Ministry of Commerce and Industry Highlights Law on Investment of Non-Qatari Capital in Economic Activity

Doha, January 08 (QNA) - The Ministry of Commerce and Industry (MCI) highlighted the main provisions of the Law on the Regulation of Non-Qatari Capital Investment in Economic Activity, which aim at boosting economic development, bringing foreign investments in all economic and commercial activities, attracting 100 percent foreign capital flows, achieving economic diversification in line with Qatar National Vision 2030, facilitating the entry of foreign investors into the market, and raising the confidence and investment safety index of the country. The MCI explained that the law defines in its first article the non-Qatari investor as a person who invests his money in one of the projects authorized for direct investment in accordance with the provisions of this law, and defined the non-Qatari capital as non-Qatari capital invested in cash or in kind or rights with financial value in the State of Qatar. The law also sets out the rules for non-Qatari capital investment, which allow investment in all sectors of the economy in the country. This may be done through a request to the competent administration, which shall decide on the application within 15 days. The person whose application was rejected by the Minister may be appealed within 15 days and the appeal shall be decided within 30 days. The non-Qatari investor is prohibited from investing in the fields of banks and insurance companies except after a decision by the Council of Ministers. The non-Qatari is prohibited from investing in commercial agencies, and he is also prohibited from investing in any other areas stipulated by a decision of the Council of Ministers. The MCI said that the law obligates non-Qatari companies associated with the execution of business contracts in the country with the following rules: The execution is carried out through the company's branch in the country, and the contract should be with the state or government agencies, public institutions or companies, in addition to registering in the commercial registration office and obtaining the commercial license for the branch of the company, after it is awarded and before signing the contract, as well as fulfilling all the requirements of government agencies, renewing the contract and licensing throughout the period of implementation of the contract, and in respect of obtaining the non-Qatari investor licenses to engage in activities permitted by the provisions of the laws in force in the country. The law allows the non-Qatari investor to own a percentage not exceeding 49 percent of the share capital of the listed companies, and the proposed percentage shall be subject to the approval of the Ministry, and may also have a percentage more than that with the approval of the Council of Ministers on the proposal of the Minister. The MCI pointed out that the law provided several investment incentives for the non-Qatari investor, including the allocation of land to the non-Qatari investor to establish his investment project by way of use or rent and in accordance with the legislation in force in this regard. The non-Qatari investor may import for the investment project what he needs in establishing or operating the project or its expansion, in accordance with applicable legislation. Non-Qatari investment projects may be exempted from income tax in accordance with the regulations and procedures in the period stipulated in the income tax law. Non-Qatari investment projects shall be exempted from customs duties on their imports of machinery and equipment for their establishment. Non-Qatari investment projects in the field of industry shall be exempt from customs duties on their imports on raw materials and half manufactured products needed for production that are not available in domestic markets. The Council of Ministers may, upon the proposal of the Minister, grant incentives and benefits for investment projects in addition to what is provided for in this Law. Non-Qatari investments shall not be subject, either directly or indirectly, to expropriation or any other similar action, unless the public good requires otherwise and in a non-discriminatory manner and fair compensation shall be given in accordance with the same procedures applied to Qataris. The non-Qatari investor shall be free to transfer his investments abroad without delay. Such transfers shall include (investment proceeds, proceeds of the sale or liquidation of all or some of his investments and the proceeds of settlement of disputes from any compensation due to him). The non-Qatari investor may transfer the ownership of his investment to any other investor or abandon it to his national partner in case of participation. This is done in accordance with the applicable legislation. The investment shall continue to be treated according to the provisions of this law, and the new investor shall continue to work in the project but replace the previous investor in the rights and obligations. Excluding labor disputes, a non-Qatari investor is entitled to agree on any dispute between him and third parties through arbitration or any other means of settlement of disputes. The MCI added that Law No. 1 of 2019 on the investment of non-Qatari capital in economic activity stated in Article 25 that the provisions of this law do not apply to companies and individuals to whom the state grants extraction, exploitation or management of natural resources under a concession or special agreement, except to the extent that it is not contrary to the provisions of the concession contract or the special agreement. The provisions of the law do not apply to companies established by the government and other public institutions and corporations or in which it contributed by 51% or less, but subject to the approval of the Council of Minister in association with non-Qatari investors, according to the provisions of the Commercial Companies Law referred to. 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 and petrochemical industries sector. (END)