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 Legal System in Qatar

Background

The Legal System in Qatar has evolved significantly over the years, shaped by its unique historical and cultural context. Qatar is a hereditary emirate ruled by the Al-Thani family since the mid-19th century. The judicial framework of the country reflects a blend of influences, starting with the Ottoman occupation in the early 19th century. During this period, the Ottomans implemented a justice system rooted in the Hanafi school of Islamic law, marking the foundation of what would later develop into the modern Qatar legal system.

As the Ottoman Empire’s influence waned in Qatar and the Arabian Gulf, a shift occurred toward the Hanbali school of Islamic law, driven by the growing regional power of Saudi Arabia. This transition was pivotal in shaping the law of Qatar, as it reflected a move towards a more localized interpretation of Islamic principles.

In 1916, a treaty between Qatar and Britain designated Qatar as a British protectorate. This development introduced a dual legal system in the country. While local courts continued to adhere to Shariah principles, the British established a parallel system of civil courts that applied English statutes. This dual structure defined the Law services in Qatar for several decades.

A major milestone came in October 2003 with the enactment of Judicial Law No. 10, which unified and modernized the judicial framework. This groundbreaking reform eliminated the dual court system and laid the foundation for the contemporary Qatar legal system, which officially came into effect in October 2004.

Constitution

In June 2004, the Emir enacted the Constitution, which officially came into force in June 2005. This pivotal document defines Qatar’s political system as democratic and vests significant legislative and consultative powers in the Shoura (Advisory) Council.

The Constitution affirms that Qatar is governed by the Al-Thani family, with leadership passed to male descendants of Sheikh Hamad Bin Khalifa Al-Thani. Additionally, Qatar’s foreign policy is anchored in the principles of promoting and reinforcing international peace and security.

Fundamental civil and human rights are safeguarded under the Constitution. It ensures equality for all citizens in general rights and duties. Furthermore, all individuals are deemed equal before the law, prohibiting discrimination based on gender, ethnicity, language, or religion. It guarantees the right to personal privacy and the confidentiality of family affairs and correspondence. In criminal legal matters, the accused is presumed innocent until proven guilty and is entitled to the necessary legal assistance to exercise their right of defense—a critical aspect emphasized by Qatar law and supported by legal defense services in Qatar.

The Constitution also outlines the administrative structure of the State, emphasizing the separation of powers in line with its provisions. Legislative authority is entrusted to the Shoura Council, while executive authority resides with the Emir, who is supported by the Cabinet.

Judicial authority is vested in the courts, with judges maintaining full independence in performing their judicial duties. This framework underscores Qatar’s commitment to upholding the rule of law and fostering a transparent and equitable legal system, as highlighted by the principles of Qatar law.

Legislation

Under the Constitution, legislative authority in Qatar is vested in the Shoura Council. Members of the Shoura Council have the right to propose new legislation. These proposals are submitted to a committee within the Council, which carefully examines them before referring them back to the Council. Once a proposal is accepted by the Shoura Council, it is forwarded as a draft law to the Cabinet of Ministers for review and recommendations, reflecting the structured legal system in Qatar.

In addition to reviewing proposals from the Shoura Council, the Cabinet of Ministers can also present its legislative proposals to the Council for deliberation. However, such proposals from the Cabinet are not binding on the Shoura Council, demonstrating the checks and balances inherent in the law of Qatar.

Every draft law that receives approval from the Shoura Council must ultimately be referred to the Emir for endorsement, as per the Constitution. The Emir holds the authority to decline the ratification of a draft law and return it to the Shoura Council. If the Council readopts the draft law with a two-thirds majority, the Emir is required to endorse and promulgate it. Nonetheless, the Emir retains the right to suspend the implementation of such a law indefinitely if deemed in the best interest of the State, highlighting the flexibility and sovereignty of courts in Qatar and the broader legislative framework.

