January 20th, 2025 Legal Updates

Recent Amendments to the Qatar Financial Centre Law No. 7 of 2005

The State of Qatar recently issued notable amendments to the Qatar Financial Centre Law no. (7) of 2005 (the “QFC Law”). The amendments, issued via Qatar Law No. 16 of 2024, serve to enhance the legal and administrative framework of the QFC. Below is an overview of the significant provisions.

Structural Changes to the QFC Courts

The amendments to the QFC Law have redefined the structure and operation of the QFC’s judicial bodies, namely the Qatar International Court and Dispute Resolution Centre (the “QICDRC” or “QFC Courts”). The amendments have introduced a more detailed and hierarchical framework aimed at improving functionality, efficiency, and expertise in legal proceedings before the QFC Courts. The key changes are as follows:

  • The Regulatory Tribunal: The QFC Regulatory Tribunal, a specialist appeals body designed to hear complaints against the decisions of the QFC’s institutions, will now be organized into one or more circuits. The decision regarding the number and composition of these circuits rests solely with the Regulatory Tribunal’s chairman.
  • The Civil and Commercial Court: The QFC Civil and Commercial Court, which hears disputes between litigants, has been divided into two distinct types of circuits, each designed to handle specific tiers of judicial responsibilities. Those circuits are:
  1. The First Instance Circuit: These circuits may consist of either a single judge or a panel of three judges. The composition of the circuit is determined by the Civil and Commercial Court’s chairman.
  2. Appellate Circuits: This circuit is composed of a panel of three members, including the chairman of the court and two other members.

Previously, QFC Court cases required a bench of three judges. In light of the QFC Courts’ growing caseload in recent years, the flexibility to resolve disputes through a single-judge hearing will likely improve the speed and efficiency of dispute resolution in the QFC.

Administrative and Financial Management

The chairman of the Regulatory Tribunal assumes expanded responsibilities. These include the management of financial and administrative affairs, issuing necessary decisions, and setting or amending fees for claims and other court procedures. The chairman also has the discretion to grant exemptions from such fees.

Similarly, in the Civil and Commercial Court, the chairman has been tasked with managing administrative and financial affairs, issuing necessary decisions, and setting or amending fees for claims and other court procedures. The chairman also has the discretion to grant exemptions from such fees.

Appeals and Timeframes

Amendments to Article 12 of Appendix 6 introduce specific guidelines for handling appeals within the Civil and Commercial Court:

  • Appeals against decisions of the Regulatory Tribunal and the First Instance Circuit must be filed before the Appellate Circuit within 30 days of the judgment’s issuance.
  • The appellate process will be overseen by a panel of three which consists of the chairman and two members.

These revisions are intended to streamline the appeal process, making it more predictable and accessible to litigants

Implementation and Broader Implications

The amendments came into effect the day following their publication in the official gazette on September 1, 2024.

Conclusion

In conclusion, the amendments in Law No. 16 of 2024 represent a pivotal step toward modernizing and enhancing the legal and administrative framework of the QFC. By restructuring the judicial bodies, streamlining administrative processes, and introducing clear guidelines for appeals, the changes aim to foster a more efficient, responsive, and specialized judicial system. These updates not only improve the functionality of the QFC Courts but also ensure better allocation of resources, uphold judicial expertise, and provide greater accessibility to litigants. The prompt implementation of these amendments reflects Qatar’s dedication to building a strong and flexible legal system, further solidifying its role as a leading global financial center.

Authors: Habiba Wahdan, Associate and Dean Jaloudi, Partner

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