In the paternalistic societies of the oil-rich Gulf, the social contract between rulers and subjects goes beyond legal and financial perks. Governments have also traditionally frowned on the idea of high-profile companies going bankrupt.
As the region seeks to chart a path through the global financial storm, such quaint ideas of state support for the private sector will be tested, lawyers say.
“There is the possibility of the first major insolvency [this] year given the climate,” says Bruce Embley, Freshfields’ Middle East corporate practice head. “These will be very interesting test cases.”
No comments:
Post a Comment