Litigation 2024

Last Updated December 05, 2023

Qatar

Law and Practice

Authors



DLA Piper Middle East LLP has eight partners and over 50 associates, making its litigation, arbitration and investigations team one of the largest and most highly regarded dispute resolution practices in the Middle East, having won Commercial Litigation Team of the Year at the Qatar Business Law Forum Awards 2022. It offers a powerful combination of regional expertise and global reach, ensuring it is ideally placed to handle its clients’ commercial disputes or investigation needs in any forum or jurisdiction, whether onshore or offshore.

Qatar’s legal system melds civil law and Islamic law (Sharia). While Sharia principles primarily govern family, inheritance, and specific criminal matters, the civil law system predominantly manages commercial and business affairs through civil and commercial codes.

Proceedings before the ordinary (on-shore) courts typically follow the inquisitorial judicial model, with judges actively investigating cases, though the (of-shore) courts of the Qatar Financial Center (established as a business and financial centre, which allows foreign companies to open and operate in Qatar without having to partner with Qatari nationals) and adopting the adversarial model. The courts within the Qatar Financial Center (QFC) operate on English common law principles, unlike the domestic courts in Qatar that follow civil law principles. Therefore, the answers in this chapter will focus on the domestic court system.

Legal proceedings before the mainland courts hinge primarily on written submissions. Oral arguments are rare in civil cases, but are part of criminal case proceedings.

The official language of the courts is Arabic, requiring translations for non-Arabic documents.

Court Structure

In Qatar, the court system is organised hierarchically into three levels:

  • Court of First Instance – subdivided into Criminal Court, Civil Court, Investment Court, Administrative Court and Family Court. The Court of First Instance is further divided into Partial and Plenary Courts based on the value of claims;
  • Court of Appeal – similarly subdivided into Criminal Court, Civil Court, Investment Court, Administrative Court and Family Court; and
  • Court of Cassation – the highest appellate court in Qatar that only considers issues related to misapplication or misinterpretation of law, without revisiting the merits of a case.

Specialised Judicial Committees

Besides the regular courts, Qatar has established judicial committees such as the Labour Disputes Committee and the Rental Dispute Settlement Committee to handle specific types of disputes.

Court proceedings are generally accessible to the public. However, in specific circumstances, especially those involving family issues, minors or sensitive information, the court can warrant confidential proceedings to safeguard privacy and uphold societal values.

Court filings are not accessible to the public, but only the relevant parties and their counsel can have access to these filings.

Legal practitioners in Qatar must fulfil certain licensure and educational prerequisites, such as earning a law degree, registering with the Ministry of Justice (MOJ) and passing a probation period successfully.

As a matter of principle, practising as a lawyer in local courts requires Qatari nationality, though non-nationals can be licensed to represent the clients of the local law firm they work for. Foreign lawyers can also seek the MOJ’s permission to represent a client before the mainland courts on a case-by-case basis.

Third-party funding is not regulated in Qatar. There are no explicit rules or laws opposing it, though its permissibility under Qatari law hasn’t been tested yet.

Third-party funding is usually available for commercial disputes.

There are currently no legal restrictions in this regard in Qatar.

There are currently no legal restrictions in this regard in Qatar.

There are currently no legal restrictions in this regard. From the experience of the authors, the costs cover legal fees, litigation/arbitration costs and expenses.

The Qatar Advocacy Law (Law No 23 of 2006, as amended) permits contingency fee arrangements between a party and their counsel, provided that it does not exceed 10% of the amount awarded.

There are currently no legal restrictions in this regard in Qatar.

Absent any agreement to the contrary, there are generally no pre-action requirements. However, there are some exceptions as follows.

  • The law requires the creditor of a commercial obligation to put the debtor on notice to fulfil their obligation prior to filing a legal action. The failure to do so might adversely influence the claimant’s claim, showing that they failed to act in good faith. However, some judges are of the view that filing a legal action serves the notice purpose. The potential defendant is not legally required to respond to a pre-action notice, but the lack of response might lead the court to draw an adverse inference against the defendant.
  • With respect to administrative disputes, mainly disputes arising between public servants and the organisation they work for (such as ministries and governmental bodies), there is a statutory chain of command that contains specific pre-action requirements, including complaining before different levels within the public sector and at specific timelines. The failure to follow these prerequisite procedures would result in the action being dismissed.     

