings or to terminate the proceedings, 
even if the same was made for other debts of the debtor, for which the application  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  45 
 was not submitted, after three (3 ) months have passed from the date of the 
Bankruptcy Court's decision o r judgment.  
d. If a final judgment has previously been issued declaring the debtor bankrupt, after its 
rehabilitation in accordance with the provisions of this Law.  
2. If the debt, for which the application is submitted, is still subject to any proceedings in 
accordance with this Law in execution of a decision issued to initiate the proceedings, 
the application may not be submitted.  
3. As an exception to Clause (1) Paragraphs (B, C, D ) and Clause (2) of this Article, the 
debtor may submit the application at any time  if it attaches thereto evidence of the prior 
approval of the required majority of creditors on the preventive settlement proposal, for 
which the application is submitted.

Article (57) 
Particulars of the Application for Initiation of Preventive Settlemen t 
Proceedings and its Attachments 
Subject to the provisions of article (22 ) of this Law, the debtor shall attach the following 
attachments to the application for the initiation of the preventive settlement proceedings:  
1. Data, information and documents indic ating that the necessary conditions to submit the 
application for the initiation of the preventive settlement proceedings have been met.  
2. A brief explanation of the preventive settlement proposal, indicating its conditions, execution method, the guarantees for its execution, if any, and the schedule for 
execution.  
3. A summary of the contracts and agreements proposed to be signed between the debtor 
and creditors to execute the preventive settlement proposal.  
4. The ranking of the creditors.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  46 
 5. In the event that a Cre ditors' Committee is formed according to the ranking of creditors, 
the debtor shall attach a list of the members of the said committee, indicating the name 
of the representative for each group of creditors, their electronic email, physical address, 
their p hone numbers and the documents indicating the appointment of these members 
and representatives and the limits of their authorization by the creditors.  
6. Procedures for calling a meeting of creditors to discuss the preventive settlement 
proposal, the voting m echanism and the persons who has the right to vote.  
  
Chapter Two  
Effect of Issuance of Decision to Initiate Preventive Settlement Proceedings

Article (58) 
Management of Debtor's Business and Assets  
1. After a decision to initiate the preventive settlement pr oceedings is made, the debtor 
shall continue to manage its business and assets as usual, and it may exercise all the 
activities required to conduct its business in a way that does not harm the interests of 
creditors, unless the Bankruptcy Court decides oth erwise.  
2. The debtor may not carry out any activities outside the scope of its normal business without obtaining the approval of the Bankruptcy Court.

Article (59) 
Suspension of Claims  
1. The issuance of a decision to initiate preventive settlement proceeding s shall result in 
the suspension of claims for a period of (3 ) three months following the date of issuance 
of the decision. The Bankruptcy Court may, upon the debtor's request, extend the period  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  47 
 of suspension of claims for one or more times, provided that the extension does not 
exceed one month, and in all cases the period of suspension of claims shall not exceed 
(6) six months.  
2. The Bankruptcy Department shall, upon the debtor's request, provide the latter with a 
certificate of suspension of claims and the duration of the suspension.  
3. During the period of suspension of claims, the debtor shall exercise the necessary due 
diligence to ensure that its creditors vote to approve the preventive settlement proposal. 
It shall further provide creditors with all docume nts, information and data to enable 
them to make a decision regarding the preventive settlement proposal, and it shall respond to any inquiries submitted thereto by creditors.

Article (60) 
End of Claim Suspension Period  
The claim suspension period shall come to an end in any of the following cases:  
1. The Bankruptcy Court ratifies the preventive settlement proposal.  
2. Issuance of a decision by the Bankruptcy Court to terminate preventive settlement 
proceedings.  
3. Expiration of the period stipulated in Clause (1 ) of article (59)  of this Law.

Article (61) 
Debts, Interest and Contracts 
1. The issuance of the decision to initiate preventive settlement proceedings shall not result 
in the maturity of the debts nor the cessation of the interests, and any provision to the  
contrary in the contracts concluded with the debtor shall be deemed null and void.  
2. The issuance of the decision to initiate preventive settlement proceedings shall not result  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  48 
 in the suspension or termination of the debtor's valid contracts, including leas e 
agreements, even if the contract stipulates otherwise. The party contracting with the 
debtor shall continue to fulfill its contractual obligations as long as the debtor does not 
cease to perform its obligations subsequent to the date of issuance of the d ecision to 
initiate the proceedings.  
3. With the exception of contracts covered by preventive settlement proceedings and in the 
event that the debtor breaches any of its contractual obligations, and as an exception to 
the suspension of claims, the Bankruptcy Court may, upon motion of the contracting 
party, decide to terminate the contract.  
4. The Bankruptcy Court may, upon the debtor's request, order the termination of any effective contract to which the debtor is a party if the same is necessary to enable the debtor to carry out its business or serves the interest of creditors, provided that the 
termination does not lead to serious damage to the interests of the party contracting with the debtor, unless the court decides to compensate the contracting party on a f air 
basis, in which latter case the contracting party has the right to engage in the preventive settlement proceedings as an ordinary creditor with regard to the compensation 
resulting from the termination.

Article (62) 
New Finance 
1. The debtor may borrow or obtain banking facilities with or without guarantee, in accordance with what is stated in the application for the initiation of proceedings or in 
any application submitted to the Bankruptcy Department after submitting the 
application for initiation of t he proceedings and before a decision is issued thereon.  
2. The debtor may borrow or obtain banking facilities after the issuance of the decision to  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  49 
 initiate the proceedings, if the same is stipulated in the proposal or approved by the 
required majority, unles s the Bankruptcy Court decides otherwise. It shall notify the 
lender or the entity granting banking facilities that it is subject to preventive settlement 
proceedings in accordance with this Law.  
3. The Bankruptcy Court may, upon the debtor's request, and aft er taking the opinion of 
the Unit, where the debtor is supervised by the regulatory authority, authorize the 
debtor subject to preventive settlement proceedings to obtain new financing, whereby 
the creditor has priority over any existing ordinary debt owed  by the debtor on the date 
of the decision to initiate the proceedings, as long as this financing is necessary for the debtor's business and does not cause damage the common interest of the creditors or 
the preventive settlement proceedings.  
4. The new financ ing may be secured by a mortgage arrangement on any of the debtor's 
unmortgaged or mortgaged property, in which latter case, the mortgage shall come in the following rank to the mortgage or mortgages resulting from the property to be 
mortgaged.  
5. The new financing may be secured by a mortgage arrangement on any of the debtor's mortgaged property that is equal in rank to any existing mortgage on or ahead of the 
property to be mortgaged. In this case, the approval of the previous -ranked mortgaged 
creditors shall be obtained.

Article (63) 
Formation of Creditors' Committee 
1. Within (10) ten days following the date of issuance of the decision to initiate preventive 
settlement proceedings, the debtor shall coordinate with the creditors to form a Creditors' Committee  of representatives from the groups of creditors. The committee  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  50 
 shall be chaired and represented by the creditor holding the largest amount of the 
debtor's debts in each group, unless the required majority agrees or the creditors holding a majority of the creditors agree to appoint representatives for the group of creditors.  
2. Subject to approval of the required majority of the creditors or the approval of the 
creditors holding the majority of debts, the committee's representative may be removed 
and replaced by a substitute representative. In the event that the latter fails to secure the 
aforementioned approvals, the representative shall be appointed from among the 
creditors holding the largest debts in a descending order.

Article (64) 
List of Debt Categorie s and Rankings  
The debtor shall submit to the Bankruptcy Department, within ( 10) ten days as of the end of 
the period stipulated in article ( 63) of this Law, a list of debt categories, indicating the type, 
amount, and ranking of the debt, as well as the cr editor's name and representative, and its 
electronic email and physical address. Such list shall contain a statement on the formation of 
the Creditors' Committee, indicating the name of the committee's representative and its 
members, the category of debt r epresented by each member and the member's physical 
address and electronic email. The Bankruptcy Court shall issue a decision approving the 
formation of the committee within (10) ten days from the date of filing this formation, and 
the Bankruptcy Departmen t shall notify the debtor, the creditors, the controller and the Unit, 
where the debtor is supervised by the regulatory authority, of the such decision.

