Qatar & Dubai Face Risk Of Construction Disputes

The upcoming 2022 FIFA World Cup in Qatar and Expo 2020 in Dubai, UAE, will see an unparalleled number of visitors to the GCC region.

A number of sizeable infrastructure projects and associated developments have been earmarked to showcase the region and provide for this influx. Large-scale projects, coupled with short timeframes for completion, understandably carry with them the risk of construction disputes. Against this backdrop, it is key to examine the regional outlook for disputes in Qatar and Dubai leading up to these events, and focus on those ways to manage the risk of disputes.

The award of the 2022 FIFA World Cup has fuelled an enormous amount of investment and construction in Qatar. Additionally, large infrastructure projects like the Inner Doha Re-sewerage Implementation Strategy (IDRIS), Doha Metro, the orbital expressways, and New Doha Port are taking shape, in line with the requirements of Qatar National Vision 2030. With some projects nearing completion and others approaching their deadlines, we expect a steady increase in construction disputes. Resolution through the local courts will remain popular, but we see an increasing trend towards resolution through arbitration.

World Expos have a legacy of transformative developments and iconic architectural achievements. A number of the UAE's infrastructure developments will coincide with Expo 2020, including Trade Centre Jebel Ali, Al Maktoum International Airport expansion, and the Dubai Creek expansion project. Care will need to be taken to actively plan and manage project delivery. Without it, we would expect the following types of dispute to arise:

Scope variations - particularly in respect to design obligations, where important decisions are deferred and responsibility for obtaining approvals impacts project delivery; Acceleration - given the 'hard' deadlines likely to be associated with projects, we see acceleration of works being a point of contention...