Commercial Arbitration in Qatar: A Practical Guide for Businesses

Commercial arbitration in Qatar is governed by the Law of Arbitration in Civil and Commercial Matters issued by Law No. 2 of 2017. Before any detail, one point needs settling: that Law repealed Articles 190 to 210 of the first Book of the Civil and Commercial Procedure Law, together with any provision contravening it. References to those articles as Qatar's operative arbitration law are no longer correct.

The Law applies to any arbitration ongoing at the time it entered into force and to any arbitration commencing afterwards. It does not apply to disputes which cannot be settled by arbitration under any other law, nor to disputes that may only be submitted to arbitration in accordance with the provisions of other laws.

Scope, and who the Law puts in charge

The Law defines arbitration as a legal consensual method to settle disputes in lieu of judicial proceedings, whether the proceedings are administered by a permanent arbitration centre or otherwise, according to the parties' agreement. The Minister is the Minister of Justice and the Ministry is the Ministry of Justice.

Two definitions resolve a great deal in practice. The Competent Court is the Civil and Commercial Arbitral Disputes Circuit in the Court of Appeals, or the First Instance Circuit of the Civil and Commercial Court of the Qatar Financial Centre, pursuant to the parties' agreement. The Competent Judge is the enforcement judge in the First Instance Circuit, or the enforcement judge in the QFC Civil and Commercial Court, pursuant to the parties' agreement. The Other Authority is the authority the parties choose in their agreement to perform certain functions related to assisting and supervising the arbitration, whether a permanent arbitration centre or an institution.

That carries a practical consequence: where the parties fail to agree on the Other Authority, the Competent Court performs the functions referred to in Articles 11(5) and (6), 13(1) and (2), 14(1) and 16(3). Naming an arbitration centre in the clause is therefore not an administrative detail — it determines who appoints arbitrators and decides challenges to them.

The arbitration agreement

The arbitration agreement is the parties' agreement — whether legal or natural persons having capacity to contract — to refer to arbitration all or some disputes that have arisen or may arise between them in respect of a defined legal relationship, contractual or non-contractual. It may be a separate agreement or take the form of an arbitration clause in a contract.

Writing is a condition of validity, not of proof: the agreement must be in writing or it is invalid. It is in writing if contained in a document signed by the parties, in paper or electronic correspondence, or by any other means of communication allowing written proof of receipt. The requirement is also satisfied where one party asserts the agreement's existence in the statement of claim or defence and the other does not deny it. A reference in a contract to a document containing an arbitration clause is an arbitration agreement, provided the reference clearly makes that clause part of the contract.

Arbitration is not permitted in matters in which conciliation is not permitted. The arbitration clause is considered an agreement independent of the contract's other clauses: the nullity, rescission or termination of the contract has no effect on the arbitration clause it contains, so long as the clause is itself valid.

Constituting the tribunal

The tribunal comprises one or more arbitrators as the parties agree. If they do not agree the number, it is three. Where there are several arbitrators their number must be odd, otherwise the arbitration is void.

An arbitrator is appointed from those approved and registered in the register of arbitrators at the Ministry. Any other person may be appointed if they have full capacity; have not been convicted by final judgment of a felony or a misdemeanour involving moral turpitude or breach of public trust, even if rehabilitated; and are of good conduct and reputation. No particular nationality is required unless the parties agree or the law provides otherwise.

Where the tribunal is of three, each party appoints an arbitrator and the two then appoint a third. If a party does not appoint within thirty days of receiving a request from the other, or the two appointed arbitrators do not agree on the third within thirty days of the last appointment, the Other Authority or the Competent Court, as the case may be, makes the appointment on a party's application.

An arbitrator may not be removed unless circumstances give rise to justifiable doubts as to impartiality or independence, or they lack the qualifications the parties agreed. No party may remove the arbitrator it appointed or helped appoint except for reasons it learns of after the appointment. The parties may agree removal procedures; absent agreement, a written removal request stating its reasons is submitted to the tribunal within fifteen days of the requesting party becoming aware of the tribunal's composition or of the circumstances justifying removal. If the arbitrator does not recuse and the other party does not agree, the request goes to the Other Authority or the Competent Court.

Where an arbitrator cannot perform or commence their function, or ceases to perform it so as to cause unjustifiable delay, and does not recuse while the parties do not agree to remove them, the Other Authority or the Competent Court may order termination of their mandate on any party's application, and that decision is final and not subject to challenge. A substitute arbitrator is appointed by the procedures applicable when the replaced arbitrator was appointed.

