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Middle East Litigation Update - January 2025

January 15, 2025
Business Litigation Reports

A New Civil Enforcement Regime Takes Effect in Qatar

            In November 2024, Qatar’s new Judicial Enforcement Law (No. 4 of 2024) (the “Enforcement Law”) came into force, marking the latest milestone in the development and modernization of the legislative framework within the country.  Although the Enforcement Law will be primarily relevant to enforcement matters arising from domestic civil disputes, it will also be of interest to parties seeking to enforce foreign court judgments and international arbitration awards against counterparties and assets located within the state of Qatar.  Equally, it will be of interest to senior representatives of international businesses having a registered entity in Qatar given the potential sanctions identified in the law that can be applied to such representatives. 

            Throughout eighteen chapters, the Enforcement Law amends, consolidates, and clarifies an enforcement regime that had largely been in place for over 34 years.  The matters covered are wide-ranging and are designed to expedite and simplify what could frequently amount to a time-consuming and convoluted process under the prior framework.  The creation of a new Enforcement Court seeks to achieve this aim via an overhaul of the powers and discretion granted to the judiciary of that court, the digitization of the enforcement process, and an expansion of the matters on which enforcement can be sought.  This update addresses some of the most noteworthy matters.

The Enforcement Court

            The Enforcement Law establishes a new Enforcement Court and an associated appellate division and adopts reformed procedures for all matters in which enforcement is sought.  The Enforcement Court will be presided over by a judge having a level of seniority not lower than a Judge of the Court of Appeal, and the court has sole authority to determine all matters of enforcement addressed by the Enforcement Law, of any value or kind, subject to any contrary provisions.

            The Enforcement Court does not, for example, have the power to interpret or clarify a judgment in the event of any ambiguity or vagueness in the wording of that judgment, but is empowered to seek a clarification from the court that issued the judgment.  Any such clarification is required to be issued within 15 working days from the date of the request.  

            Judges of the Enforcement Court are also empowered to seek the assistance of the police or other authorities when necessary, and have the discretion to determine matters on the papers, or to hold hearings. 

Enforceable Instruments

            Article 6 of the Enforcement Law sets out the documents that carry the legal status of an enforceable instrument and are therefore capable of being enforced pursuant to the provisions of the Enforcement Law.  These include: (i) local court judgments and orders, (ii) arbitration awards, (iii) foreign judgments, orders and official documents, (iv) official papers awarded the power of a writ of execution by law, (v) documented conciliation agreements and minutes, (vi) cheques, and (vii) registered lease contracts (although later provisions confirm that this concerns only the taking of possession following expiry of the lease term and not substantive disputes that may arise under the terms of the lease).

            The inclusion of cheques as a form of enforceable instrument is a notable inclusion.  Reflecting the widespread use of cheques as a form of payment in the country, cases involving dishonoured cheques make up a significant proportion of the local courts’ annual caseload— numbering in the tens of thousands of cases— notwithstanding the potentially serious criminal consequences of failing to honour a cheque.  From a civil perspective, the elevation of cheques to the status of an enforceable instrument removes the need to raise a dispute and proceed through the first instance process to collect the debt.  Instead, creditors are now able to proceed directly to enforcement for the collection of the relevant sum, subject to the procedural conditions set out in the law.

            As for the enforcement of foreign court judgments, the Enforcement Law incorporates this remedy within the jurisdiction of the Enforcement Court and consolidates the developed position of the Qatari courts, and prior legislation, by outlining the substantive and procedural requirements, subject to any applicable bilateral treaty or convention obligations.  Such substantive requirements will be familiar to other jurisdictions and include: application of the principle of reciprocity, ensuring the competence and jurisdiction of the issuing court, confirming that the respective parties were duly notified and represented in the underlying proceedings, ascertaining that the judgment has the effect of res judicata in the relevant jurisdiction, and identifying whether the judgment violates the public order or morals of the state of Qatar.

            Enforcement of arbitration awards is largely addressed in the Enforcement Law by cross reference to the Law on Arbitration in Civil and Commercial Matters (Law No. 2 of 2017), with the notable change that it is now the Enforcement Court that is designated as the competent court for enforcement of awards.  Article 18 reconfirms that an arbitration award shall not be rejected regardless of the jurisdiction in which it was made, subject to the limited grounds set out in the 2017 legislation.

The Powers of the Enforcement Court

            Article 36 of the Enforcement Law sets out the Enforcement Court’s general powers of enforcement.  These include: (i) attachment to and sale of a judgment debtor’s property; (ii) preventing a judgment debtor from conducting actions, or benefitting from certain government services, both in relation to private companies and juristic persons; (iii) banning any contracts being concluded between government entities and a judgment debtor; (iv) imposing travel bans on a judgment debtor if there is reason to believe that the debtor may flee the jurisdiction or dispose of assets; and (v) imprisonment of a judgment debtor for no more than three months per year if it is established that the judgment debtor is capable of paying, is ordered to pay but defaults, subject to certain further conditions as provided for in Article 43 of the Enforcement Law.  Existing powers of garnishment are reiterated within the law.

            With respect to (iv) and (v) above, and where the judgment debtor is a corporate entity, these powers extend to representatives of the judgment debtor.  In practice, this reference is understood to be a reference to senior representatives of the entity.

            All property of a judgment debtor is subject to enforcement, whether in their possession, or the possession of third parties, except for any property excluded by the provisions of the Enforcement Law or any other law.  Such exclusions include: (i) property necessary for the judgment debtor, the judgment debtor’s spouse, and others living with them, to live “decently and honourably”; and (ii) any tools and provisions the judgment debtor may require to practice the judgment debtor’s profession.

            A new power is granted to the judiciary whereby a judge of the Enforcement Court can take certain “precautionary measures” before the debtor is notified of the enforcement action.  Such measures expressly include allowing the judge to make inquiries into the assets of the debtor, and ordering interim seizure of the same.  However, powers of seizure are limited in circumstances where the debtor is subject to insolvency proceedings. 

            The exercise by the court of any interim measure or sanction is automatically withdrawn upon satisfaction of the judgment debt, and in the case of travel bans, at the discretion of the court, or where a sufficient guarantee has been given (including the making of a payment to court) pending the outcome of proceedings.  In circumstances where a judgment debtor is a non-Qatari natural person without assets to satisfy a judgment debt, the court also has the power to deport that person if in the public interest.

            Procedures are then set out in the Enforcement Law for the sale of recovered assets by way of public auction, in circumstances where the judgment debtor fails to satisfy the debt by other means.

            Finally, the Enforcement Law includes provisions setting out sanctions that can be adopted by the Enforcement Court where there is: (i) a failure or refusal to implement the orders of the court; (ii) actions are taken, whether by a judgment debtor or a third party, to obstruct enforcement or to conceal or dispose of assets that are subject to an enforcement order; and (iii) a failure by a third party to hand over property belonging to a judgment debtor.  Such sanctions are limited to a period of imprisonment not exceeding three years, a fine not exceeding QAR 100,000, or both.

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            The Enforcement Law represents the latest step taken by the State of Qatar in an ongoing effort to modernize its legislative framework, to ensure access to justice is expedient and efficient, and to take advantage of developments in technology by digitizing the process in the furtherance of those aims.