Article (65) 
Representative of Creditors' Committee  
1. The Creditors' Committee shall, within ten (10) days from the date of its notification of  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  51 
 the decision to form the committee, determine the issues to be assigned to the 
committee's representative and notify the debtor, the Bankruptcy Department and the Unit, if the debtor is supervised by the regulatory authority. As of the date of this 
notification, the creditors shall be notified of all matters required to be informed through 
the creditors' representative, as required by this Law.  
2. The representative of the committee shall notify its members of the notif ications he 
receives not later than the day following the date of receiving the same. The same 
provision shall apply to the representative of each category of debt with respect to the 
creditors of such category.

Article (66) 
Preventive Settlement Proposa l 
The preventive settlement proposal shall include the following:  
1. The debtor's plan to carry out its activity.  
2. A list of the names of known creditors and debtors, their electronic and physical addresses, their telephone numbers, the value of their rights o r debts and the guarantees 
provided therefor, if any, updated until the date of submitting the preventive settlement 
proposal.  
3. Ranking of categories of creditors, the amounts owed to each of them, the guarantees provided against each debt and its value.  
4. Confirm the viability of the debtor's business.  
5. Terms and conditions for settling any obligations.  
6. Any good performance in connection with the proposal, which is required to be provided by the debtor, if any.  
7. Any offer to purchase all or part of the debtor's  property on the basis of an existing and  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  52 
 ongoing activity, or in parts, if any.  
8. Grace periods and payment discounts.  
9. The extent to which debt can be converted into shares or stocks in the capital of any 
company or project.  
10. The extent to which it is possib le to consolidate, create, redeem, sell or replace any 
guarantees if the same is necessary to perform the preventive settlement proposal, 
subject to the approval of the holders of the secured debts.  
11. Propose a period or periods for repaying the entire debt.  
12. The extent of the debtor's need for financing during the performance period of the 
proposal, as well as the purposes and guarantees of such financing.  
13. The mechanism for following up on creditors and the controller, if appointed, to perform 
the proposal an d the reports submitted regarding its performance and the dates and 
contents of submitting those reports.  
14. Any other matters that the debtor deems instrumental with respect to the preventive 
settlement proposal and considers necessary to be included in the proposal.

Article (67) 
Filing of Preventive Settlement Proposal 
1. The debtor shall file a copy of the preventive settlement proposal with the Bankruptcy Department, along with a summary of the proposal, within (3 ) three months following 
the date of issuanc e of the decision to initiate the proceedings. The Bankruptcy Court 
may extend this period for a similar period or periods based on the debtor's request after 
consulting the Unit, and in all cases the required majority shall approve any extension 
that would make the period for filing the preventive settlement proposal exceed (6) six 
months.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  53 
 2. The debtor shall, within the time stipulated in Clause (1 ) of this Article, notify the Unit, 
where the debtor is supervised by the regulatory authority, the representative of 
Creditors' Committee and members of the committee of the proposal and its 
attachments. The representative of Creditors' Committee and each of its members shall 
notify the group of creditors he represents of the proposal and its attachments not later 
than the end of the day following the date of his receipt of the plan and its attachments.  
3. In the event that the preventive settlement proposal is not submitted within the dates stipulated in this Article, the Bankruptcy Court may, based on a motion submit ted 
thereto by any of the creditors or the Unit, where the debtor is supervised by the regulatory authority, terminate the preventive settlement proceedings. The court's 
decision shall be issued within (10) ten days from the date of submitting the motion.

Article (68) 
Content of the Proposal  
The settlement proposal may be based on the debtor's assignment of part of its property in consideration of the settlement of its debts, in whole or in part, in order to pay off all debtor's debts in kind or in cash o r pay off part thereof in kind or in cash and to be 
discharged of the rest or get the remainders deferred in a manner that the debtor becomes absolved from the debt or part thereof.

Article (69) 
Calling on Creditors to Approve the Preventive Settlement P roposal  
1. The debtor shall call on the creditors to approve the preventive settlement proposal, pursuant to a notice that includes the date and place of the meeting, in accordance with 
the procedures contained in the preventive settlement proposal. The meeting shall be  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  54 
 held at least ten (10) days after the date of sending the call for the meeting, and within a 
period not exceeding (30 ) thirty days from the date of notification of the representative 
of Creditors' Committee and members of the committee of the p lan and its attachments.  
2. The debtor shall address the call, within the dates stipulated in Clause (1 ) of this Article, 
to the Unit if the debtor is supervised by the regulatory authority and to the regulatory 
authority.  
3. The debtor shall chair the meeting, and with the approval of the required majority, the 
creditors or other persons may be chosen to chair the meeting.  
4. In the event that the debtor refrains from holding the meeting as set forth in Clause (1 ) of 
this Article, the Bankruptcy Court shall, based on a motion submitted thereto by any of 
the creditors or the Unit, where the debtor is supervised by the regulatory authority, call the creditors to hold the meeting. The meeting shall be chaired by the Head of the 
Bankruptcy Department or his authorized r epresentative, to carry out all the measures 
that the debtor should have undertaken in this regard.

Article (70) 
Voting on Preventive Settlement Proposal 
1. The right to vote on the preventive settlement proposal shall be limited to ordinary 
creditors whose  debts are finally approved. The Bankruptcy Court may authorize 
creditors whose debts are temporarily approved to vote on the proposal, and it shall 
determine the conditions and limits for granting this authorization.  
2. The Bankruptcy Court may authorize the  secured creditor to vote on the proposal with 
the value of its secured debt, without the same affecting the security right, if the proposal 
affects its secured rights. Creditors whose debts are guaranteed may not vote in other 
circumstances unless they ab andon these guarantees in advance, and the abandonment  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  55 
 shall be recorded in the minutes of the meeting. If the proposal is invalidated, the 
guarantee covered abandoned shall be re -made effective.  
3. The Bankruptcy Court shall decide on any conflict regarding the right to vote and who 
chairs the meeting, within ten (10) days from the date of submitting a motion to the 
Bankruptcy Department.

Article (71) 
Explanation of and Voting on Preventive Settlement Proposal 
1. The debtor shall provide a sufficient explanation for the settlement proposal items 
during the meetings held for the discussion of the proposal and any amendments 
thereto. Any of the creditors, Creditors' Committee, representative thereof or the Unit if 
the debtor is supervised by the regulatory author ity may attend the meetings and 
express opinions in connection with the preventive settlement or amendments thereto.  
2. The debtor shall call the creditors to discuss the amendments recommended at other 
meetings for the purpose of considering the amendments and voting thereon.

Article (72) 
Approval or Rejection of Preventive Settlement Proposal 
1. The preventive settlement proposal shall be deemed approved by the creditors when it is approved by the required majority. In the event that the proposal is not appro ved by the 
such majority in the first meeting for the creditors, the meeting shall be postponed for a 
period of (10) days, and another meeting shall be held for voting on this proposal.  
2. In the event that the preventive settlement proposal is not approved b y the required 
majority in the second meeting, the same shall be deemed as rejection for the preventive 
settlement proposal.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  56

Article (73) 
Meeting Held for Voting on Preventive Settlement Proposal  
1. A report shall be draw up on the outcomes of the meeting held for voting on the 
preventive settlement proposal. Such report shall be signed by the present debtor and 
creditor, who have the right to vote, as well as the representative of the Creditors' 
Committee. In the event that any of the debtors refused to sign,  the name thereof and 
reason for refusal shall be recorded in the said report.  
2. If the meeting is held via modern technology of communicating, the controller shall be 
present. In the event that the controller has not been appointed yet, the representative o r 
the Creditors' Committee or the representative of the Unit, where the debtor is 
supervised by the regulatory authority, shall be present.  
3. It is sufficient for the report to be signed only by the debtor and the controller, the debtor and representative of  the Creditors' Committee or the debtor and the representative of 
the Unit, as the case may be.  
4. The Executive Regulations of this Law shall specify the conditions and controls for such 
meetings.

