Debt collection in Qatar

Our local law firm located in Qatar who will directly initiate collection actions on the spot:

We are pleased to introduce Hashem & Partners as our Law Firm and debt collection partner in Qatar. They will immediately start collection actions in Qatar when you start a case.

The debt collection process in Qatar.

The collection process in Qatar starts when an invoice is due and attempts to collect the debt are made at the out-of-court collection stage. If this is not enough, legal action may have to be taken and the matter thus taken to court.

The out-of-court collection phase in Qatar.

The phase starts when a claim becomes due for payment. That is, the payment date passes. To begin with, companies usually send out payment reminders themselves. But as you have probably experienced, it is very difficult to persuade a debtor abroad to pay. You simply do not have any effective tools when, from abroad, you make demands for payment. A debtor knows that the case is far from being escalated into any legal action.

Thus, in order to effectively collect the debt, a company needs the help of a collection partner located in the same place as its debtor, i.e. Qatar.

It makes all the difference in the world when a local debt collection specialist in Qatar starts putting preassure on the debtor.

By contacting the debtor by letter, email, telephone etc, the debtor is made aware that the claim is now being handled by a law firm in the same country where they are located. This makes a significant difference to the Qatari debtor’s “willingness” to pay as they now know that legal action can now in reality be quickly enforced. In addition, the local law firm is an expert on the business culture, rules etc that exist in Qatar.

Most claims are collected at this stage., but if a debtor continue to default on the debt, then a decision needs to be made as to whether the creditor wishes to take the matter to judicial debt collection in Qatar.

Judicial debt recovery in Qatar.

Qatar’s legal system.

The state of Qatar is a hereditary emirate ruled by the Al Thani family. Islam is the country’s official religion and Shari’a (Islamic law) has a very strong influence on legislation in Qatar.

In accordance with the provisions of the Constitution, there are three authorities in the State of Qatar:

– the Executive authority
– the Legislative Branch,
– the Judiciary.

A: The executive: the Emir, the Council of Ministers and the Prime Minister.

Executive power lies with the Emir. The Constitution makes it clear that the Emir is the head of state, commander-in-chief of the armed forces and representative of the state internally, externally and in all international relations. The Emir is assisted by the Council of Ministers as specified in the Constitution. The Council of Ministers is the highest executive authority in the country and is headed by a Primeminister appointed by the Emir. The Council of Ministers also includes appointed ministers.

B. the Legislative Branch: (the Shura Council)

In accordance with the Constitution, the legislative power shall be vested in the Advisory Council (Shura Council).

The Advisory Council (Shoura Council) also approves the general policy and budget of the Government and exercises control over the executive authority as provided for in the Constitution. The Council expresses its views in the form of recommendations which are taken into account by the Rulers of the State of Qatar and the Cabinet in carrying out and implementing their duties.

Any draft law adopted by the Shoura Council shall finally be submitted to the Emir for approval. The Emir has the right to refuse to ratify a bill and send it back to the Council. If the Shoura Council re-approves the rejected bill by a two-thirds majority, the Emir shall approve the bill and publish it. Notwithstanding the above, the Emir may postpone the implementation of such a law indefinitely if he considers it to be in the interest of the State.

C. The Judiciary:

The judicial structure in Qatar is divided into three levels:

1. courts of first instance, (which are divided into criminal court, civil court, administrative court and family court);

2. courts of appeal: Appellationsdomstolar har till uppgift att besluta om överklaganden av domar från första instans. (Also divided into criminal court, civil court, administrative court and family court);

3. the Court of Cassation (which is the highest court, but which hears only questions of misapplication of the law and does not hear a case on the merits).

Judicial debt recovery via court in Qatar.

Which court?

Qatar currently has no specialised courts for commercial matters and consequently all commercial disputes are settled by the civil courts.

The civil court consists of a partial court and a full court. The partial courts hear claims whose value does not exceed QR 500,000, and the plenary courts hear claims whose value exceeds QR 500,000.

The process in court:

Civil litigation is based on written pleadings.  Proceedings are conducted in Arabic. Translators are available for non-Arabic speaking parties. Court documents written in a language other than Arabic, including evidentiary documents, must be translated into Arabic by a certified translator.

Judges are independent and may not be removed from office except as provided by law. The independence of the judiciary is inviolable and is protected by law against interference by other authorities.

Courts require witnesses to be independent, which means that employees, directors, agents, etc. of the parties are not treated as witnesses and that their statements have little or no probative value.

Judgments of lower courts can be appealed to the courts of appeal and then, in some cases, to the court of cassation.

Judgments of higher courts are not necessarily binding on lower courts (although higher court judgments are generally respected). This means that each case is usually decided on its own merits and specific facts, and the judge is able to issue his or her own judgment without necessarily following previous judgments of higher courts on similar issues.

The Constitution states that the judiciary should be independent. The courts must make their judgments in accordance with the law. Judges are independent and shall not be subject to any power in the exercise of their judicial functions under the law and no interference whatsoever shall be permitted in court proceedings and the administration of justice.

Qatar’s Civil Code provides for different limitation periods for litigation. In general, contractual claims are time-barred after 15 years from the date the right arose, unless an exception in the law provides otherwise.  For example, claims relating to cheques are time-barred after three years, merchants’ claims after ten years and claims relating to employment after one year.

This is how our debt collection service works.