Qatar WT/TPR/S/144 
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II. TRADE AND INVESTMENT REGIMES 
(1) THE INSTITUTIONAL FRAMEWORK  
1. The State of Qatar, which has been independent since 3 September 1971, is headed by an 
Emir, who is the constitutional Head of State and Commander-in-Chief of the army.  The Emir holds 
both executive and legislative powers with the assistance of the Council of Ministers and the Advisory 
Council, respectively.1   
2. The office of Emir is transferred from father to son;  when there is no male heir, power is 
passed to the person chosen by the Emir, within the Al-Thani family.2  The Emir appoints the Prime 
Minister, and the ministers upon recommendation by the Prime Minister. The ministers are directly 
responsible to the Emir, who exercises power through them.   
3. The Prime Minister serves as head of the Council of Ministers.  The Prime Minister is 
responsible for the implementation of the Council  of Ministers' decisions and for coordination 
between the various ministries.  The responsibiliti es of the Council of Ministers include proposing 
draft laws and decrees, which are then discussed by  the Advisory Council before being submitted to 
the Emir for ratification and issuance.   
4. The Advisory Council (Al-Shoura) currently has 35 members appointed by Emiri Decision.  
The 1972 Amended Provisional Constitution stipulates that  no laws can be enacted or issued without 
first being discussed and recommended upon by the A dvisory Council.  The main responsibilities of 
Al-Shoura include discussing the political, social, administrative, and economic aspects of Qatar's 
general policies.  In March 1999, elections were he ld for the first time in Qatar to form the Central 
Municipal Council, which advises and gives recommenda tions to the Ministry of Municipal Affairs 
and Agriculture, including on construction ma tters.  Political parties are not permitted.3 
5. The judiciary is a constitutionally independent and separate branch of government.  Parallel 
systems run for the administration of justice: one j udicial system covers the Shari'a (Islamic law) 
courts, and the other, the civil courts.4  Law No. 6 of 1999, which was replaced by Law No. 10 of 
2003, unified all courts of justice and Shari'a co urts in one judicial body, and determined the 
jurisdictions of each type of court. Shari'a cour ts fall under the jurisdiction of the Presidency of 
Shari'a Courts and Religious Affairs.  They deal primarily with personal ma tters relating to Muslims 
(including marriage, divorce, and inheritance), and base their decisions on the teaching of the Holy Quran and Islamic traditions.  Cases involving non-Muslims and common law are handled by civil 
courts.   
6. Law No. 10 of 2003 is aimed at making Qatar' s judicial system more independent; it 
established the Supreme Judicial Council, presided over by the head of the court of cassation
5, and a 
court of cassation responsible for appeals of contra vention, misapplication, and misinterpretation of 
law, and of disputes arising between  courts regarding their areas of jurisdiction. Under Law No. 10 of 
2003, judges are appointed by the Supreme Judicial Council. 
                                                      
1 Amended Provisional Constitution enacted on 19 April 1972.  The first provisional Constitution was 
issued in 1970 before Qatar became independent from the United Kingdom (Ministry of Finance, undated, 
Constitution ). 
2 Emiri Decision No. 3 of 1995 (Ministry of Finance, undated, Emir ).  
3 Qatar Chamber of Commer ce and Industry (2004). 
4 Ministry of Finance, undated, Judiciary . 
5 The Supreme Judiciary Council has in its membership the two heads of the Shari'a appeal court and 
justice appeal court, alongside a number of advisors and judges (Ministry of Finance, undated, Judiciary ). WT/TPR/S/144 Trade Policy Review 
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7. On 29 April 2003, a new and permanent Constitution was passed in a nationwide 
referendum6;  it is to replace the 1972 Constitution on 7 June 2005.   It calls for, inter alia , the creation 
of a 45-member Advisory Council (30 elected th rough universal suffrage and 15 appointed by the 
Emir); freedom of expression and religion; prot ection of private property; and an executive 
accountable to the legislature.  According to the ne w Constitution, the Advisory  Council is to exercise 
control over the executive authority; is to be entruste d with the legislative authority; and is to approve 
the general policy of the Government, including the public budget.7 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
8. Responsibility for trade policy formulation and implementation lies with the Ministry of 
Economy and Commerce (MEC), in coordination with other ministries and trade-related bodies, such 
as Supreme Council for Economic Affairs (headed  by the Emir), National Committee on WTO 
Affairs, Ministry of Finance, Ministry of Energy and Industry (MEI), Ministry of Justice, Ministry of Foreign Affairs  (MOFA), Ministry of Municipa l Affairs and Agriculture (MMAA), Ministry of 
Public Health, Customs and Ports General Author ity, Qatar Telecommunications (Q-Tel), and the 
Planning Council.
