Understanding Qatar’s Legal System

Qatar’s Permanent Constitution and Shari’a Law

Companies that intend to operate in a new nation should research the country’s legal system and the impact it will have on their business before setting up a business. The various complexities that surround the problems mentioned in this article are explained in this handbook.

A thorough review of all relevant judgments is necessary since legal precedents differ from jurisdiction to jurisdiction. An official document outlining a country’s or jurisdictions essential principles is known as a constitution. In Qatar, Shari’a law, or Islamic law, serves as the basic legal framework. As stated in Article 1 of Qatar’s Permanent Constitution, the country would be an Arab sovereign state, and all of its residents are regarded to be members of the Arab people. In Qatar, the Shoura Council, which was founded in 1972, is also a framework for enacting laws.

Amendments can be made to Constitutional provisions by members of the Permanent Constitutional Council. The Al Thani State-based family is led by the H.H. Amir under Article 8 of the Constitution. Consequently, Qatari law has evolved from the rule of the H.H. Amir. The State also has legislative, executive, and judicial authorities, which are all delegated to a court of law under the Permanent Constitution. Article 61 grants executive authority to the Amir, who is assisted by the Council of Ministers (Khedr, 2009). Doha’s legislative authority is centred on its Permanent Constitution and other laws. The Supreme Constitutional Court of Qatar, established by other constitutional provisions, regulates the country’s legal system as a whole.

Legislative action necessitates the involvement of the government. The Consultative Assembly of Saudi Arabia, also known as the Shura Council, is favorable to Qatar in this respect. This is due to the Council’s power to propose laws to Saudi Arabia’s King and their administration. As a member of this Council, you have the power to give recommendations to the government on matters of public concern. As part of its mandate, the Shura Council is also tasked for legislating, as per the Permanent Constitution (GCO. 2021).

Lawmaking in Qatar

The legal system wherein a country has adopted over time has generally been founded on laws. Creating new laws in a common law system requires precedents to be followed. In the civil law system, the laws serve as the primary source of law. Any jurisdiction’s legislature has the right to create laws because of the concept of separation of powers. The legislative authority of Qatar rests with the Shoura Council, which is identified under Articles 61 and 76 of the Qatari constitution. Council recommendations were submitted to State Ruler. Legislative proposals may be made by the Cabinet of Ministers, although they are not binding on the Council within their present form. Legislation presented by the Council must first be authorized by the Emir before it may become law. If the proposed legislation is ratified, the Emir has the power to reject it. Instead, the Emir must approve the law if it is passed by a two-thirds majority of the Council after the rejected measure was readopted. A country’s legal system is built on its laws, which have been in place since ancient times. To construct new laws in common law, precedents must be followed. In a civil law system, the laws are the ultimate authority on the law. In accordance with the principle of separation of powers, the legislative power of each jurisdiction has the capacity to pass legislation. To the Shoura Council, Qatar’s legislative authority has been delegated under Articles 61 and 76 of the Qatari Constitution. The Council’s recommendations were shared to the State’s ruler. It is possible that the Cabinet of Ministers may present legislative ideas for consideration by the Council, but such proposals are not legally binding on the Council at this time. The Emir must sign off on any law that has been drafted by the Council. Proposed legislation may be rejected by the Emir in his capacity as ruler. When a 2/3rds majority of the Council re-approves the rejected legislation, however, the Emir must accept it (Khedr, 2009).

Legislative and Judicial Authorities

Judges always examine the terms of the relevant legislation while deliberating on a matter. “Conceptual interpretation” refers to the process of examining unclear statutory language and interpreting it in line with its intended intent. The courts, on the other hand, act in line with their given jurisdictions. Unlike Shari’a courts, which handle family law matters, criminal courts decide on any offences that fall under their jurisdiction (Georgiades, 2022).

Case facts are compared to the subject matter at hand in common law cases. Based on similarities and differences, the common law is implemented by judges in a comparable way. An act’s ambiguity can be clarified through precedent, which can then be utilized to a current case in court. The precedents set by the Supreme Court are followed by the lower courts. The appeals procedure is no different (Georgiades, 2022).

The power of a country’s government to make and implement its own laws is vital to every nation.