Article (74) 
Actions Depending on Voting Outcome  
1. Not later than (10) ten days following the approval or rejection of the preventive 
settlement proposal, the debtor shall inform the Bankruptcy Department,, controller and Unit, where the debtor is supervised by the regulatory authority, of the same and shall 
attache d the approved or disapproved proposal and the minutes of the meetings, in 
which the voting is made, as well as the documents containing a statement on the notices served for the appearance at the meetings and proof of appearance and voting.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  57 
 2. In the event t hat the preventive settlement proposal is approved, the debtor shall 
provide the application for ratification of the plan to the Bankruptcy Department, within 
the notification described in Clause (1 ) of this Article.  
3. The representative of the Creditors' Co mmittee or the representative of any group of 
creditors or debtors holding a rate of (25% ) of the debts owed by the debtor shall serve a 
notice in the event that the debtor fails to do so within the period specified in Clause (1 ) 
of this Article.  
4. Within (10) ten days following receiving the noticed referred to in Clause (1 ) of this 
Article, the Bankruptcy Department shall inform all creditors of the same and of the 
attachments thereof.  
5. In the event that the preventive settlement proposal is disapproved, the  Bankruptcy 
Court shall, not later than (10) ten days following the notification of the Bankruptcy 
Department, issue its decision to terminate the proceedings of the preventive settlement 
and save the application.  
6. The Bankruptcy Court may, in case of rejec tion of the settlement proposal, and based on 
the request of the debtor, Unit, where the debtor is supervised by the regulatory 
authority, the regulatory authority or the creditors, decide to initiate the or Bankruptcy 
Proceedings, as it deems appropriate in the manner that serves the interest of the debtor and interest of the creditors.

Article (75) 
Endorsement of Preventive Settlement Proposal 
Within (10) ten days following the Bankruptcy Department's receipt of the notification on 
approval by the creditors of the preventive settlement proposal and attachments thereof, the Bankruptcy Court shall endorse the proposal after verifying the fulfillment of the following  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  58 
 conditions:  
1. The preventive settlement proposal is approved by the required majority.  
2. The pr eventive settlement proposal meets the standards of fairness, set hereinbelow:  
a. The creditors are provided with complete information and granted sufficient time to 
examine the preventive settlement proposal.  
b. Never prejudice the procedures set for the meetin g of creditors and voting 
mentioned in the preventive settlement proposal submitted to the Bankruptcy 
Department before the initiation of the preventive settlement proceedings.  
c. Subject to the existing rights of creditors, especially the rights of creditors  who hold 
mortgage and lien rights, and equality between rights holders with equal positions, 
especially with regard to sharing losses and distributing new rights.

Article (76) 
Rejection or Suspension of Endorsement of Preventive Settlement Proposal 
1. The Bankruptcy Court shall issue a decision to disapprove or suspend the ratification of 
the preventive settlement proposal in any of the following cases:  
a. If the procedures of calling for the meeting or voting therein are invalid.  
b. if the preventive settlement proposal is not approved by the required majority.  
c. If the preventive settlement proposal fails to meet the standards of fairness in 
accordance with the terms set in article (75.2) of this Law.  
2. In case the ratification of the preventive settlement proposal is suspended, the Bankruptcy Court shall state the procedures required to be re -taken or amendments 
required to be made thereto or the procedures required to be undertaken. A deadline shall be set for the debtor to fulfill the approval of the required majo rity on the amended 
proposal, which shall be re -submitted to the Bankruptcy Department for ratification. In  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  59 
 the event that the amended preventive settlement proposal is approved by the required 
majority, the Bankruptcy Court shall ratify the same. If the c reditors do not approve the 
creditors do not approved the amended proposal, the Bankruptcy Court shall decide to 
disapprove the ratification.

Article (77) 
Grievance Against the Decision Approving the Preventive Settlement 
Proposal  
1. Any of the creditors, w ho did not vote for the approval of the preventive settlement 
proposal, file a grievance against the creditor's decision to approve the preventive 
settlement proposal, not later than (10) days following the convention of the meeting for 
creditors, in which the approval is given, if such creditor has attended this meeting and 
disapproved the proposal or he was notified of the meeting date but has failed to appear 
at the meeting with an excuse or from the date the creditor is notified by the Bankruptcy 
Depart ment of the creditors' approval of the preventive settlement proposal, if he did 
not attend the creditors' meeting because he was not notified of its date.  
2. The Bankruptcy Court shall decide on the grievance with the same decision issued 
ratifying the preve ntive settlement proposal. If the grievance is admitted, the court may 
suspend ratification of the proposal to vote on the invalid procedure, amend the proposal or refuse the ratification thereof.

Article (78) 
Effects of Preventive Settlement Proposal En dorsement Decision  
1. The preventive settlement proposal ratified by the Bankruptcy Court shall be effective with respect to all the creditors included, including the creditors who disapproved the  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  60 
 proposal and those who did not attend the meeting to vote on t he proposal.  
2. The Bankruptcy Department shall announce, notify, and register in accordance with 
article (35) of this Law every decision issued ratifying the preventive settlement 
proposal, disapproving the proposal, suspending ratification, terminating the 
proceedings, initiating proceedings or declaring bankruptcy, not later than (10)  ten days 
following the issuance of the decision. The Bankruptcy Court may simply record the 
decision in the Bankruptcy Register and the Commercial Register.

Article (79) 
Imp lementation of Preventive Settlement Proposal 
1. The debtor shall implement the preventive settlement proposal in accordance with the terms agreed upon by the creditors and ratified by the Bankruptcy Court. It shall further 
notify the Bankruptcy Department within (10) ten days from the date of completion of 
the preventive settlement proposal. A statement of the debts that have been settled and the method of settlement shall be attached to the notification, as well as the document 
proving the settlement.  
2. The Ba nkruptcy Court shall issue a decision to complete the execution of the preventive 
settlement proposal and the end of the preventive settlement proceedings within (10) 
ten days from the date the Bankruptcy Department receives the notification, and the 
provi sions article (78.2)  of this Law shall apply to this decision. The Bankruptcy Court 
may request the opinion of the controller, if appointed, regarding the completion of the execution of the preventive settlement before issuing the decision. It may also req uest 
the opinion of the Unit, where the debtor is supervised by the regulatory authority, regarding the completion of the execution of the settlement, before issuing the decision.  
3. Creditors, who challenge the validity of the debtor's notification regarding  the settlement  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  61 
 of their debts, may file a grievance against the decision referred to in Clause (2 ) of this 
Article. If the grievance is admitted, the debtor shall execute the preventive settlement 
proposal regarding the creditor whose grievance was admitt ed, and the preventive 
settlement proposal shall be considered not executed with respect to this creditor.

Article (80) 
Amendment of Preventive Settlement Proposal During Implementation  
1. The debtor may, at any time during the implementation of the prevent ive settlement 
proposal, serve a notice to its creditors to discuss any amendments deemed necessary to 
be made to the proposal. Creditors shall be notified of the recommended amendments 
and their justifications at least ten (10 ) days prior to the date set for the meeting. In the 
event that the required majority approves the amended preventive settlement proposal, the debtor shall notify the Bankruptcy Department of this proposal, the minutes of 
creditors' meetings and proof of attendance and voting and shall request its ratification. 
The Bankruptcy Court shall, within (10) ten days from notifying the Bankruptcy 
Department of the amended proposal, ratify the same if it meets the standards of 
fairness stipulated in article (75.2) of this Law and obtains the ap proval of the required 
majority. Otherwise, the ratification thereof shall be refused or suspended.  
2. The decision to ratify the amended proposal may be challenged, in accordance with the 
provisions stipulated in article ( 77) of this Law.  
  
