Qatar's New Arbitration Law: A Bold Step Forward

Qatar's New Arbitration Law: A Bold Step Forward

Qatar has recently enacted a new law on arbitration, which is expected to enhance the efficiency and effectiveness of arbitration proceedings in Qatar and promote Qatar as a regional hub for arbitration. The new law is largely based on the UNCITRAL Model Law on International Commercial Arbitration, which is an international template for modern and harmonized arbitration laws.

The new law, Law No. 2 of 2017, was issued by the Emir of Qatar, Sheikh Tamim bin Hamad al Thani, on 16 February 2017 and came into force on 15 April 2017. The new law repeals the previous arbitration provisions contained in Articles 190 to 210 of the Civil and Commercial Procedure Code of 1990, which were outdated and inconsistent with international standards and best practices.

The new law applies to all arbitrations conducted in Qatar, whether domestic or international, unless the parties agree otherwise. The new law also applies to arbitrations conducted outside Qatar if the parties choose Qatari law as the governing law of their arbitration agreement or if the parties agree to apply the new law to their arbitration.

The new law introduces several reforms and innovations to improve the arbitration process in Qatar, such as:

• Recognizing the principle of party autonomy and allowing the parties to freely determine the procedural aspects of their arbitration, such as the number and appointment of arbitrators, the language and place of arbitration, the rules of evidence and procedure, etc.;
• Providing for a simple and expedited procedure for obtaining interim measures from arbitral tribunals or courts before or during arbitration proceedings;
• Allowing arbitral tribunals to rule on their own jurisdiction and competence (the principle of competence-competence) and empowering courts to refer disputes to arbitration if there is a valid arbitration agreement (the principle of kompetenz-kompetenz);
• Establishing a supportive role for courts in assisting arbitration proceedings, such as appointing or challenging arbitrators, ordering interim measures, granting assistance in taking evidence, etc.;
• Limiting the grounds for setting aside arbitral awards to those specified in Article 33 of the new law, which are similar to those provided in Article 34 of the UNCITRAL Model Law;
• Facilitating the recognition and enforcement of arbitral awards in Qatar, whether domestic or foreign, in accordance with Article 35 of the new law, which is similar to Article 36 of the UNCITRAL Model Law; and
• Providing for a licensing system for arbitrators and arbitration centers by the Ministry of Justice.

The new law is a bold step forward for Qatar in developing its legal framework for arbitration and aligning it with international best practices and standards. The new law is expected to enhance the confidence and trust of parties in choosing Qatar as a seat or venue for arbitration and to foster the development of arbitration as an alternative dispute resolution mechanism in Qatar.

Disclaimer: This article provides general information and should not be construed as legal advice. Please consult with a qualified and experienced Lawyer for personalized guidance regarding your specific situation.