In Qatar, statutes of limitations applicable to civil suits are governed by various legislative texts, primarily the civil and commercial codes, and the periods can vary depending on the nature of the civil claim.

Generally, civil claims must be brought within 15 years, but there are numerous exceptions. For instance, commercial matters often carry a shorter limitation period, such as 10 or five years for certain contract-related claims. Some claims are time barred by the lapse of one year, such as employment-related claims.

The triggering event for these periods is the occurrence that gives rise to the claim or when the claimant becomes aware of it.

It’s imperative to note that the specifics can be nuanced, and for accurate guidance, especially considering any updates or changes in the law, a detailed review of the relevant Qatari legislation or consultation with a Qatari legal professional is advised.

Courts in Qatar will exercise jurisdiction where the matter has a connection to Qatar, for example, the contract is concluded in Qatar or the contract’s subject matter is in Qatar.

In Qatar, procedure for civil and commercial cases is governed by the rules laid down in Law No 13 of 1990, as amended, known as the Civil and Commercial Procedure Code (Procedure Code).

A lawsuit begins by filing an initial pleading detailing the parties, claim facts, and desired relief. If the claimant is represented by a counsel, a copy of the power of attorney (POA) must be accompanied by the initial pleading filed with the court. Also, all supporting exhibits should be attached with the initial pleading.

All submissions must be made in Arabic or have certified Arabic translations for any foreign-language documents.

Post-filing, amendments are possible until the court sets a closure date for pleadings.

In Qatar, the service process is principally overseen by the court, ensuring parties are properly notified of the legal proceedings initiated against them.

Parties outside the jurisdiction can be sued and they are typically served through the diplomatic channels. However, the court can decide alternative means for serving parties.

If a defendant doesn’t attend the first session, and the claim statement was personally served, the court will put the case for judgment. If not personally served, the case gets adjourned for re-notification. The court will also proceed to judgment if the defendant fails to attend after being reserved.

Qatar does not have a formal structure in place to accommodate class actions or collective lawsuits in the way they are recognised in jurisdictions like the USA.

The legal system in Qatar primarily focuses on individual litigation. It is crucial to approach each case on its individual merits and specificities under Qatari law. However, certain cases, especially those concerning commercial disputes or matters that involve multiple parties with similar interests, such as employment disputes, may see multiple parties jointly initiating or defending a lawsuit.

There isn’t a widely recognised statutory requirement in Qatar that mandates legal practitioners to provide clients with a cost estimate at the outset of potential litigation.

However, ethically and as per best practices, lawyers often discuss potential costs, fees and financial implications with their clients before proceeding with legal actions.

In Qatar, applications for interim relief, such as injunctions and orders to preserve evidence, are allowed.

Interim applications serve as a versatile tool in Qatari litigation, enabling parties to address urgent matters and safeguard interests ahead of filing a lawsuit on merits.

Granting interim applications is subject to the discretion of the court.

This is not common in Qatar as local courts in Qatar tend to decide cases in a holistic manner.

However, issues relating to jurisdiction might be decided on an expedited basis before considering the merits of the dispute. For example, if there is an agreement between the relevant parties to arbitrate their dispute, the defendant can request that the court dismiss the case on that basis and before considering the merits. The law requires that the case be dismissed on account of the agreement to arbitrate if the request is made before addressing the merits of the dispute.

Dispositive motions that are commonly made before trial include:

  • motions relating to lack of jurisdiction to decide a case;
  • motions relating to time bar;
  • motions relating to the impleading of wrong parties; and
  • motions relating to res judicata.

Interested parties may join a lawsuit through various methods. Litigants may introduce a third party (Article 75 Procedure Code), and courts may order a person’s intervention for justice or truth (Article 76 Procedure Code).

Additionally, any concerned person may intervene in a lawsuit, aligning with a litigant or seeking their own judgment by way of submitting a joinder application before closure of pleadings (Article 78 Procedure Code).

The court rules on joinder applications with discretion, ensuring minimal disruption to original lawsuits.

The concept of security for costs in the context of civil/commercial proceedings is not recognised in Qatar. It is likely that such a request will be turned down by the court.