 
 
 
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  62 
 Chapter Three  
Termination of Preventive Settlement Proceedings Prior to Full 
Implementation

Article (81) 
Cases where Preventive Settlement Proceedings May Be Terminated  
The Bankruptcy Court may, based on a motion submitted thereto by any of the creditors 
during the per iod following the decision to ratify the preventive settlement proposal and 
before the proposal is fully executed, decide to terminate the preventive settlement proceedings, in any of the following cases:  
1. Filing a criminal case against the debtor for any o f the crimes stipulated in this Law. The 
application must be submitted not later than (6 ) six months following the date of filing 
this case. It is also required that this case be filed after ratification of the preventive 
settlement proposal and before its  full execution, otherwise it shall be inadmissible.  
2. A judgment is issued convicting the debtor of any of the crimes stipulated in this Law, subsequent to the ratification of the preventive settlement proposal and before it is fully 
implemented.  
3. If the deb tor fails to perform the terms of the preventive settlement proposal.  
4. If the debtor dies and it becomes impossible to implement the preventive settlement 
proposal.  
5. If new events come to existence subsequent to the date of ratification of the preventive 
settlement proposal that would make it impossible to continue the debtor's business or 
affect the debtor's ability to implement the preventive settlement proposal, in a manner 
that it is no longer expected that the debtor will be able to implement this propos al in 
accordance with its terms.  
6. If the debtor refuses to provide the information, data and documents whose provision is  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  63 
 provided to be made by the debtor.  
7. If the debtor commits a serious error in respect of managing its property or business 
during the per iod following the issuance of the decision to initiate preventive settlement 
proceedings.  
8. If the debtor, upon submitting an application for the initiation of the preventive 
settlement proceedings or thereafter, commits fraud, deception or provides misleadi ng 
information, the court may, upon motion of the relevant parties, order the undertaking 
of the precautionary measures it deems appropriate. These measures shall be canceled if 
a final judgment acquits the debtor in the criminal case described in Clause (1 ) of this 
Article.

Article (82) 
Effects of Termination on the Sureties  
1. The termination of the preventive settlement proceedings in accordance with Clauses 
(81.1, 81.2 and 81.8) of this Law shall result in the Sureties being released from the 
guarantee p rovided to implement the terms of the preventive settlement if the actions 
that led to taking the proceedings referred to in these clauses were issued by the debtor before the decision to ratify the preventive settlement proposal was issued.  
2. In all cases, the Sureties and the debt guarantors shall be required to attend the hearing 
in which the application to terminate the proceedings is considered.  
3. Terminating the preventive settlement proceedings due to the invalidity of their 
proceedings shall result in t he release of the liability of the bona fide Sureties who 
guaranteed the implementation of all or any of its terms.  
  
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  64

Article (83) 
Termination of Preventive Settlement Proceedings upon Motion of Debtor 
or Regulatory Authority  
1. The Bankruptcy Court may, bas ed on a motion submitted thereto during the period 
following the decision to ratify the preventive settlement proposal and before the 
proposal is fully implemented, decide to terminate the preventive settlement 
proceedings, in either of the following cases : 
a. If the debtor submits an application to terminate the proceedings on the basis that 
the conditions for initiating preventive settlement proceedings no longer apply to it 
or that it is unable to implement the preventive settlement proposal in accordance 
with the terms of the proposal.  
b. If the debtor or the regulatory authority submits an application to initiate or bankruptcy proceedings.  
2. The Bankruptcy Department shall notify the creditors, the Unit, where the debtor is 
supervised by the regulatory authorit y, and the controller, as the case may be, of the 
application within (10) ten days from the date of its submission, and the Bankruptcy 
Court shall issue its decision to approve or disapprove the application, not later than (10) 
ten days from the date of it s submission.

Article (84) 
Judgment Terminating the Preventive Settlement Proceedings  
1. If the Bankruptcy Court decides that the preventive settlement proceedings be terminated, it may, based on a motion submitted thereto by the debtor, the regulatory 
auth ority or the creditors who are entitled to submit an application to initiate the 
proceedings in accordance with this Law, decide to initiate the or bankruptcy  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  65 
 proceedings.  
2. The Bankruptcy Court may include, in its judgment terminating preventive settlement 
proceedings, the placing of seals on the debtor's property. The judgment may also 
include any other precautionary measures.  
3. The Bankruptcy Department shall, not later than (10) ten days following the issuance of 
the Bankruptcy Court's decision, terminate t he preventive settlement proceedings, 
announce, notify and register the same in accordance with article (35 ) of this Law. The 
Bankruptcy Court may suffice with recording the decision in the Bankruptcy Register and 
the Commercial Register.

Article (85) 
Debtor's Acts Following Issuance of Preventive Settlement Proposal 
Endorsement Decision  
The actions issued by the debtor after the issuance of the decision to ratify the preventive settlement proposal shall be effective vis -à-vis the creditors. They may not request its 
invalidity except in accordance with the rules established regarding a claim for invalidity of 
actions. Furthermore, this case shall not be heard after (2 ) two years have passed from the 
date of termination of the proceedings. In all cases, it is not permissible to challenge any 
action taken by the debtor in implementation of the ratified preventive settlement proposal.

Article (86) 
Creditors' Refund of Debts Collected  
Terminating preventive settlement proceedings shall not oblige creditors to  refund the debts 
they collected before the judgment or termination decision is issued, and these amounts 
shall be deducted from the value of their debts.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  66 
 Part Two  
Chapter One  
Application for Initiation of Proceedings

Article (87) 
Submission of Application  for Initiation of Proceedings  
1. Subject to the provisions stipulated regarding the application for the initiation of 
proceedings in the Preliminary Part of this Law, the debtor, creditors and the regulatory 
authority may submit an application for the initiation of proceedings if the debtor's 
business is viable, as follows:  
a. If the debtor has ceased to repay its debts.  
b. If the debtor is in a state of deficit in the financial position.  
c. If the debtor's creditors have previously disapproved the plan or the Bankrup tcy 
Court has issued a decision refusing to ratify the plan, even if the same was made for other debts of the debtor for which the application has not been submitted, the 
application may not be submitted until three (3) months have passed from the date 
of the creditors' meeting or the issuance of the aforementioned court decision.  
d. If a decision or judgment has previously been issued by the Bankruptcy Court to 
terminate the proceedings, even if the same was made for other debts of the debtor 
for which the ap plication has not been submitted, the application may not be 
submitted until three (3 ) months have passed following the date of issuance of the 
aforementioned decision or judgment issued by the Bankruptcy Court.  
e. It is not permissible to submit an application to initiate proceedings if a final 
judgment has previously been rendered declaring the debtor bankrupt unless it has 
been rehabilitated in accordance with the provisions of this Law.  
2. If the debts, for which the application is submitted, are still subjec t to bankruptcy  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  67 
 proceedings in implementation of a decision issued to initiate the proceedings in 
accordance with this Law, the applicant shall rely on the fact that the debtor's business has become viable and attach evidence thereof to its application.  
3. As an exception to Clause (1 ), Paragraphs (C, D and E ) and Clause (2 ) of this Article, the 
application may be submitted at any time if it is accompanied by evidence of the 
approval of the required majority on the plan for which the application is submitted.