8  The private sector provides inputs to trade policy formulation by communicating 
its views either directly to the MEC or throu gh the Qatar Chamber of Commerce and Industry, the 
sole trade association in the country. The Na tional Committee on WTO Affairs discusses and assesses 
WTO-related issues.9 
9. Most policies, including trade policies, are fo rmulated and implemente d by means of legal 
instruments.  The Constitution comes first in th e hierarchy followed by laws, Emiri decrees and 
orders, Prime Ministerial decrees and orders, and Ad ministrative orders.  Bills are presented to the 
Council of Ministers by the relevant ministries, or by the Emir, and, following the response from the Advisory Council and consideration by the Council of Ministers, of comments made by the Advisory Council, are submitted for approval and ratification by  the Emir.  Once a bill is signed by the Emir, it 
becomes a Legislative Decree and must be published in the Official Gazette ;  it comes into effect on 
the date specified in each law.   
10. Under Qatari law, trade treaties, once ratifie d and decreed by the Emir, and subsequently 
published in the Official Gazette,  become part of national law.  According to the authorities, treaty 
obligations supersede national legislation and are ad missible in national courts;  to the extent that 
Qatari legislation is not in accord with its WTO obligations, the WTO Agreement is definitive.   
11. The main trade-related laws and regulations of  Qatar are presented in Table II.1.  Qatar's 
intellectual property rights legislation was reviewed by the WTO Council for TRIPS in 2002 
(Chapter III(4)(iv)).
10 Qatar notified the WTO that it had no la ws and/or regulations on:  anti-dumping 
practices11;  subsidies and countervailing measures12;  and safeguards (Chapter III(2)(vi)).13  I n  
                                                      
6 The Constitution was endorsed by 96.6% of the votes. On 13 July 1999, the Emir had issued Decree 
No. 11 stipulating the formation of a 32-member drafting committee of the Permanent Constitution (Ministry of 
Finance, undated, The Constitution ). 
7  Article 76 of the new Constitution.  Under Article 106 of the new Constitution, a two-thirds majority 
of the members of the Advisory Council is required to pass a bill rejected by the Emir. 
8 On 6 June 1998, an Emiri decision was issued to se t up the Planning Council (at the State level).  In 
addition, planning and fo llow-up units are set in each Ministry  (Ministry of Finance, undated, Planning 
Council ). 
9 The National Committee on WTO Affairs is composed of, inter alia , members from MEC; MEI; 
MOFA; MMAA; Ministry of Labour, Social Affairs and Housing; Planning Council; Qatar Central Bank; Qatar 
Petroleum; Qatar Chamber of Commerce and Industry; and Q-Tel. 
10 WTO document IP/N/1/QAT/2, 21 June 2002. 
11 WTO document G/ADP/N/1/QAT/1, 31 March 1998. Qatar WT/TPR/S/144 
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addition, Qatar indicated that it had no import licensing procedures14, although there were restrictions 
on imports of certain items (Chapter III(2)(v)). 
Table II.1 
Main trade-related laws in Qatar 
Laws Issue 
GCC Tariff Tariff 
Customs Law No. 40 of 2002, and its Executive Regulations Cu stoms regulations; import and export restrictions; rules of 
origin 
Qatar's Investment Law No. 13 of  2000 regulating the investment 
of foreign capital in economic activities Foreign investment 
Law No. 5 of 2002 on commercial companies; and Law No. 8 of 
2002 on commercial agency Company establishment 
Registration Law No. 11 of 1962, am ended in 1987 Company registration 
2004 Law and instructions of income tax Income tax 
Law No. 12 of 1999 on agriculture quarantin e Sanitary and phytosanitary measures  
Law No. 16 of 2002 Technical standards and metrology 
Law No. 8 of 1976 concerning the organization of tenders and 
public auctions, amended by Law No. 10 of 1980, Law No. 9 of 
1981, and Law No. 10 of 1990 Government procurement 
Law No. 7 of 2002 on protection of c opyright and related rights Copyright 
Law No. 9 of 2002 on trademarks , geographical indications, and 
industrial designs  Trademarks, geographical indica tions, and industrial designs 
GCC Unified Law of 2002 on patents Patents 
Law No. 10 of 1974 Oil and natural gas 
Law No. 10 of 2000 Electricity and water 
Law No. 13 of 1987 Telecommunications 
Postal Law No. 14 of 1990, and Decree Law No. 18 of 2001 Postal services 
Anti-Money-Laundering Law No. 28 of 2002, amended by 
Decree Law No. 21 of 2003 Banking 
Law No. 14 of 1995 on Doha securities market; Law No. 25 of 
2002 on mutual funds Securities 
Decree Law No. 16 of 2002 on Civil Aviation Authority  Transport 
Law No. 16 of 1998 Tourism 
Source: Information provided by the Qatari authorities.  
