Qatar’s Moveable Assets Security Law – regulations published to bring the law into effect

Background

Decision No.1 of the QCB Governor on the procedures for regulating the moveable assets security register (the “Regulations”) was issued on the 19^th of April 2022 and is now effective. The Regulations have been issued pursuant to Article 6 of Law No. 6 of 2021 (the “Moveable Assets Security Law”) and represents a shift to an electronic system for the registration of security over moveable assets.

Click here to see our previous client alert on the Moveable Assets Security Law.

The primary development under the Regulations is the creation of a searchable electronic public security register for security over moveable assets (the “Register”), to be maintained and supervised by the Qatar Central Securities Depository (“QCSD”). The  Regulations identify the implementation procedures in respect of the Register such as fees and the setting up of the Register.

Registration process

The Regulations identify the online registration process, whereby the pledgee will need to set up a personal, verified account in accordance with the procedures identified on QCSD’s website. Other authorised individuals may also be permitted to access and operate the pledgee’s online account.

The Regulations differentiate the registration process depending on whether the registration relates to a new security interest or whether it is an amendment to a pre-existing security.

(a) Initial registration

The required information for initial registration of a moveable asset security interest is as below:

1. the pledgee and its representative’s personal data, including (if available): the name; national address; personal identification number or passport number (in case of a natural person) or the CR number or a copy of the CR (in case of a company);
2. the pledgor and its representative’s personal data, including (if available): the name; national address; personal identification number or passport number (in case of a natural person) or the CR number or a copy of the CR (in case of a company);
3. a description of the moveable assets security;
4. a description of the secured interests;
5. a maximum limit on the secured interests;
6. the period for registration; and
7. any statistical data.

We expect that the registration process for any security over moveable assets created prior to the date of the Regulations, and which are capable of being registered on the Register, will follow this initial registration process.  The Moveable Assets Security Law provided a 12 month window from its date to register pre-existing security.

(b) Amendment to pre-existing Register

The Regulations specify what falls within the scope of amendment of a pre-existing registration, including the following (though it does not set out the process for amendments):

1. amendment of registration;
2. extension of registration;
3. cancellation of registration; and
4. any registration complaints.

Registration Fees

The Regulations identify the fees payable for the registration of the security on the online Register. These fees are payable through the online website, while basic online searches or cancellation of an existing registration are exempt fees.

The fees are as below:

Moving Forward

While the Regulations have been issued, there has been no update to the QCSD website on setting up the Register (i.e. on the log-in process/ the set up credentials), and certain ambiguities still remain regarding the applicability of the Register to international security holders in Qatar. We are seeking clarification from the QCSD on certain open issues and will provide a further update to our clients.