HomeReportsBureau of Economic and Business Affairs2019 Investment Climate Statements...Qatar

# 					2019 Investment Climate Statements: Qatar			

 In this section										/

													Executive Summary											

                -  Executive Summary 
                -  1. Openness To, and Restrictions Upon, Foreign Investment   
                -  2. Bilateral Investment Agreements and Taxation Treaties   
                -  3. Legal Regime   
                -  4. Industrial Policies   
                -  5. Protection of Property Rights   
                -  6. Financial Sector   
                -  7. State-Owned Enterprises   
                -  8. Responsible Business Conduct   
                -  9. Corruption   
                -  10. Political and Security Environment   
                -  11. Labor Policies and Practices   
                -  12. OPIC and Other Investment Insurance Programs   
                -  13. Foreign Direct Investment and Foreign Portfolio Investment Statistics   
                -  14. Contact for More Information   

## Executive Summary

The State of Qatar is the world’s leading exporter of liquefied natural gas (LNG) and has the highest per capita income in the world.  Amid an ongoing diplomatic dispute with Saudi Arabia, the UAE, Bahrain, and Egypt, which began in June 2017, the International Monetary Fund estimates Qatar’s real gross domestic product (GDP) will grow by 2.8 percent in 2019.  Qatar projects a budget surplus in 2019, based on an oil price assumption of USD 55 per barrel. In contrast to other oil- and gas-dependent economies, Qatar’s LNG supply contracts and relatively low production costs have largely shielded the economy from the impact of the 2014 global oil price downturn.  Qatar maintains high levels of government spending in pursuit of its National Vision 2030 development plan and in the lead-up to hosting the 2022 FIFA World Cup. 

The government remains the dominant actor in the economy, though it encourages private investment in many sectors and continues to take steps to encourage more foreign direct investment (FDI).  The dominant driver of Qatar’s economy remains the oil and gas sector, which has attracted tens of billions of dollars in FDI. In adherence to the country’s National Vision 2030 plan to establish a knowledge-based and diversified economy, the government recently introduced reforms to its foreign investment and foreign property ownership laws to allow 100 percent foreign ownership of businesses in most sectors and real estate in newly designated areas.  

There are significant opportunities for foreign investment in infrastructure, healthcare, education, tourism, energy, information and communications technology, and services.  Qatar’s 2019 budgetary spending is focused on infrastructure, health, education, manufacturing, and transportation. By value of inward FDI stock, manufacturing, mining and quarrying, finance, and insurance are the primary sectors that attract foreign investors.  Qatar provides various incentives to local and foreign investors, such as exemptions from customs duties and certain land-use benefits. The World Bank’s 2019 Doing Business Report ranked Qatar second globally for its favorable taxation regime. The corporate tax rate is 10 percent and there is no personal income tax.

The government has created a regulatory regime to curb corruption and anti-competitive practices.  In 2016, Qatar streamlined its procurement processes and created an online portal for all government tenders in an effort to improve transparency. 

In recent years, Qatar has begun to invest heavily in the United States through its sovereign wealth fund, the Qatar Investment Authority (QIA), and its subsidiaries, notably Qatari Diar.  QIA has pledged to invest USD 45 billion in the United States. QIA opened an office in New York City in September 2015 to help facilitate these investments. The second annual U.S.-Qatar Strategic Dialogue in January 2019 in Doha further strengthened strategic and economic partnerships and addressed obstacles to investment and trade.  The third round of strategic talks will take place in Washington, D.C. in 2020.   

*Table 1: Key Metrics and Rankings*

							1. Openness To, and Restrictions Upon, Foreign Investment					

**Policies Towards Foreign Direct Investment**

In pursuit of its National Vision 2030, the government of Qatar has enacted reforms to incentivize foreign investment in the economy.  As Qatar finalizes major infrastructure developments in preparation for hosting the 2022 FIFA World Cup, the government has allocated USD 13.2 billion for new, non-oil sector projects in its FY2019 budget.  The government also plans to increase LNG production by 43 percent by 2024. Significant investment in the upstream and downstream sectors is expected. In February 2019, national oil company Qatar Petroleum announced a localization initiative, Tawteen, which will provide incentives to local and foreign investors willing to establish domestic manufacturing facilities for approximately 100 oil and gas sector inputs.  These economic spending plans create significant opportunities for foreign investors.

