Is Qatar Safe for Business?

It is the year of the 2022 FIFA World Cup in Qatar and a member of the Qatari Royal Family is refusing to pay a debt of almost $6 billion.

A U.K. High Court Judgement has been secured against him and his company – but so far Qatar’s courts have refused to enforce it.

Repeated assurances have been given by the Qatari Government and members of Qatar’s ruling family, the Al-Thanis, that this matter would be resolved amicably and promptly. Nothing has happened.

If you are doing business in Qatar or with a member of the Qatari Royal Family, you cannot rely on contractual promises made to you Therefore, you should think twice before engaging in business with them.

The impression given is that the rule of law does not matter and that Qatar is not willing to enforce international judgments

If you are considering doing business in Qatar or with a member of its Royal Family, you may want to think twice.

Have you had a bad experience doing business in Qatar? Tell us your experiences here: info@isqatarsafeforbusiness.com

More information about the case:

The U.K. High Court judgement was secured against Sheikh Fahad bin Ahmad bin Mohammad bin Thani Al-Thani, a member of the Qatari Royal Family, and Fast Trading Group (FTG), a company he controls, for $5,996,390,356.
The debt arose in 2008 after FTG entered into an agreement with the Swifthold Foundation to monetise a bond worth more than $450 million.
FTG agreed that upon receipt of the bond, it would pay $2 million immediately and then make subsequent payments every week thereafter. However, after receiving the bond, FTG did not transfer any money and absconded with the bond.
This prompted Swifthold to seek and obtain a U.K. High Court judgement in 2010.
In 2015, Swifthold was advised that FTG was an empty shell company, and that efforts to enforce the Judgment would be better focussed on the company’s owner, Sheikh Fahad, and therefore the Judgment was amended to make him personally liable.
In late-2015, representatives from Swifthold met with those of Sheikh Fahad. Sheikh Fahad’s side indicated that he was willing to settle the debt but wanted to come to an agreement on the interest owed first.
Through 2016, the Rulers Court of Qatar – a court whose membership is entirely anonymous but is usually staffed by senior members of the Royal Family – considered the case and ultimately ruled that no interest was payable. However, they promised a written settlement offer within a week. They failed to make good on their promise.
Swifthold then moved to file notice in the Dubai courts (the UAE is a GCC member, along with Qatar) making clear its intention to begin enforcement. This prompted repeated assurances from the Qatari Government and members of Qatar’s ruling family, the Al-Thanis, that this matter would be resolved amicably and promptly. Nothing has happened.
Subsequently, enforcement of the Judgement was pursued in good faith in the Qatari courts, without satisfactory resolution, unreasonable and unexplainable delays, and a level of opaqueness that should trouble anyone doing business in or with Qatar.
It, therefore, appears that the rule of law does not matter and Qatari courts are not willing to enforce judgements of the U.K. High Courts. This is at odds with common practice around the world.
Yet Qatar and members of its Royal Family continue to deploy billions of dollars of capital around the world , especially in the U.K., making huge deals with unwitting counterparties that could be at substantial risk of loss.