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1 month ago | 
pinsentmasons.com | Mark Raymont |Melissa McLaren |Alasdair Weir |Aleesha Way
However, the treatment of legacy DIFC-LCIA arbitration agreements remains an area of legal debate, particularly in jurisdictions outside the UAE. While some international courts initially questioned their enforceability, recent rulings – including a reversal by the US Court of Appeals for the Fifth Circuit – suggest growing recognition of the continued validity of DIFC-LCIA clauses, even after the “abolition” of the DIFC-LCIA Arbitration Centre under Decree No. 34 of 2021.
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Oct 29, 2024 | 
pinsentmasons.com | Mark Raymont |Melissa McLaren |Alastair Dale |Aleesha Way
The landscape of arbitration in the UAE experienced significant change following the issuance of Dubai Decree No. 34 of 2021, which abolished the DIFC-LCIA and directed that future arbitrations be administered by the Dubai International Arbitration Centre (DIAC). This shift has led to divergent views on the enforceability of existing DIFC-LCIA arbitration agreements, particularly between jurisdictions within the Middle East and those outside of it.
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Oct 25, 2024 | 
pinsentmasons.com | Mark Raymont |Melissa McLaren |Alasdair Weir |Aleesha Way
DIAC’s 2023 annual report showed an 11% jump in the number of arbitration cases administered by the centre in 2023, from 292 in 2022 to 323. The total number of cases registered also rose by 4.4%, from 340 to 355. The total value of the cases registered in 2023 exceeded AED 5.5 billion (£1.16bn). Construction and real estate cases continued to dominate its caseload last year, representing almost 60% of all DIAC administered cases.
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Mar 22, 2024 | 
pinsentmasons.com | Mark Raymont |Adam Cain |Alastair Dale |Aleesha Way
Consistent with other civil law codes in the region, article 114 of the Saudi Civil Code also specifically addresses the scenario where a party to the contract, rather than an ‘external’ event, is the source of the hindrance – providing the possibility for parties to suspend performance of an obligation where its counterparty refrains from performing its own “corresponding” obligation.
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Mar 14, 2024 | 
pinsentmasons.com | Mark Raymont |Pamela McDonald |Adam Cain |Aleesha Way
Global businesses are being attracted to invest in states such as the UAE, Saudi Arabia, and Qatar as those states accelerate their plans to diversify their economies, which have been built around oil and gas extraction and exports.
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Mar 13, 2024 | 
pinsentmasons.com | Mark Raymont |Adam Cain |Alastair Dale |Aleesha Way
Here, we look at when compensation is payable for both torts – i.e. harmful acts – and breaches of contract under the Civil Code, as well as the mechanism for compensation under both the general provisions of the Civil Code and those applicable to muqawala contracts. The basic rule for claims in tort, or ‘harmful acts’, is that any error that causes harm to others warrants payment of compensation from whoever commits the error.
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Feb 20, 2024 | 
pinsentmasons.com | Mark Raymont |Adam Cain |Alastair Dale |Aleesha Way
In an era marked by global shocks and unforeseen events, exposure to situations that defy traditional risk assessment remain a significant risk for construction industry participants. With its heightened dependence on international sources for labour, plant and materials, construction companies in Saudi Arabia are particularly susceptible to the challenges posed by unpredictable global dynamics.
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Feb 7, 2024 | 
pinsentmasons.com | Mark Raymont |Adam Cain |Alastair Dale |Aleesha Way
However, to avoid transgressing Sharia law principles prohibiting the recovery of interest, parties to construction contracts need to articulate the finance provisions of their contracts – and any claims they wish to bring under those clauses – very carefully. To understand more about what the law in Saudi Arabia provides for in this context, construction contractors should familiarise themselves with the Civil Transactions Law (Civil Code).
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Jan 25, 2024 | 
pinsentmasons.com | Mark Raymont |Adam Cain |Alastair Dale |Aleesha Way
Saudi Arabia's Civil Transactions Law (Civil Code) entered into force on 16 December 2023. In this article, we consider the potential consequences of provisions within the Civil Code requiring parties to contract in ‘good faith’. Construction tender processes are highly competitive, time consuming and costly for all involved, yet representations made, or omitted, during the process remain a major source of tension, potentially giving rise to delay, price overrun and disputes.
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Jan 12, 2024 | 
pinsentmasons.com | Mark Raymont |Adam Cain |Alastair Dale |Aleesha Way
Saudi Arabia enacted the Civil Transactions Law on 19 June 2023 by Royal Decree N191/1444 (the Civil Code). It entered into force on 16 December 2023 (the effective date). The Civil Code is a manifestation of Saudi Arabia’s broader Vision 2030 initiative aimed at modernising the Kingdom’s legal framework, attracting foreign investment, and fostering economic growth.
