Former Emirati official arrested in Saudi Arabia over alleged fraud
Mr Khater Massaad, a former senior official of a key UAE development body, Ras Al Khaimah Investment Authority ("RAKIA"), was arrested over an alleged $1.5 billion fraud. It has been reported that charges were brought following a breakdown in talks between the government and Mr Massaad on "global embezzlement and mismanagement of $1.5 billion" while he was chief executive of RAKIA. Mr Massad insists the charges are unfounded and that his corruption and fraud convictions in absentia by a Ras Al Khaimah court in October 2015 had numerous flaws.
New bankruptcy laws in the United Arab Emirates
The UAE is set to introduce new Bankruptcy Laws, which aim to provide greater scope for companies to take preventative restructuring steps out of court, in order to sustain their business and enhance overall business stability. The new laws are set to come into force three months after its publication in the Official Gazette, which is likely to be issued shortly. The new laws are set to provide (i) different ways of avoiding bankruptcy cases and liquidation, (ii) provisions for an out of court comprehensive financial restructure, (iii) new composition procedures, and (iv) the possibility of obtaining new loans under terms set by law. The new laws will apply only to commercial companies, not individuals, and will apply to both private and most government-owned companies. Existing insolvency laws are rarely used in the UAE; most issues are typically dealt with by debtors resorting to informal arrangements, secured creditors enforcing their security or creditors filing criminal complaints for dishonoured cheques.
Investor embezzled more than DH8.4million from Dubai Economic Department
An investor has been jailed for two years after embezzling more than Dh8.4 million from the Dubai Economic Department (DED) in March 2015. He did so by forging e-transactions, after claiming to DED clients that he could arrange discounts on issuing licences. He denied charges of forgery and fraud, and four other men denied aiding and abetting him. The investor was sentenced to a fine of Dh150,000 as well as two years imprisonment, and the other four men were each sentenced to one year and fined Dh40,000.