Bin Touq: We are working on building a new economic model that enhances confidence in the private sector
Abdullah bin Touq Al Marri, Minister of Economy and Chairman of the Interim Committee to Coordinate and Follow Up the Implementation of the Flexible Package and the General Plan, which consists of 33 initiatives to support the economic sectors, said that the approval of the Council of Ministers, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai The issuance of a federal decree by law amending some provisions of the Federal Law on Commercial Transactions constitutes an important milestone in the series of steps taken by the state to develop its economic policies and build a more flexible and sustainable economic model.
He added that the amendments to the law represent one of the first initiatives within the flexible package and the general plan of 33 initiatives to support the economic sectors, aimed at enhancing confidence in the business environment and activating commercial activities and businesses in the state's markets.
The most important amendments to the law include decriminalizing checks by amending the provision for bounced checks or issuing checks without balance stipulated in the penal code, and providing alternatives and advanced and fast civil mechanisms to collect the value of the check.
He added that the national economy today is increasingly turning to digital applications, which will gradually replace traditional dealings, and these amendments encourage the public to use modern technological alternatives to guarantee rights, such as credit cards, digital currencies and others, as well as consolidating the principles of justice, fairness and equal opportunities in commercial transactions. Facilitating doing business and increasing the country's attractiveness for investments.
For his part, His Excellency the Minister of Justice Sultan Al-Badi stated that the decriminalization contained in the penal code regarding the issuance of checks without balance or the so-called phenomenon of bounced or bounced checks confirms the state's keenness to improve the environment and the legislative and judicial structure, in a manner that supports its competitiveness at the regional and global levels and establishes its attractiveness. Of foreign investments and enhances the resilience of the future stable national economy based on innovation, which is what realizes the country's strategic vision in this field.
The Minister of Justice emphasized that the check is one of the most important commercial papers and the most widespread in work, as it represents a common instrument of payment or negotiation instead of cash, and the check cannot perform its role as a payment instrument unless people are satisfied with it and are confident that they will obtain it in return for what they have of rights. Equivalent to cash payment, the only way to enhance confidence in the check is to strengthen the right of the check holder and to strengthen the guarantees confirming it.
He also stressed that all the newly introduced amendments will lead to facilitating litigation procedures and avoiding the accumulation of checks cases before public prosecutions and criminal and civil courts, and saving effort and money either on the bearer of the check by resorting to the judiciary to obtain the sums owed to him and the costs of litigation and fees. Lawyers, or the public treasury, whether in terms of relying on the efforts of the police and its budget in order to address these cases, or the efforts and time of the judges in order to settle those cases.
For his part, Abdul Hamid Muhammad Saeed Al-Ahmadi, Governor of the Central Bank of the United Arab Emirates, said, "The new amendments to the Commercial Transactions Law regarding the decriminalization of the undisclosed check and the criminalization of refraining from partial fulfillment of the check and the tightening of administrative penalties for issuing the check without balance, which were recently approved by the distinguished cabinet It is consistent with the government’s plan and its main strategic initiatives to support the economic sector and build a sustainable national economy in accordance with the best international standards and practices, which contributes to raising the indicators of international competitiveness in this field. It is also in line with the central bank’s strategic initiatives and plans for the continuous modernization of laws to achieve the vision of the Central Bank in line with best practices This helps in enhancing confidence in the check, facilitating and organizing commercial and banking transactions, simplifying the procedures for collecting and fulfilling the value of the check and making them more flexible.
He explained that the new amendments establish the principles of justice by achieving a balance between the interest of the beneficiary / the bearer in requiring his right in the fastest way possible and the interest of the drawer in the expiration of the criminal case against him in the event of payment.
These amendments also aim to guarantee the rights of the recipients of checks and their holders, which enhances public confidence in the check as a fulfillment tool, in addition to collecting the value of the check in the fastest and simplest way possible.
At the same time, it encourages the public to use modern technological and digital means instead of the traditional paper checks.
The most prominent amendments contained in the law
include the decree of a federal law amending some provisions of the Federal Commercial Transactions Law approved by the Honorable Council of Ministers, abolishing the criminalization contained in the Penal Code regarding the check, and introducing all proposed amendments to the Commercial Transactions Law to unify the procedures governing the check and its collection procedures and penalties in one law In addition, the criminalization cases were limited to the offenses of counterfeiting and using checks, and the criminalization of fraud and fraud using checks by giving an order to the bank not to cash the check without right or withdrawing the entire balance before the check issuance date and intentionally writing or signing the check in a way that prevents it from being cashed.
The amendments also included the development of alternatives and new mechanisms to ensure that the value of the check is collected in the fastest and simplest way possible, including obligating the bank to partially fulfill the check after deducting the full amount available to the beneficiary, and making the returned checks an executive document to be executed directly by the execution judge in the court, by setting the executive formula on The bounced check and collecting its value, without resorting to the way of litigation, whether civil or penal, as well as emphasizing the means of prevention against the criminal case and facilitating its procedures, by equating between reconciliation and the payment of the value of the check as a basis for the expiry of the criminal case or the suspension of the execution of the adjudged punishment.
This achieves a balance between the interest of the beneficiary in requiring his right in the fastest way possible and the interest of the drawer (the source of the check) in the expiration of the criminal lawsuit filed by him upon payment, and it will also lead to an increase in confidence in checks as a commercial paper that allows its value to be paid immediately.
The amendments also introduced a number of ancillary penalties, including withdrawing the check book from the convicted person, preventing him from giving him new books for a maximum period of 5 years, and stopping the professional or commercial activity of the convicted person.
Within the first phase of the 33-initiative plan,
the Interim Committee to coordinate and follow up the implementation of the flexible package and the general plan consisting of 33 initiatives to support the economic sectors headed by the Minister of Economy, has announced the start of the implementation of the first phase initiatives of the plan, which include 15 initiatives and serve the efforts made to support various sectors and enable recovery The rapid development of the national economy, and paving the infrastructure, technology and legislation to enter into a sustainable and flexible development path for the economy and the future.
Amendments to some provisions of the Federal Law on Commercial Transactions are considered one of the initiatives of the first phase of the 33-initiative plan, and in the coming period we will announce the entry into force of many other initiatives according to the agenda and agenda of the committee’s work in light of the unlimited support of the wise leadership, and according to a vision based on working in a manner. It is balanced between human health on the one hand and economic protection and development on the other hand.
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