12. In general, investment in Qatar is regula ted by the Commercial Companies Law No. 5 of 
2002, and by the Commercial Agency Law No. 8 of 2002.  Foreign investment, in particular, is 
governed by Qatar's Investment Law No. 13 of 2000 , regulating the investment of foreign capital in 
economic activities, which replaced Law No. 25 of 1990 (section (5) below). 
(3) POLICY OBJECTIVES  
13. The main policy goal of the MEC is to establis h long-term strategies to help make Qatar's 
economy stable and diversified. The policy is ma inly aimed at creating and promoting a modern 
economy; developing further Qatar' s commercial sectors and other parallel services; diversifying trade 
and economic partnerships with re gional and international entities; supporting the private sector and 
enhancing its role in the development process; and promoting local investment and attracting foreign 
investments.15 
14. Qatar recognizes the importance of trade and inv estment liberalization to its overall goal of 
accelerating economic growth, improving external competitiveness, diversifying its economy away 
                                                                                                                                                                     
12 WTO document G/SCM/N/1/QAT/1, 31 March 1998. 
13 WTO document G/SG/N/1/QAT/1, 30 March 1998. 
14 WTO document G/LIC/N/1/QAT/1 and G/LIC/N/3/QAT/1, 2 April 1998. 
15 Qatar Chamber of Commer ce and Industry (2004). WT/TPR/S/144 Trade Policy Review 
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from oil, and creating more employment opportunitie s for all Qatari nationa ls.  Qatar's economy is 
relatively open and tariffs on imports  are applied on a non-discriminatory basis, with the exception of 
trading partners belonging to the Gulf Cooperati on Council (GCC) (section (4)(ii)(a) below).  A main 
factor shaping Qatar's foreign trade policy is its pa rticipation in the GCC, in which the six members 
created a customs union since January 2003.  Regiona l agreements such as th e GCC are being pursued 
because Qatar believes that regionalization would he lp rather than hinder the globalization of the 
world economy. Qatar is considering negotiating bilateral trade agreements (section (4)(iii)). 
15. A sound economic environment is considered key to attracting local and foreign capital, and 
diversifying the Qatari economy. To this e nd, structural reforms are under way (including 
implementation of a privatization programme).  An "education city" is under construction16, and 
tourism is being developed (Chapter IV(5)(v)). Moreover, foreign investment has been further 
liberalized through the adoption of a new law that encourages inward investment and transfer of 
technology (section (5) below). 
16. The authorities' strategy to share the oil and gas wealth between current and future 
generations seeks to promote economic diversificat ion; improve education and health services; and 
modernize the infrastructure. La rge investments are under way to more than quadruple liquefied 
natural gas (LNG) production and to create one million barrels per day of gas-to-liquid (GTL) 
capacity by 2010.17  In addition, the development of small and medium-sized enterprises (SMEs) that 
use by-products of the hydrocarbon production is becoming an important component of diversification efforts.
18  Recent windfall oil gains have been us ed to build up government assets, part 
of which are being saved in several funds to fina nce higher education and better health services in 
Qatar.  After almost a decade of low and sta gnant development spending, the Government is 
implementing a medium-term investment plan to fi nance infrastructure projects, including expansion 
of the primary road network, a new sewerage system19, and a new airport (Chapter IV(5)(iv)(b). 
(4) TRADE AGREEMENTS  
(i) WTO 
17. A contracting party to the GATT since 7 April 1994, Qatar became an original Member of the 
WTO on 13 January 1996.20 Qatar is neither a signatory nor an observer to any of the WTO's 
plurilateral agreements. Qatar has not been involved in any dispute under the WTO Dispute Settlement Mechanism, either directly or as a third party.  Qatar's notifications to the WTO are few 
and sporadic (Table II.2). 
