The Legal 500

OVERVIEW OF 2008/2009 RESTRUCTURING AND INSOLVENCY

ACTIVITY

The Government of Dubai issued a press release on 25 November 2009 confirming that, through its Supreme Fiscal Committee (SFC), it has authorised the Dubai Financial Support Fund (DFSF) to spearhead the restructuring of Dubai World with immediate effect.

Application and implementation of Law No 9 of 2009 and Article 3 of Law No 13 of 2008 and any pitfalls associated with the same.

Before I embark on a review on the current hotel management companies’ and owners’ predicament when entering into a market such a Dubai in the face of the financial crisis, I have a few questions to pose to Mr Mike Scully;-

Commercial disputes in the United Arab Emirates (UAE) are generally resolved through litigation in the courts or arbitration. Arbitration is becoming an increasingly popular way to resolve disputes. The UAE recently signed the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (New York Convention).

Whilst driving to work in the morning you receive an sms from your wife reminding you to pay the DEWA bill. You realize that you have one internal meeting at 9.30am and another meeting at 3.00pm. There is no time for you to go to DEWA office or other payment outlets and you are betting whether you have time to pay the bill online from your desktop computer. In fact the only time you have to think about this house chore is the time when you are alone in the car driving to the office. However with the advent of mobile banking, the bill can be paid by pressing a few buttons on your mobile phone and by the time you reach the office, you are free to concentrate on other matters.

Dubai’s freehold property era is several years old but some of its birth pangs were never really addressed.

On 30 April 2009 in Sharjah, United Arab Emirates, the International Islamic Fiqh Academy (Academy) of the Organisation of Islamic Conference (OIC) closed its 19th session. The Academy is composed of senior Shari’ah scholars representing Muslim member countries of the OIC. It is considered to be the most prestigious and high-ranking body of Shari’ah scholars in the Muslim world. Compliance with its resolutions, while not statutorily binding, is considered to be extremely important and persuasive.

The laws on bankruptcy in Saudi Arabia are not extensive nor has their application been well tested. Saudi law dealing with bankruptcy is not very detailed and in broad terms it is left to the parties to make an agreement with each other or Shari'ah principles are applied and the relevant court will decide the matter.

By Marcus Wallman and Sonya Stewart  “Our most productive investment remains our people. It is through the dedication, skill and initiative of our people that Visy Industries has prospered and will continue to move ahead” Richard Pratt, Chairman, Visy Industries

 Introduction 

We now receive an increasing number of enquiries about long term incentive plans.  These enquiries range from “what are they?” (which is a valid question given the broad range of alternatives available, as discussed below) to “how can we set up a scheme in our company?”. 

These schemes have become an established component of senior and mid-level executive remuneration offered in overseas markets, particularly in the context of listed companies.  With the significant economic growth being experienced within the UAE in recent years has come an increasing demand from local companies for world class executives.  These companies are finding that they need to offer remuneration comparable to that being offered around the world when competing for executive talent.  Employee share option and other long term incentive plans are important components of these packages.