Majid Al Futtaim Tells Some Dubai Buyers It Is Invoking Force Majeure but Says Delivery Schedules Unchanged

Majid Al Futtaim has told some buyers in parts of the Tilal Al Ghaf development in Dubai that it is invoking force majeure clauses in sales contracts, citing disruptions caused by the Iran war that began Feb. 28. The company and its suppliers have faced difficulties securing construction materials and higher shipping costs after trade flows were rerouted, according to people familiar with the matter.

Kuwait National Petroleum Co. and QatarEnergy declared force majeure in March because they could not move oil and gas through the Strait of Hormuz. Majid Al Futtaim owns some of the region’s largest malls and most luxurious property projects.

Tilal Al Ghaf includes mansions priced above $15 million and smaller units often bought by investors for rental income. Dubai’s property market has ranked among the world’s strongest in recent years, leading global sales of homes above $10 million, according to Knight Frank.

Regional building materials costs have risen roughly 25 percent since September, driven by higher prices for aluminum, bitumen, copper, and nickel, Stonehaven estimates.

Majid Al Futtaim issued a statement saying construction across Tilal Al Ghaf continues to progress in line with the established project schedule and the terms of the Sale and Purchase Agreements. The company added that customers were informed of broader regional conditions affecting the construction industry, including pressures on logistics and material supply chains, and that these updates are standard procedural notifications under the SPA that do not indicate a change to delivery timelines.

Majid Al Futtaim stated it is working with contractors, consultants, and suppliers to monitor developments and mitigate potential impacts, with its priority being the timely and high-quality delivery of homes for customers.