BREAKING: A new law in Qatar that will help to create jobs is now approved
In a significant development, Qatar’s Cabinet has approved a draft law that regulates non-Qatari investments in the economy and referred it to the Advisory Council. The draft law is set to replace Law No. 13 of 2000 on the same issue.
The Minister of Economy and Commerce HE Sheikh Ahmed bin Jassim bin Mohammed Al Thani said the draft law would allow 100% foreign investment in all sectors of the national economy and will push forward the pace of economic development and enhance the confidence of investors in the economy.
The move was implemented in accordance with the directives of the HH The Emir Sheikh Tamim bin Hamad Al Thani.
The minister said the new law will contribute to raising confidence and investment security in the country, increase tax revenues, protect foreign and local investors from the risks of side agreements, reduce trade concealment and raise Qatar’s position in global economic indicators like the indicator of ease of doing business.
There will be the following incentives for investors.
* Allocation of land to non-Qatari investor for the establishment of his investment project by way of use or rent, in accordance with the legislation in force in this regard.
* The non-Qatari investor may import for his project what he needs in establishing, operating or expanding the project in accordance with the legislations in force in this regard.
* Non-Qatari investment projects may be exempted from income tax in accordance with the procedures stipulated in the Income Tax Law.
* Non-Qatari investment projects shall be exempted from customs duties on their imports of machinery and equipment necessary for their establishment.
* Non-Qatari investment projects in the field of industry shall be exempt from customs duties on their imports of raw materials and semi-finished materials for production which are not available in local markets.
* The Council of Ministers may, upon a proposal of the minister, grant investment projects incentives and benefits, in addition to what is provided for in this law.
* Non-Qatari investments are not subject, whether directly or indirectly, for expropriation or other similar action if they are for public benefit and a fair and appropriate compensation shall be implemented in accordance with the same procedures as for Qataris.
* Non-Qatari investor shall be free to transfer his investments to and from abroad without delay. These transfers include the proceeds of the sale or liquidation of all or some of his investments, the proceeds of the settlement of the investment disputes, and any compensation due to him.
* Non-Qatari investor may transfer the ownership of his investment to any other investor or abandon it to his national partner. The investment shall continue according to the provisions of this law.
* With the exception of labour disputes, a non-Qatari investor may agree on any dispute between him and third parties through arbitration or any other means of settlement of disputes.
The provisions of the law also do not apply to companies and individuals licensed by Qatar Petroleum to carry out any petroleum operations or to invest in the oil and gas sector, petrochemical industries.