The court decides on all costs including the costs of interim applications at the end of the main proceedings.

Attorney’s fees are not recoverable in local litigation in Qatar, only the official costs, including the court fees and the fees for appointing an independent expert by the court, are reimbursable.

While there are procedural guidelines, the exact timeframe for courts to address applications/motions can be influenced by various aspects like case complexity and court schedules.

Urgent handling of applications may be requested by parties and is subject to the court’s discretion, considering the nature and exigency of the matter.

In Qatar’s civil litigation system, discovery is not very common and not as extensive as in common law jurisdictions. This is explored further in 5.2 Discovery and Third Parties to 5.6 Rules Disallowing Disclosure of a Document.

The court can order a non-party to produce certain documents or items if deemed crucial for resolving the case.

This generally involves submitting a request to the court, specifying the required documents and justifying their relevance and necessity for the case.

The court evaluates such requests considering relevance, necessity and adherence to procedural and legal norms, ensuring fairness and avoiding undue burden on the third party.

Discovery is not a common procedure in local court proceedings in Qatar as well as domestic arbitrations, unless the parties to the arbitration agree otherwise. The general rule is that no party may be compelled to produce any document in their possession, except in very limited cases.

Under the Procedure Code, disclosure can be requested with respect to certain documents that are common between the parties or relied upon by one of them and which the requesting party can determine with some level of specificity and demonstrate that they are relevant to the determination of the dispute.

However, the general request for disclosure in respect of documents pertaining to the subject matter of a dispute or even a specific issue thereof is not acceptable in local court proceedings.

While the legal system in Qatar does not embrace extensive discovery mechanisms as seen in some Western jurisdictions, it does have structured procedures for developing and admitting evidence into the record during litigation.

  • Submission by parties – both parties, plaintiff and defendant, typically submit their evidence alongside their pleadings or within specified timelines. This includes relevant documents and expert reports, as applicable.
  • Documentary evidence – documents that support the claims or defences of the parties are submitted to the court and must adhere to certain authenticity and relevancy standards to be admitted as evidence.
  • Court-ordered evidence – the court may, based on either party’s request, order a party to produce specific documents or items that are deemed necessary to determine the matter, as explained above.
  • Expert evidence – in instances where specialised knowledge is required, expert witnesses may provide reports in support of some claims or defences.
  • Judicial investigations – in certain cases, the court might conduct its investigations or appoint experts to assist in gathering and analysing specific evidence.

In Qatar, attorney-client privilege is protected by Article 51 of the Advocacy Law but limited to the professional relationship between the lawyer and their clients, through the lawyers’ obligation to keep confidential all information disclosed by their clients.

Article 265 Procedure Code prohibits lawyers from disclosing information that they obtain in connection with their professional retainer, unless this information leads to committing a criminal offence.

Fundamentally, the obligation of confidentiality remains in place even after the lawyer has ended their retainer with the client.

Disclosure is allowed under valid court or governmental orders, with prior notice to the client.

In-house legal counsel lack the attorney-client privilege due to employment-based roles – ie, not independent advisory. However, the information obtained is protected by the employment laws and regulations.

As stated above, discovery is not a common procedure in legal proceedings in Qatar.

The most common example of interim relief is to place a provisional attachment freezing a debtor’s assets pending a final determination of a case.

Anti-suit injunctions are not available in Qatar.

In practice, injunctive relief is obtained on an expedited basis, within two to three days.

The common practice is that injunctive relief is applied for and decided on an ex parte basis, and the respondent will be notified only if the injunctive relief is granted.

The normal course of objecting to an interim relief is to file a grievance action before the competent court seeking an order to vacate the injunction granted.

It is unusual that the applicant will be held liable for damages.

Security is not usually required unless in limited circumstances, for example, where the injunction relates to a temporary closure of business in the context of copyright infringement proceedings.

This is not available in Qatar.

Injunctive relief can potentially be obtained against third parties in Qatar, under certain circumstances, even if they are not directly involved in the litigation as a plaintiff or defendant. 

Injunctions are often enforced against the respondent by the official authorities and other entities, including banks, such as by way of freezing the respondent’s assets or banning them from leaving the country.

Where the subject of the injunction is to do or refrain from doing a specific act, and the respondent fails to comply with it, the applicant can seek assistance from the competent court to force the respondent to comply with the court’s order.