Judicial System

The judicial system in Qatar is structured under the provisions of the Judicial Law (Law No. 10 of 2003). This law defines the three stages of litigation: the courts of first instance, the courts of appeal, and the court of cassation.

Civil trials primarily rely on written pleadings and rebuttals, while criminal trials are predominantly conducted through oral arguments. Court proceedings across all levels are carried out in Arabic; however, translators are available for non-Arabic-speaking litigants to ensure access to justice within the Qatar legal framework.

Decisions made by the lower courts can be challenged before the courts of appeal, and in most instances, a final appeal can be made to the court of cassation. The court of cassation also operates a technical office, tasked with extracting and publishing legal principles derived from its decisions. These principles guide the lower courts, fostering consistency and adherence to the legal system in Qatar.

By organizing litigation into these structured stages and emphasizing the publication of legal principles, the judicial system underscores its commitment to clarity and fairness in court representation Qatar offers to litigants.

Civil Law


In 2004, Qatar introduced a comprehensive Civil Law that plays a pivotal role in shaping the country’s legal system. This law not only governs aspects such as time limitations and territorial jurisdiction but also defines key concepts like natural and juridical persons. It outlines principles such as the legal capacity to initiate or defend against lawsuits, providing a solid foundation for understanding how to file a civil case in Qatar.

The law offers clear guidance on forming contractual relationships and the obligations that arise from them. It specifies essential elements of contracts, including mutual consent, the subject matter, and the purpose of the agreement. Additionally, it addresses crucial aspects such as annulment, interpretation, binding effects, and cancellation of contracts, ensuring a comprehensive legal framework.

One of the core principles recognized under Qatar’s civil law is the freedom and sanctity of contracts. This means that agreements between natural and legal persons are treated as binding, provided they do not violate the law, public order, or morality. Oral agreements and those inferred from the conduct of the parties are also acknowledged and enforceable, provided they meet the necessary standards of proof.

Further, the law delves into the interpretation of contracts, contractual liabilities, and the responsibilities of individuals and third parties. It also addresses ownership obligations, unjust enrichment, surety, various types of sales and leases, insurance, land laws, mortgages, wills, and property rights. In terms of performance, it provides for compensation, compulsory execution, assignment of rights, and handling cases where performance becomes impossible. It also sets clear statutes of limitation, ensuring fairness and clarity in the legal system.

Commercial Law


The Commercial Law No. 28 of 2006 governs various aspects of commercial activities in Qatar. It encompasses regulations related to business agencies, trade names, competition, and general commercial contracts. Additionally, it outlines the rights and responsibilities of buyers and sellers, addressing areas such as maritime sales, commercial agencies, commission agencies, and brokerage.

This law also plays a pivotal role in overseeing banking transactions and the use of commercial paper, including bills of exchange, promissory notes, and cheques. Within the framework of the legal system in Qatar, these provisions ensure that both individuals and businesses operate within a structured and transparent regulatory environment, supporting the broader mandates of the Supreme Court of Qatar and the Criminal Court Qatar when addressing commercial disputes or violations.

Commercial Companies Law

The Commercial Companies Law No. 11 of the Year 2015 outlines the framework for structuring and managing companies in Qatar. According to this Law, any company established in Qatar must fall under one of the legally defined categories. Among these, limited liability companies (LLCs) and shareholding companies are the most common.

Under the provisions of the Law, an investor can register a limited liability company with a minimum of 2 and a maximum of 50 shareholders. The minimum authorized share capital required for such companies is QR. 200,000, which must be fully paid before the company’s incorporation. The liability of each shareholder for the company’s debts is limited to the value of their respective shareholding. It is important to note that limited liability companies are prohibited from engaging in activities related to insurance, banking, or investment brokerage.

