The Challenges of Cross-Border Bankruptcy Rules on the Global Economy in the Kingdom of Saudi Arabia
Loading...
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Saudi Digital Library
Abstract
The research investigates the impact of international economics on the effectiveness of CBIL in general, evaluating the effectiveness of procedural rules in the context of the Saudi economy in particular. This dissertation details the problems associated with economic inefficiencies that arise from the lack of legal mechanisms governing CBI Procedures when concluding inefficient enterprises. For example, inefficient companies fail to make adequate use of their resources, which can have a negative impact on economic markets. To eliminate economic inefficiencies, it is possible to apply the UNCITRAL Model Law in CBI to avoid resource losses and develop the economy. In this context, insolvency is defined as a state that can result in the declaration of bankruptcy. While bankruptcy is defined as a legal process that provides relief and protection for an individual or company unable to repay debts. The study employs a comparative approach, comparing the UNCITRAL Model Law on CBI and cross-border bankruptcy procedures to identify problems with Saudi Arabian rules, and the economic role played by CBIL in developed countries. The analysis of the results reveals a strong interplay between economic interdependencies and CBIL. The economic dominance of the US, mean that US laws played a pivotal part in the formulation of the UNCITRAL Model Law on CBI. The Model Law plays a major role in resolving the problems associated with economic inefficiency. However, to date, Saudi Arabia seems to have not achieved objectives of Model Law. The results suggest that the rules governing cross-border bankruptcy procedures in Saudi Arabia include many loopholes, such as the lack of foreign recognition procedures and relief, which limits their effectiveness at regulating international insolvency cases and acts to disincentivize foreign investment. Therefore, full implementation of the Model Law is recommended as a complement to CBIL in Saudi Arabia.