In civil and commercial cases, trials are mainly conducted through written submissions.

Oral arguments and witness/expert examination are not at all common.

Where the court deems necessary, it commissions a court-appointed expert to assist the court through an expert report.

The parties can present witness and/or expert evidence to the court-appointed expert, who has discretion in assessing such evidence.

As stated above, oral arguments are very uncommon in civil litigation in Qatar. In any civil case, the court schedules several hearings, mainly for exchange of written submissions.

Jury trials are not available in civil cases in Qatar. The legal system is based on a civil law system, which does not incorporate the use of juries in trials, unlike the common law system where jury trials are prevalent.

Documentary evidence carries a substantial weight as opposed to any other means of evidence, such as testimony, provided that the documents submitted in support of a claim or defence be:

  • original copies. Photocopies can be accepted to the extent that the same is not challenged by the opposing party;
  • pertinent and directly related to the issues in dispute; and
  • submitted in Arabic or, if in foreign language, accompanied by certified Arabic translation.

In cases where specific knowledge is required, such as construction-related claims, the court commissions an expert or more to study the case documents and submit a report of their findings to the court. The courts rely heavily on the findings of the court-appointed expert.

In cases where specific knowledge is required, parties usually submit expert evidence.

However, the court appoints a court-registered expert to evaluate this evidence and submit their findings to the court.

The court may call on the court-appointed expert to question them on some of their findings, but the usual course is that the court writes to the court-appointed expert to answer some questions or clarify certain issues and schedule a time limit for them to submit a supplementary report addressing these questions or issues.

In adherence to transparency and public access principles in the judicial process, Qatar generally conducts court hearings that are open to the public, as stipulated by the Procedure Code.

Nonetheless, exceptions exist; certain case types, notably those dealing with family law or other sensitive subjects, might be held privately to safeguard the privacy of the persons involved.

Moreover, courts possess the authority to limit access to specific hearings or portions thereof, weighing aspects like public order, morality and national security.

Although transcripts or records of hearings might be available to litigating parties, they aren’t typically accessible to the general public due to prevailing privacy and legal concerns.

Consequently, while Qatar upholds an overarching transparency principle in its legal proceedings, it also balances this with necessary privacy and security considerations, thereby providing a judicial framework that accommodates both public interest and individual privacy protection.

In Qatar, judges actively manage trial proceedings to ensure fairness and legal adherence, overseeing evidence presentation and enforcing procedural rules. They may ask questions for clarification, especially in complex cases.

Decisions of administrative nature, such as adjournments, are usually issued at the hearing. However, preliminary judgments, such as commissioning an expert, and final judgments determining the dispute are reserved, allowing judges to deliberate before communicating decisions to the involved parties at a later date.

The timeframe for civil and commercial proceedings in Qatar can vary significantly based on several factors, including the complexity of the case, the court’s workload, and any potential delays or adjournments during the process.

In civil and commercial cases, if parties decide to settle a lawsuit, the court will uphold the parties’ decision in this regard.

Judgments and court records are not accessible to the public. Therefore, settlement of lawsuits would normally remain confidential.

In general, Qatar law recognises the principle of sanctity of contracts and gives the terms of parties’ agreement the effect of law provisions.

The terms of settlement agreements are enforceable and, upon the parties’ request, the court can issue a judgment upholding the terms of the settlement agreement, which will then have the effect of a writ of execution.

Setting aside a settlement agreement can occur under certain circumstances, such as the following.

  • Fraud, duress, or coercion – if a party can demonstrate that the settlement agreement was entered into under fraud, duress, or coercion, the agreement may be set aside.
  • Material mistake – a settlement agreement might be invalidated if it is demonstrated that there was a material mistake of fact or law that significantly impacted the agreement.
  • Violation of public policy – agreements that are contrary to public policy or mandatory legal principles may be set aside.
  • Incapacity – if a party lacked the capacity to enter into the agreement, it might be set aside.

In Qatar, the forms of awards and remedies available to a successful litigant usually include:

  • monetary damages – the court may award financial compensation to the successful party to redress losses incurred due to the opposing party’s actions; and
  • specific performance – the court might direct the failing party to fulfil their obligations as per the terms of a contract or agreement.