Public shareholding companies, on the other hand, require at least 5 shareholders and sufficient capital to meet their objectives. If the company intends to offer shares to the public, its capital must not be less than QR. 10,000,000. The establishment of public shareholding companies is subject to approval by the Minister of Economy and Commerce. For public shareholding companies listed on the Doha Securities Market, up to 25% of their share capital may be offered for foreign subscription. Additionally, the shares of public shareholding companies are actively traded on the stock exchange market in Doha, allowing broader participation in Qatar’s legal system.

For private shareholding companies, a minimum of 5 shareholders is required, along with a capital of no less than QR. 2,000,000. Unlike their public counterparts, the shares of private shareholding companies are not traded on the stock exchange.

If a dispute arises regarding company incorporation or compliance under the Commercial Companies Law, the court of first instance in Qatar may be the initial forum for resolving such matters. Parties can also utilize the Qatar court case inquiry system to monitor the status of any ongoing cases. The legal system in Qatar ensures a robust mechanism for addressing corporate disputes and protecting shareholder rights.

Foreign Investments

The legislation governing foreign capital participation in Qatar establishes clear provisions for foreign investors, allowing their involvement across various sectors, with the exception of commercial agencies and real estate trading.

According to the legal system in Qatar, the general principle mandates that 51% of a business venture’s capital must be owned by Qatari citizens or entities fully owned by them. However, the law provides flexibility, permitting foreign ownership to be increased from 49% to 100% in specific cases through a decision issued by the Minister of Economy and Commerce. This provision is designed to encourage Foreign Investments under certain conditions.

Additionally, the Minister is empowered to grant licenses to foreign companies for executing contracts that serve public benefit within the State of Qatar. This authority underscores the government’s commitment to facilitating investments that align with national priorities and economic goals. Such decisions can be subject to review by the court of first instance Qatar or the court of appeal Qatar when disputes arise.

Customs Law


In Qatar, any company intending to import goods for sale is required to obtain an importer’s number. This process is governed by the legal system in Qatar, which ensures all imports are properly documented and compliant with national regulations.

The standard customs duty rate, as outlined by the Customs Law, is 5% of the value of the imported goods. However, goods that are imported from the mainland of any GCC country are exempt from this duty, reflecting the special trade agreements within the Gulf Cooperation Council.

For major national projects, it is common to see duty exemptions granted. Contractors involved in these projects may also benefit from such exemptions, as part of efforts to support large-scale infrastructure development.

Additionally, under the legal system in Qatar, imported items that are for temporary use and are subject to re-export may be eligible for customs duty exemptions, but prior approval is required. Personal effects are also exempt from customs duties.

It is important to note that the import and sale of certain items are strictly prohibited in Qatar. These include pornographic material, alcohol, and pork-based products. Furthermore, Qatar does not impose export taxes, promoting the ease of international trade.

Maritime Law

Qatar’s maritime law, as outlined in Law No. 15 of 1980, governs various aspects of maritime navigation, including vessel ownership, maritime liens, seizures, sea mariners, voyage and time charter parties, the carriage of goods or passengers by sea, maritime sales contracts, maritime insurance, maritime accidents, and more.

Under the legal system in Qatar, any individual who wishes to register a vessel in the country must be a Qatari national. In addition, legal entities (moral persons) can also obtain Qatari nationality for their vessels, provided they meet the conditions specified in the maritime law.

In addition to the core maritime law, there are other relevant legislations, such as Law No. 12 of 2019, which defines Qatar’s maritime zones and specifies the different types of waters owned by the State, in accordance with international laws of the sea. Law No. 8 of 2017 also regulates maritime business in Qatar, requiring vessels registered under the Qatari flag to obtain a license before engaging in any maritime activities within Qatari waters.

At Dr. Muna Almarzouqi Law Firm, we provide expert law services in maritime law, helping clients navigate Qatar’s complex legal framework related to maritime issues, ensuring compliance with both national and international regulations.