In 2019, the government enacted a new foreign investment law (Law 1/2019) to ease restrictions on foreign investment.  The law permits full foreign ownership of businesses in most sectors with full repatriation of profits, protection from expropriation, and several other benefits.  Excepted sectors include banking, insurance, and commercial agencies, where foreign capital investment remains limited at 49 percent, barring special dispensation from the Cabinet.  Qatar’s primary foreign investment promotion and evaluation body is the Invest in Qatar Center within the Ministry of Commerce and Industry. The government is currently in the process of publishing regulations for the implementation of the new law; pending these new regulations, the old law still applies (Law 13/2000).  Qatar is also home to the Qatar Financial Centre, Qatar Science and Technology Park, and the Qatar Free Zones, all of which offer full foreign ownership and repatriation of profits, tax incentives, and investment funds for small- and medium-sized enterprises.

In accordance with Law 24/2015, which was enacted to increase transparency of available investment opportunities, the Qatari government streamlined its procurement processes and the Ministry of Finance launched an online procurement portal to consolidate information on government tenders.  The procurement portal can be accessed via this link: https://monaqasat.mof.gov.qa  

When competing for government contracts, preferential treatment is given to suppliers who use local content in their bids.  To further boost local production amid an economic and political rift with neighboring Gulf countries, the government announced in October 2017 that it will favor bids that use Qatari products that meet necessary specifications and obey tender rules.  Participation in tenders with a value of Qatari riyal (QAR) 5 million or less (USD 1.37 million) is confined to local contractors, suppliers, and merchants registered by the Qatar Chamber of Commerce and Industry. Higher-value tenders sometimes do not require any local commercial registration to participate, but in practice certain exceptions exist. 

Qatar maintains ongoing dialogue with the United States through both official and private sector tracks, including through the annual U.S.-Qatar Strategic Dialogue and official trade missions undertaken in cooperation with both nations’ chambers of commerce.  Qatari officials have repeatedly emphasized their desire to increase both American investments in Qatar and Qatari investments in the United States. 

**Limits on Foreign Control and Right to Private Ownership and Establishment**

The government has recently reformed its foreign investment legal framework.  As noted above, full foreign ownership is now permitted in all sectors with the exception of banking, insurance and commercial agencies.  Law 1/2019 on Regulating the Investment of Non-Qatari Capital in Economic Activity (replacing Law 13/2000) stipulates that foreigners can invest in Qatar either through partnership with a Qatari investor owning 51 percent or more of the enterprise, or by applying to the Ministry of Commerce and Industry for up to 100 percent foreign ownership.  The Invest in Qatar Center within the Ministry of Commerce and Industry is the entity responsible for vetting full foreign ownership applications. The law includes provisions on the protection of foreign investment from expropriation, the exemption of some foreign investment projects from income tax and customs duties, and the right to transfer profits and ownership without delay.

Another recent foreign investment reform is Law 16/2018 on Regulating Non-Qatari Ownership and Use of Properties, which allows foreign individuals, companies, and real estate developers freehold ownership of real estate in 10 designated zones and ‎usufructuary rights up to 99 years in 16 other zones.  Foreigners may also own villas within residential complexes, as well as retail outlets in certain commercial complexes. Foreign real estate investors and owners will be granted residency in Qatar for as long as they own their property. The Committee on Non-Qatari Ownership and Use of Real Estate, formed in December 2018 under the Ministry of Justice, is the regulator of non-Qatari real estate ownership and use. 

