New law regulating foreign investment allows up to 100 percent foreign ownership
07 Jan 2019
On 7 January 2019, Law No.1 of 2019 regulating the investment of non-Qatari capital in economic activity became effective, repealing Law No. 13 of 2000.
Key aspects of the new law, among others, are the following:
• Foreign ownership up to 100 percent is permitted in all economic sectors subject to specific legislation regarding commercial activities carried out by Non-Qataris and as determined by the executive regulations of the New Law.
• Certain activities remain excluded - namely banking and insurance (unless exempted by a Council of Ministers’ decision), commercial agencies and other sectors as decided by the Council of Ministers.
• Foreign ownership limits in listed companies on Qatar Exchange have been increased to a maximum of 49 percent, subject to the approval of the Ministry of Commerce and Industry. This percentage can be further increased subject to approval by the Council of Ministers upon recommendation of the Minister of Commerce and Industry.
• Most of the incentives previously granted under the Repealed Law remain the same, with a few changes.
• Except for labor disputes, foreign investors have the right to refer their disputes to international arbitration or alternative dispute resolution processes.
The new law does not apply to the following entities:
1) companies and individuals who are assigned to extract or manage natural resources under concession or special contract, to the extent the provisions of such contract do not contradict the provisions of the new law;
2) companies set up by the Government and public institutions or in which they participate and companies in which the Government participates in partnership with foreign investors in a percentage of no less than 51 percent in accordance with the Commercial Companies Law; and
3) corporate or natural persons licensed by Qatar Petroleum to carry out any petroleum activities or which aim to invest in the oil and gas and petrochemical sector.
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Type:
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Entry and establishment (Ownership and control)
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Promotion and facilitation (Investment incentives)
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Industry:
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