Damages in General

In Qatar, damages are typically awarded with the objective of compensating the aggrieved party for loss or injury sustained, rather than punishing the party in breach.

Contract law and damages in Qatar are governed by the Qatar Civil Code (Law No 22 of 2004). The Civil Code outlines key contract principles and covers recoverable damages, including what can be limited or excluded. It emphasises the parties’ freedom of contract within legal boundaries, allowing them to agree on terms related to liability and exemption, subject to certain restrictions.

The Qatar Civil Code allows for the recovery of liquidated damages and actual damages, with the contract’s wording determining whether both forms can be sought and whether one serves as the exclusive remedy.

Parties in construction contracts often pre-determine liquidated damages for delay, simplifying compensation in cases of uncertain or hard-to-prove damages.

Actual damages, determined post-contract, require proof of breach, loss and causation. The actual damages cover a wide range of losses such as rectification costs, completion costs, operational expenses, lost profits, and any other loss directly resulting from the breach. Article 264 Civil Code also allows for the recovery of moral or reputational damages.

Limitation of Liability

Parties in Qatar can typically agree to limit their contractual liabilities under the principle of freedom of contract. For example, construction contracts often set a cap on recoverable liquidated damages for delays, commonly at 10% of the contract value.

The Qatar Civil Code enforces such limitations unless fraud or serious fault can be proven. In such cases, the cap on liability may be exceeded.

Damages that cannot be limited or excluded include:

  • liability related to fraud or serious fault;
  • liability for criminal acts; and
  • liabilities established by law. For example, Articles 711 to 715 of the Civil Code establish decennial liability in construction contracts, which cannot be limited or excluded.

Both pre-judgment and post-judgment interests are not available in Qatar.

Alternatively, Article 268 of the Civil Code allows the court to award compensation for payment shortfall, on top of the amount owing, the determination of which is subject to the court’s discretion, taking into consideration the rules of fairness and justice.

Enforcing a domestic judgment in Qatar involves several procedural steps and mechanisms.

Execution Proceedings

Once a judgment is final and binding, it will be granted a writ of execution and the successful party may initiate execution proceedings to enforce it through the Execution Court.

A notification of the writ of execution to the debtor in person or at their domicile must precede the execution proceedings.

Execution is then carried out under the supervision of the execution judge, which involves a number of enforcement measures, such as freezing the debtor’s assets or imposing a travel ban to prevent them from leaving the country until the judgment is satisfied.

If there are any disputes regarding enforcement, they must be brought before the execution judge only.

In Qatar, foreign judgments’ recognition and enforcement are regulated by the Procedure Code, without prejudice to any enforcement treaty to which Qatar is a party.

The recognition is sought by way of an application to the Execution Court, acting as a trial court, which must be served on the judgment debtor.

The Execution Court will schedule a hearing or more and invite both parties to exchange written submissions before it issues its decision on the request for recognition.

If recognition is granted, the creditor can proceed to seek execution of the foreign judgment against the judgment debtor through the enforcement measures outlined above.

Appeals are allowed against recognition and enforcement decisions.

In Qatar, the legal system provides a structured hierarchy for appeals, allowing parties to seek review and reconsideration of judgments through various tiers of the judiciary. What follows is a general overview of the levels of appeal and mechanisms of review in the country.

Court of Appeal

  • Review – the Court of Appeal reviews decisions from the Court of First Instance, examining both facts and law.
  • Grounds – appeals might be based on various grounds, such as errors in applying the law, incorrect assessment of facts, or procedural irregularities.
  • Judgments from the Court of Appeal can often be further appealed to the Court of Cassation on points of law only.

Court of Cassation

  • Legal review – the Court of Cassation primarily examines matters of law, ensuring that legal principles are correctly applied by the lower courts.
  • Precedent – decisions of the Court of Cassation are significant as they may set legal precedents.
  • Finality – judgments from the Court of Cassation are typically final and not subject to further appeal.

Additional Mechanisms

  • Reconsideration – under certain exceptional circumstances, a party might petition for rehearing a case after the final judgment, usually based on specific grounds such as the discovery of new evidence.
  • Judicial review – in administrative matters, litigants may seek judicial review of decisions made by public bodies or administrative entities.

