14 Feb 2024
Claudia El Hage and Maryline Zgheib explores the alternative dispute resolution (ADR) landscape in the peninsula of Qatar.
Qatar is a civil law jurisdiction that relies on enacted laws (such as the Civil and Commercial Codes), which are supplemented, in the absence of express provisions, by Sharia principles. Court of Cassation Judgments are intended to serve as guiding principles for lower courts. In 2015, Qatar established the Qatar Financial Center to invite businesses, from start-ups to large corporations, to benefit from flexible legal and regulatory services, regulated and non-regulated, that meet international best practice and are based on common law.
Qatar's National Vision 2030 entails a substantial $200 billion investment in transport, energy, healthcare, and education infrastructure by 2030. Key initiatives include QatarEnergy and Ashghal the Public Works Authority's collaboration for LNG (liquified natural gas) carbon footprint reduction, the expansion of the North Field East project, and Ashghal's 2023 plan for construction projects. The Transportation Master Plan for Qatar 2050 focuses on integrating transportation networks with land use, urban development, and population growth.
Consequently, a surge of new or amended laws were introduced, the most notable of which are listed below.
Emiri Decision No 28 of 2023 Establishing the General Authority for Regulating the Real Estate Sector
Qatar established a new public authority with the aim of reforming its real estate sector. Key objectives include launching a phased real estate platform, encouraging investment, issuing licenses, supervising activities, and protecting property transactions. The establishment of the new Real Estate Public Authority is expected to lead to a more organised and transparent market providing, in particular, better information on investments to enable investors to make informed decisions.
Qatari Judicial Authority Law No. 8/2023
In May 2023, Qatar issued the new Judicial Authority Law No.8/2023, replacing the previous Law No. 10/2003. This change acknowledges the need for development and reform within the judicial system, addressing weaknesses identified over the past two decades. The aim is to enhance guarantees and incentives for magistrates and advance the judicial system towards desired perfection.
The new law establishes the "General Authority of the Court" within the Court of Cassation, tasked with adjudicating jurisdictional conflicts, approving and unifying legal principles, and addressing matters referred by the Supreme Judicial Council. It also permits electronic judicial procedures, including trials and witness hearings, following specified guidelines set by the Council.
Law No. 3/2023 on combat of illegal practices
The "Anti-Concealment Law,” No. 3 of 2023, enacted on 11 April 2023, replaces the prior Law No. 25 of 2004. This legislation tightens restrictions on illegal practices in business activities by non-Qataris. It explicitly defines concealment crimes, prohibiting unauthorised commercial, economic, or professional activities. For this purpose, an Anti-Concealment Committee was established to receive reports, collaborate with authorities and enforce the law; which specifically requires financial institutions to report suspicious transactions related to concealment to the Central Bank of Qatar. It introduces harsher penalties, including imprisonment, fines, deportation of non-Qatari shareholders and provides immunity, emphasising transparency and accountability in Qatar's commercial landscape.
Law No. 1/2023 on Documentation
This Law focuses on developing and fortifying the legal framework within the justice system and public services, specifically in documentation and certification. This legislation introduces the designation of a 'notary public' for the first time. Notaries are now required to take an oath before the Minister of Justice prior to commencing their duties, and the law prohibits combining their role with any conflicting work, emphasising the importance of their dedicated responsibilities.
Free Zones
In September 2021, amendments to the Free Zone Law and Qatar Financial Center Law were implemented. They expand the jurisdiction of the Qatar International Court and Dispute Resolution Center (QICDRC) to include the Qatar Free Zones, its authorities and companies established thereunder.
These amendments provide access to a specialised court for resolving civil and commercial disputes within the Free Zones and offer a more streamlined and efficient dispute resolution mechanism for companies operating in them. This is particularly beneficial for companies involved in large-scale infrastructure projects, as it provides them with a dedicated forum for resolving disputes that may arise during the construction process.
Furthermore, the Practice Direction No. 1/2022 on Small Claims issued by the QICDRC has introduced a faster and more simplified procedure for handling small claims, which can be particularly relevant in disputes involving relatively lower amounts.
Law No. 21/2021 Establishing the Investment and Commerce Court
This law has established the first specialised commercial court in Qatar, introducing shorter deadlines across various stages, including the exchange of memos, rendering judgments, challenging decisions and enforcing them. Particularly noteworthy is the possibility of the immediate enforcement of the First Instance Court judgments and the issuance of travel bans on a company’s authorised signatories even before the judgment is subject to appeal, expediting the legal process.
Law No. 20/2021 on Mediation for the Settlement of Civil and Commercial Disputes
Qatar ratified the Singapore Mediation Convention in March 2020, facilitating the direct enforcement of cross-border settlement agreements resulting from mediation. The Mediation Law encourages the use of mediation for civil and commercial disputes, fostering constructive dialogue and preserving business relationships. The direct enforceability of mediation settlement agreements by the court enhances security and certainty and reduces dispute-related risks.
In a recent judgment, No. 5914/2023, the First Instance Investment and Trade court decided to uphold the mediation agreement and dismiss the lawsuit and imposed a fine on the plaintiff equivalent to twice the court filing fees.
These legal developments are expected to provide an enhanced legal infrastructure and a more efficient dispute resolution system for both individuals and entities in Qatar. They are also expected to offer greater certainty and protection for companies, including those operating within the Free Zones.
Claudia El Hage acts as a legal consultant, litigator, arbitrator, and legal expert on civil law and is MHLO managing partner. She specialises mostly in construction, contracting, engineering consultancy, property and real estate, corporate, banking, and M&A. She advises international and local firms on their projects with a focus on the MENA region as well as Europe. Claudia has advised and represented clients in litigation, ADR, compliance, regulatory investigations and annulment recourses in relation to disputes and transactions of various nature. She also acts in various jurisdictions in international and domestic institutional arbitration and in ad hoc proceedings. Claudia also advises on all aspects of corporate and commercial matters. Her international law practice provides essential legal counsel to many international, regional, and local commercial companies and corporations.
Maryline Zgheib works in a diverse range of litigation cases, involving civil disputes, commercial conflicts, arbitration cases and business criminal cases. She conducts legal analysis and research of case laws statutes and codes and develops and builds case strategies in litigation and arbitration. She also assists in the preparation of trial documents and assists in other legal responsibilities.