GC Roundtable: Business as usual? Middle East

With a fall in commodity prices prompting fiscal pressures for businesses around the globe, it comes as no surprise that companies in the oil-rich Middle East are feeling the financial pinch. While a number of those in attendance were bullish about medium- term prospects, with factors like the lifting of sanctions and opening up of Iran to trade cited as reasons for optimism, the short-term was undoubtedly a more challenging time with cost pressures a topical issue, irrespective of sector.

These challenges are forcing in-house legal departments to find ways to generate new efficiencies and do more with less – leading to increased pressures on staffing and human resourcing functions. Somewhat of an unintended consequence of cost-cutting measures is a noticeable drop in arbitrating commercial disputes, with adjudication instead on the rise to minimise the time, due diligence and subsequently cost required to resolve these issues.

One topic which prompted robust debate was around the use of force majeure to protect companies from unforeseen circumstances. It was evident from the discussions that GCs in the region are having to get creative in order to insulate against the testing scenarios which have arisen, or could arise in the future – with war stories serving as lessons for others in attendance.