                                                     
 
16 In October 2003, the "education city" was officially inaugurated in the outskirts of Doha.  Qatar 
plans to spend US$5 billion in the "education" city, wh ich is being built over an area of 2,400 acres, and will 
house branch campuses of several international universities,  staff quarters, and a 300-bed hospital. It is aimed at 
preparing world class graduates and promoting inte grated R&D (Economist Intelligence Unit, 2004).  
17 Investments of about US$70 billion are estimated nece ssary to achieve this ob jective. For instance, 
the state-owned Qatar Petroleum has an investment plan of more than US$10 billion over the medium-term to 
expand natural gas exports by pursuing all market outlets: LNG, pipeline gas exports, local markets, and GTL projects (IMF, 2002b). 
18 A new industrial area in Doha has recently been  inaugurated. It is expected to provide 120 
investment projects for small and medium-s ized industries in its first phase. 
19 For example, the Government plans to spend US$1.2 billion over the next two years to upgrade 
Qatar's road network, and link all towns and villages in the peninsula before the Asian Games to be held in 
Doha in 2005 (Economist Intelligence Unit, 2004). 
20 WTO document WLI/210, 18 December 1995. Qatar WT/TPR/S/144 
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Table II.2 
Qatar's selected notifications to  the WTO, as of November 2004 
WTO Agreement Description of 
requirement Periodicity Most recent 
notification Comment 
Agriculture (Articles 10 and 
18.2) Export subsidies Annual G/AG/N/QAT/3 
12 August 1999 No export subsidies in 1998 
Implementation of 
Article VI of the GATT 1994 (Article 18.5) Laws, Decrees, 
and Regulations Once, then changes G/ADP/N/1/QAT/1 
31 March 1998 No laws/regulations relevant 
to the Agreement 
Import Licensing Procedures (Articles 1.4(a) and 8.2(b)) Laws and 
regulations Once, then changes G/LIC/N/1/QAT/1 
2 April 1998 No import licensing 
procedures 
Preshipment Inspection (Article 5) Laws and 
Regulations Once, then changes G/PSI/N/1/Add.8 
28 September 1999 No laws/regulations relevant 
to the Agreement 
Rules of Origin (Article 5 
and Annex (II(4)) Non-preferential 
and preferential 
rules of origin Within 90 days of the 
Agreement G/RO/N/25 
13 April 1999 Non-preferential and 
preferential rules of origin 
Sanitary and Phytosanitary Measures (Annex B, para. 3) Enquiry points Ad hoc G/SPS/ENQ/16 
5 December 2003 The Ministry of Public 
Health is the enquiry point 
Safeguards (Article 12.6) Laws and 
Regulations Once, then changes G/SG/N/1/QAT/1 
30 March 1998 No laws/regulations relevant 
to the Agreement 
Subsidies and 
Countervailing Measures 
(Article 25.1) and GATT 1994 (Article XVI:1) Specific 
subsidies Annual G/SCM/N/38/QAT 
18 March 1999 No subsidy granted or 
maintained  
Subsidies and 
Countervailing Measures (Article 32.6) Laws and 
Regulations Once, then changes G/SCM/N/1/QAT/1 
31 March 1998  No laws/regulations relevant 
to the Agreement 
GATT 1994 (Article XVII:4(a) and Understanding on the 
interpretation of 
Article XVII:1) State trading 
enterprises Annual G/STR/N/1/QAT 
30 March 1998 No state trading enterprise 
maintained  
GATS (Article III:4 or IV:2) Enquiry point Once, then changes S/ENQ/78/Rev.5 
2 December 2003 The Ministry of Economy 
and Commerce (MEC) is the 
enquiry point 
TRIMS (Article 6.2) Publications  Not specified G/TRIMS/N/2/Rev.11 
24 September 2003 No measures inconsistent with 
the Agreement;  the 
legislation is published in the Official Gazette  
TRIPS (Article 63) Review of 
legislation Not specified IP/C/W/346 
5 June 2002 Responses from Qatar 
TRIPS (Article 69) Contact point Once, then change s IP/N/3/Rev.8, 
20 October 2004 The Department of 
Commerce of the MEC is the 
contact point 
TRIPS (Article 63.2) Laws and 
Regulations Once, then changes IP/N/1/QAT/2 
21June 2002 List of main laws and 
regulations 
Quantitative Restrictions 
(Decision of the Council for Trade in Goods (G/L/59) Notification 
procedures for quantitative 
restrictions Every two years, from 
31 January 1996 G/MA/NTM/QR/1/Add.6
20 September 1999 Quantitative restrictions 
maintained  
 
Source:  WTO documents.  