There are also other FDI incentives in the country provided by the Qatar Financial Centre, the Qatar Free Zones, and the Qatar Science and Technology Park.  A draft Public-Private Partnership law to facilitate direct foreign investment in national infrastructure development (currently focused on schools, hospitals, and drainage networks) was approved by the Cabinet on April 4, 2019, and is currently pending the Amir’s final review. 

U.S. investors and companies are not any more disadvantaged by ownership or control mechanisms, sector restrictions, or investment screening mechanisms relative to other foreign investors. 

For more information on FDI in Qatar, visit:

- Ministry of Commerce and Industry’s Invest in Qatar Center:   https://invest.gov.qa   
- Qatar Financial Centre:   http://www.qfc.qa/  
- Qatar Free Zones Authority:   https://fza.gov.qa/   
- Qatar Science and Technology Park:   https://qstp.org.qa/  
- Qatar Petroleum Tawteen Program:   https://www.tawteen.com.qa/  

**Other Investment Policy Reviews**

Qatar underwent a World Trade Organization (WTO) policy review in April 2014.  The review may be viewed on the WTO website: https://www.wto.org/english/tratop_e/tpr_e/tp396_e.htm  

**Business Facilitation**

Recent reforms have further streamlined the commercial registration process.  Local and foreign investors may apply for a commercial license through the Ministry of Commerce and Industry’s physical “one-stop-shop” or online through the Invest in Qatar Center’s portal.  Per Law 1/2019, upon submission of a complete application, the Ministry will issue its decision within 15 days. Rejected application can be resubmitted or appealed. For more information on the application and required documentation, visit:  https://invest.gov.qa  

The World Bank’s 2019 Doing Business Report estimates that registering a small-size limited liability company in Qatar takes seven to eight days. For detailed information on business registration procedures, as evaluated by the World Bank, visit:   http://www.doingbusiness.org/data/exploreeconomies/qatar/  

**Outward Investment**

Qatar does not restrict domestic investors from investing abroad.  According to the latest foreign investment survey from the Planning and Statistics Authority, Qatar’s outward foreign investment stock reached USD 105.8 billion in the third quarter of 2018.  In 2017, sectors that accounted for most of Qatar’s outward FDI were finance and insurance (40 percent of total), transportation, storage, information and communication (33 percent), and mining and quarrying (18 percent).  As of 2017, Qatari investment firms held investments in about 80 countries; the top destinations were the European Union (34 percent of total), the Gulf Cooperation Council (GCC, 24 percent), and other Arab countries (14 percent). 

							2. Bilateral Investment Agreements and Taxation Treaties					

Qatar has 56 bilateral investment treaties (BITs), according to the United Nations Conference on Trade and Development (UNCTAD).  Twenty-two BITs are in force, namely with Belarus, Belgium, Luxembourg, Bosnia and Herzegovina, China, Costa Rica, Cyprus, Egypt, Finland, France, Gambia, Germany, Iran, Italy, Jordan, South Korea, Montenegro, Morocco, Portugal, Romania, Russia, Switzerland, and Turkey.  The most recent BIT was signed with Rwanda in November 2018, but has not yet come into force. A full list of current BITs with the State of Qatar can be found at: http://investmentpolicyhub.unctad.org/IIA/CountryBits/171  

While Qatar has not entered into a bilateral investment or trade treaty with the United States, the two nations established a Trade and Investment Framework Agreement (TIFA) in 2004.  Additionally, as part of the GCC, Qatar has signed 12 treaties with investment provisions (TIPs), including one between the GCC and the United States in 2012, but this treaty has not yet entered into force.  The United States and Qatar hold an annual high-level Strategic Dialogue, through which the two governments discuss matters related to trade and investment cooperation. 

Qatar does not have a double taxation treaty with the United States.  In January 2015, Qatar became the first GCC country to sign a Foreign Account Tax Compliance Act (FATCA) intergovernmental agreement with the United States.  In total, Qatar has over 58 agreements for the Avoidance of Double Taxation, including, most recently, with Ghana (November 2018) and Paraguay (March 2018). 

