In the context of Iran‑linked hostilities and the force majeure declarations by Iraq and Qatar on oil‑supply contracts to the EU, contractors increasingly face a crucial question: is the disruption force majeure or hardship? The answer has a direct impact on whether you can stop performance, claim an extension of time, or simply request a price adjustment.

With the escalation of hostilities involving Iran and its regional impact, contractors are increasingly asking whether war or armed conflict can be treated as a force majeure event in their Saudi‑law contracts. The answer is yes—but only if strict legal conditions are met.

Many international contracts incorporate the ICC Force Majeure and Hardship Clause (2020 / 2023), either by reference or by adaptation or contain a force majeure clause which is drafted on the basis of the ICC Clause.

In the context of Iran war and the force majeure declarations by Iraq and Qatar on oil‑supply contracts with EU countries, understanding this clause is critical for contractors and employers alike.

Amongst its main purposes, Saudi Tender Law aims at promoting ’integrity and competitiveness, maintain equality, ensure fair treatment of bidders, in fulfilment of the principle of equal opportunity.’

Are you a foreign contractor considering participating in government tenders in Saudi Arabia?

Engaging in public procurement in the Kingdom of Saudi Arabia offers a wealth of opportunities, but it also comes with specific regulatory requirements that you need to be aware of. Navigating the legal framework effectively can be the key to getting government contracts.