Each level of appeal typically has specific procedural requirements, including time limits for filing the appeal and requisite documentation. The grounds for appeal and the extent of review can also vary depending on the stage and nature of the dispute.

Court of First Instance to Court of Appeal

Appeals to the Court of Appeal are usually possible on both facts and points of law. However, there may be value thresholds or other conditions that dictate whether an appeal can be lodged. For example, decisions issued on claims not exceeding QAR500,000 may not be challenged before the Court of Appeal.

Court of Appeal to Court of Cassation

Appeals to the Court of Cassation are typically limited to points of law. The appellant may need to demonstrate that a legal principle was misapplied or misinterpreted by the Court of Appeal.

Initiating an Appeal

An appeal is initiated by submitting a statement of appeal to the Court of Appeal, detailing the reasons for the appeal alongside any supporting evidence. The respondent party will be summoned and allowed an opportunity to respond.

Time Constraints

Typically, appeals against judgments from the Court of First Instance in civil or commercial cases should be lodged within 30 days from the judgment’s issuance or its service to the opposing party. Conversely, for execution judge orders, the appeal needs to be lodged with the relevant court of appeal within seven days.

Filing Specifications

Appeals should be filed at the registry office of the Court of Appeal, adhering to the relevant provisions for appeal filings. The appeal should encompass details of the judgment being appealed, its issuance date, the grounds for appeal, and the remedies sought, failing which, the appeal could be deemed invalid.

Trigger for Appeal

The Court of Appeal is empowered to rehear the merits of the case and re-examine the issues decided by the Court of First Instance. Therefore, the catalysts for an appeal generally encompass the same process followed before the Court of First Instance, including submissions of written pleadings until the issuance of a final judgment by the Court of Appeal.

Re-Examination of Various Aspects

The appeal has the effect of re-examining the issues decided by the Court of First Instance with respect only to the appealed matters (Article 169 Procedure Code).

The Court of Appeal will examine new evidence, and grounds of defence, in addition to whatever was previously submitted to the court of first instance (Article 170 Procedure Code).

Judgment Issues

The appeal might consider aspects related to nullity of judgment or proceedings upon which the judgment is based (Article 163 Procedure Code).

Admission of New Claims

New claims shall not be admitted in the appeal, and the court may decide, on its own initiative, for its dismissal (Article 172 Procedure Code).

Exceptions

There are exceptions where new elements like wages, salaries and other supplements that become due after submitting the final claims before the court of first instance, or surplus compensations after submitting these claims, may be added to the original claim (Article 172 Procedure Code).

New Evidence

Despite restrictions on new claims, the Court of Appeal will consider new evidence and defences, in addition to previous submissions (Article 170 Procedure Code).

This is not available in Qatar.

There are, however, certain formal requirements that need to be satisfied; failing which, the Court of Appeal will dismiss the appeal before looking into the merits.

These include the filing of the appeal within the time limit prescribed by the Procedure Code and paying the court’s fees before registering the appeal.

The Court of Appeal may affirm the lower court’s judgment, reverse it or modify it. The Court of Appeal may also order the commissioning of a new expert to clarify certain technical issues.

Usually, the losing party is responsible for paying the litigation costs, which include the court’s fees and other expenses, such as the fees for commissioning an expert.

The counsel fees are not reimbursable. Each party bear the costs of its counsel.

As explained above, the costs of litigation, excluding the counsel fees, are borne by the losing party.

No interest is awarded on costs.

ADR is gaining popularity in Qatar as a means of resolving disputes outside of formal court proceedings.

ADR includes various techniques, including negotiation, mediation, expert determination and arbitration. However, arbitration is the most popular ADR form in Qatar given that it determines disputes finally.

ADR has been gaining popularity in Qatar even though it is not compulsory nor part of any court procedure.

In furtherance of its adoption of ADR, Qatar passed the Mediation Law in 2021 and adopted the Singapore Mediation Convention, enabling enforcement of settlement agreements across countries. Also, the Qatar arbitration law is modelled after the UNCITRAL Model Law on International Commercial Arbitration.

Arbitration is the most established ADR method in Qatar, as opposed to other ADR methods.

More recently, parties engaging in mediation have the benefit of the Mediation Law, which provides more certainty regarding procedures.

In addition, unlike some common law jurisdictions, mediation is not mandatory in local court proceedings.

