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.

Comparative framework: mainland UAE, DIFC, ADGM

  Mainland UAE
(civil law)
DIFC
(codified common law)
ADGM
(English common law)
No force majeure clause in the contract? You may still be protected; force majeure is a statutory right in the Civil Code under Article 273. You may still be protected; Article 82 of DIFC Contract Law implies a force majeure right in contracts.  Very limited protection. Without a specific force majeure clause, you must rely on the very narrow “Doctrine of Frustration” which allows a contract to be discharged when an unforeseen, external event renders performance impossible or radically different from what was originally agreed.
It’s just too expensive? A judge can rebalance the contract to reduce your loss (Article 249 of the Civil Code). Generally, not excused. Performance must be an impediment beyond control. The impediment must not have been reasonably foreseeable at the time of contract conclusion, and the party must demonstrate they could not have avoided or overcome the impediment or its consequences. Not excused. ADGM law does not protect parties from a “bad bargain”.
Failure to notify? Viewed as a breach of “good faith”, which may reduce your claim or lead to damages. Mandatory. Failure to notify within a reasonable time makes you liable for damages caused by the delay. Strict adherence. Missing a notification deadline typically waives your rights.
Power of the Court? High intervention. Judges can modify or terminate contracts to achieve fairness. Moderate. Courts focus on excusing liability and preventing unjust enrichment. Low intervention. The court strictly enforces what is written in the contract.

Next steps: actionable guidance

  • “Sole cause” rule: You must prove the event was the only reason for the breach. If you were already behind schedule, a force majeure claim will likely fail.
  • Mitigate: Do not simply “stop” performing the contract. You must document every attempt to find alternative suppliers or workarounds to show you acted in good faith.
  • Audit your jurisdiction: Check your “Dispute resolution” clause. If you are a mainland UAE company with a contract governed by ADGM law, your legal safety net is much smaller than you might assume.
  • Consider renegotiating: Particularly in mainland UAE, courts prefer to adjust terms (extending deadlines or splitting costs) rather than extinguishing contracts. A proactive settlement can yield a faster result and maintain ongoing business relationships.

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