							3. Legal Regime					

**Transparency of the Regulatory System**

The World Trade Organization recognizes Qatar’s legal framework as conducive to private investment and entrepreneurship and enabling of the development of an independent judiciary system.  Qatar has taken measures to protect competition and ensure a free and efficient economy. In addition to the National Competition Protection and Anti-Monopoly Committee, regulatory authorities exist for most sectors in the economy and are mandated with monitoring economic activity and ensuring fair practices. 

Nonetheless, according to the World Bank’s Global Indicators of Regulatory Governance, Qatar lacks a transparent rulemaking system, as government ministries and regulatory agencies do not share regulatory plans or publish draft laws for public consideration.  An official public consultation process does not exist in Qatar. The 45-member Shura Council (which statutorily is obligated to have 30 publicly-elected officials, but in practice is comprised solely of direct appointees by the Amir) must reach consensus to pass draft legislation, which is then returned to the Cabinet for further review and to the Amir for final approval.  Laws and regulations are developed by relevant ministries and entities. The text of all legislation is published online and in local newspapers upon approval by the Amir. All Qatari laws are issued in Arabic and eventually translated into English. Qatar-based legal firms provide translations of Qatari legislation to their clients. Qatar’s official legal portal is http://www.almeezan.qa  

Each approved law explicitly mandates one or more government entities with the responsibility to implement and enforce legislation.  These entities are clearly defined in the text of each law. In some cases, the law also sets up regulatory and oversight committees made of representatives of concerned government entities to safeguard enforcement. 

Qatar’s primary commercial regulator is the Ministry of Commerce and Industry (formerly the Ministry of Economy and Commerce).  Commercial Companies’ Law 11/2015 necessitates that public shareholding companies submit financial statements to the Ministry, in compliance with the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS).  Publicly-listed companies must also publish financial statements at least 15 days before Annual General Meetings in two local newspapers (in Arabic and English) and on their websites. All companies are required to keep accounting records, prepared according to standards promulgated by the IAS Board.

The Qatar Central Bank (QCB) is the main financial regulator that oversees all financial institutions in Qatar, per Law 13/2012.  To promote financial stability and enhance regulation coordination, the law established the Financial Stability and Risk Control Committee, which is headed by the QCB Governor.  According to the Law 7/2005, the Qatar Financial Centre (QFC) Regulatory Authority is the independent regulator of the QFC firms and individuals conducting financial services in or from the QFC, but the QCB also oversees financial markets housed within QFC.  QFC regulations are available at http://www.qfcra.com/en-us/legislation/  .

The government of Qatar is transparent about its public finances and debt obligations.  QCB publishes quarterly banking data, including on government external debt, government bonds, treasury bills, and sukuk (Islamic bonds).

**International Regulatory Considerations**

Qatar is part of the GCC, an economic regional union, notwithstanding an ongoing diplomatic rift with three GCC member states.  Laws based on GCC regulations must be approved through Qatar’s domestic legislative process and are reviewed by the Qatari Cabinet and the Shura Council prior to implementation. 

Qatar has been a member of the WTO since 1996 and notifies the WTO Committee on Technical Barriers to Trade (TBT) with draft technical regulations.  Qatar is a signatory to the Trade Facilitation Agreement (TFA) and has implemented 92.9 percent of TFA commitments to help expedite the movement and clearance of goods and improve cooperation between customs authorities and other appropriate authorities on trade facilitation and compliance issues. 

**Legal System and Judicial Independence**

Qatar’s legal system is based on a combination of civil and Sharia Islamic law.  The Constitution takes precedence over all laws, followed by legislation and decrees, and finally ministerial resolutions.  All judges are appointed by the Supreme Judicial Council, under Law 10/2003. The Supreme Judicial Council oversees Qatari courts and functions independently from the executive branch of the government, per the Constitution. 

