Bankrupted in Dubai?

Question

I have a question regarding bankruptcy issue in Dubai: 

Say if person A (non GCC nationals) opened a small company in Dubai, however person A is unable to pay his suppliers, employees and banks due to the bounce of checks (insolvent cash issue here in the company). Subsequently in order to avoid person A being jailed person A run out of the country back to his own country in Asia. In that case, will A only be blacklisted in UAE only (i.e. he can not return to UAE but he is still free to travel to other countries and his life is NOT impacted in his home country)? 

Thanks for anyone with the knowledge or legal background to answer the question.

Answer

Legal experts in the United Arab Emirates are now calling for an overhaul of the country&rsquo;s banking system and encouraging a review of whether bouncing a check in the UAE should be a criminal offense.

&ldquo;There have been discussions amongst lawyers and accountants as to the need for modernization of the UAE insolvency regime,&rdquo; says Raza Mithani, a senior advocate at the law firm Al Tamimi.

Bankrupted in Dubai?

Answers (1)