Jeddah, 27 March 2016
Dentons led the discussion on FIDIC contracts at the recent Big 5 Saudi Arabia conference. Now the largest event of its kind in the Kingdom, the Big 5 attracts more than 1200 construction industry specialists to Jeddah.
Despite challenging market conditions across the region, the Kingdom's US$ 732 billion construction industry is projected to remain strong as the government continues to roll out major infrastructure development programmes. The adoption of FIDIC-based agreements for government-led projects, such as the Haramain Rail and the Mecca Metro projects, has been a welcome development for international players.
Providing insights into the interaction between FIDIC and local law in Saudi Arabia, Dentons partner and Head of Construction in the Middle East, Andrew Jones, said "Adopting a localised version of the FIDIC contracts will encourage parties to review and negotiate the terms. It should provide contractors with more comfort regarding their contractual rights and their risk profile." However Jones also noted that specific amendments will be required to ensure contract terms comply with Saudi Arabian law.
Agreeing with Jones, Dentons Jeddah-based partner Anas Akel added "There will be certain provisions in local law, as well as local norms, that signing up to a FIDIC contract will not be able to overcome." However both agree that the increased adoption of FIDIC-based agreements has helped to allay contractors historical concerns regarding unfavourable terms for major projects.
Major infrastructure projects, such as the planned metro works and health facilities investment, help to deliver a certain amount of economic diversification which is a key driver for Saudi Arabia.
-Ends-
For further information, please contact:
Muireann Kelleher
Head of Business Development & Marketing - Middle East
+971 4 402 0870
muireann.kelleher@dentons.com
Eugenie Misheal
Senior Business Development & Marketing Manager
+971 4 402 0871
eugenie.misheal@dentons.com
About Dentons
Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.
© Press Release 2016
