As one of the world’s largest exporters of liquified natural gas (LNG), Qatar has embarked on a series of reforms and investments in recent years as part of a long-term strategy, set out in Qatar National Vision 2030, to diversify its economy away from hydrocarbons, attract foreign direct investment (FDI) and secure a sustainable future.
Qatar has set a cumulative target of attracting USD100 billion in FDI by 2030, according to the latest version of its national development strategy published last year. The government is focusing on building an innovation-focused knowledge economy, achieving greater infrastructural and technological competitiveness, and cementing its position as a strategic commercial, financial and logistics hub.
Hosting the 2022 FIFA World Cup accelerated Qatar’s economic diversification. A massive public infrastructure investment programme from 2011, which encompassed the development of ports, roads metros and airports, is now being leveraged to generate new jobs, businesses and opportunities in sectors beyond the oil and gas industries for further economic growth.
Qatar’s advanced infrastructure, coupled with its geographical location between the markets and customers of the Mediterranean, West Asia, East Africa and the wider Indian Ocean give it a significant competitive edge.
Facilitating foreign direct investment
Structural reforms have also accelerated. Most significantly, Qatar introduced the Foreign Investment Law in 2019, which enabled the establishment of fully foreign-owned companies (in most sectors), marking a departure from the previous requirement for a Qatari national or a Qatari-owned entity to hold at least 51% of the share capital for foreign investors to participate in the Qatari economy.
To attract foreign investment and boost economic diversification, Qatar has also developed free trade and economic zones that provide incentives like tax exemptions, streamlined regulations and infrastructure support for companies operating in these areas. By offering compelling incentives and advanced infrastructure, Qatar’s free zones provide a fertile ground for businesses looking to tap into the region’s dynamic markets.
The primary governing body, Qatar Free Zone Authority (QFZA), oversees two primary free zones: Ras Bufontas and Umm Alhoul. The additional prominent zones that contribute to the country’s economic landscape are the Qatar Science and Technology Park (QSTP) and Qatar Financial Centre (QFC), although the QFC is not technically classified as a free zone.
Qatar has further reinforced its legal framework for protecting intellectual property rights, including trademarks, patents and copyrights to foster innovation and creativity while encouraging investment in knowledge-based industries. And it has set up specialised commercial courts to handle business disputes and enforce contracts, offering companies a dependable and transparent legal system for resolving conflicts and upholding contractual obligations.
Alongside initiatives to improve business efficiency and attract foreign direct investment, Qatar has implemented reforms to its labour laws to strengthen worker rights and protections. It was the first GCC member state to abolish the Kafala sponsorship system for foreign workers and has allowed employees to change employment freely by abolishing the No-Objection Certificate (NOC) requirement.
In recent years it has also introduced a non-discriminatory minimum wage, established a Workers’ Support and Insurance Fund, and introduced a fast-track electronic service for recruiting foreign workers.
The Mustaqel Visa
Last year, Qatar launched a new ‘Mustaqel Visa’, a residency permit specifically aimed at attracting talented individuals and entrepreneurs. The permit programme offers five-year renewable residencies to people with expertise in 13 approved fields, including arts, entertainment, sports, education, scientific research, development or innovation.
Applicants for the Mustaqel Visa must either have a job offer in Qatar or demonstrate financial self-sufficiency. Entrepreneurs are required to present a business plan approved by a Qatari incubator, reflecting a minimum investment of USD68,000.
Ease of Doing Business
Qatar’s key challenge remains transitioning from public sector-led growth to a more diversified, private sector-driven model, as envisioned by Qatar’s National Vision 2030. Achieving this transformation requires bold reforms to boost productivity and foster a more conducive business environment,
In January, Qatar’s the new Minister of Commerce and Industry Sheikh Faisal bin Thani Al Thani announced plans to introduce three new laws – a bankruptcy law, a public private partnership (PPP) law and a new commercial registration law – as part of a sweeping review of legislation to attract foreign investors.
The bankruptcy law aims to strengthen investor confidence and streamline processes for financial restructuring, while the PPP law focuses on encouraging a greater level of collaboration between public sector and private enterprises. The commercial registration law will simplify business set-up and regulatory compliance on the mainland.
