THE AUTHOR:
Omar Adel Sherif, Arbitration Associate at ALC – Alieldean Weshahi & Partners
Introduction
As one of the world’s most renowned investment hubs, ranked among the top 10 countries globally in attracting foreign investments last year, the State of Qatar has, in recent years, fully recognized that major reforms in dispute resolution mechanisms are one of the most fundamental necessities to align with the ever-increasing investments in the State.
The first major reform was in 2017, with the introduction of the Qatari Arbitration Law No. (2) of 2017 in Civil and Commercial Matters, which contained various improvements compared to the arbitration legislation previously provided for in the Civil and Commercial Procedure Law No. 13 of 1990.
Such reform aimed principally at developing alternative dispute resolution in the country due to its inherent direct relationship with the economic growth in the State, which has already been significantly improving, as many businesses prefer such alternatives over ordinary State Courts, particularly when it comes to international commercial relations.
Such reforms did not stop there, as Qatar took an important initiative in improving the performance of its local commercial Courts, by ensuring greater efficiency and speed in commercial dispute resolution, aligning with the nature of commercial disputes, which require a certain level of rapidity in settlement.
While commercial disputes were previously resolved at a slow pace, Law No. 21 of 2021 establishing the Investment and Trade Court provided very strict deadlines for written submissions, which led to a significantly faster resolution of commercial disputes.
Besides the above-mentioned reforms, Qatar was one of the few states in the Arab region to legislate an advanced Mediation Law for settlement of Civil and Commercial Disputes No. 20 of 2021.
Despite being a pioneer in the past few years in the settlement of commercial disputes, whether through ordinary Courts or via alternatives, such as mediation and arbitration, Qatar did not stop at these advancements. It also took into consideration the necessary review of the rules of the most important arbitration center in the State, the Qatar International Center for Conciliation and Arbitration (QICCA), due to the high increase in the usage of arbitration in the State, namely a 21% increase in the awards rendered in arbitration cases in 2024, compared to 2023.
It is essential at this stage to elaborate on the modifications introduced in QICCA Arbitration Rules 2024, compared to its rules of 2012, before delving into the impact of said modifications in Qatar, as follows.
The Modifications Introduced in QICCA Rules of 2024 Compared to its Rules of 2012
A prima facie reading of the 2012 QICCA rules and the recently introduced rules in 2024 easily reveals the major modifications introduced by the Center. In this regard, we note that the rules of 2012 included 5 chapters, which contained only 48 articles. In contrast, the new rules of 2024 included 7 chapters, as well as 78 articles, which is 30 more articles than the previous rules of 2012. Below, we present the huge amendments introduced in the QICCA rules of 2024.
It is worth mentioning that, unlike the amendments introduced in the rules of other reputable centers worldwide, which were primarily limited to adding certain articles to align with developments witnessed in the practice of arbitration. QICCA’s new rules, however, not only incorporate these global best practices but also introduce other essential provisions, which were undoubtedly necessary for achieving the objectives of the center, and its proper functioning.
With regard to the amendments that have been made in order to better understand the objectives of QICCA and how it operates, one notable addition is the introduction of Article 2 in the new rules. This provision serves as a guarantee to parties engaged in QICCA arbitration, ensuring the center’s independence in the performance of its duties, its non-involvement in the resolution of arbitration disputes and most importantly, its inclusion of experts to uphold high standards in its operations.
Another important amendment related to the functioning of the center appeared in article 8 of the new rules, which enables the center to refuse the registration of a new case, or halt arbitration proceedings, following consultation with the Conciliation and Arbitration Committee if such case apparently does not fall within the jurisdiction of the center.
On the other hand, amendments that aligned with global best practices have been introduced firstly in Article 9 of the new rules, which allows the funding or the financial support of an arbitration through a third-party, provided that parties to the arbitration disclose details of such funding.
