Advertisement

Legal Challenges for Property Buyers Seeking to Invoke Force Majeure in Dubai

Advertisement

Property buyers looking to exit off-plan agreements in Dubai by citing force majeure encounter significant legal challenges. Lawyers indicate that current regional tensions do not automatically fulfill the requirements set by UAE law.

Legal experts have confirmed that while force majeure is acknowledged under Dubai law, its application relies on strict legal and evidentiary standards, evaluated on a case-by-case basis by the courts.

Bassel Boutros, a Partner at BSA LAW, explained that for an event to qualify as force majeure, it must be exceptional, extraordinary, unforeseeable at the time of contract signing, and unavoidable. Additionally, there must be a direct causal relationship between the event and the inability or delay in fulfilling contractual obligations.

He further stated that a party cannot claim force majeure if the delay or failure to perform was due to its own fault, especially if it was already in breach before the event occurred.

“The burden of proof falls on the party invoking force majeure,” Boutros noted, emphasizing that the party must demonstrate that the failure to perform was directly caused by the event, rather than by previous breaches or unrelated circumstances.

Boutros mentioned that Dubai courts have considerable discretion in determining whether an event qualifies as force majeure, based on the evidence provided in each case.

He also pointed out that certain events can be officially classified as exceptional circumstances through legislation or regulatory actions. For instance, during the Covid-19 pandemic, Cabinet Resolution No. 5 of 2021 declared the pandemic an “emergency financial crisis” for a specified period.

However, he remarked that invoking force majeure concerning off-plan sale agreements is not viable under the current conditions.

“Normal life in the UAE proceeds without disruption, and there are no significant adverse effects on the real estate market,” he stated. “The market continues to be governed by fundamental principles of supply and demand and is functioning consistently with its prior conditions.”

Boutros added that while some parties might attempt to leverage prevailing circumstances to evade contractual obligations, such actions do not meet the legal criteria for force majeure.

“In our view, the necessary conditions for invoking force majeure are not fulfilled, and thus, there is no legitimate basis for terminating off-plan sale agreements by either party,” Boutros concluded.

Inquiries

Andrew Thomson, partner and head of real estate at Al Tamimi & Co., confirmed that force majeure is a recognized concept under UAE law and is included in property contracts, but successfully invoking it is challenging.

“A party wishing to rely on force majeure must prove that the event was genuinely unforeseeable, beyond their control, and made contract performance impossible—not simply more difficult or financially inconvenient,” Thomson stated.

He explained that buyers sometimes look to force majeure clauses as potential escape routes during uncertain times, yet regional tensions alone do not automatically satisfy the legal requirements.

“Courts and arbitration tribunals in Dubai closely scrutinize these claims, and the specific wording of each contract is crucial,” he added.

Thomson noted that law firms are receiving an increasing number of inquiries from clients wanting to understand their legal options.

“Our consistent advice is to review your contract carefully before taking any action,” he advised. “What may appear to be a force majeure clause could come with significant conditions and limitations.”

He also emphasized that seeking early legal counsel is the most prudent course of action, warning that premature steps can sometimes lead to more issues than they resolve.

