Another Positive Step Forward In The Enforcement Of Foreign Arbitral Awards

In the past, Qatar's application of the New York Convention has been somewhat unpredictable. A recent decision of the Qatari Court of Cassation suggests that Qatar is moving towards overcoming the perception that it is an arbitration-unfriendly jurisdiction.

Qatar's status as a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "New York Convention") is often cited as an advantage when selecting arbitration as the dispute resolution mechanism for contracts involving a Qatari party. However, enforcement of arbitral awards in Qatar can be inconsistent and some award creditors have found their awards being annulled by the local courts.

In Case No. 173 of 2016, the Qatari Court of Cassation overturned the rulings of the lower courts to find that there was no basis for not enforcing an ICC Paris-seated award in Qatar, which had met the requirements under Article IV of the New York Convention.

History of enforcement of foreign arbitral awards in Qatar

The New York Convention became law in Qatar in March 2003. However, despite Qatar being a signatory to the New York Convention, enforcement of foreign arbitral awards in Qatar has been inconsistent and awards have been annulled for reasons which seemingly contradict the provisions of the New York Convention. Reasons cited for denying enforcement include that the arbitration agreement did not explicitly state that any awards would be final and binding and thus the award was open to an appeal on the merits (Case No. 631/2006); and, although subsequently reversed (see below), the Qatari Court of Appeal also found that a foreign award which had not been rendered in the name of His Royal Highness the Emir of Qatar violated public policy and therefore was unenforceable (Case No. 2216/2013).

Qatar Court of Cassation Case No. 173 of 2016

The case concerned an award made in May 2013 by the International Chamber of Commerce (the "ICC") in Paris-seated arbitration proceedings. Interestingly, from an enforcement perspective, the case involved two Qatari parties. While the award creditor sought to enforce the award in Qatar, the award debtor commenced proceedings to have the award annulled by the Qatari courts. The enforcement proceedings were therefore stayed pending a decision regarding annulment.

These latest developments centre on the enforcement proceedings after the Qatari Court of Cassation overturned the decisions of the lower courts and dismissed the...