To demonstrate how laws are backed by a set of rules, consider using a legal system as an example. Two legal systems have been examined in this handbook: common law and civil law. In Qatar, both Islamic law and civil law coexist. Consequently, Shari’a law is the fundamental source of legal system of Qatar, which has a permanent constitution. This set of regulations governs a variety of criminal activities, including those related to inheritance and the breakdown of familial relationships. Family law codification occurred in the same year (Qatar, 2017). In countries with mixed legal systems, the fundamental legislative needs are statutory instruments, which allow the country to have well-defined law while still respecting Islamic thought in its legislated statutes and rules.

Throughout history, judicial systems have seen a great deal of change. The first-ever voting for the Shoura Council held in Qatar in 2021, according to the Amir of Qatar. Qatar’s attempts to increase public participation in the legislative process and embody the concepts of Qatar’s National Vision 2030 were recognised as a significant step out there as a consequence of this development (GCO. 2021). There has been a big change in Qatar’s labour laws recently, which is being acclaimed as a reform by the government. Labor Law No. 14/2004 was amended on September 9, 2020, by Law No. 18/2020. The immigration reforms contained in Decree-Law No. 19 of 2020 were also a significant element (Tapp, McDonald and Stephen, 2021).

The labour laws of the nation have recently been amended. In October 2019, the Emir announced the modifications, which took effect in September 2020. One of the most notable aspects of these changes was the introduction of the kafala system, which mandated that migrant employees get a “no objection” certificate while changing jobs (Ghani, 2021). When the minimum wage was raised from 1000 Qatari Riyals to 1500 Qatari Riyals and 500 Qatari Riyals for housing as well as 300 Qatari Riyals for food were included, this was a huge change. This was a smart step since it made it simpler for people to change jobs and minimise the financial load on their families.

The Role of the Shoura Council

Every aspect of company is governed by some sort of law. Compliance with these standards must be strictly enforced in order to protect companies from the consequences of breaking these rules and so putting them at danger of breaking the law.

Every company’s activities are based on the laws of the jurisdiction in which it is based. Depending on where a corporation does business, it must adhere to local laws and regulations. The Commercial Companies Law No.11 of 2015 governs the establishment and operation of businesses in Qatar. A Qatari-owned company’s headquarters has to be in Qatar. Additional requirements for documentation, action, and process are included in this act. Other forms of enterprises, such as limited liability companies, limited partnerships, joint ventures, and equity partnership corporations, can also be set up in Qatar. Arabic translations take priority over English translations when it comes to signing legal contracts (Commerce Law, 2020).

Qatar’s typical contract-signing practises have developed throughout time. Qatari law does not require the practise of stamping and initialling every contract page, and doing so has no impact on whether or not a contract may be enforced. Under the Civil Code No. 22 of 2004, contracts can be formed in Qatar. There is information in the Civil Code on the establishment of contracts, the expiration periods of those contracts, and contracts formed by communication (Clyde & Co LLP and Haddad, 2012).

Qatar’s employment laws are governed by Law No. 14 of 2004 (QLL, 2022). Qatar’s employment laws include the rights, duties, and limitations of employees, workers’ committees, and employers. Qatari nationals always receive precedence for employment in the country because of the country’s labour regulations. Employers who wish to hire non-Qataris must first obtain government approval (Labor Law, 2020).

A wide range of company forms and organisations are available to anyone who wants a company in either jurisdiction. In this framework, there are just a few primary types of companies. An example of sole proprietorship is a company run by one person. This means that he or she is eligible to receive all of the company’s profits and losses. A partnership is the next type of relationship. Any agreement between two or more persons, whether stipulated in the partnership agreement or mutually agreed upon by the partners, defines a partnership as an association formed for the purpose of conducting a business and sharing in the company’s gains and losses. Partnerships have limitless liabilities, thus a partner’s personal assets can be confiscated to satisfy the firm’s debt. With LLPs, there is no limitless responsibility under their liability rules like there is in conventional partnerships. There is a limitation on each partner’s culpability in such a relationship (IRS, 2022).

