Dubai reduces fee for filing bankruptcy

Dubai: Dubai government has reduced the fees of filing for bankruptcy and peaceful settlement of bankruptcy claims at Dubai Courts from Dh2,000 to just Dh500, according to a law issued yesterday by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Under the Law No. 2 of 2019, some categories, claims, requests and appeals shall not be subject to fees, including claims, appeals or requests made by federal or local government authorities in Dubai or any of the Emirates, lawsuits related to endowments, donations and wills for charitable works, and charities if such claims are filed by such entities.

Claims filed by shareholders against board of directors of a public shareholding company or its executive management, if the plaintiff’s stake does not exceed 10 per cent of the total shares of the company, will also be free.

Applications for publicity or proof of Islam, ratification of a social welfare application, and requests for death and heredity shall also be free of charge.

The law will be effective as of April 15, 2019 and will be published in the official gazette.