The United Arab Emirates government has announced that the country has passed a new law to protect the rights of people that are unable to repay their debts,
in a move that further strengthens the financial sector in the country. The law will come into force in January 2020.
With the new law in place, Emiratis and residents in debt are protected from legal prosecution as it decriminalises their financial obligations, instead offering them an opportunity to work to repay their debts and continue to support the people that depend on them. This allows the Emiratis as well as the expat residents to continue their lives without having to leave the country or be prosecuted.
Of course, the debt still has to be repaid. For this, a court-appointed expert will help and coordinate with the person in debt, as well as the creditors, in order to come up with a repayment plan that should not last longer than three years. During the duration of the repayment, the debtor will not be able to take out any additional loans, unless the court has decided that the debt has been repaid in accordance with the agreement between the expert, debtor and creditor(s).