Bankruptcy proceedings in the U.A.E, are directors and mangers liable?

 Bankruptcy proceedings in the UAE are governed by the Federal Decree-Law No. 9 of 2016 on Bankruptcy (the Bankruptcy Law). The Bankruptcy Law provides a framework for the rehabilitation or liquidation of insolvent companies and individuals.

 Partners and managers' liability

 Partners and managers of a bankrupt company may be held personally liable for the company's debts in certain circumstances. Under Article 144 of the Bankruptcy Law, a court may order partners and managers to pay all or part of the company's debts if:

Partners:

Partners in a general partnership are jointly and severally liable for the debts of the partnership. This means that each partner is personally liable for all of the partnership's debts, even if their contribution to the partnership is less than the total amount of the debts.

 Partners in a limited partnership have limited liability for the debts of the partnership. This means that their liability is limited to the amount of their capital contribution to the partnership. However, a limited partner may become personally liable for the debts of the partnership if they participate in the management of the partnership business.

• The company's assets are not sufficient to pay at least 20% of its debts; and
• The partners or managers committed any of the acts listed in Article 147 of the Bankruptcy Law, such as:
• Mismanaging the company's assets or engaging in reckless business practices;
• Breaching their fiduciary duties to the company; or
• Intentionally or negligently causing the company to become insolvent.

In addition to civil liability, partners and managers of a bankrupt company may also face criminal liability under the Bankruptcy Law. For example, Article 198 of the Bankruptcy Law provides that partners and managers who conceal or destroy the company's assets or records may be sentenced to imprisonment for up to five years.

 Recent developments

 In October 2021, the Dubai Court of First Instance issued a landmark ruling in the Marka case, holding the directors and managers of a bankrupt public joint stock company personally liable for the company's outstanding debt of AED 450 million. The court found that the directors and managers had mismanaged the company's assets and engaged in reckless business practices, which led to the company's insolvency.

 Shortly after the Marka ruling, the Bankruptcy Law was amended to clarify the circumstances under which partners and managers may be held personally liable for a company's debts. The amended law now requires the court to prove that the partners or managers committed one of the specific acts listed in Article 147 of the Bankruptcy Law before ordering them to pay the company's debts.

 The Marka ruling and the subsequent amendments to the Bankruptcy Law demonstrate that the UAE courts are willing to hold partners and managers personally liable for their misconduct, particularly when it leads to the insolvency of a company.

 Conclusion

Partners and managers of companies in the UAE should be aware of the potential risks to their personal liability if the company becomes insolvent. It is important to take steps to avoid mismanagement and reckless business practices, and to comply with all applicable laws and regulations.

How to file Debtor-based bankruptcy case in the U.A.E

 Bankruptcy proceedings in the UAE are governed by Federal Decree-Law No. 9 of 2016, known as the Bankruptcy Law. The law provides for a number of different restructuring and bankruptcy procedures, depending on the specific circumstances of the debtor.

Debtor-led bankruptcy filings in the UAE are on the rise. In 2021, there were over 1,000 debtor-led bankruptcy filings, which was an increase of 20% from the previous year. This trend is expected to continue in 2023, as the UAE economy recovers from the COVID-19 pandemic.

 There are a number of reasons why debtor-led bankruptcy filings are on the rise in the UAE. One reason is that the UAE government has made it easier for businesses to file for bankruptcy. The UAE Bankruptcy Law, which was introduced in 2016, provides several options for businesses that are struggling to repay their debts. These options include financial restructuring, composition procedures, and liquidation.

 Another reason for the rise in debtor-led bankruptcy filings is the increasing cost of doing business in the UAE. The cost of rent, labor, and other expenses has been rising in recent years, making it difficult for some businesses to turn a profit.

 The COVID-19 pandemic has also had a negative impact on many businesses in the UAE. The pandemic caused a sharp decline in economic activity, which led to a decrease in sales and revenue for many businesses. As a result, many businesses have been unable to keep up with their debt repayments.

