ASSESSING THE LEGAL RAMIFICATIONS OF THE COVID-19 PANDEMIC ON ADMINISTRATIVE CONTRACTS IN THE UNITED ARAB EMIRATES: COMPARATIVE REVIEW

Abstract

Background:
This study aims to establish whether COVID-19 qualified as a force majeure event or exceptional circumstance according to the laws of the United Arab Emirates (UAE)

and assess if a particular principle can circumvent contractual duties. It investigates how COVID-19 impacted administrative contracts in the UAE, using UAE laws and case studies to explore legal theories that justify failure to perform an obligation in such contracts.

The UAE, like many other countries, faced an unpredictable event and utilised all its resources and manpower to combat the danger and ensure the safety of its people. This resulted in various restrictions, such as mandatory quarantine for everyone entering the UAE and limitations on travel outside the country. Additionally, certain Emirates within the UAE, such as Abu Dhabi, imposed entry restrictions, requiring a negative COVID-19 test result for entry and later mandating that only vaccinated individuals were permitted to enter. Additionally, the study explores the necessary criteria for demonstrating force majeure or exceptional circumstances in said contracts. This study used an analytical approach to examine laws and court decisions. Based on the findings, the outbreak of COVID-19 did not directly

impact administrative contracts in the UAE. This is likely due to the authorities’ effective handling of the situation. Notably, the theories of force majeure and exceptional circumstances could not be automatically and generally applied to all contracts because each contract was unique and required individual considerations. The study presents potential theoretical and practical applications, highlighting opportunities for future research.

The study aims to determine which legal theory, if any, could be applied to COVID-19 - either force majeure or exceptional circumstances. Additionally, it examines whether the UAE government would impose any restrictions on movement and work in anticipation of any future pandemics, taking into account the country's recent years policies, laws, and crisis preparation measures.

Methods:
This study uses an analytical approach to examine the main theories outlined in

the UAE Civil Transaction Law No.30 of 2020 relating to force majeure and exceptional

circumstances. These theories could provide relief from contractual obligations if certain

criteria are met. The study examines whether COVID-19 qualified for one, both, or none of

these theories to relieve the contractor in an administrative contract from their obligations

due to the consequences of the pandemic. The study also includes laws and cases from the

European Union and the Court of Justice of the European Union, providing a comparative

analysis. The purpose is to compare the legal systems of the UAE and the EU, focusing on

administrative contracts and decisions made during the COVID-19 pandemic. The study

analyses the progress in dealing with the COVID-19 pandemic and the recent federal human

resource law amendment. This analysis primarily focuses on UAE laws and cases, utilising a

variety of primary sources and secondary resources such as research articles and books.

Results and conclusions:
The study demonstrated that COVID-19 significantly impacted

administrative contracts and decisions globally, particularly in the UAE. However, legal

theory can justify deviations from regular protocols due to unforeseeable circumstances.

The study aimed to explain these theories with the help of case studies, serving as a guide

for future similar events. After careful examination, the study concluded that neither the

force majeure theory nor the exceptional circumstances theory applies to all cases. Due to

each contract's varying rules and obligations, the court must evaluate each case to

determine which theory is applicable, if any.

However, the study recommended establishing well-defined policies to guide individuals and

agencies in the future on how to act accordingly without affecting the essence of the

administrative contract and to provide temporary relief that allows the obligator to perform

their duty. The study suggested that the UAE might not permit force majeure or exceptional

circumstances claims in future pandemics due to the advanced progress, new laws, and

policies that impressively address the situation.

The study also explored the new federal human resource law, enforced in 2022, governing

public employees and the provisions that make remote work an option during emergencies.

The fast adaptation to these circumstances indicated increasing legal flexibility, potentially

reducing reliance on legal theories for relief from contractual obligations in the future.

It is important to note that the force majeure or exceptional circumstances doctrine may not

always apply to contracts performed during a pandemic or future events similar to COVID-

19. No official statement from the court or state has clarified the applicability of these doctrines

universally or to specific ones. This indicates that to determine whether a relief from a duty can

be considered as falling under these theories, the court must examine it thoroughly and decide

definitively. Each case was handled individually to ensure no one was unfairly enriched. This

approach will undoubtedly be adopted in the future.

To prevent disputes and ensure prompt resolutions, it is imperative to thoroughly analyse all

legal options and establish the applicable theory to meet the contract's completion deadline.

Doing so can prevent any possible disputes and guarantee a prompt resolution. This is especially

critical in administrative contracts involving employee or contractor rights, especially those

who have signed an administrative contract with the government, as timely resolution impacts

public service and interests. Delaying such resolutions could hinder the development cycle of

administrative agencies.