There are many different kinds of business structures, but one of the most common is the company structure. Having a separate legal entity is one of the most fundamental parts of company. A company is in the business of making money and keeping it. In their capacity as corporate shareholders, directors are tasked with overseeing the day-to-day activities of their organisations. There is no longer a link between ownership and management. It is possible to form a C corporation, which is a common company structure. S companies are a special type of corporation designed to avoid double taxation. When referring to for-profit businesses, the term “B corps” should be used to mean such. While B and C organisations have different corporate structures, they are nonetheless closely connected. Companies that were formed for religious, educational, scientific, literary, or philanthropic objectives are considered non-profits. A Limited Liability Company (LLC) is a business form that combines the benefits of a corporation and a partnership (IRS, 2022).

Precedents in Common and Civil Law Systems

There are a variety of methods in which businesses can obtain funding. Depending on the legal form of the organisation, this may or may not be the case. When it comes to financing a start-up, there are several options, such as borrowing money from family and friends, crowd funding, credit cards, bank loans, angel investors, or venture capital.

A sole trader can be formed and managed by single person at any time. It is privately funded and can include all the aforementioned options of funding. The partnership business and limited liability partnership is formed and managed by two or more people and the capital is funded by the partners or raised from traditional market sources. The company structure, to the likes of C Corp, S Corp, B Corp, and Non-Profit all are formed and managed by following legal process covered in pertinent legislation. The funding is similar to partnership but also includes raising funds from public and using funds from venture capital or angel investors.

There are both advantages and disadvantages to choosing a business organisation. A couple of them have already been mentioned in this section below.

Sole trader has full authority or control over business but comes with unlimited liability. A partnership brings more talent and capital on board but comes with unlimited liability. The limited liability partnership removes this disadvantage. The corporation structures allow for limited liability, higher talent pool but less control as the decisions have to be taken by following the legislated process. The matters of corporations are public affairs and have to abide by higher compliances. As against sole trader or partnership, the company form has perceptual succession and is not impacted by the death of people running its operations.

Conclusion 

It was a valuable resource for learning about legal systems in general, but in particular about the Qatari legal system. As an added benefit, the handbook aids in a firm’s understanding of the impact of various laws, regulations, and standards. On this basis, a thorough investigation of the establishment and impact of numerous business groups was completed. In order to successfully establish and run their firm, new start-ups must fully comprehend and use the information in this manual.

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Clyde & Co LLP and Haddad, F., 2012. Contracts Under Qatari Law – International Law – Qatar. [online] Mondaq.com. Available at: <https://www.mondaq.com/international-law/173690/contracts-under-qatari-law> [Accessed 25 April 2022].

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Georgiades, R., 2022. The Court Structure in Qatar. [online] Al Tamimi & Company. Available at: <https://www.tamimi.com/law-update-articles/the-court-structure-in-qatar/> [Accessed 25 April 2022].

Ghani, F., 2021. Labour law changes: Are Qatar’s migrant workers better off?. [online] Aljazeera.com. Available at: <https://www.aljazeera.com/features/2021/3/15/labour-law-changes-are-qatars-migrant-workers-better-off> [Accessed 25 April 2022].

Gothard, B., 2017. Sole Proprietorship, Partnership, LLC, S Corporation, and C Corporation Taxation, Structure, and Guide. Ben Gothard.

Recent Changes in Labor Laws

Hukoomi, 2020. Commerce Law. [online] https://hukoomi.gov.qa. Available at: <https://hukoomi.gov.qa/en/article/commerce-law#:~:text=Foreign%20business%20owners%20and%20investors,a%20maximum%20of%2030%20shareholders> [Accessed 25 April 2022]. 

Hukoomi, 2020. Labor Law. [online] https://hukoomi.gov.qa. Available at: <https://hukoomi.gov.qa/en/article/labor-law> [Accessed 25 April 2022]..

IRS, 2022. Business Structures | Internal Revenue Service. [online] Irs.gov. Available at: <https://www.irs.gov/businesses/small-businesses-self-employed/business-structures> [Accessed 25 April 2022].

Khedr, A., 2009. A Guide to Qatar’s Legal System – GlobaLex. [online] Nyulawglobal.org. Available at: <https://www.nyulawglobal.org/globalex/Qatar.html#:~:text=Central%20Municipal%20Council.-,The%20Qatar%20Legal%20System,part%20of%20the%20Arab%20nation.> [Accessed 25 April 2022].

