Herbert Smith: All interested parties should welcome this development (Dubai Decree No. 57)

The Decree is significant in two respects:

. it creates a framework for the financial reorganisation of the Dubai World group which is based on an amended version of the insolvency law and regulations of the Dubai International Financial Centre (DIFC), the laws of which would not ordinarily apply to the Dubai World group;

. claims are to be determined by a special tribunal established to oversee the restructuring and which will operate in accordance with common law principles.

This is a bespoke process that will operate outside of both the Dubai and DIFC insolvency and restructuring laws. All interested parties should welcome this development: DIFC's insolvency laws are based on international best practice and the tribunal is comprised of three highly respected judges.