 The rise in debtor-led bankruptcy filings in the UAE is a positive development. It shows that the UAE government is committed to providing businesses with the support they need to recover from financial distress. It also shows that the UAE Bankruptcy Law is working effectively.

 Here are some of the benefits of debtor-led bankruptcy filings in the UAE:

•  It allows businesses to avoid liquidation and continue operating.
• It gives businesses a chance to restructure their finances and become more profitable.
• It protects businesses from creditors and other legal action.
• It allows businesses to negotiate new terms with their creditors.
• It provides businesses with a fresh start.

If you are a business owner in the UAE and you are struggling to repay your debts, you should consider filing for bankruptcy. It is important to seek legal advice from a qualified bankruptcy lawyer to ensure that you understand the process and to choose the best option for your business. 

U.A.E announce The date of professional licensing test for teachers

The UAE Ministry of Education (MOE) has announced the date of the professional licensing test for teachers. The test will be held on October 14, 2023.

The test is mandatory for all teachers who wish to work in the UAE, both in public and private schools. It consists of two parts: a pedagogy test and a subject specialization test. The pedagogy test assesses a teacher's knowledge of teaching and learning principles, while the subject specialization test assesses their knowledge of the specific subject they teach.

Teachers can register for the test through the TLS (Teacher Licensing System) website. The registration process will open on October 3, 2023 and close on October 10, 2023.

The MOE has also released a number of resources to help teachers prepare for the test, including practice tests and study guides. These resources can be found on the TLS website.

Here are some tips for teachers preparing for the U.A.E professional licensing test:

• Review the test syllabus carefully to make sure you are familiar with the topics that will be covered.
• Practice taking practice tests to get used to the format of the test and the types of questions that will be asked.
• Study with a group of other teachers or with a tutor to help you stay motivated and to learn from each other.
• Get enough sleep and eat healthy meals on the day of the test.

I wish all teachers the best of luck on the test!

U.A.E Job Insurance update -fine starting from 1st Oct 2023

 Starting from October 1, 2023, employees in the U.A.E. who have not subscribed to the unemployment insurance scheme will be fined AED 400. This fine will be imposed by the Ministry of Human Resources and Emiratisation (MoHRE).

Important: The deadline to subscribe to the unemployment insurance scheme is September 30, 2023.

Employees can subscribe to the scheme through the website or mobile app of the Insurance Pool, a consortium of insurance companies that has been appointed by the MoHRE to administer the scheme. Employees can also subscribe to the scheme through bank ATMs and kiosk machines, business service centers, money exchange companies, du and Etisalat, and SMS.

The U.A.E. Job Insurance scheme came into effect on January 1, 2023, and is mandatory for all employees in the country, including private sector workers, federal government employees, and semi-government employees. 

Important dates:

September 30, 2023: Deadline for all employees to subscribe to the unemployment insurance scheme.

October 1, 2023: Fines will be imposed on employees who have not subscribed to the unemployment insurance scheme.

One year after subscribing to the scheme: Employees will be eligible to receive benefits if they lose their job.

Benefits of the unemployment insurance scheme:

• Employees who lose their job will be eligible to receive benefits of up to 60% of their basic salary for up to three months.
• The maximum benefit payout is AED 20,000 per month.
• Employees can also receive additional benefits, such as job search assistance and training.

How to subscribe to the unemployment insurance scheme:

Employees can subscribe to the unemployment insurance scheme through the website or mobile app of the Insurance Pool, a consortium of insurance companies that has been appointed by the Ministry of Human Resources and Emiratisation (MoHRE) to administer the scheme. Employees can also subscribe to the scheme through bank ATMs and kiosk machines, business service centers, money exchange companies, du and Etisalat, and SMS.

Eligibility for benefits:

To be eligible for benefits under the unemployment insurance scheme, employees must meet the following criteria:

1. They must have been subscribed to the scheme for at least one year.
2. They must have lost their job involuntarily.
3. They must be actively looking for a new job.

How to claim benefits:

Employees who lose their job and wish to claim benefits under the unemployment insurance scheme must register with the MoHRE. They can register online or at a MoHRE office. Once registered, they will need to submit the following documents:

• A copy of their Emirates ID.
• A copy of their labor contract.
• A copy of their termination letter.
• A copy of their bank statement.

