New UAE law to help businesses move forward
- 28 Oct 2020
Inayat-ur-Rahman, Gulf Today
The visionary leadership of the UAE has come up once again with an innovative idea to further improve the ease of doing business in the country.
The UAE Cabinet has approved a landmark decree amending certain provisions of the existing “commercial transactions law” to allow drawers and payees of bounced cheques additional opportunities at reconciliation.
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His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and the Ruler of Dubai, chaired the Cabinet meeting that redefined crimes involving cheques, a long-awaited reform that will go a long way in boosting business confidence.
Sheikh Mohammed Bin Rashid Al Maktoum.
“This announcement will enhance business confidence and is good news when the businesses require support during tough times.
Ms Leena Parwani, Founder and Chief Executive Officer of LPH Financial Services, told Gulf Today that as businesses undergo a tough time, it is important to extend help for them to continue with business activities and come back strong and pay debts.
“Cheque bounce is a financial offence and not a criminal act. Decriminalisation of bounced cheque is a long overdue and very welcome move. Putting businessmen behind bars doesn’t help anyone and it pushed the businesses to go down when we need to help them,” Leena added.
“The UAE Cabinet’s decision to decriminalise bounced cheque offences reflects the Government’s wisdom and good leadership.”
“This comes when we needed the UAE leadership to intercept and help businesses to drive growth under extremely challenging times. It is also in line with the new bankruptcy law – that aims to help businesses under stress.”
“We welcome the new law and hope every businesses under stress take advantage of the new law and renegotiate their debts to settle at their earliest,” she concluded.
Shahzad Ahmed, Chairman & CEO of Blue Ocean Global Group, told this reporter that the UAE Cabinet’s decision to decriminalise bounced cheque offences is a great development and will help businesses under stress to recover with renegotiated payment schedule. It reflects the Government’s vision, wisdom and good leadership.
“The new law will protect struggling businesses from facing jail and help them to come back once situation improves. This is in line with the new bankruptcy law and will help businesses to sustain under the unprecedented crisis,” he added.
“We welcome the new law and hope every debtor and creditor takes advantage of the new law and help businesses to sustain and come back stronger next year when the pandemic is over, hopefully,” Shahzad concluded.