Qatari courts adjudicate civil and commercial disputes in accordance with civil and Sharia laws.  International agreements have equal status with Qatari laws; the Constitution ensures that international pacts, treaties and agreements, to which Qatar is a party, are respected and taken into account.  Qatar does not currently have a specialized commercial court; domestic commercial disputes are generally settled in civil courts. Decisions made in civil courts can be appealed before the Court of Appeals, or later the Court of Cassation. 

Companies registered with the Ministry of Commerce and Industry are subject to Qatari courts and laws—primarily the Commercial Companies’ Law 11/2015—while companies set up through QFC are regulated by commercial laws based on English Common Law and the courts of the QFC Regulatory Authority, per Law 7/2005.  The QFC legal regime is separate from the Qatari legal system—with the exception of criminal law—and it is only applicable to companies licensed by the QFC. Similarly, companies registered within the Qatar Free Zones have specialized regulations.

**Laws and Regulations on Foreign Direct Investment**

In the past year, the Amir enacted Law 1/2019 on Regulating the Investment of Non-Qatari Capital in Economic Activity and Law 16/2018 on Regulating Non-Qatari Ownership and Use of Properties.  These laws are aimed at encouraging greater foreign investment in the economy by authorizing, incentivizing and protecting foreign ownership. 

The Ministry of Commerce and Industry’s Invest in Qatar Center is the main investment promotion body.  It has a physical “one-stop-shop” and an online portal. Preference is given to investments that add value to the local economy and align with the country’s national development plans.  For more information on investment opportunities, commercial registration application and required documentation, visit: https://invest.gov.qa  

Separate laws and regulations govern and protect foreign direct investment at the Qatar Financial Centre (http://www.qfc.qa/  ), the Qatar Free Zones (https://fza.gov.qa/  ), and the Qatar Science and Technology Park (https://qstp.org.qa/  ).

**Competition and Anti-Trust Laws**

Certain sectors are not open for domestic or foreign competition, such as public transportation and fuel distribution and marketing.  Instead, semi-public companies have complete or predominant control of these sectors. Law 19/2006 for the Protection of Competition and Prevention of Monopolistic Practice established the Competition Protection and Anti-Monopoly Committee in charge of receiving complaints about anti-competition violations.  The law, however, exempts state institutions and government-owned companies. 

International law firms with 15 years of continuous experience in their countries of origin are allowed to set up operations in Qatar, but can only become licensed if Qatari authorities deem their fields of specialization useful to Qatar (the Cabinet may grant exemptions).  Cabinet Decision Number 57/2010 states that the Doha office of an international law firm is allowed to practice in Qatar only if its main office in the country of origin remains open for business.

**Expropriation and Compensation**

Under current legislation (Law 1/2019 and Law 16/2018), the government protects foreign investment and property from direct or indirect expropriation, unless for public benefit, in a non-discriminatory manner, and after providing adequate compensation.  The same procedures are applied to expropriated property of Qatari citizens. Law 13/1988 covers the rules of expropriation for public benefit. 

In 2018, there were four expropriation-related Cabinet decisions.  Expropriation is unlikely to occur in the investment zones in which foreigners may purchase or obtain rights to property, although the law does not restrict the power to expropriate in these areas. 

**Dispute Settlement**

*ICSID Convention and New York Convention*

Qatar has been party to the 1958 New York Convention since 2011 and a member of the International Center for the Settlement of Investment Disputes (ICSID) since 2002.  Qatar enforces foreign arbitral decisions concluded in states that are party to the New York Convention. 

*Investor-State Dispute Settlement*

If investment disputes occur, Qatar accepts binding international arbitration.  However, Qatari courts will not enforce judgments or awards from other courts in disputes emanating from investment agreements made under the jurisdiction of other nations.

