Out-Law Analysis 5 min. read
19 Mar 2025, 10:14 am
Qatar has become an increasingly attractive seat for international arbitration in the Middle East, particularly after several important developments in the past 12 months.
The increased usage of arbitration in Qatar has been reflected in the latest statistics released by the Qatar International Centre for Conciliation and Arbitration (QICCA). The value of cases received by the centre in 2023 amounted to approximately QR 3 billion (£638.5 million), and most cases registered by the centre, around 60%, related to construction and contracting contracts.
Although 90% of the parties involved in QICCA cases last year were Qatari, 70% of the arbitral proceedings conducted under QICCA rules were in English, in accordance with the parties’ agreement. Qatari arbitrators represented 52% of those appointed to hear arbitration proceedings in 2023.
According to the figures released at the 5th World Conference on International Arbitration hosted by QICCA in November 2024, there was a 90% increase in the number of QICCA cases in 2024 compared to 2020. The caseload is expected to continue to rise in the coming years, as the arbitration centre has taken several measures to continue to improve its services and competitiveness across the region.
From 1 January 2025, QICCA has implemented its new arbitration rules, as another part of its efforts to provide more streamlined and efficient arbitration services to its users. The updated rules were developed and reviewed by a team of distinguished arbitrators, specialists and experts at the national and international levels, ensuring alignment with the latest global trends in international arbitration.
As another important upgrade, the centre has recently launched a new package of electronic services via its website. These new services include the online submission of arbitration claims and requests, and the electronic filing of notices of arbitration and responses to the notice of arbitration. An online case database has also been launched around the same time, to allows relevant parties to access case files whenever necessary.
In a bid to expand its pool of high calibre international partners and collaborators, QICCA has signed an MoU with the Chartered Institute of Arbitrators (Ciarb). Under the arrangements, the two organisations will work together on joint training programmes and events. Ciarb has also announced that it will host a Global Conference in Qatar in October 2025.
The Qatar International Court and Dispute Resolution Centre (QICDRC) too has modernised its services and digital infrastructure. It has rolled out an online case management system through which users can run cases from start to finish digitally. It also offers a new online hearing platform that can live-stream cases and introduced two new AI-based innovations on its website. Users can now find AI-generated judgment summaries, allowing them to quickly understand the gist of a particular case without having to read and digest the full judgment, and ask a chatbot questions about the centre’s processes and procedures.
The technology-enabled offerings are a part of the Qatari dispute resolution institutions’ strategy to enhance their digital infrastructure and provide electronic services that aim to streamline procedures for those seeking arbitration as a fast and efficient means of resolving commercial disputes. This strategy is in line with Qatar National Vision 2030, a plan to transform Qatar into an advanced society capable of achieving sustainable development.
In May 2024, the Civil and Commercial Court of the Qatar Financial Centre dismissed an application to set aside an arbitration award. It is the first court judgment relating to the setting aside of an award in arbitrations seated in the Qatar Financial Centre (QFC). The case is important because it considered several key issues under the QFC Arbitration Regulations, particularly Article 41 which deals with the setting aside of awards and is based on Article 34 of the UNCITRAL Model Law on International Commercial Arbitration (Model Law). The ruling shows the court’s pro-enforcement approach towards setting aside of an award proceedings.
The ruling clarified that the date on which the set-aside application is filed, rather than when it is served, is the relevant date for the purposes of Article 41-time limits. More importantly, the judgment reaffirmed that when interpreting Article 41, which is based on the Model Law, international practices should be taken into account. The court said that it is “entirely appropriate” to use international jurisprudence from other Model Law countries, and that the QFC follows the “same approach as other major arbitration jurisdictions”.
In its submission, the party seeking to set aside the award argued that the award in question is in conflict with the public policy of the QFC, one of the grounds under Article 41. The court dismissed it, saying that public policy is a narrow exception and has a very high threshold. Challenges to arbitration awards on public policy grounds will be “scrutinised against the strictest standards”, as “the policies underlining enforcement of awards are that of finality and pro-enforcement”.
Another ground the legal challenge relied on is the arbitration tribunal’s alleged failure to conduct the proceedings according to the parties’ agreement. The court dismissed the ground and noted that an arbitral tribunal will have considerable discretion in how it conducts the proceedings. It added that the court will only interfere if serious prejudice has been shown by the party seeking to challenge the award.
The recently enacted Judicial Enforcement Law in Qatar is another significant development for parties seeking enforcement in the jurisdiction. It will overhaul the enforcement system structure and provide helpful clarity to commercial parties in Qatar when enforcing arbitration awards and executing a judgment debt.
The new legislation states that arbitral awards are considered as a writ of execution. The enforcement of the arbitral award may not be rejected regardless of the state in which it was issued, except in two cases – arbitrability and public policy. For an arbitral award to be enforceable in Qatar, it must be “arbitrable”, which means the award must be issued in a matter that may be referred to arbitration in accordance with the applicable laws in Qatar. In cases where an order rejecting the enforcement of the arbitral award is made, the new law allows parties to file a grievance against that order.
Co-written by Aya Elwadia of Pinsent Masons.