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LocalLawQuirksofArabContractLaw

MohamedElGhatit30September2023IntroductionEgyptianCivilCodeisthesourceofthemajorityoflawsintheMiddleEast,andgiventheinfluenceofSharia'aonalltheArabstates,manylawsaresimilar.ItisimperativethatcompaniesdoingbusinessintheregionbecomeacquaintedwiththeuniquefeaturesofMiddleEastlawsandrules.2

WhatisSharia'aSourcesofSharia'aQu'ranSunnaIjmaQiyasPrinciplesofSharia'arelevanttocontractsSanctityofcontractThisisafundamentalprincipleofsharia'ainrelationtocontracts.Partiesshouldabidebytheiragreementandhonourtheircommitments.ActinginGoodFaithThoughunknowninmanylegalsystems,actingingoodfaithisproscribedinSharia'alaw.TheprohibitionofRibaKnowntomanyasinterest,howeverribatrulyengulfsonlyunjustifiedenrichmentortheincreaseofwealthwithouteffort.TheprohibitionofGhararUzhrandQuwatalQahiraItcorrespondstotheprincipleofForceMajeure.TounderstandlawsofMiddleEasterncountriesitisessentialtounderstandthebasicprinciplesofSharia'alaw.3

3. ThedevelopmentofContractLawunderSharia'aKindsofcontractBayHibaIjaraAriyaElementsofcontractFormationofacontractTheconsentandintentiontocontractThecapacityofthePartiestocontractObjectofthecontract4. FreedomofcontractingunderSharia'alawLicitactivitiesIIlicitactivities5. Sharia'aandtheArabCivilCodeoftheMiddleEastSharia'alawmirroredinlawsintheMiddleEast.FormationofacontractUAElawEgyptlawTounderstandlawsofMiddleEasterncountriesitisessentialtounderstandthebasicprinciplesofSharia'alaw.4ConstructionlawintheMiddleEastanditsQuirksDecennialliabilitystrictliabilitybywhichcontractorisresponsibleforrectifyinganytotalorpartialcollapseofthebuildingfortenyearsfollowingcompletion.UAElaw[CivilCode]Article880-883Qatarlaw[CivilCode]Article711-715Iraqilaw[CivilCode]870-872KuwaitilawArticle692-697LiquidateddamagesEnforceabilityofLD'sunderCivillaw.Judge'sdiscretiontoreducedamagestoreflectactuallosssuffered.EgyptianlawUAElawQatarilawIraqilawKuwaitilaw5ConstructionlawintheMiddleEastanditsQuirksCancellationofacontractotherthanbythecourtsorbymutualconsentTerminationofcontractcanonlybehadbymutualconsentofcourtdeclarationEgyptianlawUAElawQatarilawKuwaitilawLimitationofliabilityDifferentpositionindifferentjurisdictions.6FinalPointDisputeResolutionADRbecomefavourableforattractingforeigninvestorsNewYorkConventionInvestmentTreatiesMiddleEastArbitrationCentresCairoRegionalCentreDubaiInternationalArbitrationCentreBahrainArbitrationCentre7HoganLovellshasofficesin:Abu

DhabiAlicanteAmsterdamBaltimoreBeijingBerlinBoulderBrusselsBudapest*CaracasChicagoColorado

SpringsDenverDubaiDusseldorfFrankfurtHamburgHanoiHo

Chi

Minh

CityHong

KongHoustonJeddah*LondonLos

AngelesMadridMiamiMilanMoscowMunichNew

YorkNorthernVirginiaParisPhiladelphiaPragueRiyadh*RomeSan

FranciscoShanghaiSilicon

ValleySingaporeTokyoWarsawWashington

DCZagreb*"HoganLovells"orthe"firm"referstotheinternationallegalpracticecomprisingHoganLovellsInternationalLLP,HoganLovellsUS

LLP,HoganLovellsWorldwideGroup(a

SwissVerein),andtheiraffiliatedbusinesses,eachofwhichisaseparatelegalentity.HoganLovellsInternationalLLPisalimitedliabilitypartnershipregisteredinEnglandandWaleswithregisterednumberOC323639.Registeredofficeandprincipalplaceofbusiness:AtlanticHouse,HolbornViaduct,LondonEC1A

2FG.HoganLovellsUS

LLPisalimitedliabilitypartnershipregisteredintheDistrictofColumbia.Theword"partner"isusedtorefertoamemberofHoganLovellsInternationalLLPorapartnerofHoganLovellsUS

LLP,oranemployeeorconsultantwithequivalentstandingandqualifications,andtoapartner,member,employeeorconsultantinanyoftheiraffiliatedbusinesseswhohasequivalentstanding.RankingsandquotesfromlegaldirectoriesandothersourcesmayrefertotheformerfirmsofHogan&HartsonLLPandLovellsLLP.Wh

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