Q & A - Business RegistrationBusiness Policy in Qatar

Publication of State of Qatar Ministry of Economy & Commerce - Investment Promotion Department

Qatar's strength is derived from its oil and gas revenues which have made it one of the wealthiest countries in the world in terms of per capita income. The Government of Qatar has ownership interests in several economic sectors, including oil and gases production, petrochemicals, and the steel and fertilizer industries. Government policy in recent years has recognized the need to promote greater private investment in core industrial projects.

Foreign Ownership of Business and Incentives

Generally, a non-Qatari national, whether natural or juristic, may engage in commercial activities provided the foreign participation in the entity does not exceed 49%. In October 2000, the Government enacted a new Foreign Investment Law aimed at promoting foreign investment in specific business sectors including agriculture, manufacturing, health, education, tourism power and projects which develop and utilize the State's natural resources. The new law permits up to 100% foreign ownership in these business sectors. The law does not allow a non-Qatari to participate in banking, insurance, commercial agency or real estate trading activities.

The Government welcomes foreign investors and is keen to promote projects involving the transfer of foreign expertise and technology to the Qatari economy. The enactment of the new Foreign Investment Law confirms the Government's commitment to attracting new investors to participate in the future development of business in the State. In addition to expanding the zone within which foreign investors can participate in the national economy and avail of 100% ownership in certain fields of the economy, the new Foreign Investment Law confers upon foreign investors privileges, which were not available to them previously, including:

  • The right to lease land for the project for up to 10 years.
  • The right to import the machinery, equipment and some of the primary materials required for the project.
  • The exemption of the capital to be invested in the project from income tax for a period not exceeding 10 years.
  • Exemption from import customs duties on the equipment and machinery to be imported for the project.
  • Exemption from import customs duties on the primary raw materials and half-manufactured materials, which are not available in Qatar.
  • Protection from confiscation by the state otherwise than for the public welfare, without discrimination and subject to fare and adequate compensation.
  • The freedom to repatriate the profits of the project and its capital on liquidation; and the freedom to transfer the ownership in the project.