Navigating Restructuring Landscape GCC Perspective

[Music] I see nobody see nobody's remaining here it's going to be an empty stage anyway I would like first to give you a flashback because I've been in this country for over 45 years and uh uh the subject I'm going to speak about is restructuring Trends in the UAE navigating financial distress and siing recovery opportunities uh in the past before we had the law of number nine of 2016 which is bankruptcy laws for the UAE the federal law and before we had the adgm and the IFC uh Shai personally took the vision that he would not like to see that companies go bankrupt and he was personally interfering in quite a number of uh occasion to make sure that things are smooth up and uh nobody goes bankrupts and nobody uh have the problem um I will start my presentation the United Arab Emirates plays a pivotal role in shaping the economic landscape of the region aimed ongoing economic restructuring as means of navigating financial distress adopting to a new market Dy Dynamics and seizing gross opportunities in response the EMB made significant studies and steps in reforming its regularity framework to better support businesses throughout this restructuring in UAE focusing on regularity development Market shift and actionable strategies for business seeking recovery and transformation of course a shf towards flexibility uh UA approach to re restruct is being shaped by an increasing sophisticated regularity framework uh designed to offer business flexibility transparency and the tools needed for the for the recovery the introduction of the Abu Dhabi Global Market which we have all witnessed in the last nine years going to the 10 years was a fundamental uh insolvency regulation in recent year that has been crucial step in financial distress this regulation is part of the broader effort to enhance the competitiveness of the UA financial service sector and attract Global investment direct foreign investments as a measure for increasing Investments the adjm has adopted a flexible insolvency uh regime based on common law which is also added value to the bankruptcy laws offering businesses access to formal restructuring process such as debt reeding liquidation or business reorganization if you remember in the BCCI if we had the opportunity to restructure we would have been in a better situation this regulation emphasize the corporators rescue while restructuring their financial obligation this process not only helps preserve the business value but also minimize the social and economic impact of business failure which we would not like to see moreover the UA federal bankruptcy law federal law number nine of 2016 and if anybody wants to know more about it we are happy to explain which governance corporate restructuring process across the country country was updated in 2020 with quite a lot of enhancement to make sure that at least there is a time for you to make sure that there is a swap between equity and your debts and many other Majors um more leeway to negotiate with debt to equity swaps this reducing the Reliance on lensy litigation and offering companies a smoo recover y pass the UA business environment and we would like to see when the covid-19 happens of course this accelerated the need for uh bankruptcy law creating a surge in financial distress for many sectors during the covid uh period however it also brought about new opportunities for recovery especially for the industries focused on mainly business in the UAE face external pressures they must adopt quickly to those changes market dynamics while staying uh focused to evolve customer explanation and regularity requirements to be more uh I've got my team here and whatever whenever you have more questions and you would like to understand more they will be happy to uh uh talk to you and help you given the evolv regulation landscape and shifting market dynamics uh companies in UE need to adopt uh productive strategies to manage financial distress and recover effectively through a lot of means um one of one of uh I will I will explain mainly four of them engaging early in restructuring process uh what we mean here is we don't leave it late but once we have a company which is under quite a lot of pressure uh we would like uh the law to kicks in and prevent it that we come to the stage where uh it is not anymore visible to help them optimizing operational efficiency I I'm talking about here about cost cutting measures and downsizing non-core uh departments or stream line and Supply chains all of these measures will help to mitigate the problem debt restructuring and finance reorganization the G uh the key navigating Financial to distress is restructuring a a company debt in a way that ensures long-term uh viability in the UAE companies facing Financial challenges can explore debt to equity swaps which is uh supported very much by the law number nine of 20 of 2016 which help uh reduce debt liabilities while offering creditors a stake in the in the business this can result in more favorable balance sheet and improved Financial HS further business can utilize the flexibility of out of court settlement people used to go for a lensy court settlement and discussion in the courts which takes years and years by that time the companies will collapse offered under the federal uh bankruptcy law to negotiate the sustainable repayment schedule that benefit both parties on the process uh engaging in mergers and Acquisitions this is a a very important uh aspect that people should consider is either you merge with another company or actually acquire certain companies which are in the stress and turn them around uh which is quite uh a lot of companies that we have seen over the years in the uee have achieved uh much of this uh ter around because of uh marges and acquisition focus on diversification and Innovation if you don't innovate you'll die and that's a simple solution we like to see companies Innovation and and and be more Innovative to make sure that they don't collapse uh government incentive for sustainable um practices uh this is also very important important aspect the you government is placing a growing emphasis on sustainability and green business practice as part of this long-term Vision companies that incorporate environmentally friendly business models such as adopting renewable energy source or a gr tax incentive and positive brand image this trend align with UAE growing focus on becoming a glob Global leader in sustainable development Che zide have have started this more than 4 years ago we can see Lewa from a desert now turning to a Green Pastures and and very beautiful uh products agriculture products coming from that area investing in digital transformation of course this is obviously the uh pandemic has accelerated the need for digital transformation in business in the UAE and in Abu Dhabi are increasingly exploring technology driven solution to recover from Financial setback and other digital tools can enhance operational efficiency and customer competitiveness increasing technical driven Market opening doors to new Revenue uh streams uh in conclusion by focus on early intervention Deb restructuring operation efficiencies and sizing opportunities in sector like technology and sustainability position themselves for sustainable growth through through and strategic restructuring business can transform not just to survive but to strive in the evolving economic landscape of the UA I leave it to you guys if you have any questions to me or my team we'll be happy to address them and thank you very much for listening to our uh short uh on liquidation restructuring and making sure that companies do not go bust thank you very much ladies and gentlemen any questions [Music] oh