In Qatar, the main legislation is the Qatar Arbitration Act, issued by Law No 2 of 2017 (the “QAA”).

The QAA prescribes the procedural framework for the arbitration process; in particular, where the procedure is not predetermined by the parties’ agreement. The ambit of the QAA extends from the appointment of the arbitral tribunal through to the promulgation of the arbitral award, inclusive of any subsequent recourse actions and the enforcement of the award.

Arbitral award recognition and enforcement are influenced by the QAA and international treaties, such as the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards 1958 (the “New York Convention”).

The QAA delineates the regulatory oversight for both domestic and international arbitral proceedings conducted within its purview. The New York Convention delineates the principles and procedures that Qatar adheres to for the recognition and enforcement of foreign arbitral awards.

Arbitration is generally available in Qatar for civil and commercial disputes, except for certain non-arbitrable matters.

QAA restricts the use of arbitration for resolving disputes that can be settled amicably. While not explicitly defined in the statutes, the non-arbitrable matters include disputes relating to capacity or custodianship, as well as criminal conflicts and those opposing public policy, like disputes involving betting or narcotics.

QAA also requires the prime minister’s approval for the validity of agreement to arbitrate disputes arising from administrative contracts (ie, contracts relating to public-benefit projects and involving the government or a public institution as a party).

Additionally, the QAA explicitly forbids entities within the public sector from employing arbitration to resolve disputes that occur amongst them.

QAA, specifically Article 33, states that an arbitral award cannot be appealed but can be nullified (set aside) based on distinct grounds.

Set-aside is typically pursued on premises of due process or public policy. The grounds for set-aside mandate evidence illustrating one of the defined circumstances, which include issues with party competence, inaccuracies in the arbitration agreement, improper notification of arbitration proceedings, and decisions exceeding the arbitration agreement’s scope.

A separate mechanism allows the court to autonomously declare an award set aside if it pertains to a non-arbitrable matter or if it violates the state’s public policy.

The set-aside application must be lodged within a specific timeframe – within one month of award copy receipt, although exceptions can be negotiated with a written agreement.

The judgment concerning the set-aside of the award by the court is conclusive and is not subject to further challenge or appeal.

The enforcement of arbitral awards in Qatar is governed by the QAA.

To enforce an award, the successful party must submit an application to the Competent Judge (as defined in the QAA), along with the arbitration agreement and the award, including a certified Arabic translation if issued in a foreign language.

The application can only be filed after the time limit for any set-aside requests against the award has expired.

Enforcement may be refused for the same grounds applicable to the set-aside recourse.

For foreign arbitral awards, Qatar adheres to the New York Convention, allowing enforcement within its jurisdiction. The process involves initiating a lawsuit in a domestic court to seek recognition of the award, following standard court procedures, until a final verdict is reached. If approved, the award becomes enforceable in Qatar, allowing the award creditor to commence execution proceedings.

In recent times, Qatar has witnessed a transformation in its legal framework, especially concerning dispute resolution, in a bid to provide more efficient, transparent and reliable mechanisms to settle disputes.

The reforms are going on as the country is keen to establish specialised courts or circuits within the court system for disputes that require special expertise, such as insolvency, securities and construction litigation.

DLA Piper Middle East LLP

Qatar Financial Centre Branch
26th Floor
Tornado Tower West Bay
Doha
Qatar

+974 4420 6100

+974 4420 6101

hasan.el-shafiey@dlapiper.com www.dlapiper.com/en/locations/middle-east/doha
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Trends and Developments


Authors



DLA Piper Middle East LLP has eight partners and over 50 associates, making its litigation, arbitration and investigations team one of the largest and most highly regarded dispute resolution practices in the Middle East, having won Commercial Litigation Team of the Year at the Qatar Business Law Forum Awards 2022. It offers a powerful combination of regional expertise and global reach, ensuring it is ideally placed to handle its clients’ commercial disputes or investigation needs in any forum or jurisdiction, whether onshore or offshore.

Qatar Investment Court

As an important step towards the efficient delivery of justice, Qatar issued Law No 21 of 2021 on the establishment of the investment and trade court (the “Investment Court”). The purpose of this specialised court is to offer a streamlined avenue for the resolution of commercial disputes in an expedited and effective manner.

