Introduction of the new arbitration rules for the Qatar International Center for Conciliation and Arbitration

The key updates include:

• Expedited procedures
• Specific grounds for consolidation
• Various efficiency measures
• Emergency arbitration procedures
• Provisions embracing use of technology
• Changes to costs structures

Expedited procedure

A significant development in the 2024 Rules is the introduction of an expedited arbitration procedure for efficiently managing smaller disputes. This carries particular regional significance where alternative resolution methods such as mediation are used far less frequently relative to other jurisdictions.

The 2024 Rules provide that where the amount in dispute is QAR 1 million or less (approximately USD 270,000) and the parties’ arbitration agreement was entered into after 1 January 2024, the expedited procedure should apply. The parties can agree to disapply the procedure, including by agreeing to appoint three arbitrators.

The default position is that expedited arbitrations will be documents only, with the tribunal required to issue its final award within 90 days of transmission of the file to the tribunal. The tribunal can extend this, but only by up to 30 days without QICCA’s approval. The parties can agree to a further extension if necessary.

This development is a clear attempt to reverse the trend of arbitration becoming more time consuming and expensive, particularly in lower value disputes where the cost of proceedings can quickly overtake the amount in dispute. It potentially removes the significant expense of preparation for and attendance at a substantive hearing, with short timeframes effectively operating as cost caps.

The threshold at QAR 1 million (approximately USD 270,000) mirrors the equivalent threshold in DIAC’s 2022 rules, currently set at AED 1 million or approximately USD 270,000. This is relatively low – the International Chamber of Commerce (ICC) applies a USD 3 million threshold and arbitrate AD applies an AED 9 million threshold (USD 2.5 million) – and so it remains to be seen whether the 2024 Rules will capture a sufficient number of disputes for the expedited procedures to be effective.

Emergency procedures

The 2024 Rules have introduced a brand-new series of procedures dealing with emergency arbitration. No such procedure existed under the 2012 Rules. Emergency measures are required where a party requires relief at the time of submitting the notice of arbitration, or after submission but before a tribunal has been constituted. Relief can now be sought by submitting an application to QICCA and paying the relevant fee.

On its face, the new emergency procedure appears quick, with an emergency arbitrator to provide a decision on the application for relief within 15 days from receipt of the application. However, it is at the appointment stage where potential delay exists: QICCA will appoint an emergency arbitrator “as soon as practicable”, after consultation with QICCA’s Conciliation and Arbitration Committee, having determined that the application is prima facie based on valid grounds and QICCA has jurisdiction to administer the dispute.

Beyond that hurdle, there then appears to be several cumulative grounds that must be satisfied for the emergency arbitrator to grant the relief sought:

• the emergency arbitrator must be satisfied that they have jurisdiction to order the relief;
• there must be a reasonable possibility of a successful claim;
• there is incurred actual or potential harm that is not reparable by way of damages;
• extremely urgent circumstances must exist; and
• the interests of the applicant outweigh the harm that may be incurred by the party against whom the emergency relief is directed.

While a number of these requirements are typical practical considerations for emergency relief applications, we will be monitoring with interest whether the prescriptive nature of the requirements helps or hinders parties in their pursuit of emergency relief under the 2024 Rules.

Consolidation

The 2012 Rules did not permit the consolidation of more than one arbitration. Consolidation is often considered a key benefit of arbitration, allowing parties to efficiently resolve disputes arising out of multiple contracts or between multiple parties in a single arbitration, helping to manage costs and avoiding the risk of conflicting decisions.

The 2024 Rules include specific standards and grounds for consolidation, including for multiple arbitrations relating to the “same dispute or contract”, or between “the same parties or some of them”. The 2024 Rules go further, with a broad, non-exhaustive list of possible grounds for a consolidation application which includes the similarity between arbitrations, the relief sought by the parties, the status of each arbitration and the similarity in arbitration agreements. 

The 2024 Rules do not confirm whether all parties must agree to the consolidation in advance of an application. Consolidation is instead permitted at the request of a party or at QICCA’s own initiative, in either case after consultation with QICCA’s Conciliation and Arbitration Committee.
Taken together, this suggests a pro-consolidation approach by QICCA, but the application of the 2024 rules will need to be monitored in practice.

Technology

The 2024 Rules have clarified that hearings may be held virtually. That is a welcome update for international parties arbitrating with QICCA, removing the need to travel for some hearings. 

Parties also now have the option to file submissions, including the notice of arbitration, electronically, although the 2024 Rules still provide that hard copies of documents and correspondence must be delivered to QICCA unless QICCA decides otherwise. Recent experience suggests that QICCA Tribunals order communications to be via e-mail or electronic means, so it will be interesting to see whether the 2024 Rules result in a backwards step to hard-copy documents, in practice.

Other efficiency measures

The 2024 Rules now contain an absolute obligation for a tribunal to issue a final award within 6 months of transmission of the file to them, unless otherwise agreed by the parties. The 2012 Rules only required a Tribunal to use best efforts to issue its final award within 6 months, so this update reflects a hardening of QICCA’s stance on expedition and efficiency.

In a similar vein, the timeframes for legal submissions have also been shortened and cannot be longer than 30 days, unless agreed by the parties. While these types of timeframes are a positive starting point if speedy resolution is the goal, they are unlikely to be suitable for more complex disputes and we expect that parties will typically agree to an extended timetable for most complex matters.

Costs structures

The 2024 Rules maintain a sliding scale of arbitration fees based on the amount in dispute. However, the registration fee is no longer a fixed amount and now ranges between QAR 5,000 and QAR 20,000 depending on the amount in dispute. There have also been modest increases to QICCA and tribunal fees relative to the 2012 Rules.

The 2024 Rules represent a significant positive development for resolving disputes in Qatar. The sweeping changes bring the QICCA Rules in-line with international standards, positioning QICCA on a par with other GCC institutions for effective, efficient dispute resolution. It will be interesting to monitor how QICCA applies the 2024 Rules in practice, including whether strict adherence to hard copy filings are followed and how the new emergency procedures are implemented.

Parties should familiarise themselves with the updated rules and further refinements which may follow from QICCA. Parties should also check whether existing arbitration agreements refer to QICCA rules ‘in force from time-to-time’, which could mean that the 2024 Rules apply to new disputes, rather than the QICCA rules in force at the time the arbitration agreement was concluded.

A copy of the 2024 Rules can be found here.