Sheikh Faisal, who previously serve as chief investment officer for Asia and Africa at Qatar’s USD500 billion plus sovereign wealth fund, the Qatar Investment Authority (QIA), said: “We’re looking at 27 laws and regulations across 17 government ministries that affect 500-plus activities.” He expects the new bankruptcy and PPP laws to be drafted before the end of March.
Investment ecosystem
Qatar’s investment ecosystem starts with the Ministry of Commerce and Industry (MOCI), which is responsible for managing business activities in accordance with the requirements of national development. Its mandate incudes business development to attract investment and to support and develop exports. It is supported by the following key partners:
- Qatar Financial Centre (QFC) is a leading business and financial centre, offering benefits including 100% foreign ownership, 100% repatriation of profits, a transparent tax regime and a legal framework based on English common law.
- The Qatari Free Zones Authority (QFZ), which is focused on manufacturing and service sectors, offers benefits for businesses seeking to establish operation and expand regionally and globally, providing quality infrastructure, 100% foreign ownership, access to investment funds, tax exemption and partnership opportunities with Qatari entities. QFZA has created specialised clusters for high value-added economic activities including industrial and consumer, maritime and aerospace, logistics and trading, food and agritech, biomedical sciences, advanced mobility industries, and other emerging technologies.
- The Qatar Science and Technology Park (QSTP) provides companies with the infrastructure and tools to develop and deploy tech-based solutions focusing on edtech, AI, ICT, sustainable development and health.
- Media City (Qatar) offers benefits including 100% foreign ownership, streamlined access to licences and permits, financial support and other incentives, as well as access to office facilities and media services.
- Qatar Development Bank (QDB) assist entrepreneurs, start-ups and SMEs with a suite of financial and advisory offerings. QDB operates eight incubator/accelerator verticals under its Business Incubation & Acceleration umbrella, including the Qatar Business Incubation Centre and Qatar Fintech Hub. These initiatives provide crucial support for early-stage companies, from funding to mentorship.
- Qatar Stock Exchange (QSE), ranked as the best-performing exchange among emerging and developed markets worldwide.
Wealth Management
The wealth management sector, with its potential to attract international capital and expertise, is a key pillar of Qatar’s economic transformation, fuelled by an expanding high-net-worth individual (HNWI) demographic, robust economic growth and a sophisticated investment environment.
By 2028, the number of HNWIs in Qatar is projected to grow by 23.8%, from 44,140 in 2024 to 54,650. This demographic shift reflects not only the country’s wealth accumulation, but also a flourishing entrepreneurial ecosystem that is creating new opportunities for investment, innovation and wealth creation.
Qatar Investment Authority
A key enabler of this growth is the Qatar Investment Authority (QIA), the national sovereign wealth fund. With assets exceeding USD526 billion, the QIA is the world’s ninth-largest sovereign wealth fund by asset size and a central pillar in Qatar’s wealth management sector. Its involvement in both local and international markets enables a wide range of investment opportunities for private wealth clients. These opportunities span multiple sectors, including private equity funds, exclusive real estate investments and the burgeoning start-up and venture capital ecosystems.
Qatar has ambitious plans to become a magnet for venture capital (VC), powered by significant backing from the government and a thriving start-up ecosystem. The QIA recently launched a USD1 billion fund of funds dedicated exclusively to VC funds, which aims to yield market-level returns while developing a start-up network with an initial focus on focus on FinTech.
More than 100 companies are now operating in the Qatari FinTech space, including payment service providers, digital wallets, buy-now-pay-later services and blockchain technologies. But while FinTech has attracted 15% in venture capital flows, manufacturing has taken the lead, accounting for 36%, with healthcare technology at 12%. This diversity aligns with the country’s broader economic diversification goals as outlined in its National Vision 2030.
Taxation in Qatar
Qatar’s tax system is one of the most business-friendly in the world, featuring no personal income, inheritance, gift or wealth taxes.
For individuals, there is no income tax on employment income in Qatar. Qualifying Qatari-source business income earned by an individual is subject to corporate income taxation.