18. As a developing country, Qatar had a transition period to implement some of its commitments 
under various WTO agreements.  Qatar has not yet implemented the WTO Agreement on Customs 
Valuation (Chapter III(2)(i)). 
19. Qatar has expressed a number of concerns about its difficulties in implementing the WTO 
Agreements, as well as about the dangers of margina lizing developing and least  developed economies.  
Implementation of some of its obligations resulting from the WTO Agreements, despite the WT/TPR/S/144 Trade Policy Review 
Page 16 
 
 
transitional period, has proven difficult.  In this re gard, Qatar has indicated that several provisions (in 
WTO Agreements) on special and differential treatment  for developing countries require clarification 
and "operationalization" in order to achieve thei r desired objectives.  Qatar has also urged WTO 
Members to increase the share of t echnical assistance in the WTO budget.21 
20. Qatar grants at least most-favoured-nation (MFN) treatment to all its trading partners.  It 
strongly favours trade liberalization through the mu ltilateral framework;  the rules-based multilateral 
system should contribute to the further integrati on of least developed and developing countries into 
the world economy.  Qatar believes that its member ship of the WTO also sends a strong message to 
potential foreign investors about its commitment to a rules-based system.22 
21. Qatar hosted the Fourth Ministerial Conferen ce of the WTO, where the Doha Development 
Agenda (DDA) was launched. Qata r's main interests in the DDA include the elimination of 
agricultural subsidies, greater access to non-ag ricultural products, trade facilitation, and free 
movement of natural persons.  In this regard, Qa tar has called on develope d countries to liberalize 
trade at a faster rate by removing the various obst acles that have so far depr ived developing countries 
of their right to also enjoy substantial benefits fro m international trade relati ons.  Moreover, Qatar has 
indicated that "there should be agreement on specifi c measures to ensure sufficient financial flows, 
especially FDI, to developing countries to assist them  in building the production capacity they need to 
compete on the world market".23 Qatar also supports the strengthening of technical assistance 
programmes for developing countries. 
(ii) Regional agreements 
(a) Gulf Cooperation Council (GCC) 
22. The GCC was created on 25 May 1981 by Bahrai n, Kuwait, Oman, Qatar, Saudi Arabia, and 
the United Arab Emirates.  Behind its formation wa s a general perception by these countries of their 
vulnerability arising from their oil wealth, their small and dispersed popula tions (28 million), their 
vast surface area (2.6 million square kilometres), and their limited military capabilities in a generally 
unstable region.24  The main objectives of the GCC Agreemen t are regional coordination, integration, 
and cooperation in all economic, social, and cultural affairs, including trade, industry, investment and 
finance, transport, communications, and energy. Sp ecific objectives include freedom of movement of 
people and capital, establishment of a customs technical cooperation, ha rmonization of banking 
regulations, and financial and m onetary coordination, including adoption of a common currency by 
2007, with 2005 as the deadline for agreement on the convergence criteria.  The GCC was notified to 
the GATT, under the enabling clause, on 11 October 1984.25 
23. The GCC customs union entered into force on 1 January 2003, with the adoption of an across-
the-board tariff of 5% on most products (Chapter III(2)(iv)).  However,  there are still some tariff rate 
differences amongst GCC countries, and the practical de tails of numerous trade issues have yet to be 
addressed, including defining a list of products subj ect to rates higher than 5%, standards and 
technical regulations, and revenue distribution. The agreement provides duty-free access for all goods 
produced in the GCC countries, provided that the goods meet the required origin criteria, i.e. full 
                                                      
21 WTO document WT/MIN(99)/ST/105, 2 December 1999. 
22 WTO document WT/MIN(99)/ST/105, 2 December 1999. 
23 Speech by the Emir of Qatar before the 59th Session of the UN General Assembly, 
21 September 2004. 
24 European Commission (2003b). 
25 WTO (2000). Qatar WT/TPR/S/144 
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production/transformation, or at least 40% value added within GCC factories (factories at least 50% 
owned by GCC nationals).26 
24. The GCC is currently negotiating a free-trad e agreement with the European Communities 
(EC)27, which had set as a condition for its conclusion the constitution of the GCC customs union.  