The tribunal ruling on its own jurisdiction

The tribunal may determine pleas as to its lack of jurisdiction, including pleas based on the non-existence, validity, nullity, expiry or inapplicability of the arbitration agreement to the subject matter. Such pleas must be raised no later than the date for submitting the respondent's statement of defence. A party wishing to contest jurisdiction must do so within that deadline.

Place, language and applicable law

The parties may agree the place of arbitration inside or outside the State; absent agreement the tribunal determines it having regard to the circumstances of the case and the convenience of the place for the parties. That does not prejudice the tribunal's power to meet anywhere it considers appropriate for conducting the proceedings — hearing the parties, witnesses or experts, reviewing documents, or deliberating.

The parties may agree the language or languages of the proceedings; absent agreement the tribunal determines them, and the agreement or determination applies to information, written statements and oral arguments and to the tribunal's decisions, notifications and awards, unless otherwise stipulated. The tribunal may order that documents be accompanied by a translation into the language used.

The tribunal determines the dispute under the legal rules the parties agree. Where they agree to apply the law or legal system of a given country, only that country's substantive rules are followed, not its conflict-of-laws rules, unless the parties expressly agree otherwise. Absent agreement, the tribunal applies the law determined by the conflict-of-laws rules. The tribunal may not decide on principles of justice and fairness without complying with the law unless the parties expressly permit it.

How the proceedings run

The tribunal must be impartial and treat the parties equally, giving them a full and equal opportunity to present their claim, defences and pleas, and must avoid unnecessary delay or expense so as to ensure a fair and expeditious means of resolving the dispute.

Proceedings commence on the day the respondent receives the request to refer the dispute to arbitration, unless the parties agree otherwise. The claimant submits a written statement of claim including its name and address, the facts, the disputed matters and its requests; the respondent submits a written statement of defence, which may include counter-claims related to the subject matter.

The tribunal holds hearings to let each party explain its case and present arguments and evidence, or to hear oral submissions. It hears witnesses and experts without administering an oath. It gives the parties such advance notice as it considers sufficient of meetings, hearings, inspections and examination of documents, unless the parties have agreed specific dates. In a tribunal of more than one arbitrator, decisions, orders and awards issue by majority after deliberation unless the parties agree otherwise, and the presiding arbitrator may decide procedural matters if the parties or all tribunal members so permit.

Unless the parties agree otherwise, the tribunal may appoint one or more experts to report orally or in writing on matters it specifies, notifying each party of its decision setting the expert's task and the time limit for the report, and may require any party to provide the expert with information related to the dispute or allow the expert to review documents.

Court assistance

The tribunal, or a party with its approval, may request the Competent Court's assistance in taking evidence related to the subject matter, including technical expertise and examination of evidence. Where the tribunal considers the assistance necessary to determine the dispute, it may stay the proceedings until it is obtained, which may suspend the applicable time limit.

Interim measures

Unless the parties agree otherwise, and on a party's application, the tribunal may issue provisional measures or interim awards dictated by the nature of the dispute or to prevent irreparable harm — including maintaining or restoring the status quo pending determination; preventing current or imminent damage, or damage prejudicing the arbitration itself; providing a means of preserving assets against which later awards may be executed; and preserving important or material evidence. It may require the applicant to provide sufficient security for the costs.

The tribunal may amend, stay or cancel a measure it ordered, on a party's application or on its own motion where necessary, notifying the other parties. The party in whose favour the measure was made may, after the tribunal's written permission, ask the Competent Judge to order its enforcement in whole or part, and the judge shall so order unless it contradicts the law or public policy. The applicant is liable for costs and compensation for damage the measure causes any party if the tribunal later decides the circumstances did not warrant it.

Where the tribunal is not yet constituted, or the authority granted certain powers lacks jurisdiction or cannot act effectively at the time, the Competent Judge may on a party's application order interim or precautionary measures before or during the arbitral proceedings. Such an application is not a waiver of the party's right to uphold the arbitration agreement.

The award: form, timing and correction

The award is issued in writing and signed by the arbitrator or arbitrators; where there is more than one, the signature of the majority suffices provided the reason for any omitted signature is stated. It must state the reasons on which it is based unless the parties agreed otherwise, the applicable procedural rules do not require reasons, or it is a consent award. It must state the parties' names and addresses, and the costs and fees of the arbitration, who bears them and the payment procedure, unless the parties agree otherwise.

The tribunal issues the award ending the dispute within the time limit the parties agree; absent agreement, the award is issued within one month following the conclusion of the proceedings.

