The article from which the quote is obtained discusses the options for insolvency and asset recovery in the UAE and alludes to the limited options available for both. Understanding the history and culture is imperative to knowing why this is the case. But my experience dictates that the history and culture can often unlock the route to asset recovery and insolvency alternatives.
While the federal laws in the UAE provide for court-led bankruptcy, corporate rescue and liquidation procedures, the legislation is largely untested in the UAE courts as there has yet to be a major corporate insolvency in the UAE. In addition to the bankruptcy regime applicable to traders, there is a further civil regime in the UAE for individuals who fall outside of the scope of the definition of 'trader'. Professional consultant-type activities (doctors, lawyers, consultants, etc.) are not generally considered commercial activities and so the individuals involved are not considered traders. A civil trader who ceases to pay his or her debts may not be declared bankrupt under the Commercial Code, but will be subject to certain administrative restrictions instead.