The EC established a Commission delegation in Riya dh in 2003 to accelerate the ongoing free-trade 
area negotiations.28  In 1989, the GCC and EC concluded a Cooperation Agreement under which the 
EC and GCC foreign ministers hold a Joint Council/Mi nisterial meeting once a year.  The objective of 
this agreement is to facilitate trade relations, and to  contribute to strengthening stability in a strategic 
part of the world.29 
25. On 6 July 2004, the GCC and China signed a framework agreement on economic, trade, 
investment, and technical cooperation.  A possi ble free-trade agreement is also under discussion.30 
(b) Greater Arab Free-Trade Area (GAFTA) 
26. The Greater Arab Free-Trade Area (GAFTA)31, signed on 19 February 1997, and in force 
since 1 January 1998, is expected to eliminate all trade barriers among its members without exceptions, by early 2005.  The establishment of the GAFTA commenced in January 1998, through 
the reduction of customs duties. Already 80% tariff  reductions have been achieved. The principal 
entity responsible for implementing the programme is the Economic and Social Council of the Arab 
League.  Currently, all members are implementing the programme except Somalia.  The GAFTA has not yet been notified to the WTO. 
(iii) Bilateral agreements 
27. Qatar has not signed any bilateral trade agre ements. However, trade agreements are under 
consideration with the United States
32, and with Singapore.  
(iv) Other preferential arrangements 
28. Under the Generalized System of Preferences (GSP), exports of certain Qatari products 
receive non-reciprocal preferential treatment from the EC, Turkey, and Switzerland. 
29. Qatar is not a member of the agreement on the Global System of Trade Preferences (GSTP) 
among developing countries. 
                                                      
26 U.S. Department of State (2001). 
27 See WTO (2004) for details.  
28 European Commission (2003a). 
29 European Commission (2003b). 
30 Xinhua Financial Network , 7 July 2004. 
31 The GAFTA members are: the G CC countries plus Egypt, Iraq, Jordan, Lebanon, Libyan Arab 
Jamahiriya, Morocco, Palestinian Authority, Somalia, Sudan, Syrian Arab Republic, Tunisia, and Yemen. 
32 On 19 March 2004, Qatar and the United States signed a Trade and Investment Framework 
Agreement (TIFA). Under TIFA, a Joint Council was created to expand bilateral trade and investment; the 
Council is assessing the possibility of negotiating a b ilateral free trade agreement. USTR Press Release, 
19 March 2004.  Available at: http://www.ustr.gov/Document_Library/Press_Releases/2004/March/ United_States_Qatar_Sign_Trade_Investment_Framework_Agreement.html [13 October 2004]. WT/TPR/S/144 Trade Policy Review 
Page 18 
 
 
(5) INVESTMENT FRAMEWORK  
30. A major factor in Qatar's polic y to encourage economic diversification has been the abolition 
of certain restrictions from the investment regi me to provide opportunities to foreign investors. 
Consequently, Qatar issued a new Investment Law (Law No. 13 of 2000), to replace Law No. 25 of 
1990, which restricted all foreign-ownership to a maximum of 49% and did not allow foreigners to 
lease property or invest in privatized public servi ces. Under the 2000 Investment Law, a company can 
be 100% foreign owned in selected sectors, such as agriculture, industry, tourism, education, health, 
and natural resources, subject to prior government approval and provided that the company is duly 
established (Chapter III(4)(i)).  Foreign equity is limited to 49% in the remaining sectors33;  foreign 
investment is still not allowed in banking, insuran ce, commercial representation, and purchase of real 
estate.34 
31. The 2000 Investment Law gives foreign inv estors the right to lease land for setting up 
enterprises for up to 50 years, renewable (subject  to government approval) for another 50 years.35 
Under the Law, foreign investment shall not be subject  to expropriation unless this is in the "public 
interest" and in return for appropriate compensation (Article 8).  Foreign investors are free to import 
and repatriate funds, as well as transfer profits and assets, and exchange money (Article 9).  
Investment disputes can be settled through domestic or international commerc ial arbitration panels 
(Article 11). 