Article (88) 
Particulars of Application for Initiation of Proceedings and its Attachments  
Subject to the provisions of article (22) of this Law, the application for initiation of 
proceedings shall be accompanied by the following attachments:  
1. Data, inform ation and documents indicating that the necessary conditions have been 
met to submit the application for initiation of proceedings.  
2. A brief explanation of the plan, indicating its conditions, the implementation method, the guarantees for its implementation, if any, and the schedule for implementation.  
3. A summary of the contracts and agreements proposed to be signed between the debtor 
and creditors to implement the plan.  
4. In the event that the Creditors' Committee is formed according to the ranking of creditor s, a list of the members of such committee shall be attached, indicating the name 
of the representative for each group of creditors, their electronic and regular e -mail and 
phone numbers and documents indicating the appointment of these members and 
representatives and the limits of their authorization from creditors.  
5. Procedures for calling a meeting of creditors to discuss the plan, the voting mechanism and persons who have the right to vote.  
6. In the event that some creditors initially approve the plan, a list of the names of these  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  68 
 creditors shall be provided according to their ranking, the amount of the debtor's debts 
with respect thereto, their guarantees and their percentage of the debtor's total debts. The applications submitted by the regulatory authorit y shall be exempted from 
submitting the data, information and documents referred to in Clauses (1 ) (4) of this 
Article.  
  
Chapter Two  
Consequences of the Decision to Initiate Proceedings

Article (89) 
Management of Debtor's Business and Assets  
1. After the iss uance of the decision to initiate the proceedings, the debtor shall continue to 
manage its business and assets under the supervision of the Trustee, and it may carry out 
all the actions required for its commercial activity in a way that does not cause damage 
to the interest of the creditors, unless the Bankruptcy Court decides otherwise.  
2. The Trustee may request the debtor, the creditors, the Unit, where the debtor is 
supervised by the regulatory authority, the Bankruptcy Department, or the controller, as 
the case may be, to provide him with any information or documents in their possession 
regarding the debtor's debts, business or property. The Trustee may take all necessary 
measures to monitor the debtor's financial operations and verify the soundness of the  
debtor's management of its assets and business.  
3. The Executive Regulations of this Law shall specify the actions and dispositions for which the debtor shall obtain the approval of the Trustee before undertaking them.  
  
 
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  69

Article (90) 
Preventing Debtor from  Managing its Own Assets and Business  
1. Within (10) ten days from the date of submitting the application, the Bankruptcy Court 
may, sua sponte or based on a reasoned motion submitted by the Trustee, any of the 
creditors or the Unit, where the debtor is super vised by the regulatory authority, decide 
to prevent the debtor, its board of directors or its managers from managing his assets 
and business and to entrust the management of the same to the Trustee. In this case, the 
Trustee shall have all the powers of t he debtor, its board of directors and its executive 
management, unless the court decides otherwise.  
2. In all cases, the Bankruptcy Court's decision to admit or dismiss the application shall be 
reasoned.

Article (91) 
Trustee's Temporary Suspension of the Ma nagement of the Debtor's 
Business and assets  
If the Bankruptcy Court has appointed a temporary Trustee to manage the debtor's business 
and assets, the temporary Trustee shall cease to manage the debtor's assets and business 
and hand them over to the debtor  within (10) ten days following the date of issuance of the 
decision to initiate proceedings, unless the court decides otherwise.

Article (92) 
Suspension of Claims  
The issuance of a decision to initiate proceedings result in the suspension of claims from  the 
day following the date of issuance of this decision until the date of ratification of the plan.  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  70 
 The Bankruptcy Department shall hand over to the debtor, upon its request, a statement of 
suspension of these claims.

Article (93) 
Expiry of Claim Suspen sion Period  
The claims suspension period shall end in any of the following cases:  
1. The Bankruptcy Court approves the plan.  
2. The Bankruptcy Court issues a decision to terminate the proceedings.

Article (94) 
Provisions Applicable to Contracts, New Financing and the Creditors' 
Committee  
The provisions stipulated in Part I of this Law regarding preventive settlement shall apply to 
contracts, new financing and the Creditors' Committee.

Article (95) 
Duties of the Trustee  
1. The Bankruptcy Department shall notify t he Trustee of the decision issued to appoint 
him within (10) ten days from the date of its issuance, and it shall provide him with all 
the information it has about the debtor. The Trustee shall, not later than (10) ten days 
from the date of being notified of the decision to appoint him, take the following 
measures:  
a. Announce a summary of the decision issued to initiate the proceedings, provided 
that the announcement includes an notice to the creditors to submit their claims and  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  71 
 the supporting documents and hand over the same to him within a period not 
exceeding (30) thirty days from the date of the notification.  
b. Inform all creditors whose electronic addresses are known to him, to provide him 
with claims and documents not later than (30 ) thirty days following announcing the 
summary of the decision to initiate the proceedings.  
2. The debtor shall provide the Trustee with any additional details of which it has not 
notified the Bankruptcy Department, whether about its creditors, debt amounts, details 
of any contracts  under implementation and any pending or ongoing judicial proceedings 
to which the debtor is a party, within the time period specified by the Trustee.

Article (96) 
Creation of Creditors Register  
The Trustee shall create a register in which he records the  data of all the creditors of the 
debtor available thereto and shall submit an updated copy of the entries of such register to the Bankruptcy Department. He shall record the following details in the register:  
1. The regular mail and email address of each cred itor, the amount of their claim and the 
maturity date thereof.  
2. Identify the creditors who hold debts secured by a mortgage or lien, along with details of 
the guarantees designated for each of them and the estimated value of these guarantees 
in the event of  execution.  
3. Any application for sett -off, to be submitted in accordance with the provisions of this 
Law.  
4. Any other data that the Trustee deems necessary to perform his duties.  
  
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  72

Article (97) 
Requesting Data or Information Related to Debtor's Assets or Business  
1. The Trustee may request any data or information in relation to the debtor's property or 
business from any person who hold the possession of such information. Any person, 
who has information about the debtor's property or business, shall provide the s ame to 
the Trustee within ten (10) days from the date of request, including any documents and 
books of accounts in relation to the debtor.  
2. The Trustee shall maintain the confidentiality of any information in relation to the 
debtor and refrain from disclosing the same outside the framework of the proceedings 
set forth in this Law, except for information required to be disclosed in accordance with 
the law, regulations or instructions of regulatory authorities.  
3. If any person refuses to provide the Trustee with  the requested information, the Trustee 
may escalate the matter to the Bankruptcy Court to determine the importance of the 
information that can be requested and order its submission to the Trustee.

Article (98) 
Creditors' Handover to Trustee of Documents related to their Debts  
1. All creditors, even if their debts are not payable or guaranteed by a mortgage or lien or are not established by final provisions, shall hand over to the Trustee, within the time 
limit specified in the notice addressed thereto in ac cordance with article (95 ) of this Law, 
the documents of their debts to the Trustee, attaching a statement of these debts and their guarantees, if any, in addition to indicating their maturity dates and amounts, 
denominated in UAE dirhams based on the prev ailing exchange rate on the day the 
decision to initiate the proceedings is issued.  
2. The Trustee may request the creditor to complete its documents or provide clarifications  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  73 
 about the debt by specifying its amount or nature. He may also request the certific ation 
of any claims from an independent auditor or the creditor's comptroller.

Article (99) 
Claims of Debtor's Sureties or Third Parties 
The creditor who received an advance payment on account of its claim from the debtor's 
Sureties or a third party shall deduct the amounts received thereby from any claim it submits 
to the Trustee, and any of the debtor's Sureties or third parties may submit its claims to the 
Trustee within the limits of the amount he paid in payment of the debtor's debt.

Article (100 ) 
Verification of Debts and Creation of Debt List  
1. The Trustee shall scrutinize the debts within (30) thirty days from the expiration date of 
the period specified in article (95.1.B ) of this Law. In this regard, he may seek assistance 
from the Unit, where the  debtor is supervised by the regulatory authority, or the debtor.  
2. After completing the debt scrutiny, the Trustee shall file with the Bankruptcy 
Department a list of debts that includes the names of the creditors and the amount owed 
to each of them as on the date of initiating the proceedings, its documents, the reasons 
for the dispute over its debt, as well as the matters he deems appropriate regarding its 
approval or rejection. It shall also include the names of the creditors who maintain 
special securities on the debtor's property, the value of the amount owed to each of 
them on the date of initiating the proceedings and a statement of the securities provided 
to each of them and their estimated value on the date of the proceedings.  
3. Within (10)  ten days fo llowing the filing of the list of debts, the Trustee shall announce 
the list and indicate the amounts of each debt that he deems acceptable and those that  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  74 
 he deems disapproved.  
4. Debts owed to the government resulting from the imposition of taxes or fees of various 
kinds, or in relation to the settlement of securities market transactions, shall be 
considered approved debts without the need for the Trustee's scrutiny, even if they are 
the subject of a dispute by the debtor or third parties. The value of these debts shall be 
adjusted in light of the final judgments issued regarding them.

