Qatar leading in mediation, says expert Friday, 13 January 2012 02:39

By Satish Kanady

DOHA: Construction and infrastructure development are the two key sectors that witness maximum number of commercial disputes in Qatar. With the country all set to launch its multi-billion-dollar projects in its run up to the 2022 event, there is a growing interest among Qatari investors and the project companies to explore the potential for ‘mediating’ commercial disputes, an alternative fast-track method to settle disputes.

Mediation, a rather novel method of dispute resolution for the GCC developers, is fast becoming popular in the region, believes Graham Massie, Director of Consultancy, Centre for Effective Dispute Resolution (CEDR).

In an interview, Graham told The Peninsula, Qatar is spearheading its efforts to promote mediation through the QFC Civil and Commercial Court (QFC Court) and its International Alternative Dispute Resolution initiative.

Recent years have seen a rapid upsurge in interest in alternative dispute resolution throughout the Gulf region, with many of the leading business centres establishing their own specialist bodies.  Commercial arbitration in the region has already experienced significant growth, and we can expect mediation to follow suit as it offers a flexible fast track route towards settling disputes saving vital management time and enabling complex projects to remain on track. Like any other part of the world, in Qatar too, commercial disputes mainly emerge from the construction and infrastructure sectors.

By their very nature, construction and infrastructure sectors tend to have disputes. With the mandatory clauses like meeting the deadline and project overruns, key projects often ends up in disputes. Compared to the traditional litigation, Mediation is the best tool to address these kinds of disputes. It helps save money and time, Graham said.

Graham disagrees to the theory that there is a cultural block for the Qatari business centres to try this tool just because it is a European model. “International contracts are widely respected by local business centres. The concept of mediation is culturally accepted. Resolving issues are an essential part of business environment; and Qatari entrepreneurs are very vibrant and forward looking,” he said.

On the size and value of disputes being handled by QFC, Graham added: “Alternative dispute resolution is still in its formative period in Qatar. If we talk about London, at least 5,000 cases are being resolved in a year through this mediation. In Qatar, we are dealing with a handful of cases, and we can’t tell the amount of money involved in these disputes at this point of time”.

On the possible impacts of Dubai international financial court’s decision to accept international disputes on the QFC court Graham said: “We welcome the move. Qatari courts are unique in its own way. The vibrancy of Qatari community will cause significant drive to Qatari courts. We have to meet the challenges, we believe we can. We have world class judges and infrastructure; also access to world class mediation.”

The Peninsula

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