Buying on Installments in Qatar: What the Trade Law Says About Missed Payments and Ownership

Cars, furniture, phones and appliances are often sold on installments, sometimes described as "rent". This guide is based on the English text of Articles 125 to 130 of Law No. 27 of 2006 on Al Meezan, which we read in October 2026. These articles sit in the chapter on commercial sale, and we could not tell from the text whether they apply to every consumer purchase. Qatar also has a consumer protection law, which we did not read for this page. It is general information, not legal advice.

What counts as an installment sale

Article 125 defines it as a credit sale where the price is paid by installments over time and the first installment falls due on receipt of the goods. The contract must set out the goods' specifications, the price and the installment terms. Check that all three are in your contract.

If you miss a payment (Article 126)

Article 126 says that where the buyer fails to pay one of the installments, the sale may not be declared null and void if it is clear that the buyer has paid at least three quarters of the price. In practice, the seller cannot simply cancel and take back the goods after you have paid 75 percent or more, though it can still pursue the remaining amount through other routes. The article says nothing about what happens below 75 percent, so check the contract and get advice.

Ownership stays with the seller until the last payment (Article 127)

If the seller keeps ownership of the goods until all installments are paid, the buyer becomes owner on paying the last one. The buyer bears the risk of loss of the goods from the time of delivery, so insure or protect what you buy. The article also says that, without prejudice to the bankruptcy rules, a retention-of-ownership condition does not affect third parties unless it is in writing, has a fixed date, and predates the third party's right or the creditors' enforcement steps on the item.

You cannot resell early (Articles 128 and 129)

Article 128 says the buyer may not dispose of the goods before paying all the installments without the seller's written approval. A disposal in breach is not effective against the seller unless the person who got the goods knew about the unpaid price when they received them. Article 129 adds that if the buyer disposes of the goods before full payment without consent, the seller may demand all the remaining installments immediately.

If you sell a car or a phone that is still on installments, the buyer may be affected, and you may owe the whole balance. Our guide to vehicle ownership transfer in Qatar explains registration, and lending or selling your car covers what happens to fines.

"Rent" contracts (Article 130)

Article 130 says the installment sale rules apply even if the parties call the sale "rent". A rent-to-own deal for furniture or a car can therefore be treated as an installment sale if its substance is a sale on installments.

What to check before you sign

These points are our advice.

1. Is the price, the number of installments and each due date written in the contract?

2. Who owns the item until the last payment, and what does the contract say about registration?

3. Is the item insured, and who pays? You carry the risk from delivery.

4. What happens if you miss one installment: late charges, repossession, or acceleration of the full balance?

5. Are post-dated cheques required? If they bounce, criminal rules can apply. See bounced cheque in Qatar.

6. Is there a warranty and a refund route? See warranty complaints and when a store refuses a refund.

For shops, see electronics stores, furniture stores and car dealerships. Car loans from banks are separate credit contracts, which we have not covered.

What we could not verify

• Whether Articles 125 to 130 apply to consumer sales by shops, or only to commercial sales between traders.
• The consumer protection law's own rules on credit sales.
• Whether any later amendment changed the three-quarters rule.
• How courts treat repossession in practice.