International Arbitration

• Published date: 22 April 2022
• Subject Matter: Corporate/Commercial Law, Government, Public Sector, Litigation, Mediation & Arbitration, Corporate and Company Law, Contracts and Commercial Law, Government Contracts, Procurement & PPP, Arbitration & Dispute Resolution, Diversity, Equity & Inclusion
• Law Firm: Sultan Al-Abdulla & Partners
• Author: Mr Thomas Williams, Ahmed Durrani and Umang Singh

LEGAL FRAMEWORK

1. What legislation applies to arbitration in your country? Are there any mandatory laws?

Law No. 2 of 2017 issuing the Arbitration Law in Civil and Commercial Matters ("the Arbitration Law") applies.

The general duty of the tribunal is to act impartially and to treat the parties equally. In doing so, the tribunal is required to provide the parties a full and equal opportunity to present their respective cases, and avoid any unnecessary delays or expenses, and to ensure a fair and expeditious process: see Article 18 of the Arbitration Law.

Having said that, parties have the flexibility to choose the rules applicable to the arbitral proceedings, and the tribunal must follow the same. However, if the parties are unable to agree the procedural rules, the tribunal can apply any rules that it deems appropriate: see Articles 19(1) and (2) of the Arbitration Law.

There are also certain other aspects of the Arbitration Law, such as:

• The parties are free to agree the language of the proceedings In the absence of an agreement, the tribunal has the authority to decide the applicable language.
• The parties can also choose any venue for the arbitration. If they do not agree, the tribunal will determine the venue keeping in mind the circumstances of the case and convenience for the parties.
• The tribunal is required to conduct physical or virtual hearings, unless it deems that the arbitration can be concluded on the basis of the documents or if the parties have agreed otherwise.
• The witnesses and experts do not need to swear an oath when giving evidence.
• The arbitrators must render their award within the timeframe agreed by the parties. If there is no agreement, then the award must be rendered within a month of the conclusion of the proceedings.
• The award must be in writing and signed by the arbitrator/arbitrators who rendered the award.
• In addition, there are certain self-explanatory requirements for pleadings, representation and expert evidence, which can be found in Articles 23 to 27 of the Arbitration Law.

2. Is your country a signatory to the New York Convention? Are there any reservations to the general obligations of the Convention?

Qatar is a signatory to the New York Convention, under Emiri Decree No. 29 of 2003 which came into force on March 15, 2003. Qatar declared the 'reciprocity reservation' pursuant to Article 1(3) of the New York Convention, meaning that it will only recognise and enforce foreign awards made in other signatory states.

3. What other arbitration-related treaties and conventions is your country a party to?

Qatar is signatory to the following international treaties that are relevant to the recognition and enforcement of foreign arbitration awards:

• International Centre for Settlement of Investor Disputes Convention (ICSID Convention) as of February 14, 2011 under Emiri Decree No. 5 of 2011;
• Convention on Judicial Cooperation between states of the Arab League (Riyadh Convention) of 1983;
• Arab League Convention on Commercial Arbitration of 1987 and
• Gulf Council Convention for the Execution of Judgments Delegations and Judicial Notifications of 1996 (Gulf Convention).
• United Nations Convention on International Settlement Agreements Resulting from Mediation 2018 (Singapore Convention) under Emiri Decree No. 79 of 2020.

4. Is the law governing international arbitration in your country based on the UNCITRAL Model Law? Are there significant differences between the two?

Yes, the Arbitration Law largely follows the UNCITRAL Model Law. However, there are some differences between the two, including:

• Article 2(2) of the Arbitration Law introduces a unique requirement: the Prime Minister's approval must be obtained to conclude arbitration agreements in administrative contracts which can be loosely defined as agreements made with governmental entities for a public benefit.
• Public sector entities are prohibited from arbitrating disputes between them under the Arbitration Law: see Article 2(2) of the Arbitration Law.
• The Arbitration Law includes a provision on the immunity of arbitrators who are immune from liability unless they have acted in bad faith, collusion or gross negligence: see Article 11(11) of the Arbitration Law.
• The Arbitration Law requires the tribunal to include within the body of the award a copy of the arbitration agreement: see Article 31(3) of the Arbitration Law.
• It also requires sending an electronic copy of the award to the administrative department at the Qatari Ministry of Justice: see Article 31(11) of the Arbitration Law.
• The timeframes to challenge an award, and to seek its correction or interpretation are shorter in the Arbitration Law. A party has to request a correction or interpretation within seven days of the receipt of the award, and the tribunal must then make the same within seven days of the receipt of the request. However, these timelines can be altered if the parties agree to the contrary: see Article 32(1) of the Arbitration Law.
• The time limit under the Arbitration Law for a party to file a request for annulment is set at one month from the date of the receipt of the final award, as opposed to the three-month period prescribed in the UNCITRAL Model Law: see Article 33(4) of the Arbitration Law.

5. Are there any impending plans to reform the arbitration laws in your country?

No.

6. What arbitral institutions (if any) exist in your country? When were their rules last amended? Are any amendments being considered?

Qatar has one arbitral institution; Qatar International Centre for Conciliation and Arbitration ("QICCA").

The QICCA Rules of Arbitration ("the QICCA Rules") were first introduced in 2012. No amendments have been made so far. However, given the number of mega projects and the FIFA World Cup 2022, the Qatar Chamber of Commerce and Industry is considering updating the rules to remain consistent and suitable to different parties. This could include a chapter for emergency arbitration as provided in the ICC rules.

7. Is there a specialist arbitration court in your country?

Two courts have been categorised as the "Competent Court" which parties can agree as the supervisory court pursuant to the Arbitration Law. These are: (i) the Civil and Commercial Arbitration Disputes Circuit of the Qatari Court of Appeal; and (ii) the Court of First Instance of the First Instance of the Civil and Commercial Court of the Qatar Financial Centre ("the Qatar International Court"). The former is a specialist arbitration court in mainland Qatar, while the latter is the general civil and commercial court of the Qatar Financial Centre.

Previously, it was thought that the Qatar International Court could only exercise its supervisory powers in relation to disputes where at least one of the parties was based in the Qatar Financial Centre ("the QFC"). However, in its Notice of Ruling in case C v D [2021] QIC (F) 8, the Qatar International Court held that it can act as the Competent Court even where parties are not based in the QFC.

THE ARBITRATION AGREEMENT

8. What are the validity requirements for an arbitration agreement under the laws of your country?

For an arbitration agreement to be valid and enforceable, the following primary criteria apply:

• The parties must have capacity to agree to settle the dispute through arbitration: see Article 7(1) of the Arbitration Law.
• The subject matter of the dispute must be arbitrable: see Article 7(2) of the Arbitration Law.
• The arbitration agreement must be in writing: see Article 7(3) of the Arbitration Law.

In relation to administrative (public works and public procurement) contracts, an arbitration agreement involving a state entity must obtain prior approval from the Prime Minister or risk bearing the arbitration agreement as invalid (see above).

9. Are arbitration clauses considered separable from the main contract?

Yes, see Article 16(1) of the Arbitration Law.

Furthermore, an arbitration clause which is incorporated into a contract by reference to another document is enforceable, provided that the said reference clearly makes that external clause a part of the contract: see Article 7(5) of Arbitration Law.

10. Do the courts of your country apply a validation principle...