The MoHRE will then review the employee's application and determine whether they are eligible for benefits. If the employee is eligible, they will receive their benefits within 30 days of submitting their application.

For more information on the U.A.E. Job Insurance scheme, please visit the website of the MoHRE. 

AI Job Openings In Banking Sector In the U.A.E

 The scope of AI jobs in banking in the UAE is rapidly expanding, as banks are increasingly looking to AI to improve efficiency, reduce costs, and enhance customer service.

Here are some of the key areas where AI is being used in banking in the UAE:

• Fraud detection and prevention: AI is being used to develop sophisticated systems that can identify and prevent fraudulent transactions in real time.
• Risk assessment: AI is being used to assess the risk of lending to customers and pricing loans accordingly.
• Customer service: AI is being used to develop chatbots and other virtual assistants that can provide customers with 24/7 support and answer their questions.
• Personalization: AI is being used to personalize the banking experience for each customer, by recommending relevant products and services.
• Automation: AI is being used to automate many back-office tasks, such as processing loan applications and reconciling accounts.

As a result of this growing adoption of AI, the demand for AI skills in the banking sector in the UAE is increasing.

Here are some of the specific AI jobs that are in high demand in the UAE banking sector:

1. AI Engineer: AI engineers develop and maintain AI systems and applications.
2. Data Scientist: Data scientists collect, analyze, and interpret data to develop AI models.
3. Machine Learning Engineer: Machine learning engineers build and deploy machine learning models to solve real-world problems.
4. AI Architect: AI architects design and implement the overall architecture of AI systems and solutions.
5. AI Product Manager: AI product managers are responsible for the development and launch of AI products and services.

In addition to these specific AI jobs, there are also a number of other banking jobs that require AI skills, such as:

• Risk Analyst: Risk analysts use AI to assess the risk of lending to customers and pricing loans accordingly.
• Fraud Analyst: Fraud analysts use AI to investigate and prevent fraudulent transactions.
• Quantitative Analyst: Quantitative analysts use AI to develop and test financial models.
• Business Analyst: Business analysts use AI to analyze data and identify opportunities for improvement.

The UAE government is also supportive of the adoption of AI in the banking sector. In 2017, the government launched the National Strategy for Artificial Intelligence, which aims to make the UAE a global leader in AI.As a result of all these factors, the scope of AI jobs in banking in the UAE is very promising. If you have AI skills, you should definitely consider a career in banking in the UAE.

Here are some tips for finding an AI job in banking in the UAE:

• Network with people who work in the banking sector in the UAE.
• Attend industry events and conferences.
• Search for AI jobs on job boards such as LinkedIn and Indeed.
• Contact banks directly to inquire about AI job openings.

Here are some of the important AI job offerings from banks in the UAE:

Emirates NBD:

• AI Engineer
• Data Scientist
• Machine Learning Engineer
• AI Architect
• AI Product Manager

First Abu Dhabi Bank (FAB):

• AI Engineer
• Data Scientist
• Machine Learning Engineer
• AI Architect
• AI Product Manager

Abu Dhabi Commercial Bank (ADCB):

• AI Engineer
• Data Scientist
• Machine Learning Engineer
• AI Architect
• AI Product Manager

Mashreq Bank:

• AI Engineer
• Data Scientist
• Machine Learning Engineer
• AI Architect
• AI Product Manager

Dubai Islamic Bank (DIB):

• AI Engineer
• Data Scientist
• Machine Learning Engineer
• AI Architect
• AI Product Manager

In addition to these specific AI jobs, there are also a number of other banking jobs that require AI skills, such as:

• Risk Analyst
• Fraud Analyst
• Quantitative Analyst
• Business Analyst

To find out more about specific AI job openings at banks in the UAE, you can visit the banks' websites or search for AI jobs on job boards such as LinkedIn and Indeed.

If you are serious about finding an AI job in banking in the UAE, I encourage you to start your search today. There are many opportunities available for qualified candidates.