Article (101 ) 
Grievance against Debts Included in the Debt List  
The debtor and every creditor, even if its name is not included in the list of debts, may file a 
grievance with  the Bankruptcy Department against the debts included in the list within ten 
(10)  days from the date of announcing the list, and the Bankruptcy Court has jurisdiction to 
decide on the grievance.

Article (102 ) 
Approval of the Final List of Undisputed Debt s 
After the expiry of the period stipulated in article (101)  of this Law, the Bankruptcy Court 
shall approve a final list of undisputed debts, and the Trustee shall mark the statement 
accompanying the documents for these debts indicating their approval and  the value of the 
debt approved.

Article (103 ) 
Approval of List of Creditors Whose Debts Are Temporarily Approved  
1. The Bankruptcy Court may, before deciding on the grievance or on the challenge filed  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  75 
 against the judgment issued therein, decide to approve the debt in an amount it 
estimates unless a criminal case has been filed in its regard.  
2. The Bankruptcy Court approves the list of creditors whose debts are temporarily 
approved, and the Bankruptcy Department notifies the Trustee thereof.

Article (104 ) 
Disputes on Debt Security  
If a dispute arises in relation to debt guarantees, it shall be temporarily admitted as an 
ordinary debt.

Article (105 ) 
Retention of Share of Temporarily -Approved Debt  
The share of temporarily approved debt shall be retained from the proceeds of the sale of the debtor's property. When any distribution is made to creditors in accordance with the provisions of this Law, and if the Bankruptcy Court decides not to recognize the 
temporarily -approved debt or it has been allocated, the re tained share shall be refunded in 
proportion to the general guarantee for creditors.

Article (106 ) 
Amendment of the List of Debts  
1. A creditor, who does not submit documents supporting its debt within the dates 
stipulated in article (95.1.B ) of this Law, m ay submit an application to the Trustee to 
admit the same and engage in the proceedings. The Trustee's approval shall be certified by the Bankruptcy Court, in addition, the list of debts shall be amended and  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  76 
 re-announced. Moreover, this creditor shall reco ver its debt from subsequent 
distributions made on the date of approval of its debt.  
2. If the Trustee dismisses the creditor's application or does not respond to the same within 
(10) ten days from the date of its submission, the creditor may submit to the Bankruptcy 
Court an application to approve the submission of its documents supporting its debt. The court shall issue a decision to admit or dismiss the application, not later than (10) 
ten days following the submission of the application. If an order is mad e to approve the 
debt, the list of debts shall be amended accordingly and the Trustee shall re -announce 
the same.  
3. The Bankruptcy Court may instruct the Trustee to submit a report on the extent of the 
new debt's impact on the draft plan and submit the same to it for approval. In all cases, the proceedings stipulated in this Part shall not be halted.  
  
Chapter Three  
Initiation of Proceedings

Article (107 ) 
Development of Plan  
1. If the Bankruptcy Court issues a decision to initiate proceedings, the debtor, under the 
supervision of the Trustee, shall develop a plan. The debtor may seek assistance from the 
Unit, where the debtor is supervised by the regulatory authority, in respect of the 
development of the plan, and the debtor shall file the plan with the Bankruptc y 
Department within a period not exceeding ( 3) three months following the date of 
issuance of the decision. The court may extend this period for a similar period or more 
upon the debtor's request after hearing the statements to be provided by the Unit. In all 
cases, the required majority shall approve any extension that would make the period for  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  77 
 preparing and developing the plan exceed (6 ) six months.  
2. In the event that the plan is not submitted within the period stipulated in Clause (1) of 
this Article, the  Bankruptcy Court may, based on a motion submitted thereto by any of 
the creditors or the Unit, where the debtor is supervised by the regulatory authority, 
terminate the proceedings. It issues its decision, not later than (10)  ten days following 
submitting  the application.

Article (108 ) 
Plan Particulars and Attachments 
The plan shall include the following attachments:  
1. The debtor's plan to conduct its activity.  
2. A list of the names of known creditors and debtors, their electronic and physical 
addresses, the ir phone numbers, the value of their rights or debts and the guarantees 
provided therefor, if any, updated until the date of submitting the preventive settlement 
proposal.  
3. Ranking of groups of creditors, the amounts owed to each of them, the guarantees 
provided against each debt and its value.  
4. Confirming the viability of the debtor's business.  
5. The debtor's activities that shall be suspended or terminated.  
6. Terms and conditions for settling any obligations.  
7. Any guarantees until the plan is implemented are req uired to be provided by the debtor, 
if any.  
8. Any offer to purchase all or part of the debtor's property on the basis of an existing and 
ongoing activity or in parts, if any.  
9. Grace periods and payment discounts.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  78 
 10. The extent to which debt can be converted into  shares or stocks in the capital of any 
company or project.  
11. The extent to which it is possible to consolidate, create, redeem, sell or replace any 
guarantees if the same is necessary to perform the plan, subject to the approval of the 
holders of the secure d debts.  
12. Propose a period or periods for repaying the entire debt.  
13. The extent of the debtor's need for financing during the performance period of the plan, 
as well as the purposes and guarantees of such financing.  
14. The mechanism for following up on creditor s and the Trustee to perform the plan and 
the reports submitted regarding its performance and the dates and contents of 
submitting those reports.  
15. Any other matters that the debtor deems instrumental with respect to the plan 
performance and considers necess ary to be included in the plan.

Article (109 ) 
Periodic Report on Progress of Developing the Plan  
The Trustee shall notify the Bankruptcy Department and the Unit, where the debtor is 
supervised by the regulatory authority, on a monthly basis of the progre ss of developing the 
plan.

Article (110 ) 
Notification of Plan and Attachments  
The debtor shall, within the time stipulated in Clause (1 ) of article (107)  of this Law, notify 
the Trustee, the Unit, where the debtor is supervised by the regulatory authorit y, and the 
representative of the Creditors' Committee and members of the committee of the plan and  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  79 
 its attachments. The representative of the Creditors' Committee shall notify the group of 
creditors he represents of the plan and its attachments, not later than the end of the working day following the date on which he receives the plan and its attachments.

Article (111 ) 
Content of Plan  
A plan may be developed on the basis of the debtor giving up all or any of its assets in 
consideration of settling all or any of its debts. It is permissible to pay all or part of the 
debtor's debts in kind or in cash, convert the debts into ownership rights, sell the business or part thereof as an existing and ongoing activity and omit the remainder or schedule the 
remainder  so that the debtor is absolved of all or part of the debt. The plan shall be approved 
by the general assembly of the debtor joint -stock company, based on a special resolution or 
the entity having the powers of a general assembly in other companies.  
  