Qatar does not impose withholding tax on dividends, interest or royalties paid to residents. A 5% withholding tax applies to interest and royalty payments made to non-residents.
For companies, corporations that are partly or wholly foreign owned with Qatar source income are subject to corporate income tax at 10%, although a 35% rate may apply to taxpayers in the oil and gas sector.
Qatar has concluded more than 80 Double Taxation Agreements (DTAs) with most of its economic partners.
Company Structures
Qatar is rapidly establishing itself as a key business hub in the Middle East. Different forms of companies are allowed to operate in Qatar under the Ministry of Commerce and Industry (MOCI) including limited liability company (LLC), limited partnership (LP), limited share partnership, joint liability company, joint venture company, shareholding company (public or private), branch of a foreign company, and holding company.
Qatar’s freezones represent an excellent option for foreign investors. They are considered separate from the domestic state ‘mainland’ area with regards to legal requirements and customs rules and as such have distinct benefits.
Sovereign PPG services in Qatar
If you plan to start a business in Qatar, it is important to understand the various company structures that are available to business investors and how they differ. Each has its own unique benefits, requirements and applications. Our Doha based team can assist you in Qatar company formation, market-entry and on-going company maintenance requirements.
Company Set Up and Registration
Sovereign PPG has an extensive team with local knowledge who are dedicated to guiding you on how to start your company in Qatar, either bon the mainland or in the free zones. We provide foreign investors with a completely tailored Qatar company formation services, which begin with identifying the correct legal entity or corporate service for your business.
PRO and Visa
Every business in Qatar will require Public Relations Office (PRO) services to liaise with government authorities in Qatar, whether for company formation and on-going maintenance and compliance requirements. Our PRO services in Qatar can be offered to clients as an annual retainer package and encompass visa issuance, licensing and other PRO service requirements.
Corporate Sponsorship
Although 100% foreign ownership is now possible in Qatar, some companies setting up in Qatar will still require a local partner and having the right local partner is the key to the success of any business in Qatar. Sovereign PPG understand the role that local partners play, and our company can become your safe and reliable shareholder. In Qatar, Sovereign PPG’s trade name is Venture Partner LLC (VPQ).
Bank account opening
Company bank account opening in Qatar requires the Commercial Registration (CR), licence and other supporting company documents. Sovereign PPG can assist in gathering and preparing the necessary documentation, ensuring that all requirements are met, and that the paperwork is properly organised. We also have existing relationships with banks in Qatar, which can facilitate the account opening process and help streamline communication.
Office Lease
Your office space in Qatar will be determined by your business and licensing requirements. Whether you are licensed in Mainland Qatar, Qatar Financial Centre (QFC) or in a Free zone, you will be required to have an office space. Sovereign PPG has close contacts with reliable real estate agents, shared offices and virtual office space providers, and we will be able to arrange your office space in Qatar.
Payroll
Payroll management is the backbone of any successful company. It is essential to ensure that employees are paid correctly and on time and is also critical for compliance with laws and regulations. Sovereign PPG payroll services in Qatar are designed to take the pressure off our clients and assist with streamlined and automated employee compensation management and compliance requirements as per the Wage Protection System (WPS) and the proper payment of the employee workforce in Qatar.
Business Support Services
In addition to the services above, Sovereign PPG can also assist clients with the following key services:
o Accounting, Bookkeeping, VAT, Corporate Tax registration and Payroll – to ensure that accurate records of all business transactions are kept to maximise productivity and profitability.- HR Services – our HR services are designed to include the full scope of recruitment, employee onboarding and maintenance, including employment template documents, policies and handbooks, gratuity calculations and HR consultancy.
- Compliance – we provide a well-designed compliance programme integrated into your company’s business operations that will ensure compliance with anti-money laundering registration, Know Your Customer (KYC) due diligence, as well as handbooks, policies and risk assessments.
These are exciting times in Qatar and Sovereign PPG is well positioned to provide the comprehensive advice and support to assist companies of all sizes to establish business operations successfully in Qatar, as well as to deliver the on-going administrative support to maximise opportunities and achieve long-term sustainability in the wider Gulf market.
