Doha, January 27 (QNA) - Legal experts and academics at the Doha Legal Forum 2026 have stressed the need to modernize commercial bankruptcy legislation to strengthen market confidence, stabilize economic transactions and encourage investment, particularly amid the rapid growth of the digital economy and e-commerce.
The discussion took place during a panel titled "Commercial Bankruptcy Law: Challenges and Expectations" on the second day of the forum, with participants from Qatar University, the Ministry of Commerce and Industry, the Qatar International Court and Dispute Resolution Center, and the Ministry of Justice.
Speakers said traditional bankruptcy systems focus primarily on liquidating the assets of insolvent traders and distributing them among creditors, often resulting in the removal of business owners from management and restrictions on commercial activity.
They noted that existing legislation does not comprehensively address both commercial and civil insolvency, despite references to insolvency across various legal texts. Insolvency, they said, differs fundamentally from bankruptcy, as it is based on liabilities exceeding assets rather than a simple cessation of payments.
Participants highlighted the growing role of digital transactions and e-commerce in enhancing transparency, traceability and efficiency, contributing to more stable markets and lower operating costs.
They pointed to international models in the United States and Europe, where modern bankruptcy laws emphasize restructuring and business rescue over liquidation, viewing commercial failure as a possible stage in the economic cycle rather than a permanent outcome.
The panel also warned that traditional responses to financial distress, such as increased borrowing or workforce reductions, can worsen economic problems, affecting employment and overall market stability.
Experts concluded that contemporary bankruptcy laws should focus on early intervention and preventive restructuring, aiming to return distressed businesses to the market while balancing creditor protection with economic initiative. (QNA)