Mandate and jurisdiction

The Investment Court’s mandate is to exclusively adjudicate commercial disputes, thereby relieving the general courts of these matters and contributing to a more efficient legal system. The court is empowered with a broad jurisdictional remit, encompassing a variety of commercial legal issues, from contractual disputes to complex financial litigation, to provide subject matter expertise and specialised attention to commercial cases.

Advantages and procedural efficiency

One of the principal advantages of the Investment Court is its commitment to expediency. The court’s procedures are meticulously crafted to compress the timeline for dispute resolution, reflecting a deep understanding of the commercial sector’s need for predictability and speed. The court operates on the following procedural timeline.

  • Statement of claim – litigation is initiated when a plaintiff files a statement of claim.
  • Service of proceedings – the court ensures the claim is served to the defendant within three days, leveraging digital means to enhance efficiency.
  • Defence submission – the defendant must respond with a complete defence, counterclaim and associated evidence within 30 days of being served.
  • Plaintiff’s response – the plaintiff is then required to file a rejoinder within 15 days of receiving the defence.
  • Defendant’s counter-response – the defendant has an additional ten days to reply to the plaintiff’s rejoinder.
  • Extensions – though the court may grant extensions, these are strictly limited to a total of 45 days.

This procedural rigor is designed to encourage the prompt preparation and presentation of cases, thereby reducing the likelihood of protracted litigation.

Challenges and criticisms

Despite the obvious merits, the Investment Court has not been immune to criticism. The stringent timelines, while advantageous in promoting swift resolutions, have also been a source of pressure for the parties involved. For complex cases requiring detailed evidence and extensive documentation – particularly those requiring translation from foreign languages – such as construction disputes, the tight schedules can be daunting.

Moreover, concerns have been raised about the court’s ability to sustain its efficiency as the case volume inevitably increases. There is a delicate balance to be struck between the speed of proceedings and the thoroughness of judicial examination, and it remains to be seen how the court will manage this as it matures.

Complaints and feedback

Feedback from the court’s users has highlighted several areas for potential improvement. Administrative processes, while streamlined, can still be cumbersome when dealing with a high volume of documentation. The court’s strict evidentiary rules have also been a double-edged sword – while they minimise delays caused by the introduction of new evidence at late stages, they can also challenge unprepared parties, potentially compromising the fairness of proceedings.

Navigating forward

As Qatar’s Investment Court continues to navigate its formative years, it is confronted with the dual challenge of refining its procedures while upholding the high standards of adjudication expected by the international business community. The court’s success will depend on its ability to adapt to the growing demands of its caseload while maintaining the integrity and quality of its judicial processes.

Conclusion

The Qatar Investment Court stands as a bold initiative, embodying Qatar’s strategic approach to legal reform and its commitment to fostering an environment conducive to business and investment. By integrating subject-matter expertise with procedural expediency, the court is poised to contribute substantively to the economic objectives of Qatar. Its continued evolution will be a subject of keen interest to legal practitioners and business investors alike, as it strives to balance between judicial efficiency and the intricacies of commercial law.

DLA Piper Middle East LLP

Qatar Financial Centre Branch
26th Floor
Tornado Tower West Bay
Doha
Qatar

+974 4420 6100

+974 4420 6101

hasan.elshafiey@dlapiper.com www.dlapiper.com/en/locations/middle-east/doha
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DLA Piper Middle East LLP has eight partners and over 50 associates, making its litigation, arbitration and investigations team one of the largest and most highly regarded dispute resolution practices in the Middle East, having won Commercial Litigation Team of the Year at the Qatar Business Law Forum Awards 2022. It offers a powerful combination of regional expertise and global reach, ensuring it is ideally placed to handle its clients’ commercial disputes or investigation needs in any forum or jurisdiction, whether onshore or offshore.

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DLA Piper Middle East LLP has eight partners and over 50 associates, making its litigation, arbitration and investigations team one of the largest and most highly regarded dispute resolution practices in the Middle East, having won Commercial Litigation Team of the Year at the Qatar Business Law Forum Awards 2022. It offers a powerful combination of regional expertise and global reach, ensuring it is ideally placed to handle its clients’ commercial disputes or investigation needs in any forum or jurisdiction, whether onshore or offshore.

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