Khedr, A., 2020. UPDATE: Overview of the Qatar’s Legal System – GlobaLex. [online] Nyulawglobal.org. Available at: <https://www.nyulawglobal.org/globalex/Qatar1.html> [Accessed 25 April 2022].

Mancuso, A., 2020. LLC Or Corporation?: Choose the Right Form for Your Business. Nolo.

Mitchell, P. and Fontana, P.K., 2010. Choosing the right legal form of business: The complete guide to becoming a sole proprietor, partnership, LLC, or corporation. Atlantic Publishing Company.

QLL. 2022. Overview – Qatar Labor Law. [online] Available at: <https://qatarlaborlaw.com/> [Accessed 25 April 2022].

Steingold, F.S. and Steingold, D., 2021. Legal guide for starting & running a small business. Nolo.

Stent, A.E., 2015. The limits of partnership. Princeton University Press.

Tapp, L., McDonald, P. and Stephen, R., 2021. Qatar Labour Law and immigration: recent reforms. [online] Pinsentmasons.com. Available at: <https://www.pinsentmasons.com/out-law/analysis/qatar-labour-law-immigration-recent-reforms> [Accessed 25 April 2022].

In a disagreement, the parties will be unable to reach an agreement and are thus at a standstill. In the event of a conflict between two or more parties, finding a solution is imperative. Parties involved in a dispute have a wide range of choices for settling their conflict. Practically every approach has advantages and disadvantages. When it comes to deciding which conflict resolution technique is ideal for a specific circumstance, these complexities, benefits, or drawbacks are the key. Arbitration, mediation, conciliation, and other alternative dispute resolution (ADR) methods can be used in place of lawsuit (Hopt and Steffek, 2013).

There is now a disagreement between Masraf Trading and Global Manufacturers. This portion of the advisory report examines several dispute resolution approaches and gives suggestions on which one would be most successful for Masraf Trading to resolve issues. A positive outcome for Masraf Trading may be expected utilising the given strategy.

When there are so many legal alternatives to pick from, it can be difficult to determine which the best legal option for a firm is. So understanding what each of these legal solutions may provide you with is critical before making a final selection on your legal options.

Litigation is the most common way to resolve disputes. If a legal conflict arises, it is presented before the relevant court. It is up to the nature of dispute and the location where it arises to determine which court will hear the case. Every lawsuit process begins when one party files a lawsuit in court. The parties engaged in the dispute might then present their case (Moscati, Palmer. and Roberts, 2020). After hearing all parties and evaluating the facts, the judges issue a court order. Depending on the concerns, the matter may be taken to court. The decisions of the courts are binding on the parties, thus they are retained in the public record for future reference. Choosing to go to court is a time-consuming and expensive alternative that requires a great deal of organisation and paperwork. The process is lengthy, and the parties can appeal the final ruling (Doneff and Ordover, 2014). A final court ruling in this case between Masraf Trading and Global Manufacturers would be binding on both sides.

Mixed Legal Systems and Statutory Instruments

There are several ways to resolve problems using ADR, or alternative dispute resolution. Using these forms saves money as well as time. These matters will remain private between the two parties as long as they are not brought to the attention of the general public (Menkel-Meadow, 2015). In this discussion, we’ve gone through several types of alternative dispute resolution (ADR) that can be employed by the parties.

Arbitration 

All sides in an arbitration dispute must be heard before an arbitrator can come to an agreement on a resolution. Choosing an arbitrator is a decision that must be made by both sides in the conflict. It’s up to the parties who are unable to agree on an arbitrator to choose one. Afterwards, the arbitrators will select a final arbiter. After then, the matter is handed over to the arbitration panel, which is comprised of these arbitrators. Making the decision on who will preside over the final disagreement is made easy with this form. It also saves time and money while speeding up the resolution of disagreements (Born, 2021). Security and privacy make it a more attractive alternative for the parties. If the arbitral award is not authorised by the court, it is not legally binding. Parties may squander time and money in the arbitration process if they do not agree with arbitrators’ final decision (Kartuzov, 2015).