If the parties settle during the proceedings the tribunal ends them; if they ask the tribunal to record the settlement and its terms and the tribunal does not object, it records it as a consent award, which has the same status, effect and enforceability as any other award.

Unless the parties agree otherwise, a party may within seven days of receiving the award, or within the period agreed, and having notified the others, ask the tribunal to correct material computation or typographical errors, or to interpret a specific point or part of the award if the parties so agreed. If the tribunal considers the request justified it makes the correction in writing or gives the interpretation within seven days of receipt, and this forms part of the award.

Setting aside

An award may not be appealed by any method of appeal; recourse is by an application for setting aside before the Competent Court under the Law. The application is not accepted unless the applicant proves one of the grounds in Article 33, including that a party to the arbitration agreement was, at the time of its conclusion, incompetent or under an incapacity under the law governing its capacity, or that the agreement is invalid under the law the parties agreed to apply or under this Law absent agreement; and that the applicant was not given proper notice of the appointment of an arbitrator or of the proceedings, or was unable to present its defence for other reasons.

The Competent Court may set the award aside of its own motion where the subject matter of the dispute is not capable of settlement by arbitration under the law of the State, or the award conflicts with the State's public policy.

The window is one month: the application is filed before the Competent Court within one month from the date the parties received the award, from the date the applicant was notified of it, or from the date of issue of any correction, interpretation or additional award under Article 32, unless the parties agree in writing to extend it. Unless the parties agree otherwise, the Competent Court may stay its determination of the application at a party's request if it considers that appropriate.

Recognition and enforcement

An award has the status of res judicata and is enforceable under the Law regardless of the country in which it was issued. The enforcement application is submitted in writing to the Competent Judge with a copy of the arbitration agreement and the original award or a certified copy in the language of issue, plus a certified Arabic translation if issued in a foreign language, unless the parties agreed alternative methods. The application is not accepted until the period for applying to set the award aside has lapsed.

Recognition or enforcement may not be refused, whatever the country of issue, except in two situations. First, on the application of the party against whom the award is invoked, if it proves before the Competent Judge one of the specified grounds — including invalidity of the arbitration agreement, or that enforcement has been stayed by a court of the country of issue or under its law. Second, where the Competent Judge of his own motion refuses recognition or enforcement because the subject matter is not arbitrable under the law of the State, or recognition or enforcement would be contrary to the State's public policy.

Where the Competent Judge learns that the award is the subject of setting-aside proceedings before a court of the country of issue, he may adjourn the enforcement order as he deems fit, and may on the application of the party seeking recognition or enforcement require the other party to provide suitable surety. An appeal from a decision refusing or ordering enforcement lies to the Competent Court within thirty days of its issue.

The Law's preamble refers to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, to which the State of Qatar acceded by Decree No. 29 of 2003.

Arbitration centres and the arbitrator register

The Minister issues a decision licensing the establishment of arbitration centres and branches of foreign arbitration centres in the State, determining the conditions and rules for granting and cancelling licences and the applicable fees. A register is established at the Ministry to record arbitrators approved by the Minister's decision, with the conditions, rules and fees for registration and striking off set by his decision. Arbitration centres existing when the Law is applied must align their status with it and with the decisions issued under it within six months of its commencement date, and the Council of Ministers may, on the Minister's proposal, extend that period for a similar period or periods.

Institutions active in the field in the State include the Qatar International Center for Conciliation and Arbitration, which sits under Qatar Chamber. A centre's rules are distinct from the Law's provisions, so subjecting proceedings to a particular centre's rules is a choice that calls for reading those rules themselves.

What to get right in the clause

• Writing: a condition of validity rather than proof — an invalid agreement removes the route entirely.
• The Other Authority: naming it decides who appoints arbitrators and rules on challenges; otherwise the Competent Court does so.
• Number of arbitrators: three absent agreement, and an odd number is mandatory where there are several.
• Place and language: agree them expressly, or the tribunal will determine them.
• The Competent Court and Competent Judge: an express election between the Court of Appeals' Arbitral Disputes Circuit and the QFC Civil and Commercial Court.
• Procedural rules: these may be subjected to the rules of an institution or centre inside or outside the State.
• Time for the award: this can be agreed, failing which it is one month from the close of proceedings.

Detailed procedural matters, including the implementing decisions issued by the Minister of Justice, should be confirmed against the official text before being relied on. The comparison between the two routes is set out in choosing between litigation and arbitration, and the clause in Qatar contract-law considerations. Our arbitration team and litigation and dispute resolution practice advise on arbitral proceedings and on setting-aside and enforcement applications.