Investment Incentives in Qatar

The Pear Qatar Got a Massive Boost
(Photo from:http://internationalpropertyinvestment.com/qatar-investment-property)

By Antonia Dimou

According to the Qatari investment law, foreign investors are allowed to invest in all national economy sectors provided that they have a Qatari partner who has a share of at least 51% of the capital of the joint venture and that the company is duly established in accordance with the provisions of the Qatari law of commercial companies.

However, the shareholding of foreign investors in joint ventures can surpass the limit of 49% and reach up to 100% of the capital in selected sectors such as agriculture, industry, health, education, tourism, development of natural resources or energy and mining, on condition that the projects in question are in line with the country's development objectives, are export oriented, introduce new products, use new technologies and seek to introduce industries with international fame.

The General Privileges for Foreign Investors revolve around the freedom to import and repatriate funds and the freedom to transfer profits and assets as well as exchange money at stable rates.

Some of the General Incentives for Investments focus on:

(a) The right to import the materials and equipment required for the establishment, operation or expansion of projects.

(b) A10-year exemption from income tax effective from the date of commercial commissioning of projects.

(c) Duty-free imports of equipment and machinery required for projects.

(d) Duty-free imports of raw and half manufactured materials needed for industrial projects and not available locally. Other Privileges include: (a) Providing suitable land sites in industrial estates for industrial projects at reasonable lease rates and long lease terms. (b) Assisting the licensed industrial projects to get loans from the Qatar Industrial Development Bank and other finance establishments. (c) Providing the project with power, fuel, water and natural gas at competitive prices. (d) Flexible regulations and procedures to import workforce for industrial and other investments.

(e) Settling investment disputes through commercial arbitration, courts of justice or Shari'a courts in the country, whichever individual cases fall within the jurisdiction thereof.