As COVID-19 continues to spread, with new active cases being reported on an almost daily basis, the current status quo in the United Arab Emirates (the “UAE”) is governed by state measures imposing quarantines, sanitary cordons and social distancing restrictions in an attempt to stop, or at least control, the effects of the COVID-19 outbreak.

Dubai Courts decided to resume its hearings remotely in the three litigation degrees, the courts of first instance, appeal and cassation. Dubai Courts confirms that this decision constitutes a broad step to facilitate and expedite the litigation process, and to coronate a package of pioneering accomplishments achieved by the litigation department in a short period.

Since its declaration by the World Health Organization as a pandemic, COVID-19 has impacted many companies and states across the globe, causing them tremendous financial and economic damage. Although the implications of the outbreak vary from one sector to another around the world, it has imposed a new reality that many companies and countries are still trying hard to cope with.

Businesses with existing and prospective claims may find themselves in a precarious situation in the wake of Covid-19. On the one hand, there may be a pressing need to pursue a claim to recover what is due to them. On the other, cash flow constraints may force them to wait until business recovers before initiating any legal action. To make the situation more difficult, businesses in the UAE are often reluctant to commit cash to pursue legal action due to the misconception that proceedings before the local courts are long and drawn-out, despite the UAE’s multiple initiatives to streamline the dispute resolution process.

The world is currently navigating unprecedented events with the seismic impact of COVID-19 being felt across industries and businesses. Whilst scal stimulus has been introduced around the world to support business leaders to maintain continuity, there will be circumstances when contractual obligations will be reviewed in order to streamline and exit obligations which cannot be fullled or may impend the operation of a business. In such circumstances, leaders turn to ‘force majeure’.

Amidst the COVID-19 pandemic, courts, including arbitral tribunals, have been forced to quickly adapt to the current status quo governed by state measures imposing quarantines, sanitary cordons, and social distancing with the aim to stop, or at least mitigate, the effects of the pandemic.

Supply chain at any time has risk exposure at a macro-level, which may, inter alia arise out of disruption in manufacturing, logistics, commodity price fluctuation, exchange rates and geo-political tensions. However, the COVID-19 pandemic has added an unprecedented level of disruption and complexity at the local, regional and global level. United Arab Emirates (“UAE”) is no exception and has been directly impacted upon by the disruption in the supply chain. The effects are being felt both with government entities and private companies. At Galadari, we have seen a significant rise in queries pertaining to renegotiation and/or termination of long-term supply contracts. Further we have received queries pertaining to one-time supply contracts for essential commodities, such as, personal protective equipment and pharmaceuticals for COVID-19 treatment support.

It is fair to say that, currently, most businesses are focused on sustaining operations rather than contemplating the risks of being unable to carry out their contractual obligations. However, it is essential for businesses to begin assessing such obligations affected by Covid-19 and evaluating how to manage the actual and potential legal implications which may follow.

COVID-19 has brought the world to a standstill and directly impacted every possible sphere of activity. Needless to say, businesses within every sector will be posed with challenges during this period and beyond. Legal risk management, business continuity and debt recovery are what boards will be well advised to consider as an ongoing strategy. This briefing will deal specifically with debt recovery in United Arab Emirates (“UAE”) during the pandemic and key considerations for clients who wish to initiate debt recovery action in these testing times.

As businesses adapt to social distancing measures to curb the spread of Covid-19, it is important that they explore the possibility of legally executing documents using an e-signature.

In the midst of the global COVID-19 pandemic varies advisories and protocols have been issued to contain further spread of the virus, including the closure of ports and borders. Social distancing and quarantining have become the norm and the way businesses are being run is undergoing a radical transformation.

On April 11, 2020 the UAE Government took additional steps to protect local businesses and continue attracting foreign investments by announcing the reduction of ministerial fees across 94 federal services provided to individuals, companies and the business sector as part of efforts to mitigate the impact of the Covid-19 pandemic. The most encouraging news is that although these reductions were driven by the pandemic, the reductions are in fact a permanent relief being offered by the Government.

According to the World Bank’s 2020 Ease of Doing Business rankings the UAE ranks 16th, ahead of several advanced economies such as France at 32, but behind economies such as the UK at 9 and the USA at 6. That said, the UAE's high ranking does not translate to a straight forward jurisdiction to resolve insolvency as it is currently placed at 80; significantly behind the UK at 14, USA at 2 and France at 26.

The full nature and extent of the Covid 19 pandemic is as yet unknown and, beyond pure speculation, indeterminable. What is certain however is that the consequences will be far reaching, likely to endure for some time, and that change is inevitable.

The global pandemic which we are experiencing in the form of COVID19 is both unprecedented and disruptive to communities and economies. The longer-term effects are yet unknow, with organisations navigating the period ahead with resilience. Whilst the local authorities across the UAE have enforced preventive measures to contain the impact of the virus, several industries will have implications, least of all Construction.

The current pandemic, COVID-19 is the greatest challenge which the global economy has experienced since the 2008 Financial crisis, disrupting people, trade and business. To enable societies to move forward, whilst protecting the wider community, Government bodies around the world have introduced several stimulus packages to support the economy, whilst reducing the impact.