Alternate dispute resolution methods include mediation and arbitration. The parties call in a mediator, who then use a variety of negotiation techniques to resolve the dispute. This approach, like arbitration, aids in the protection of privacy and secrecy while also saving both time and money (Kalter, Bollen, and Euwema, 2018). Unlike arbitration, mediation does not have the ability to force parties into a settlement, nor can it force them to arbitrate. When mediation fails to resolve a dispute, the matter is moved to court. It’s possible that the court would do more than just re-examine the arbitration decision in this instance (Craver, 2012).

Meetings between parties involved in a dispute are known as negotiations, and they can take place either directly or through a third party. To resolve an already-existing problem or to provide the groundwork for future cooperation, this method can be used (Nolan-Haley, 2012). There are no limitations on the number of participants in non-binding negotiations. It is the parties themselves, not a neutral third party, that reach a negotiated agreement in negotiations, as opposed to mediation and arbitration (Menkel et al. 2018). This approach offers the most freedom and comfort, as well as the greatest degree of anonymity and privacy, when compared to the others.

In mediation, if one side dominates the other, the weaker party might well be placed in a disadvantageous position. At any moment throughout the negotiation process, the parties have the option of halting the discussions, which might result in a waste of time, effort, and money (Fach Gomez, 2019). This approach necessitates a lack of trust or good faith, making it an unethical tactic for the parties to utilise. It’s a risk for negotiators to become overly competitive. A considerable likelihood exists that negotiations will be futile and contentious as a result of these factors (Dani, 2022).

	Litigation	Arbitration	Mediation	Negotiation
Neutral Party	Judges	Adjudicator	Facilitator	Facilitator
Nature of proceedings	Bind by law	Same as Litigation	No binding of law	No binding of law
Formality Level	Formal	Informal	Informal	Informal
Confidentiality Level	No privacy	Confidential based on law	Confidential based on trust	Confidential based on trust
Evidence	Evidence can be submitted by the parties	No evidence is necessary	No evidence is necessary	No evidence is necessary

Importance of Understanding a Country’s Legal System

Considering that Masraf Trading has compared the several legal options open to it, it is imperative to determine how each of these scenarios would affect the company.

Legal action would provide Masraf Trading the certainty that the dispute will be settled as quickly and fully as feasible. However, it is possible that the situation might be settled over time without their having any say in it at all in this scenario. Take into account the time and money that will be needed, as well as the certainty of the court’s decision, which isn’t always based on talks between the two sides.

When Masraf Trading and its customers have disagreements, arbitration is an alternative. As a consequence, an arbitrator who was acceptable to both Masraf Trading and Global Manufacturers was selected. A panel of arbitrators can be used if the parties cannot agree on a single arbitrator, as was previously indicated. If Masraf Trading and Global Manufacturers want to keep their business dealings private, they can utilise this form. Arbitration is also a feasible choice since it avoids the difficulties of litigation and can be verified by a court of law if one or more parties question the legitimacy of the judgement.

A second legal option is available to Masraf Trading and Global Manufacturers if mediation fails. It’s possible that they’d be better off settling their differences out of court, in front of a third party who could act as an impartial arbiter. It is now possible to bring in an impartial third-party to arbitrate the issue. It is certainly the most cost-efficient and effective legal remedy accessible to both parties, despite the fact that it is not legally enforced.

Masraf Trading has the option of negotiating its ultimate plan. It doesn’t appear that any party has a strong or a weak position in the current circumstances. As a result, there are no bargaining constraints in this case. Parties have the option of withdrawing at any moment if they believe the negotiations are not progressing in the way they had hoped, resulting in the loss of all the time and money invested (STA, 2019).

Conclusion 

Masraf Trading and Global Manufacturers have four basic options for settling their dispute: litigation, arbitration, mediation, and negotiation. Arbitration should be chosen by Masraf Trading and Global Manufacturers after examining and contrasting the four options. Consequently, the best of both litigation and alternative conflict resolution may provide them with a clear outcome. This approach can be used to obtain a third-party opinion in a more cost-effective, time-saving, and informal manner. It’s also possible that the arbitrator’s/arbitration panel’s decision will be affirmed in court if one or more parties reject it. Masraf Trading’s sensitive information would be safeguarded in this manner.

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Kalter, M., Bollen, K. and Euwema, M., 2018. The Long?Term Effectiveness of Mediating Workplace Conflicts. Negotiation Journal, 34(3), pp.243-265.

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