Agency Law

Law No. 8 of 2002 governs the business of commercial agents. The basic principle of the Law is that commercial agency is restricted to Qatari nationals or companies wholly-owned by Qatari nationals

 

The agency agreement (agreed between the agent and the principal) must grant the agent exclusive rights over products and services specified in the agreement.

 

The Department of Commercial Affairs at the Ministry of Economy and Commerce is required to maintain a commercial agents’ register, wherein all agency agreements are registered.

 

Agency agreements are subject to the laws of Qatar and disputes relating thereto are subject to the jurisdiction of Qatari courts unless the parties agree otherwise.

Labour Law

The relationship between an employer (other than Government and its corporations) and its employee (skilled or unskilled) is regulated by the Labour Law. The Labour Law No. 14 of 2004 mandates that an employment contract must be drawn in the Arabic language. Another language may be used besides Arabic, but the Arabic text will prevail.

 

A working week may consist of up to six business days. Ordinary working hours may not be more than eight hours a day, except during the Islamic month of Ramadan in which the normal working hours are reduced to no more than six a day.

 

The term of an employment contract may be of indefinite duration or of a limited period, provided that the term does not exceed 5 years.

 

Any stipulations contrary to the provisions of the Labour Law are void unless more advantageous to the employee.

 

The Law provides a framework for forming worker’s committees in organizations in which the number of Qatari workers is not less than a hundred.

Intellectual Property

The law on Protection of Copyright and Neighbouring Rights No. 7 of 2002 confers protection upon authors of original literary and artistic works, irrespective of the value, quality, purpose, or mode of expression of such works. Protected works include books, lectures, musical works, photographic works, and computer software.

 

Every published, displayed or circulated work is required to be accompanied by a certificate of origin and a declaration (by the importer or owner) specifying the geographic area/place within which the display or circulation is authorized.

 

The economic rights of the author/owner are protected during the lifetime of the author, and for 50 years after his/her death. Moral rights are perpetual.

 

Anticipatory measures and sanctions for infringement of copyright include granting of injunctions; seizure of infringing copies; ordering of appropriate indemnification and seizure of profits gained from the infringement.

 

The Law on Trademarks, Commercial Indications, Trade Names, Geographical Indications, and Industrial Designs No. 9 of 2002 grants to owners the exclusive right to use their intellectual property. Registration confers upon owners the right to prevent third parties from using their intellectual property, or signs resembling them in such a manner that may likely mislead the public.

 

Under this Law, foreigners have the same rights as Qatari nationals, provided they are nationals or residents of states which grant reciprocal treatment to nationals of the State of Qatar.

 

A person found guilty of counterfeiting, imitating, fraudulently affixing/selling products/offering services of a registered trademark, geographical indication or industrial design may face imprisonment for up to 1 year and/or fines up to QR 30,000.

Environmental Legislation

The Supreme Council for the Environment and Natural Resources was established in the year 2000 by virtue of Law No. 11 of 2000 to seek environmental conservation and promotion of endangered wildlife and the preservation of natural habitats in order to contribute to efforts to achieve sustainable development.

 

The Council may propose regulations and the conditions which should be met for establishing, producing, or making use of any facility or materials, or carrying out any activity which may lead to environmental pollution or endanger natural wildlife. It may also demand the withdrawal of the license of a breaching business or firm.

 

The Law also provides many preventive measures, Sanctions include confiscation, closing down of the place of business of the breaching entity, imprisonment of persons responsible, and imposition of fines.

 

It should also be noted that Qatar is a signatory to a number of environment-related conventions and protocols, including the Kuwait Convention and the Brussels Conventions of 1969 and 1971.

The Legal Profession

Although Qatar Lawyers Association was established in 2007 and an elected board of directors was appointed; however, the legal profession continues to be regulated by a committee headed by the Minister of Justice which regulates admission to the legal profession. Qatari nationals who possess law degrees from recognized universities and at least two years’ working experience are enrolled in the list of practitioners, whereas those with less than two years of experience are enrolled in the list of trainees.

