Qatar: Understanding Guarantees

Analysis

Like most jurisdictions in the Middle East and North Africa, Qatar has adopted a civil law system. This has its roots in the French Napoleonic Code and is distinct from a common law system.

A key difference between the two legal systems is that there is no system of binding precedent under a civil law system.  

The primary legislation that governs guarantees in Qatar is the Civil Code. While other contracts may be concluded verbally, guarantees must be concluded in writing. For a guarantee to be valid under the laws of Qatar, reference should be made to the underlying debt being guaranteed. In other words, the guarantor must guarantee a specific debt. Notwithstanding this, a guarantor may guarantee future and unspecified obligations of a debtor, provided that the maximum amount being guaranteed and the maximum duration of the guarantee are specified in the guarantee document.