Qatar's new FDI law proposes game-changing incentives for investors

DOHA: Qatar’s soon to be launched amended foreign direct investment law is expected to transform the country’s investment ecosystem. The new law, which proposes to throw open all sectors to 100 percent foreign investment (banking and insurance with direct permission from the Prime Minister’s Office), would get the preferential treatment exactly in line with Qatari companies.

These companies will be eligible for all the incentives that Qatari companies are currently enjoying, including the permission to participate in government contracts, a top official from the Ministry of Economy and Commerce said yesterday.

Participating in a roundtable on “Qatar’s business climate and new FDI law”, organised by The Ministry of Economy and Commerce, in cooperation with The Business Year, Abdulbasit Talib Al Ajji (pictured), Director of Business Development and Investment Promotion at the Ministry said the amended law is expected to get the final approval from higher authorities soon.

The new incentives to the companies will be in addition to the existing incentives being offered to the investors by Qatari entities like Qatar Financial Centre (QFC), QSTP and Economic Free Zones.

To get special treatment as a Qatari company, it is not necessary for the firms to have 100 percent foreign investments. Even joint venture companies with 20-30 percent stake by the local companies will be treated as fully local companies and will be eligible for the incentives. Qatar will encourage foreigners to invest in 12 selected sectors, including manufacturing, agriculture, health, technology, education, distribution, energy, tourism and mining.

The Ministry has opened a 24x7 dedicated desk to process the FDI applications, Abdulbasit said.

As per the law, foreign companies will have the right to approach local or international courts in the event of any probable disputes. The law of the land will not force the companies to approach the local court for justice delivery. This is aimed to boost the investor’s confidence in the rules and regulations and is expected to encourage more joint ventures in the country, he said.

The idea is not to increase the number of companies in Qatar, but to improve the quality. In order to enlighten the international investors about Qatar’s game changing new investment law, Qatar will continue to hold roadshows and roundtables at potential international markets, he said.

Kamal Naji, Chief Project Officer, QFC Authority said: “The QFC’s mandate continues to focus on attracting foreign direct investment in line with QNV 2030 and thanks to the QFC’s unique ecosystem. We will continue to provide an attractive platform for firms to grow, while stimulating market growth.”

Elias Chedid, COO and Deputy CEO of Seib Insurance said it is very important to have a level playing field for investors come with millions of dollars. “There should not be selectivity or non-selectivity among the players in the market. This is very important. There should also be stability in terms of population segments and make sure a large section of residents are staying in Qatar for long term”. The productions coming out of the new companies or factories need to be consumed locally, before exporting. “For local consumption, we need stability of population segment for long period of time”, he said.

Dr. Hassan Mohammed Al Ansari, Editor-in-Chief of Qatar Tribune moderated the event.

Ahmed Abu Sharkh, Country Senior Partner, KPMG in Qatar called for effective facilitation of regulation for finding solutions for the problems of investors. It is very important to create a forum that would provide the feedback from the foreign investors to the government, he said. Emad Turkman, Group CEO of Rumailah Group and Chairman of Qatar-Britain Business Forum also attended the event.