For many years a foreign investor in Qatar needed a Qatari partner holding at least 51% of the company. Law No. 1 of 2019 regulating the investment of non-Qatari capital in economic activity changed that, opening the door to 100% foreign ownership in Qatar. The reality is more precise than the headline, however: full ownership depends on the activity and on formal approval.
The law was issued on 7 January 2019, published in the Official Gazette on 24 January 2019, and repealed the earlier Law No. 13 of 2000. Its executive regulations were issued by Minister of Commerce and Industry Decision No. 44 of 2020.
What does Law No. 1 of 2019 say about foreign ownership in Qatar?
Article 2 provides that a non-Qatari investor may invest in all economic sectors with up to 100% of the capital, as set out in the executive regulations. That permission operates without prejudice to legislation regulating non-Qataris' practice of commercial business and professions, and subject to the prohibitions in Article 4.
- Law
- Law No. 1 of 2019 regulating the investment of non-Qatari capital in economic activity
- Executive regulations
- Minister of Commerce and Industry Decision No. 44 of 2020
- Maximum ownership
- Up to 100% of the capital in permitted activities
- Approving authority
- The competent department of the Ministry of Commerce and Industry
- Decision period
- 15 days from submission of the complete documents
Is 100% foreign ownership in Qatar automatic?
No. Article 3 requires an application to the competent department to approve non-Qatari participation above 49% of a company's capital, filed on the prescribed form with supporting documents and after payment of the applicable fees.
Which activities are closed to foreign investors in Qatar?
Article 4 prohibits non-Qatari investment in the following areas:
- Banks and insurance companies, except those exempted by a Council of Ministers decision.
- Commercial agencies, which are in any event reserved for Qataris and wholly Qatari-owned companies. See our guide to commercial agency in Qatar.
- Any other areas designated by a Council of Ministers decision.
Article 7 sets a separate rule for joint stock companies listed on the Qatar Stock Exchange: a non-Qatari may hold up to 49% after Ministry approval, and more only with Council of Ministers approval.
Article 25 also takes certain categories outside the law altogether, including companies granted concessions to exploit natural resources and companies licensed by Qatar Petroleum (now QatarEnergy) to carry out petroleum operations.
How do you get approval to own more than 49% in Qatar?
- Define the activity: confirm it is not restricted and identify any sector-specific licences it needs.
- Choose the vehicle: usually a limited liability company under Commercial Companies Law No. 11 of 2015.
- File the approval application: on the competent department's form, with supporting documents and fees.
- Await the decision: the department decides within 15 days of a complete file and notifies the applicant by registered letter or any other traceable means.
- Challenge a refusal: a grievance may be filed with the Minister within 15 days of learning of the refusal; the Minister decides within 30 days, and that decision is final.
- Complete incorporation: authenticate the memorandum, register with the Commercial Registry and obtain the required licences.
For the detailed incorporation stages that follow approval, see our guide to company formation in Qatar.
Does a foreign company need a branch to perform a government contract?
Generally, yes. Article 5 requires a non-Qatari company performing a contract with a government body, or with a company in which the State holds shares, to do so through a Qatar branch. The branch must be entered in the Commercial Register after the award and before signing, and its registration and licences must be kept current throughout the contract.
What incentives and guarantees does the law give foreign investors?
- Land: land may be allocated to the project by lease or usufruct (Article 8).
- Income tax: projects may be exempted under the conditions and periods in Income Tax Law No. 24 of 2018 (Article 10).
- Customs duties: machinery and equipment needed to establish the project are exempt, as are raw and semi-manufactured materials for industrial projects that are not available locally (Article 11).
- Expropriation: permitted only for public benefit, on a non-discriminatory basis and against fair compensation (Article 13).
- Transfers: returns and sale or liquidation proceeds may be transferred abroad without delay, in any convertible currency (Article 14).
- Arbitration: disputes with third parties may be referred to arbitration, except labour disputes (Article 16).
Should you set up on the mainland or in the Qatar Financial Centre?
Full foreign ownership is available on both routes, but the legal framework differs fundamentally. The right choice depends on the activity, the target customers and how profits will be treated.
| Factor | Mainland (Ministry of Commerce and Industry) | Qatar Financial Centre |
|---|---|---|
| Legal basis | Law No. 1 of 2019 and the Commercial Companies Law | QFC regulations |
| Foreign ownership | Up to 100% after approval, outside restricted activities | Full foreign ownership |
| Legal environment | Qatari law and the Qatari courts | Common law-based legal environment |
| Tax | Under the Income Tax Law | 10% corporate tax, as stated by the QFC |
What are the penalties for breaching Qatar's foreign investment law?
The competent department notifies an investor in breach to correct it within no more than three months; if it is not corrected, the licence is cancelled and the company or branch is struck off the Commercial Register (Article 19). Anyone carrying on economic activity in breach of the law faces a fine of up to QAR 500,000 (Article 20), and the same penalty applies to legal persons (Article 21).
What deserves time before registration?
- Verifying the economic activity, since it determines the permitted ownership level and the approvals required.
- Choosing the structure and regulatory regime from the business plan, not from whichever route is fastest.
- Drafting the memorandum of association to cover governance and partner exit from the outset.
- Putting a shareholders' agreement in place wherever there is more than one investor.
- Confirming sector licences before signing any commercial commitments.
How we can help
Al Murqab Law Office helps investors assess whether full ownership is available for their activity, prepare the approval application, draft the memorandum and shareholders' agreement, and follow registration and licensing through. Learn more about our corporate legal consultancy, or call +974 7190 0190 to discuss your project in Arabic or English.