The bankruptcy regime in Qatar draws upon the principles contained in the legislation of many western jurisdictions. It includes familiar concepts such as claw-back and preferences. Where Qatar differs from these jurisdictions is that it is largely untested. There is no reliable back-catalogue of comprehensive precedents. This causes understandable concern for financial institutions and lenders in general. How confident can they be in the validity and value of their security if the borrower or security provider becomes bankrupt?
In Qatar there are two concurrent bankruptcy regimes. The first is the local regime, the provisions of which are set out in the Commercial Law No 27 of 2006 (“Local Regime”). The second is found in the QFC Insolvency Regulations 2005 and applies to bodies corporate and branches registered in the QFC (“QFC Regime”).