32. The authorities have been implementing ot her measures to improve the business and 
investment climate, such as establishing a one-st op window for investment procedures in order to 
shorten the approval process fo r land and industrial licences.36  They have also been allowing 
foreigners to participate directly in Qatar's priv atization programme since the first public offering of 
shares on the partial privatization of the state-ow ned (Q-Tel) (Chapter III(4)(iii)).  Foreigners may 
invest in other publicly offered companies i ndirectly through local investment firms. 
33. A new Commercial Companies Law (Law No. 5 of 2000) was enacted on 29 May 2002, 
replacing the Commercial Companies Law No. 11 of  1981, as amended; and the Commercial Agency 
Law (Law No. 8 of 2002) was issued on 9 June 2002.  Under the new La ws, parallel imports of 
certain products are subject to a 5% commission (on th e f.o.b. import value) on behalf of local agents 
with distributor rights. The vast majority of fo reign firms operating in Qatar are still required to 
import certain products through local agents. Only firms granted 100% foreign-ownership are 
excluded from the local agent requirement with dist ributor rights.  In gene ral, foreign commercial 
presence in Qatar is required for the purposes of t echnology transfer, R&D programmes, technical or 
marketing assistance, and education or training of local labour force. 
                                                      
33 The restriction can be waived by an Emiri Decree. 
34 Law No. 2 of 2002 allows citizens of GCC states to own a single residential property in specified 
areas and subject to certain conditions. 
35 Decree Law No. 17, issued on 7 June 2004, allows foreigners to buy and own one or more houses in 
Qatar for 99 years, extendable for a similar period, in selected housing projects. It  also permits the owner to 
transfer the property to his/her lega l heirs.  Decree Law No. 17 will come  into force after the Council of 
Ministers approves some supporting measures. It is aimed at allowing long-time expatriate managers and 
businessmen to remain and develop their business in Qatar (Economist Intelligence Unit, 2004). 
36 IMF (2002). Qatar WT/TPR/S/144 
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34. The law on corporate income tax does not appl y to Qatari-owned firms. Other firms are 
subject to the tax, with rate brackets ranging from zero to 35% of net profits.37  In addition, companies 
must hire a specified percentage of Qatari employees (Chapter IV(4)(ii)). 
35. Under the 2000 Investment Law and the 2004 Law and Instructions of Income Tax, Qatar 
may grant a tax holiday of five to ten years for new investment in agriculture, industry, trade, 
petroleum, mining, tourism, land reclamation, trans port, or any socially and economically beneficial 
activity/project needed by Qatar.38  Foreign companies may be granted tax exemptions on a case-by-
case basis through an Emiri Decree, an analysis  by the Tax Exemption Committee, and after 
recommendation by the Ministry of Finance.39 The Government provides other investment incentives 
(Chapter III(4)(i)). 
36. There are no restrictions on investment abroad by Qatari nationals. 
37. Qatar has signed 16 bilateral investment pr otection agreements, with Romania (1996), 
Germany (1996), France (1996), Bosnia-Herzegovina  (1998), Senegal (1998), Sudan (1998), China 
(1998 and 1999), India (1999), Iran (1999), Republic  of Korea (1999), Morocco (1999), Croatia 
(2001), Cuba (2001), Finland (2001), Switzerland ( 2001), and Turkey (2001).  It has signed three 
double taxation avoidance agreements, with Indi a (1999), Pakistan (1999), and Romania (1999).40  
38. Qatar is not a member of the Multilateral Investment Guarantee Agency (MIGA). 
 
 
                                                      
37 The tax rates and corresponding amounts are:  zero (below QR 100,000);  10% (from QR 100,001 to 
QR 500,000);  15% (from QR 500,001 to QR 1,000,000);  20% (from QR 1,000,001 to QR 1,500,000);  25% 
(from QR 1,500,001 to QR 2,500,000);  30% (from QR 2,500,001 to QR 5,000,000);  and 35% (from 
QR 5,000,001 and above). 
38 The exemption period starts from the date of commencing the project. Qatar's Minister of Finance 
can recommend tax exemptions for five years, while a ta x exemption for more than five years but not exceeding 
ten years needs the approval of the Council of Ministers.  
39 The Tax Exemption Committee is composed of tw o representatives each from the Ministry of 
Finance and the Ministry of  Economy and Commerce, and one represen tative each from the Ministry of Energy 
and Industry, and Qatar Chamber of Commerce and Industry. 
40 UNCTAD (2004).