Oil and Gas Industry in UAE Facing the Wrath Of Coronavirus

business

|

September 03, 2020

|

492 views


| Your comment matters, please click here to rate article!



Oil and Gas sector in UAE holds the biggest share in the economy and without a doubt this sector has been majorly impacted by the global pandemic. The activities in oil and gas sector were somewhat curtailed by the government which has caused severe financial losses to companies working in oil and gas sectors within the country.

Nonetheless, the Commercial Lawyers of Dubai has witnessed several measures taken by the government and thoughts shared by Best lawyers of Dubai for companies in oil and gas industry to face the global pandemic. The current time of uncertainty in the pandemic, the government has restricted some activities such as international borders and suspension of labor visas which has a direct impact on the sector.

Having said that, closure of international borders for export and import has certainly caused trouble for many countries, however, restarting the borders again certainly sounds a good action taken by the government, yet the employees shall follow proper rules and regulations of health and hygiene to prevent the virus to spread further.

In addition, the suspension of labor visa or restrictions of employees stranded in other countries will have an impact as some part of construction or oil and gas industry cannot be done by working from home. Therefore, shortage of employees at work is causing ruckus amongst employers.

In line with the above, it is more likely that oil and gas sector will struggle from the creditors and the investors in this market. Considering the current situation, many investors will rethink before investing in oil and gas or construction sector due to its volatile nature in the present economy and also bearing in mind the recent decrease in the oil prices. In addition, the restrictions in the labor and supply chain industry will certainly increase the delays in meeting the deadlines or finishing up the projects. This is indeed will prevent the investors to invest in this market as it tends to increase the risk in market.

Another significant aspect to be considered is the review of special provisions of the commercial contracts such as force majeure clauses allowing the parties to consider impact of corona virus as an excuse to terminate the contract partially or completely. However, the usage of force majeure clause majorly depends on its draft and the circumstances of each case. Additionally, the law governing the contract will significantly impact the utilization of force majeure clause.

The downfall of oil and gas sector during the COVID-19 situation has caused delay in government agendas and plans which were supposed to be cleared in 2020. The pandemic has caused serious financial losses to uncountable industries and subsequently forced the government to intervene in the commercial market to save such businesses by issuing relevant measures.

It is significant for all companies to regularly review the shift of virus and its impact, more importantly the government measures for proper functioning in the economy or you may approach Best Lawyers in Abu Dhabi to assist you in all commercial matters.

Related Links


Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.


Client Testimonials

I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.

Raphael Lauria
Manager, FME General Trading

Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.

Zhuo Liu
Client

...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...

H.H. Sheikh Saeed Bin
Mohammed Hashir Al Maktoum

I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.

Luis Pozueco
Client

Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.

Bassam Yamout
Director, JM Metal Trading LCC

He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.

Philippe Delbecq
Client

Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.

British Client

Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.

Asma Mattar
Manager, Italian Style

Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.

Dr. Massimo Hakim
Chairman, Italian Style

I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.

Manish Gupta
Marketing Manager, Express Digital System

Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.

James Horsley
British Client

Comments

No comments found.

Leave a Comment

Your email address will not be published. Required fields are marked *

Want to know more?
Then talk to us.


Select your Language:

        

Main Menu

Zoom