Investors from across the world have welcomed and appreciated Qatar’s Law No. 1 of 2019 allowing and regulating 100 percent non-Qatari capital in the country’s economy. The law aims to promote economic development, attracts foreign investment in all economic and commercial activities, allows 100 percent foreign capital inflows, accomplishes economic diversification in line with the Qatar National Vision 2030, facilitates foreign investors’ access to the market and bolsters the country’s confidence and investment security index.
A foreign investor is allowed to invest capital in a variety of sectors other than the banking industry and insurance companies except for the companies excluded based on a decision of the Cabinet.
The law allows several incentives to investors from abroad such as allocation of land to establish a business project through rent or usufruct in accordance with the legislation in force in this regard. Non-Qatari investment may be exempted from income tax in accordance with the procedures and regulations stipulated in the Income Tax Law.
Such foreign capital shall be exempted from customs duties on imports of machinery and equipment necessary for the establishment of a particular business. Foreign investment projects in the industrial sector shall be exempted from customs duties on their imports of raw materials and semi-manufactured goods that are required for production, but are unavailable in the local market.
All such incentives will act as a catalyst in attracting an unprecedented inflow of non-Qatari capital into the country which will augment the diversification efforts the country has already undertaken and being executed with great success.
The new law will encourage the establishment of several new industries producing a variety of goods needed for the development of the country, for which the state has been dependent on imports till now.
Hence, while attracting foreign investment, it will, in turn, save outflow of money importing goods. The move will also create thousands of new job opportunities, thus keeping up the momentum of growth for decades to come.
Foreign investment is a two-way traffic which benefits investors and recipients, and will benefit the global economy too. Capital goes to the businesses with best growth prospects. In addition its gives well-run businesses a competitive advantage as the smartest money rewards the best businesses. Their goods and services go to the market unhindered and in a fast pace.
Another advantage of foreign investment is that it offsets the volatility created by the so-called hot money by keeping asset bubble caused by short-term lenders and currency traders at bay. Qatar has been witnessing several developments in almost all fields such as education, health care, infrastructure development, arts, culture and sports.
The new law is the latest in encouraging the growth of business and industry which is expected to result in exponential benefits for the country’s economy..