 

Typical Qatari law firms are small in size and consist mainly of one or two Qatari attorneys, supported by experienced consultants from various backgrounds.

 

Pursuant to a decision of the Minister of Justice, a license to practice may be awarded to a limited number of foreign law firms whose international experience is considered important for the development of the State. The license determines the legal fields of practice and such licenses are valid for renewable periods of five years at a time.

Free Zones

Law No. 34 of 2005 regulates the establishment of Free Zones. Under this law, entities established in any of the Free Zones need not comply with the provisions of the Commercial Companies Law. For example, Free-Zone entities may not adopt one of the corporate forms prescribed in the Commercial Companies Law and they may be fully owned by non-Qataris. Furthermore, an entity licensed to work in or from one of the Free Zones is not required to obtain any other license or permission to carry out its activity.

 

Many incentives are granted to entities incorporated in the Free Zones; for instance, Free-Zone entities are not subject to taxation laws applicable in the State for a period of twenty years. The said period can be renewed for a similar period or more by a decision of the Council of Ministers.

 

Also, Free-Zone entities’ exports and imports are exempt from customs duties. Customs duties are levied on commodities exported from Free Zones into the State.

 

The Law describes Qatar Free Zones Authority as the authority competent to grant the relevant licenses to entities intending to carry on business in a Free Zone and requires the Qatar Free Zones Authority to appoint a Director for each Free Zone area and to supervise all Free Zone administrations.

Qatar Financial Centre

Qatar Financial Centre (QFC) was established pursuant to Law No. 7 for the Year 2005. This law presents QFC as one of the leading locations for international finance and business designed to attract international banking, financial services, insurance, corporate head office functions, as well as other businesses.

 

QFC provides a distinguished investment environment for foreign investors in certain spheres of business provides a number of statutory guarantees therefor. Entities that are approved, authorized, or licensed to carry on their activities in and from the QFC will:

 

– Not be subject to nationalization or expropriation measures or any restriction on private ownership;

 

– Have the freedom to repatriate profits and realize investments;

 

– Have the freedom to recruit and employ employees of their choice on such terms as they wish to agree subject to the regulations of the QFC, and any international treaty obligations entered into by the State of Qatar in respect of the terms of employment of employees in the State;

 

– Not be subject to any taxes except those levied by or determined in accordance with the QFC regulations; and

 

– Be owned up to 100% by persons, companies, and other entities which are not nationals of, or residents in, the State.

 

The QFC Authority and the Regulatory Authority are the competent authorities to approve, authorize or license corporations, individuals, businesses, and other entities to incorporate or establish entities in the QFC or to carry on the permitted activities in or from the QFC and to determine the terms and conditions on which such approvals, authorizations or licenses may be issued.

 

The QFC Law specifies the activities which may be carried on in or from the QFC. Although these are mainly financial activities, the Council of Ministers may specify other activities to be licensed to be conducted in or from the QFC.

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The Legal System in Qatar is sophisticated and well-structured, rooted in both historical and contemporary influences. This unique system draws its foundations from two primary sources: Islamic law and jurisprudence on one side and the principles of the Napoleonic Civil Code on the other. Additionally, the Qatar judicial system has been significantly shaped by Egyptian legal practices, making it a distinctive hybrid of traditional and modern legal frameworks.

The journey towards Qatar’s modern legislative framework began in 1961 with the issuance of Law No. 1, which established the Official Gazette. This milestone marked the initiation of a systematic process for enacting modern legislation to address administrative, economic, and social matters. Since then, numerous laws have been enacted, reinforcing Qatar’s position as a nation with a robust and evolving legal framework.

The integration of Islamic law alongside principles from the law Qatar reflects the country’s commitment to preserving its cultural and religious heritage while embracing global best practices. This duality is at the core of Qatar’s legal and judicial structure, ensuring a balance between tradition and progress.