The Ministry of Commerce issued legislation compatible with the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Bankruptcy; So that the Kingdom joins (56) countries that implement legislation compatible with the provisions of the “UNCITRAL” law.
The Minister of Commerce, Chairman of the Board of Directors of the National Center for Competitiveness, Dr. Majid bin Abdullah Al-Qasabi, stated that the Ministry’s issuance of legislation compatible with the “UNCITRAL” model law on cross-border bankruptcy confirms the Kingdom’s keenness to develop a highly efficient commercial legislative and regulatory system. To keep pace with the continuous transformation journey that the country is witnessing, especially since these legislations keep pace with the best international practices.
And he indicated that the Kingdom is working on a number of additional reforms related to the digital economy, the international sale of goods, the judicial sale of ships, and commercial mediation, in addition to developing the commercial registry system project. To comply with the basic principles of the commercial register in the "UNCITRAL" guide.
The legislation comes within the framework of close cooperation between the Kingdom represented by the National Center for Competitiveness and UNCITRAL since 2019, with the aim of supporting commercial legal frameworks in the Kingdom, according to international best practices to enhance the Kingdom's competitiveness.
The UNCITRAL Model Law on Cross-Border Bankruptcy is one of the pioneering legislations in the field of law since its adoption in 1997 in a number of countries, despite the difficulty of coordinating it at the global level. However, the UNCITRAL Committee adopted the text, uniting the international community around the recognition of cross-border bankruptcy procedures, given that national bankruptcy laws do not deal with cross-border bankruptcies, which causes increased risks of non-protection and waste of assets, in addition to limiting the chances of saving viable businesses. to continue.
It is noteworthy that the United Nations Commission on International Trade Law (UNCITRAL) is concerned with removing legal obstacles facing global trade by updating and harmonizing commercial laws and regulations, and drafting and preparing legal texts in key areas such as: dispute settlement in global commercial transactions, electronic commerce, bankruptcy, international payments, It provides technical assistance for the development of laws and regulations, including assisting Member States in reviewing and evaluating the requirements for reforming laws and regulations.
Okaz (Riyadh)