ALSO READ

  • Dubai real estate stands firm as 85% of landlords resist selling

  • Dubai real estate steadies as fundamentals stay strong

  • Dubai property buyers take a more 'measured approach' as market holds steady

look ad Watch AD Unlock More

Advertisement

Hot News
Dh332 Million Umm Suqeim Street Upgrade Nears Completion, Set to Slash Travel Time by 61%
Dh332 Million Umm Suqeim Street Upgrade Nears Completion, Set to Slash Travel Time by 61%
Dubai's ambitious Umm Suqeim Street Improvement Project, a Dh332 million initiative designed to revolutionize connectivity between Al Khail Road and Sheikh Mohammed Bin Zayed Road, is now over 70% complete. The transformative infrastructure development features an impressive 800-meter tunnel with four lanes in each direction, promising to dramatically enhance traffic flow across the city.
Business
Business
Dubai Unveils Dh6 Billion Road Upgrade Plan to Revolutionize Urban Mobility
Dubai Unveils Dh6 Billion Road Upgrade Plan to Revolutionize Urban Mobility
In a landmark move to transform Dubai's transportation landscape, the Roads and Transport Authority (RTA) has partnered with Dubai Holding on an ambitious Dh6 billion infrastructure initiative that will reshape connectivity across the emirate's fastest-growing communities. The comprehensive road network enhancement program will introduce cutting-edge bridges, expanded thoroughfares, and smart access solutions designed to slash commute times while dramatically improving traffic flow. This strate
Business
Business
Carrefour Bids Farewell to Oman Market After Decades of Service
Carrefour Bids Farewell to Oman Market After Decades of Service
In a significant retail development, Carrefour has officially announced the end of its operations in Oman effective January 7, 2026. The supermarket chain, operated under exclusive rights by Majid Al Futtaim in the Sultanate, shared this emotional farewell through its official social media channels.
Business
Business
MEVP Achieves 5x Return with Strategic Exit as Japan's giftee Acquires Majority Stake in YGG
MEVP Achieves 5x Return with Strategic Exit as Japan's giftee Acquires Majority Stake in YGG
In a landmark deal for the Middle East's digital economy, Middle East Venture Partners (MEVP) has successfully exited its investment in YOUgotaGift (YGG), as Japanese eGifting giant giftee Inc acquires a controlling 91% stake. This strategic acquisition propels YGG into its next phase of global expansion while cementing its dominance in the GCC's booming digital gift card market.
Business
Business
Borouge and Adnoc L&S Forge 15-Year Mega Deal to Boost UAE Petrochemical Exports
Borouge and Adnoc L&S Forge 15-Year Mega Deal to Boost UAE Petrochemical Exports
In a landmark move set to transform the UAE's petrochemical landscape, Borouge has cemented a 15-year strategic alliance with Adnoc Logistics & Services Plc (Adnoc L&S) that will supercharge production capabilities and global export operations. The game-changing service agreement carries a minimum guaranteed value of $531 million (Dh1.95 billion), fueling Borouge's ambitious expansion strategy while delivering substantial operational efficiencies. The partnership is projected to generate over $5
Business
Business
Oil Prices Rally to 7-Week High on U.S.-China Trade Deal Optimism
Oil Prices Rally to 7-Week High on U.S.-China Trade Deal Optimism
Crude oil prices surged over 1% on Tuesday, reaching their highest level in seven weeks as renewed optimism about a potential trade agreement between Washington and Beijing boosted expectations for stronger global economic growth and higher fuel demand. By midday trading in New York, Brent crude futures had climbed 81 cents (1.2%) to $67.85 per barrel, while U.S. benchmark West Texas Intermediate crude gained 83 cents (1.3%) to reach $66.12 per barrel. The rally pushed both major oil benchmarks
Business
Business
e& Reports Record Growth in Q1 2026, Solidifying Its Position as a Global Tech Leader
e& Reports Record Growth in Q1 2026, Solidifying Its Position as a Global Tech Leader
e& has kicked off 2026 with outstanding financial results, demonstrating remarkable growth across all business segments and reinforcing its status as an innovator in the digital landscape. The company's strategic vision continues to drive significant value creation, positioning it as one of the most dynamic players in the global technology sector. The Group reported consolidated revenues of Dh16.9 billion for the first quarter, marking an impressive 18.7% year-over-year increase. Net profits soa
Business
Business
Sharjah Islamic Bank Boosts Nasdaq Dubai's Sukuk Market with $500 Million AT1 Listing
Sharjah Islamic Bank Boosts Nasdaq Dubai's Sukuk Market with $500 Million AT1 Listing
In a landmark move for Islamic finance, Sharjah Islamic Bank (SIB) has successfully listed a $500 million Additional Tier 1 (AT1) sukuk on Nasdaq Dubai, further cementing the exchange's position as a global hub for Sharia-compliant securities.
Business
Business
Comment

Advertisement

Suzuki Swift Production Halt Linked to China's Rare Earth Export Restrictions
In a move highlighting the growing impact of global supply chain disruptions, Suzuki Motor has temporarily suspended production of its popular Swift subcompact due to China's tightening rare earth export policies. Industry insiders reveal this marks the first major Japanese automaker affected by Beijing's recent trade measures.
Suzuki Swift Production Halt Linked to China's Rare Earth Export Restrictions
Bentley Continental GT Speed Hybrid: Where Timeless Elegance Meets Electrifying Performance
In the realm of automotive aristocracy, Bentley stands as a crown jewel. Born from racing heritage with legendary victories, the marque evolved through its Rolls-Royce era before emerging stronger under Volkswagen's stewardship. The Continental GT became its renaissance masterpiece - a perfect marriage of breathtaking design, thunderous performance, and peerless craftsmanship. Now in its fourth iteration, we experienced Bentley's vision of "fine driving" in the exclusive Continental GT Speed Hybrid First Edition - here's why this grand tourer redefines automotive excellence.
Bentley Continental GT Speed Hybrid: Where Timeless Elegance Meets Electrifying Performance
Oil Prices Could Skyrocket Past $100 Amid Middle East Tensions, Analysts Warn
The global oil market is bracing for potential turbulence as escalating tensions between Israel and Iran threaten to push crude prices beyond the $100 per barrel mark, energy experts cautioned this week.
Oil Prices Could Skyrocket Past $100 Amid Middle East Tensions, Analysts Warn
UAE Banks Shine in Q1 2026: Record Profits Amid Global Economic Headwinds
The UAE's banking sector has defied global economic challenges to deliver an impressive first quarter performance in 2026, with the nation's top lenders reporting robust growth across key financial metrics. Fresh analysis from Alvarez & Marsal (A&M) reveals the UAE's ten largest listed banks collectively saw net income surge to Dh22.2 billion - an impressive 8.4% increase compared to the previous quarter. This stellar performance was driven by a remarkable 59.3% reduction in impairment charges a
UAE Banks Shine in Q1 2026: Record Profits Amid Global Economic Headwinds