QICCA Rules

Qatar arbitration moves with the times

The start of 2025 has seen the introduction of the new arbitration rules for the Qatar International Center for Conciliation and Arbitration (“QICCA”). The new rules, entitled the ‘Arbitration Rules 2024’, reflect the changing world of dispute resolution, and the rules are nearly double in length to the 2012 rules reflecting the QICCA’s understanding that arbitration is a competitive environment, and that institutional bodies need to adapt to meet the end-users’ needs. The 2024 rules are a considerable improvement, offering new regimes of expedited and emergency procedures, and transparency on third-party funding, making dispute resolution more accessible and user-friendly. We detail some of the more significant changes below.

Expedited Procedures

The introduction of an expedited arbitration procedure for smaller disputes at Chapter IV of the 2024 rules is a welcome addition. Where the amount in dispute is QAR 1 million or less (approximately USD 270,000), the expedited procedure can apply with the express agreement of the parties. The expedited procedures will not apply if the parties have agreed to appoint three arbitrators. The expedited arbitration is subject to streamlined procedures, with the default position being that no hearings will be held, and an award will be issued within 90 days of receipt of the file. Given the propensity for arbitration proceedings to drag on for extended periods, this procedure will be keenly welcomed by small contractors. Perhaps the only weakness in the new system is that the monetary threshold is very low, in keeping with many other arbitral rules. It is argued that a higher threshold would allow a lot more disputes to engage with arbitration and not be barred due to very high costs and lengthy procedures.

Emergency Procedures

Where a party to an arbitration requires emergency relief, it can at the time of or following the issuance of the Notice of Arbitration, make an application under Chapter V. Emergency relief often comes in the form of an injunction to prevent or curtail behaviour that will lead to the harm of another. The new rules allow an application to be made before the tribunal is formed, although subject to the payment of the registration fee, with the emergency arbitrator to issue a decision within 15 days from receipt of the application. There are a number of criteria that are considered and that must be satisfied for emergency relief to be granted: (i) the emergency arbitrator must have jurisdiction; (ii) there must a reasonable possibility of a successful claim; (iii) there is incurred actual or potential harm that is not reparable by way of damages; (iv) extremely urgent circumstances exist; and (v) the interest of the emergency relief applicant outweighs the harm that may be incurred by the party against whom the emergency relief is directed.

Third-party Funding

Within Chapter I, there are new rules relating to the disclosure of third-party funding arrangements. Third party funding is where a party that is not involved in an arbitration provides funds to a party to that arbitration in exchange for an agreed return on investment. Typically, the funding will cover the funded party's legal fees and expenses incurred in the arbitration. While such funding is very much in its infancy in Qatar, it is a funding strategy widely used in more developed jurisdictions, and this is a welcome addition showing the QICCA’s desire to reflect current global practices in its rules. Where an arbitration is funded or financially supported by a third-party, the parties to the arbitration proceedings are, upon commencing and throughout the proceedings, obliged to disclose details of such funding in writing to the Center or the Arbitral Tribunal.

Consolidation of Disputes

Consolidation refers to the ability to combine multiple arbitral proceedings, initially commenced separately and often against the same respondent party, into a single proceeding. Consolidation is appropriate where proceedings concern the same or similar questions of fact and law, and often is used when multiple disputes arise on the same project.

Rules within Chapter 1 of the 2024 rules allow the consolidation of certain arbitrations filed before the Center in respect of the same dispute or contract and between the same parties or some of them into a single arbitration. The Center shall, in consultation with the Committee, consider all relevant circumstances, including but not limited to the similarity between the arbitration cases, the relief sought by the parties, the status of each case and the arbitration agreement subject of the arbitral proceedings. 

Costs

The registration fee for commencing an arbitration under the 2012 rules was a fixed sum of QAR 5,000, but this has been revised and is now a sliding scale of between QAR 5,000 (US $1,373) and QAR 20,000 (US $5,500) depending on the amount in dispute. For purposes of comparison, the ICC charges a fixed fee of US $5,000, while SIAC charges a fixed fee of US $1,500. The QICCA registration fee is certainly in the range of other institutional bodies, and for most parties the registration fee is not a deciding factor in whether to appoint that institutional body to govern its dispute.

Technology

Within Chapter III the express right to have virtual hearings has been included. In a post-Covid world, and with parties seeking to limit exposure to costs at all stages, this is a welcome addition. There is also express recognition and the acceptance of electronic submissions and digital signatures.