*International Commercial Arbitration and Foreign Courts*

The Qatar Financial Centre (QFC) features an Alternative Dispute Resolution (ADR) center.  Although primarily concerned with hearing commercial matters arising from within the QFC itself, the QFC intends to expand the court’s jurisdiction to enable it to accept other disputes at its discretion.  The Qatar International Court and Dispute Resolution Center adjudicates disputes brought by firms associated with the QFC in accordance with British common law. 

Qatar’s arbitration law (Law 2/2017) based on the United Nations Commission on International Trade Law (UNCITRAL) gives Qatar’s International Court and Dispute Resolution Centre the jurisdiction to oversee arbitration cases in Qatar in line with recent local and international developments.  The purpose of this law is to stimulate and strengthen Qatar’s investment and business environment.

There is no set duration for dispute resolution and the time to obtain a resolution depends on the case.  The Qatar International Court and Dispute Resolution Centre publishes past judgments on its website (https://www.qicdrc.com.qa/the-courts/judgments  ).

In order to protect their interests, U.S. firms are advised to consult with a Qatari or foreign-based law firm when executing contracts with local parties.

**Bankruptcy Regulations**

Two concurrent bankruptcy regimes exist in Qatar.  The first is the local regime, the provisions of which are set out in Commercial Law 27/2006 (Articles 606-846).  The bankruptcy of a Qatari citizen or a Qatari-owned company is rarely announced and the government sometimes plays the role of guarantor to prop up domestic businesses and safeguard creditors’ rights.  The Qatar Central Bank (QCB) established the Qatar Credit Bureau in 2010 to promote credit growth in Qatar. The Credit Bureau provides QCB and the banking sector with a centralized credit database to inform economic and financial policies and support the implementation of risk management techniques as outlined in the Basel II Accord.

The second bankruptcy regime is found in the Qatar Financial Centre (QFC) Insolvency Regulations of 2005 and applies to corporate bodies and branches registered within the QFC.  There are firms that offer full dissolution bankruptcy services to QFC-registered companies.

							4. Industrial Policies					

**Investment Incentives**

Qatar does not impose a personal income tax and the new foreign investment law (Law 1/2019) offers a variety of other incentives to foreign investors, which may include the following:

- Exemption from 10 percent corporate tax for a period of up to 10 years.
- Allocation of land by way of a renewable rent for a period of up to 50 years.
- Exemption from customs duties on the imports of necessary machinery and equipment.
- Exemption from customs duties on imports of raw materials or half-manufactured goods necessary for production and not available in the local market, for industrial projects.

Some industrial projects can be established in designated industrial zones governed by the Qatar Free Zones Authority, and are offered the following incentives:

- Exemption from 10 percent corporate tax for a period of up to 20 years.
- Zero custom duties on imports.
- Potential access to a USD 3 billion government-backed fund.

The Ministry of Energy Affairs determines the amount of foreign equity and the extent of incentives for industrial projects, as stipulated by Law 8/2018.

**Foreign Trade Zones/Free Ports/Trade Facilitation**

Qatar has several free zones and business facilitation options:

*Qatar Financial Centre*

Qatar Financial Centre (QFC) is an onshore business platform that allows international financial institutions and professional service companies to establish offices in Qatar with 100 percent foreign ownership and full repatriation of profits.  Locally-sourced profits are subject to a 10 percent corporate tax. The QFC has its own independent regulatory regime based on English common law. The QFC Regulatory Authority acts as the regulator for financial firms operating in the QFC. The QFC Regulatory Tribunal and Qatar International Court hear and adjudicate cases, though these bodies’ judgments are only of value if enforced by Qatari courts against persons and assets in Qatar.  Goldman Sachs International, Mastercard Gulf, Uber, and Oracle are among the companies registered with QFC.

*Qatar Science and Technology Park*

The Qatar Science and Technology Park (QSTP) is a hub designed to undertake research and development and facilitate the transfer of expertise and technology.  The hub offers grants and incubators to foreign and local innovators. Licensed foreign companies are permitted 100 percent ownership and full capital and income repatriation benefits.  Companies operating at the QSTP can import goods and services duty free and export goods produced in the park are tax-free. Firms at the park are also exempt from all taxes, including the 10 percent income tax.  The property of these businesses cannot be seized under any circumstance, but capital and other cash may be seized on the orders of a local court. Microsoft, ExxonMobil, GE, and ConocoPhillips are among QSTP member companies.

