BUiD’s academic staff co-authors research on Preventive Settlement

Dr Derar Al-Daboubi, Assistant Professor at the Faculty of Business and Law, co-authored research titled, ‘Preventive Settlement as A Preventive Means to Safeguarding – Troubled Businesses from Bankruptcy: An Analysis of The UAE Law’

In their research paper, the authors Mohammad Saad Al Arman, Derar Al-Daboubi, and Mohammad Ashraf Khalid Al Qheiwi explored how the UAE’s Preventive Settlement procedure—under the Financial Restructuring and Bankruptcy Law No. 51 of 2023—can help financially distressed businesses avoid bankruptcy. By analysing the law and related case applications, the study shows that preventive settlement allows debtors to seek court protection and negotiate repayment with creditors, supporting business continuity and improving creditor recovery, which benefits the national economy. The research proposes adding stricter requirements for accepting preventive settlement applications, including submitting a clear repayment plan with timelines and proving that the debtor has no prior violations under the law, to ensure good faith and responsible use of the procedure.

https://lex-localis.org/index.php/LexLocalis/article/view/801715

 

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