Qatar Financial Court Requires Proof of Risk of Asset Dissipation in Arbitration
The Qatar Financial Centre Court rejected a request for urgent asset protection measures in an international arbitration, requiring proof of a specific risk of asset dissipation rather than merely a strong claim and financial distress.
The Qatar Financial Centre (QFC) Court ruled to reject an application for urgent asset protection measures related to a Doha-seated International Chamber of Commerce (ICC) arbitration, as reported by the Pinsent Masons Out-Law platform.
The court held that the existence of an arguable claim, along with evidence of financial difficulties on the part of the opposing party, is not in itself sufficient to grant relief.
The court required proof of a specific risk of asset dissipation, meaning indications that the opposing party might transfer or conceal its funds prior to the issuance of the award.
The court applied the established standard set in the 2024 case of Thales QFZ v. Al Jaber Engineering, clarifying the limits of seeking urgent measures in commercial disputes within the region.
What Do These Terms Mean?
Urgent Measures: Interim orders issued by a court or arbitral tribunal to safeguard the rights of one of the parties prior to the final resolution of the dispute.
Dissipation of Assets: The transfer or concealment of funds or property with the intent to evade the enforcement of a judgment or the payment of a debt.
Commercial Arbitration: A method of resolving disputes outside of court, where both parties agree on arbitrators who issue a binding award.
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