*Free Zones*

In 2018, the government created an independent Free Trade Zone Authority to oversee free zones in Qatar and offer opportunities and benefits to investors.  The Authority currently administers two such free trade zones: Ras Bufontas near the country’s international airport and Um Alhoul adjacent to the country’s largest commercial seaport.  Additionally, in 2011, Qatar established Manateq, a state-owned company affiliated with the Ministry of Commerce and Industry, to manage and develop economic zones. Manateq has oversight of one special economic zone (Al Karaana), four logistic parks (​Jery Al Samur, Al Wakra, Birkat Al Awamer and Aba Saleel​), four warehousing parks ​(Bu Fesseela, Bu Sulba, Umm Shaharaine 1 and Umm Shaharaine 2) and one industrial zone (Mesaieed). 

In the last two years, the Ministry of Commerce and Industry has also aimed to introduce a public-private partnership (PPP) law to further attract foreign investors.  The draft law is currently under judicial review. 

**Performance and Data Localization Requirements**

There are no laws that obligate the private sector to hire Qatari nationals, but the public sector and institutions working closely with the government on projects and joint ventures are required to hire Qatari nationals—these notably include energy companies operating in Qatar.  Nonetheless, this manpower localization policy (known as “Qatarization”) in the public sector is a main focus of the country’s National Vision 2030 and foreign investors wishing to operate fully-owned companies will be required to submit a “Qatarization” plan. Employers are allocated visa slots for the hiring of specific nationalities and such positions are non-transferable without approval of the Ministry of Administrative Development, Labor, and Social Affairs.

While Qatar does not follow a forced localization policy, when competing for government contracts, preferential treatment is given to suppliers that use local content in bids.  Goods produced with Qatari content are also given a 10 percent price preference. As a rule, participation in government tenders with a value of QAR 5,000,000 or less (equivalent to USD 1,373,626) are confined to local contractors, suppliers, and merchants registered by the Qatar Chamber of Commerce, and tenders with a value of more than this amount do not require any local commercial registration to participate, but in practice certain exceptions exist. 

In February 2019, national oil company Qatar Petroleum announced a localization initiative, Tawteen, which, among other things, will require all suppliers for Qatar Petroleum and its subsidiaries, as well as bidders for select contracts, to be assessed by a third-party auditor to determine their In-Country Value (ICV) score.  Qatar Petroleum and its subsidiary companies will assess the ICV score in addition to technical and commercial criteria when evaluating bidders. The formula for calculating a company’s ICV score may be found here: https://www.tawteen.com.qa/In-Country-Value-Policy/ICV-Formula-Calculation  

Performance requirements for foreign investment in Qatar do not exist.  Disclosure of financial and employment data is required, but proprietary information is not.

There are no known formalized requirements for foreign IT providers to turn over source code or provide access to surveillance.  Information and communications technology is regulated by Qatar’s Communications Regulatory Authority, established as an independent body by Amiri Decree 42/2014, under the Ministry of Transport and Communications.  Qatar is the first Arab Gulf nation to enact a Data Protection Law 13/2016, which obliges companies to comply with restrictions relating to the collection, disclosure, and safekeeping of personal data. The regulator responsible for enforcing the Data Protection Law is the Ministry of Transport and Communications.

							5. Protection of Property Rights					

**Real Property**

A set of laws, ministerial decrees, and resolutions make up the country’s jurisprudence on property rights and ownership.

