Growth in the insurance sector for Qatar is a trade priority for the country and for the QFC. Sinchita Mukherjee from ta’ameen Qatar speaks to Robert Musgrove, CEO, QICDRC to know more about the new dispute resolution scheme and Q-construct.

Insurance and dispute resolution: the perfect synergy:

The insurance market in Qatar is under developed and has a lot of potential for growth. Evidenced by the recent emergence of the Q-Re coming in as a major player, we at QICDRC are supporting the market growth by bringing forward a court and dispute resolution centre that is business oriented. Our role is to provide dispute resolution vehicles that best suit the market and the trade priorities of Qatar and widely the gulf region. The credo is very simple-good law equals good international partnerships, which equals better trade, which in turn leads to lower risk and lower priced premiums.

The insurance industry is very unique and is heavily influenced by regulation and by actuaries’ advice. Actuaries have to be very accurate of the things that they need to reserve against, their liabilities and this to an extent, skews the attitude of the industry-especially towards disputes.

For every industry, the most important thing is to win and resolve the dispute. The insurance industry being disparate has different methods to resolve disputes even amongst companies.

Insurance is obviously heavily interlinked with Qatar 2022. There are massive multi-billion dollar projects that require contractors or sub-contractors and such massive projects do bring in risks, which have to be insured.

Robert Musgrove, CEO, QICDRC

Construction projects in Qatar:

Qatar has one of the world’s largest infrastructure builds worth USD 260 billion, owing to 2022 FIFA World Cup Qatar. In terms of supporting Qatar’s growth and making it more attractive for international investment and for Qatari companies to enter better quality international relationship, we are designing these special dispute resolution schemes. Q-construct is the first one of the block. We have rolled out the legislation with the government Amiri Diwan, which we hope to pass in a matter of a few months. If it is passed the way we have asked it to be drafted, it will be the legal basis for all our judication schemes.

Q-construct:

Arbitration is riddled with technical challenges. With Q-construct, we have a judication scheme that will settle the rules.

Not only that, but we have also appointed one of the leading judges to oversee it. We have designed a scheme that is very fast and accessible keeping construction projects in mind, as we have to make sure that the wheels keep turning!

The costs for resolving disputes are very high. How would the implementation of the dispute resolution help in cutting costs effectively?

A typical dispute resolution vehicle would be fast and cost wise effective. If the most important thing for a company would be the speed and the certainty of the dispute to be resolved, a quick solution with limited papers and a tight process is inevitably going to be much more cost-effective. The inquisitorial system for dispute resolution may be preferred in that regard.

Construction projects in Qatar:

Qatar has one of the world’s largest infrastructure builds worth USD 260 billion, owing to 2022 FIFA World Cup Qatar. In terms of supporting Qatar’s growth and making it more attractive for international investment and for Qatari companies to enter better quality international relationship, we are designing these special dispute resolution schemes. Q-construct is the first one of the block. We have rolled out the legislation with the government Amiri Diwan, which we hope to pass in a matter of a few months. If it is passed the way we have asked it to be drafted, it will be the legal basis for all our judication schemes.

Q-construct:

Arbitration is riddled with technical challenges. With Q-construct, we have a judication scheme that will settle the rules.

Not only that, but we have also appointed one of the leading judges to oversee it. We have designed a scheme that is very fast and accessible keeping construction projects in mind, as we have to make sure that the wheels keep turning!

The costs for resolving disputes are very high. How would the implementation of the dispute resolution help in cutting costs effectively?

A typical dispute resolution vehicle would be fast and cost wise effective. If the most important thing for a company would be the speed and the certainty of the dispute to be resolved, a quick solution with limited papers and a tight process is inevitably going to be much more cost-effective. The inquisitorial system for dispute resolution may be preferred in that regard.

Does the new dispute resolution vehicle use technology to make it user-friendly?

The Qatari International Court and Dispute Resolution Centre (QICDRC) offers a virtual court and we engage in a lot of video and audio conferencing. We have 30 channels in our courtroom. The Q-construct scheme is a virtual scheme too. The papers are scanned and we have a bespoke document management system, which is quite similar to the one at the Dubai courts. Having the virtual paper exchange, I feel insurance and commerce would greatly benefit, as they are global industries. I believe that to solve a dispute, there would be no requirement for people to fly in and out.

Is the dispute resolution scheme market focussed?

There is no point in designing a tool, which is isolated from the growing needs of the market. We have considered the views of major market shareholders and have worked around their needs to address their issues. We spoke to insurers based in Qatar, Bahrain, Dubai and London. After doing our study end of 2012, we realised that there is a need and scope for an adjudication scheme in insurance dispute resolution.

What according to you has been the greatest challenge so far?

To facilitate smooth running of business, the courts have been set up. If a country has strong law, there is better confidence and more international partners would want to come in and set up businesses in the region.

Qatar is growing fast and things are improving by the month. As a country, Qatar is very ambitious and wants to use its wealth to support its ambition. The business environment is not very easy but part of the goal for dispute resolution is to bring in international benchmark of standards in the professions. For example, for Q-construct, we are already working with 2022 supreme committee and considering how we could help Qatari and international businesses engage in getting the contract done. We have also partnered with organisations and have aimed at imparting better legal knowledge and knowhow on how to start-up businesses. On 24th February, we will be issuing a report, which is a strategy for legal and judicial education in Qatar and more widely in the region.

Penetration rates for insurance is still low in Qatar. Do you feel that the implementation of dispute resolution scheme will attract more insurers and reinsurers to set up businesses in Qatar?

A strong law and dispute resolution tool is good as a marketing tool. Part of the reason the Qatar Financial Centre Authority established an international court was to promote and protect investments of international companies. In a way, a good legal system is very influential in attracting potential investors.