Insolvency Law at Western Sahara
Western Sahara is a disputed territory in North Africa, and as such, it does not have an independent legal system or codified insolvency law of its own.
Here’s a breakdown of the legal situation regarding insolvency in Western Sahara:
🔹 1. Political and Legal Context
Territorial Status: Western Sahara is claimed by both the Kingdom of Morocco and the Sahrawi Arab Democratic Republic (SADR). However, Morocco controls about 80% of the territory and administers it as part of its southern provinces.
International Status: The United Nations considers Western Sahara a non-self-governing territory. The SADR has limited recognition and does not exercise full administrative control.
🔹 2. Applicable Legal System
Since Morocco controls the majority of the region:
Moroccan Law is effectively applied in the Moroccan-administered areas of Western Sahara.
This includes Morocco’s Commercial Code, Civil Code, and specific laws on bankruptcy and insolvency.
🔹 3. Insolvency Law in Practice (Under Moroccan Jurisdiction)
If a business or individual in Western Sahara needs to deal with insolvency, the relevant Moroccan legal framework would apply:
📌 Key Points of Moroccan Insolvency Law:
Governed primarily by Book V of the Moroccan Commercial Code (as amended).
Covers:
Preventive settlement (règlement amiable) – pre-bankruptcy negotiation.
Judicial reorganization (redressement judiciaire) – court-supervised restructuring.
Judicial liquidation (liquidation judiciaire) – formal bankruptcy and asset liquidation.
A commercial court (tribunal de commerce) handles insolvency matters, though court access and enforcement in Western Sahara may vary in practice.
🔹 4. Areas Not Under Moroccan Control (SADR-Controlled)
The SADR claims the remaining areas but does not have a developed or functional legal system for commercial or insolvency matters.
In SADR-controlled zones, there is no known formal insolvency framework. Business and legal activity is minimal and largely informal or tied to humanitarian aid operations.
✅ Summary
There is no independent insolvency law specific to Western Sahara. In practice:
Moroccan insolvency law applies in most of the region, especially where Morocco exercises control.
In areas under SADR influence, there is no formal insolvency system in place.
For legal certainty or business operations in the region, parties should consider the Moroccan legal framework as the de facto applicable system.
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