Insights
Coronavirus: the impact of businesses in the GCC
Mar 16, 2020Summary
When China confirmed the first cases of Coronavirus, most GCC countries, including the UAE, restricted direct travel to and from China (with the exception of Beijing). In just a few months, the virus has a name - Covid-19- and over 110 countries have recorded cases, including most countries in the Middle East with Iran probably the worst hit in the region.
As the virus has spread and reported cases increase so too have the region’s travel restrictions. On Monday, Saudi Arabia introduced travel bans from five new countries increasing the total number of travel bans to 14 countries. The UAE Ministry of Health has advised all citizens and residents to avoid travelling abroad unless absolutely necessary or risk being home-quarantined on return to the UAE.
Many businesses based in the GCC have been effected by COVID-19 whether by reason of supply chains from severely hit countries, such as China or Italy, having been cut off or due to key members of staff being unable to travel to the GCC. In some cases, the restrictions on transporting people and goods have caused business to fail to fulfil orders or meet deadlines. Whether those business are excused from liability for failing to comply with their contractual obligations boils down to three main factors: the governing law of the contractual arrangements; the terms of the contract; and the real cause of prevention…
The full article was first published in Arabian Business and is available to read here.
Related Practice Areas
-
Business & Commercial Disputes
-
Corporate
-
Finance
-
Employment & Labor