Chap ter Four  
Approval and Endorsement of the Plan

Article (112 ) 
Provisions Applicable to Plan Approval and its Consequences  
Notwithstanding the provisions of Articles (113 ) and (114)  of this Law, the provisions set 
forth in Chapter I of this Law regarding prev entive settlement shall apply to the approval of 
the plan, to the grievance against this approval, to the ratification of the plan and the effect 
of this ratification, to the implementation of the plan and the termination of its procedures 
prior to its imp lementation.  
   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  80

Article (113 ) 
Plan Approval Meeting  
1. The debtor shall call the creditors to approve the plan pursuant to a notice containing 
the date and place of the meeting, in accordance with the procedures contained in the 
plan. The meeting shall be held  not later than (30 ) thirty days from the date of notifying 
the representative of the Creditors' Committee and the members of the committee of the 
plan and its attachments. A notice shall also be served to the Unit, where the debtor is 
supervised by the re gulatory authority, and to the regulatory authority.  
2. The debtor shall chair the meeting, and with the approval of the required majority, the 
Trustee, any of the creditors or third parties may be assigned to chair the meeting.  
3. In the event that the debtor r efrains from holding the meeting as stipulated in Clause (1 ) 
of this Article, the Bankruptcy Court, based on a motion to be submitted thereto by the 
Trustee, any of the creditors or the Unit, where the debtor is supervised by the regulatory 
authority, shall call the creditors to hold a meeting, and the Trustee shall chair the 
meeting.  
4. If attendance is via modern means of communication, the Trustee shall attend the 
meeting, and in this case, it may be sufficient for the debtor and the Trustee or the 
chairman of the meeting to sign the minutes.

Article (114 ) 
Acts Depending on Plan Approval Meeting Outcome 
1. The Trustee shall, within a maximum period of (10) ten days from the date of the 
required majority's approval or rejection of the plan, notify the Bankrupt cy Department 
and the Unit, where if the debtor is supervised by the regulatory authority thereof. The notification shall be accompanied by the approved or disapproved plan, minutes of  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  81 
 meetings and sheet of attendance and voting. If the plan is approved, t he Bankruptcy 
Court shall ratify the same.  
2. The Bankruptcy Department shall, within (10) ten days from the date of its receipt of the 
notification, notify the debtor and all creditors of the notification referred to in Clause (1 ) 
of this Article and its att achments.  
3. In the event that the plan is disapproved, the Bankruptcy Court may, within a maximum 
period of ten (10 ) days from the date of notification of the Bankruptcy Department, issue 
a decision based on the debtor's request to ratify the disapproved plan, provided that the rights of the creditors included in the disapproved plan are not less than the ones that 
they would have in the event of the debtor's bankruptcy, after taking the opinion of the 
Trustee in this regard and hearing the objections of the creditors, or by completing the proceedings and saving the application. The court may, based on a motion to be 
submitted thereto by the debtor, the regulatory body or the creditors, issue a reasoned 
decision to initiate bankruptcy proceedings, subject to t he provisions stipulated in this 
Law regarding submitting the application for the initiation of the proceedings.

Article (115 ) 
Supervision of Plan Implementation  
The Trustee shall supervise the implementation of the plan throughout the plan's validity 
term and until its implementation is completed. If the debtor is supervised by the regulatory 
authority, the Unit shall coordinate with the Trustee to supervise the implementation of the plan in accordance with the provisions stipulated in article (116)  of this Law.  
  
 
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  82

Article (116 ) 
Trustee's Obligations When Supervising the Implementation of Plan  
When supervising the implementation of the plan, the Trustee shall take the following 
measures:  
1. Monitor the progress of the plan and notify the Bankruptcy Departme nt and the Unit, 
where the debtor is supervised by the regulatory authority, of any failure to implement 
the same.  
2. Ensure that the sale of any of the debtor's assets that are decided to be sold in accordance with the plan shall be made at the best price de pending on the prevailing 
market conditions on the date of sale and that the proceeds of the sale shall be exploited 
in the manner stated in the plan.  
3. If the debtor is subject to a regulatory authority, it shall submit to the Bankruptcy Department and Unit  a report on the progress of implementing the plan on a 
three -monthly basis, and any creditor has the right to obtain a copy of this report.

Article (117 ) 
Amendment of the Plan  
1. The debtor may, at any time during the implementation of the plan, after notifying the 
Trustee and the Unit, where the debtor is supervised by the regulatory authority, call the 
creditors to discuss any amendments it deems necessary to be made to the plan. 
Creditors shall be notified of the proposed amendments and their justifications at least ten days prior to the date set for the meeting (10).  
2. If the required majority approves the amendments, the debtor shall notify the 
Bankruptcy Department of the amended plan, minutes of creditor meetings and sheet of 
attendance and voting, and it shall request ratification of the amended plan.   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  83 
 3. Within (10) ten days of notifying the Bankruptcy Department of the amended plan, the 
Bankruptcy Court shall ratify the same if it meets the standards of fairness stipulated in 
article (75.2) of this Law and obtains the approval of the required majority. Otherwise, it 
refuses to ratify the amended plan or suspends its ratification.  
4. The decision to ratify the amended plan may be challenged in accordance with the 
provisions set out in article (77) of this Law.  
  
Chapter Five  
Termination of Proceedings Prior to Full Implementation

Article (118 ) 
Cases of Termination of Proceedings  
1. The Bankruptcy Court may, based on a motion to be submitted thereto during the period following the decision to ratify the plan and be fore the plan is fully implemented, decide 
to terminate the proceedings in either of the following cases:  
a. If the debtor requests termination of proceedings based on the fact that the conditions for initiating proceedings no longer apply to it or that it is  not expected 
that the plan will be implemented in accordance with the terms of the plan.  
b. If the debtor or the regulatory authority requests the initiation of bankruptcy 
proceedings.  
2. The Bankruptcy Department shall notify the creditors and the Trustee of t he application 
within (10) ten days from the date of its submission, and the Bankruptcy Court shall 
issue a decision approving or disapproving the application, not later than (10)  ten days 
following its submission.  
  
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  84

Article (119 ) 
Judgment Establishing Te rmination of Proceedings  
1. If the Bankruptcy Court decides to be submitted thereto by the debtor, the Trustee, the 
regulatory authority or any of the creditors, decide to initiate bankruptcy proceedings.  
2. The Bankruptcy Department shall, within ten (10) days following the date of issuance of 
the decision, announce, notify and register the same in accordance with article (35)  of 
this Law. The Bankruptcy Court may suffice with recording the decision in the 
Bankruptcy Register and the Commercial Register.  
  
Part  Three  
Declaration of Bankruptcy  
Chapter One  
General Provisions

Article (120 ) 
Initiation of Bankruptcy Proceedings  
Subject to the provisions regulating the application for initiation of the proceedings in the 
Preliminary Part of this Law, as well as cases of preventive settlement and cases of in which 
the Bankruptcy Court may issue a decision to initiate bankruptcy proceedings, the court 
shall issue its decision to initiate bankruptcy proceedings if the following conditions are met:  
1. The debtor has become un able to repay its debts.  
2. There is a deficit in the debtor's financial position.  
3. The debtor's business is not viable.  
  
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  85

Article (121 ) 
Issuance of a Decision to Initiate Bankruptcy Proceedings  
The Bankruptcy Department shall refer the file of the application  for the initiation of 
proceedings to the Bankruptcy Court within (10) ten days from the date of submitting the 
file to issue a decision to initiate bankruptcy proceedings. A report of the proceedings 
undertaken with regard to the application since its sub mission until the issuance of the 
decision to initiate the proceedings shall be recorded in the file, with a statement of the 
factual and legal justifications for the decision.

Article (122 ) 
List of Debts  
1. Where a list of debts has not previously been pre pared in accordance with the provisions 
stipulated in Chapter II of this Law relating to proceedings, the Trustee shall prepare a list 
of debts and get the same ratified by the Bankruptcy Court.  
2. Where a list of debts has previously been prepared, the Trust ee shall, within (10) ten 
days from the date of his notification of his appointment or from the date of announcing 
the decision to initiate bankruptcy proceedings, if he was appointed, assign the creditors 
to submit any final claims that had not been previously submitted within (10) ten days 
from the date of their notification. The Trustee may entrust this assignment through a notice, and any claims received after this date shall not be taken into account unless 
there is a reason acceptable to the Bankruptc y Court.  
3. As an exception to the provisions stated in Clauses (1 ) and (2) of this Article, the 
provisions of the debt list stipulated in Chapter II of this Law regarding proceedings shall 
apply to preparing and updating the debt list.  
   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  86

Article (123 ) 
Claims  Dismissed  
Any claims previously dismissed by the Bankruptcy Court shall not be admitted, once the 
dismissal decision becomes final.

