Ongoing disruption to the Strait of Hormuz is having a direct impact on construction and real estate markets across the Middle East.

As one of the world’s most critical trade routes, restrictions to maritime traffic are driving supply chain delays, increased transportation costs and heightened programme uncertainty. This is creating significant pressure on project delivery, contractor margins and overall project viability.

This whitepaper explores the contractual and commercial implications of this disruption, with a focus on how risk is allocated across different contract structures, including amended FIDIC and bespoke agreements. It also examines the distinction between force majeure events and commercial risks under both contractual frameworks and UAE law.

The paper highlights that entitlement is increasingly dependent on compliance with contractual processes, including timely notice, clear causation and robust substantiation of claims.

In response, stakeholders are adopting more collaborative and commercial approaches, including cost-sharing mechanisms, revised procurement strategies and early supply chain engagement.

Download the full whitepaper to understand how to navigate contractual risk in the current environment.