Another major advancement in 2024 rules is the possibility of consolidating more than one arbitration into a single arbitration. The rules in this regard enabled the consolidation, whether upon request by any of the parties to the center before the constitution of the arbitral tribunal, or upon request of the arbitral tribunal itself following its constitution. Nevertheless, contrarily to other rules, no specific cases have been provided for consolidation. The criteria for consolidation under QICCA rules is therefore left to the discretion of the center, in cases where multiple arbitrations are filed under the same dispute, or contract, and between the same parties or some of them.
Furthermore, the new rules grant QICCA the power to automatically appoint an arbitrator, if no appointment has been made within the specified time limit, whether by the parties, or by the two co-arbitrators in the case of a tripartite arbitral tribunal is to be appointed, without the need for a prior request from one of the parties, as for the rules of 2012.
The new rules also recognize the possible joinder of a third person to the arbitral proceedings, in cases where the third-party is bound to the arbitration agreement or explicitly agrees to the joinder.
Additionally, time limits have been introduced for issuing the final arbitral award, namely 6 months from the date of transmission of the case file to the tribunal. As the new rules impose stricter constraints on the arbitral tribunal, specifically when it comes to time limits, they allow the authority of the tribunal to request the assistance of a secretary.
Given that expert evidence is crucial, especially in international arbitration cases, new rules have also provided for the possible appointment of expert witnesses, whether upon the parties’ request or at the tribunal’s discretion.
The means of communications between the arbitral tribunal and the parties have also been delimited under Article 35 of the QICCA rules of 2024. Additionally, the suspension of arbitration proceedings has been introduced as an option for both the center and the tribunal, upon request of the parties, whether jointly or separately, if deemed necessary.
Lastly, provisions for expedited proceedings have been incorporated to align with the amended rules of leading arbitration centers worldwide, under certain conditions. In such case, the arbitral award must be issued within 90 days. In any event, parties may request additional awards upon payment of the required fees.
Arbitration costs were finally revised in favor of an increase in the expenses of the center, besides introducing an emergency arbitrator’s framework.
The Impact of 2024 QICCA Rules in Qatar
Based on the above, we affirm the positive impact of the introduction of the new rules of QICCA in Qatar. These rules enhance trust in the choice of QICCA to govern the arbitral proceedings, particularly due to the increased efficiency introduced in various aspects. Most importantly, the new rules ensure faster and more effective dispute resolution for the parties in the arbitration.
Parties not only have the option to agree to expedited proceedings, ensuring a swift resolution of disputes — an essential factor for businesses and commercial operations that could suffer from the prolonged uncertainty— but they can also arbitrate on a larger scale, with the joinder of third parties, ensuring more fairness and equity to the proceedings.
Additionally, the new rules further guarantee efficiency and speed by allowing case consolidation, enabling a sole arbitral tribunal to examine multiple related disputes instead of having separate tribunals. Moreover, the introduction of an emergency arbitrator ensures that interim measures can be granted within short time scales without having to resort to Courts before the constitution of the tribunal.
Conclusion
The QICCA Arbitration Rules of 2024 mark a true transformative revolution in the world of arbitration, ensuring efficiency, speed, and trust in dispute resolution under the center’s framework.
As arbitration has been remarkably growing in Qatar in recent years, the introduction of these new rules is expected to further expand the use of arbitration in the country, reinforcing Qatar’s position as a leading global business hub.
ABOUT THE AUTHOR
Omar Adel Sherif is an Arbitration Associate at ALC – Alieldean Weshahi & Partners. He holds a double bachelor’s degrees from both Cairo University and Paris I – Panthéon Sorbonne University, in addition to a Master’s degree from Paris I – Panthéon Sorbonne University in “International and European Business Law”, and two professional diplomas in arbitration from Ain Shams University in cooperation with the Cairo Regional Centre for International Commercial Arbitration (CRCICA). His professional career encompasses experience in various legal fields, most importantly arbitration cases in both Arabic and English, arbitration-related proceedings, and litigation under both Egyptian and Qatari laws, as well as general corporate law, gained while working in three prominent Egyptian law firms.
*The views and opinions expressed by authors are theirs and do not necessarily reflect those of their organizations, employers, or Daily Jus, Jus Mundi, or Jus Connect.