Article (124 ) 
Voluntary Preparation of Debt List  
The Trustee is not obligated to conduct or complete a debt audit or prep are a list thereof if it 
becomes clear to him that all proceeds from the sale of the debtor's assets are incurred to 
pay the fees, charges and costs of initiating the proceedings.  
  
Chapter Two  
Effects of Issuance of Decision to Initiate Bankruptcy Proceed ings

Article (125 ) 
Affixation of Seals  
1. The Bankruptcy Court assigns an employee of the Bankruptcy Department to, within (10) ten days following the date of issuance of the decision to initiate Bankruptcy 
Proceedings, affix seals on the debtor's businesses,  offices, stores, books, papers and 
movables, in addition, a report shall be drawn up on the affixation of seals, which shall 
be submitted to the court.  
2. If the Bankruptcy Court comes to know that it is possible to conduct an inventory of the 
debtor's assets in one day, it may assign whomever it deems appropriate to carry out the 
inventory without the need to affix seals.  
   
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  87

Article (126 ) 
Cases in Which the Seals May Be Affixed  
1. The seals may not be affixed to the clothing, movables and necessary items of the debtor 
and its dependents, which are handed over to the debtor as per a list signed thereby.  
2. The Bankruptcy Court may order not to affix or remove seals from commercial books, 
negotiable instruments and other papers that are payable soon or that require 
procedures to preserve established therein, the sum of money necessary for expenses in 
respect of the urgent affairs of the debtor's business, damageable items or the items vulnerable to immediate decrease in value or whose maintenance requires heavy 
expense s, as well as items necessary to carry out the debtor's business if it is decided to 
continue the exercise thereof.  
3. The inventory of the items mentioned in Clause (2 ) of this Article shall be conducted in 
the presence of a person designated by the Bankrupt cy Court for this purpose, and such 
items shall be handed over to the Trustee.  
4. Commercial books are not handed over until the Bankruptcy Court closes them in the presence of the debtor.

Article (127 ) 
Removal of Seals for Inventory Counting of Debtor's As sets  
The Bankruptcy Court shall order, upon the Trustee's request, the removal of the seals and inventory of the debtor's assets, and the removal of the seals and inventory shall begin, not later than (10) ten days following the issuance of the decision to  initiate the bankruptcy 
proceedings.  
  
  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  88

Article (128 ) 
Inventory Counting of Debtor's Assets  
The inventory shall be conducted in the presence of the head of the Bankruptcy Department 
or its delegate and the Trustee. The debtor, the Public Prosecution, the Unit, where the 
debtor is supervised by the regulatory authority, and the regulatory authority shall be 
notified of the day of the inventory, and they may attend. An inventory list shall be issued in 
two copies to be signed by the head of the Bankruptcy De partment or its representative and 
the Trustee, one of which shall be filed with the Bankruptcy Department and the other copy shall be kept with the Trustee. The assets on which the seals have not been applied or from 
which the seals have been removed shall be mentioned in the list. It is permissible to seek 
assistance from an asset evaluator with respect to conducting the inventory and evaluating 
the assets.

Article (129 ) 
Attendance of the Public Prosecution During Inventory Counting  
The Public Prosecution has the right to attend the inventory, and it may, at all times, request to be given access to the papers and books concerning the bankruptcy and request 
clarifications about their status, the progress of its proceedings and the management 
method.

Article (130 ) 
Death of Debtor During the Assets Inventory Counting  
1. If the decision to initiate the proceedings was issued after the death of the debtor and an 
inventory list was not prepared on the occasion of the death, or if the debtor died after  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  89 
 the aforem entioned decision was issued and before starting to preparer the inventory 
list or before completing the same, the list shall be prepared immediately or continued to 
be prepared using the mechanism stipulated in article (135)  of this Law, in the presence 
of the debtor's heirs or after notifying them for the presence.  
2. In the event of the death of the debtor after the issuance of the decision to initiate the 
Bankruptcy Proceedings and the completion of the inventory list, its heirs shall take his 
place in the  Bankruptcy Proceedings and may appoint a person to represent them in this 
respect. Otherwise, the Bankruptcy Court shall appoint a person to represent them in accordance with the provisions of article (21) of this Law.

Article (131 ) 
Trustee's Receipt of  Debtor's Assets, Books and Paperwork  
1. After the inventory, the Trustee shall take over the debtor's assets, books and papers, and he shall subscribe its signature at the end of the inventory list to indicate so.  
2. The Trustee shall receive letters received in the debtor's name and in relation to its business. The Trustee may initiate and keep the same, and the debtor may review such letters.

Article (132 ) 
Trustee's Preparation of Balance Sheet  
If the debtor has failed to submit the balance sheet, the Truste e shall prepare it immediately 
and file the same with the Bankruptcy Department.  
  
 
  
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 Chapter Three  
Management of the Debtor's Assets and Business

Article (133 ) 
Preventing the Debtor from Disposing of its Own Assets  
1. As soon as a decision is issued to initiate Bankruptcy Proceedings, the debtor shall be 
prohibited from disposing of its assets and businesses and from managing them, and the 
Trustee shall assume the management of the debtor's assets and businesses. All actions 
undertaken by the debtor on the day  the aforementioned decision is issued are 
considered to have undertaken after its issuance, and any action issued to the contrary shall be considered void and invalid.  
2. The Trustee may file a case before the Bankruptcy Court to issue a judgment that the debtor's actions are invalidated. He may also submit the necessary applications to the 
Bankruptcy Court to take the necessary precautionary measures to protect the rights of creditors.  
3. The prevention of the debtor from disposing of its assets shall not preve nt him from 
taking the necessary measures to preserve its rights in a way that does not cause damage to the interests of creditors.

Article (134 ) 
Disposition That Cannot Be Invoked vis -à-vis Creditors  
If the disposition is not valid and cannot be invoked  unless upon notation, registration or 
other procedures, it shall not be deemed effective vis -à-vis the creditors unless the 
procedure is completed before the issuance of the decision to initiate bankruptcy proceedings.   
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Article (135 ) 
Scope of Prevention of Debtor's Dispositions 
1. The prevention of the debtor from disposing of its assets include all the assets owned by 
it on the day the decision to initiate Bankruptcy Proceedings is issued and the assets 
owned by the debtor after the issuance of this decisio n. 
2. The prevention of the debtor from disposing of its assets does not include the following:  
a. Unattachable assets and the subsidy decided to be granted thereto.  
b. Money owned by third parties.  
c. Rights connected with its person or personal status.  
d. Compensations  due to the beneficiary in a valid insurance contract concluded by the 
debtor before the issuance of the decision to initiate bankruptcy proceedings. The beneficiary shall refund to the Trustee all insurance premiums paid by the debtor 
starting from the day designated by the Bankruptcy Court as the date for cessation of 
payment.

Article (136 ) 
Permission to Debtor to Continue to Practice its Business  
1. The Bankruptcy Court may, upon motion of the Trustee or the debtor, authorize the debtor to continue practicing its business if the public interest, the interest of the debtor 
or the interest of the creditors so requires. The court shall, upon the Trustee's request, appoint a person to manage the debtor's business and determine his fees. The debtor 
may be appoi nted for management, and the fees it receives shall be considered part of 
cost. The Trustee supervises whoever is appointed for management, and the Trustee 
shall submit a monthly report to the court on the progress of the debtor's commercial  
Federal Decree- Law of 2023 Promulgating the Financial and Bankruptcy Law  92 
 business.  
2. The Bankruptcy Court shall request the opinion of the Unit, where the debtor is 
supervised by the regulatory authority, regarding the applications submitted based on 
Clause (1) of this Article.