Advertisement

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

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 Watch AD
Unlock More

Advertisement

Advertisement

line Recommend Recommend
The Challenge of Transitioning from Fossil Fuels: Insights Post-COP28
The Challenge of Transitioning from Fossil Fuels: Insights Post-COP28
UAE Educators Push for Stronger School-University Ties Amid Updated Study Abroad Policies
UAE Educators Push for Stronger School-University Ties Amid Updated Study Abroad Policies
Education leaders across the UAE are advocating for deeper collaboration between schools and universities following the nation's recent overhaul of international study regulations.
Dubai Job Offer Requires Police Clearance? Here's What You Need to Know
Dubai Job Offer Requires Police Clearance? Here's What You Need to Know
Question: I've received an exciting job offer from a Dubai company, but they mentioned I might need to provide a police clearance certificate. Is this standard practice in the UAE? What exactly does this certificate check, and how do I obtain one?
Premier League: Arsenal get title boost as Man City and Villa both drop points
Premier League: Arsenal get title boost as Man City and Villa both drop points
Arsenal's Premier League title prospects were enhanced without them even kicking a ball on Wednesday as their closest challengers Manchester City and Aston Villa both dropped points.Erling Haaland scored his 150th goal for City as he put them in front against Brighton and Hove Albion from the penalty spot but Kaoru Mitoma equalised for the visitors on the hour with the game finishing 1-1.It was the third successive draw for stuttering City who were held by Sunderland on New Year's Day and by Che
UAE Drivers Alert: Major Road Closures This Sunday - Plan Your Route Now!
UAE Drivers Alert: Major Road Closures This Sunday - Plan Your Route Now!
Attention all UAE motorists! The Roads and Transport Authority (RTA) has issued an important travel advisory for this Sunday, June 15, as essential maintenance works will temporarily disrupt traffic flow on two key highways. Commuters heading towards Sharjah and using Sheikh Mohammed bin Zayed Road should prepare for possible delays.
HIMA Group: Pioneering the Digital Revolution in Industrial Safety
HIMA Group: Pioneering the Digital Revolution in Industrial Safety
Explore how HIMA Group is transforming risk management through digital safety innovations that boost efficiency while protecting what matters most #SafetyInnovation
Amazon Acquires Globalstar to Enhance Satellite Internet Network
Amazon Acquires Globalstar to Enhance Satellite Internet Network
Amazon announced on Tuesday that it has reached an agreement to purchase the US telecommunications satellite company Globalstar, aiming to expand its space-based internet infrastructure and compete with Elon Musk's Starlink.
Steady Remittances from the UAE in Q1 2026 Amid Currency Fluctuations
Steady Remittances from the UAE in Q1 2026 Amid Currency Fluctuations
Remittances from the UAE have remained largely steady in the first quarter of 2026, with a slight increase to some countries due to favourable exchange rates, according to leading UAE currency exchange companies.
APM Monaco Launches Lilac-Inspired Collection Printemps for Spring
APM Monaco Launches Lilac-Inspired Collection Printemps for Spring
Published: Tue 14 Apr 2026, 2:32 PM
Asian Currencies Rally as Dollar Slumps Amid Fed Uncertainty
Asian Currencies Rally as Dollar Slumps Amid Fed Uncertainty
Asian currencies surged on Monday, with the Indian rupee leading gains, as the US dollar extended its decline following controversial remarks by former President Donald Trump about Federal Reserve leadership. The rupee climbed to an early high of 85.0525 (Dh23.1750) before settling at 85.1125 (Dh23.1914), marking a healthy 0.3% daily gain against the weakening greenback. Trading floors buzzed with speculation about potential Reserve Bank of India intervention, though market participants noted s
Why Crypto Investing Feels Like Walking on Eggshells – And How to Survive It
Why Crypto Investing Feels Like Walking on Eggshells – And How to Survive It
Investing in cryptocurrency should be exciting, but for many of us, it's more like navigating a minefield blindfolded. No matter how much I learn, the process never feels simple or secure. After years of sticking to major exchanges, I finally dipped my toes into decentralized platforms—only to realize I was completely out of my depth. Every transaction leaves me second-guessing myself, acutely aware that one wrong move could mean irreversible losses with no customer service hotline to call. The
UAE Airlines Expand Global Connectivity Amid Ceasefire
UAE Airlines Expand Global Connectivity Amid Ceasefire
BIS Calls for Global Cooperation on Stablecoin Regulation
BIS Calls for Global Cooperation on Stablecoin Regulation
Surge in Demand for Hybrid and Electric Vehicles in the UAE Amid Rising Fuel Prices
Surge in Demand for Hybrid and Electric Vehicles in the UAE Amid Rising Fuel Prices
RAKBank Achieves Record Quarterly Profit in Q1 2026
RAKBank Achieves Record Quarterly Profit in Q1 2026
RAKBank announced on Monday its strongest quarterly performance ever in the first three months of 2026, reporting a profit after tax of Dh1 billion, a 43 percent increase year-on-year, driven by growth in its balance sheet, expanding margins, and a one-time gain from an asset sale.
From Rhinestones to Rodeo: How Concert Fashion Became My Ultimate Fan Experience
From Rhinestones to Rodeo: How Concert Fashion Became My Ultimate Fan Experience
Over the past year, my concert memories sparkle brighter than stage lights – not just from the performances, but from the showstopping outfits I've crafted to honor my musical heroes. Picture this: me twirling in a bedazzled replica of Taylor Swift's Lover bodysuit, rocking combat jeans like Green Day's Billie Joe Armstrong, or channeling Gwen Stefani's tartan corset glory. Even Coldplay inspired a lilac crystal-covered top that shimmered like their A Sky Full of Stars. Forget basic band tees – when I queue for hours on Ticketmaster, I'm planning an ensemble worthy of the main act.
Axelsen retires: How Dubai helped him become Olympic champion
Axelsen retires: How Dubai helped him become Olympic champion
There is a special reason why Viktor Axelsen always credited Dubai for his incredible success at the highest level.
Suzuki Swift Production Halt Linked to China's Rare Earth Export Restrictions
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.
India Tightens Overseas Remittance Rules to Curb Passive Wealth Shifting
India Tightens Overseas Remittance Rules to Curb Passive Wealth Shifting
India's central bank is set to introduce stricter controls on foreign remittances by resident Indians, including a ban on holding fixed-term foreign currency deposits abroad, according to two government officials familiar with the matter. The Reserve Bank of India (RBI) will revise existing regulations to close loopholes that currently allow individuals to transfer money overseas for parking in time deposits or interest-bearing accounts, one official revealed. "This practice essentially enables
Warner Bros bidding war and red hot M&A market has dealmakers working through holidays
Warner Bros bidding war and red hot M&A market has dealmakers working through holidays
A flurry of multi-billion-dollar deals has bankers and advisers from Wall Street to Canary Wharf packing laptops next to presents and warning family and friends their holiday vacations over the next two weeks will be cut short. There have been $463.6 billion in mergers and acquisitions announced this month, 30% more than last year, including Trump Media Technology Group's $6 billion merger with nuclear fusion firm TAE Technologies, IBM's $11 billion purchase of data infrastructure company Confl