Geopolitical developments have a way of bringing contractual boilerplate into focus. When performance becomes difficult or impossible, the scope of protection available depends more on the wording of the contract as opposed to the scale of the disruption.
This article explores how force majeure scenarios are treated across mainland United Arab Emirates (UAE), Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) legal regimes and offers practical guidance for businesses operating in the UAE.
What is force majeure?
Force majeure refers to an unforeseeable event beyond the parties’ control that makes contract performance impossible or impractical.
Typical examples include:
- war or armed conflict
- government embargoes or sanctions
- natural disasters
- blockades or transportation shutdowns
- major supply chain interruptions.