- Image via Wikipedia
I’d mentioned in a previous post that one of the key elements missing from the startup ecosystem in Dubai was the ability to fail due to outdated and immature insolvency laws. Good news came out today that just brought us one small step closer to a stronger ecosystem: “New bankruptcy law to be announced in the UAE within months.”
The tone of the release is that this is intended for companies currently under stress because of both the global and local financial crises. However, I think the more positive spin on this is that for new companies – or more accurately – for those people considering starting new companies this law should provided the adequate legal cover necessary to start a business in confidence that the framework for failure does exist. You don’t start and expect to fail, but you want to know that if you do, you can move through a transparent process and move on.
This is a great step and I look forward to this continued ecosystem development to help new entrepreneurs find a great launching pad in Dubai for tech startups.
