Article by Omnia Gadallah – Associate and Sherine
Mohamed Salah – Junior Associate
The COVID-19 outbreak has introduced global disruptions and
instability affecting all aspects of life and business. The impact
on commerce has been considerable, which in turn has led to
disputes, many of which are settled through arbitration. This
article considers whether COVID-19 qualifies as a force majeure
event, its impact on arbitral proceedings, and the way in which
arbitration as a dispute resolution institution has adapted.
The COVID-19 disease
COVID-19 is a novel coronavirus that was first reported in China1, in
Wuhan district precisely, on December 31, 2019. Given that the WHO
defines pandemics as "the worldwide spread of a new disease
that affects large numbers of people", on the March 11, 2020
the World Health Organization ("WHO"),
officially declared COVID-19 as a pandemic due to its rapid
spread.2