Law 16/2018 designates 10 zones in which foreign investors, companies, and real estate developers are permitted full property ownership.  The law also allows foreign investors usufructuary right of real estate of up to 99 years in 16 other zones. Additionally, foreigners may own villas within residential complexes, as well as retail outlets in certain commercial complexes.  In December 2018, a committee was formed under the Ministry of Justice to regulate foreign real estate ownership and use. According to subsequent regulations announced in March 2019, non-Qatari real estate owners will be granted residency in Qatar for as long as they own their property.

Law 6/2014 regulates real estate development and promulgates that non-Qatari companies should have at least 10 years of experience and headquarters in Qatar to carry out real estate development activities within selected locations. 

Property leasehold rights are enforced.  Qatar’s Rent Law 4/2008 protects the lessee and regulates the lessor.  There are a number of enforceable rights granted to the lessee including protection from rent hikes during the lease period and enforcement of the terms of the lease contract should the lessor transfer ownership.  The lessor is also protected from tenants who violate their lease agreements. Qatar’s Leasing Dispute Settlement Committee enforces these regulations. The committee hears and issues binding decisions and all lessors are required by law to register their lease agreements with this committee.

The Ministry of Municipality and Environment oversees the preparation of all records related to the selling, leasing, waiver, and bequeathing of real estate.  A reliable electronic database exists to check for encumbrances, including liens, mortgages, and restrictions. In addition, all titles and deed records are kept in digital format.

Qatar was ranked 20th globally for ease of registering property by the World Bank’s 2019 Doing Business Report:  http://www.doingbusiness.org/data/exploreeconomies/qatar#registering-property  

**Intellectual Property Rights**

Qatar’s intellectual property (IP) legal regime, albeit still developing in capacity, is robust and wide-ranging in terms of the number of laws protecting different types of intellectual property rights (IPR).  Qatar has signed many international intellectual property treaties, which are implemented through Qatari laws and regulations. Qatar’s IP legislation includes the Trademark and Copyright Law (enacted in 2002), the Protection of Trade Secrets and Protection of Layout Design law (2005), and the Patent Law (2006).  These laws grant foreign applicants the same rights as Qataris, provided they are nationals of a state that grants Qatar reciprocal treatment.

Intellectual property owners can apply for IP rights at the Ministry of Commerce and Industry, which is mandated (by Law 20/2014) to enforce IP laws and regulations.  Within the ministry, an IP Protection Department has been set up with offices focusing on trademarks, copyrights, neighboring rights, patents, industrial designs, and innovations.  The following are the periods of validity for the different types of registered intellectual property:

*Patents*:  Valid for 20 years from filing.

- With regard to pharmaceutical products, the Ministry of Public Health requires registration of all products imported into the country and will not register unauthorized copies of products patented in other countries.  Qatar also recognizes GCC patents on pharmaceutical products. To obtain patent protection in the GCC, pharmaceutical companies must apply for a GCC patent at the GCC Patent Office. Once granted, protection should extend to all the GCC countries. 

*Copyrights*:  Protected for 50 years after the author’s death.

- Per Qatari law, failure to register at the Ministry of Commerce and Industry will not affect protection of the copyright.  While the law does not protect unpublished works and does not criminalize end-user piracy, Qatar is party to the Berne and Paris Conventions and abides by their mandates concerning unpublished works.  The IP Protection Department works with law enforcement authorities to prosecute resellers of unlicensed video and software.

*Trademarks*:  Valid for 10 years but can be renewed indefinitely, while trademarks unused for five consecutive years are subject to cancellation. 

- As part of the GCC Customs Union, inaugurated in 2015, the GCC approved a common trademark law and Qatar is taking steps to enact it. 

The law on Intellectual Property Border Protection (Law 17/2011) forbids the import of any products that infringe any IPR protected in Qatar and obliges the General Authority of Customs to take measures to prevent the entrance of infringing products.  The law also permits IP rights holders to block the release of imported products that infringe on their rights, given sufficient evidence. In February 2017, the General Authority of Customs launched an electronic system to detect counterfeit goods coming into the country.  The system is accredited by the World Customs Organization and has been introduced to limit the imports of counterfeit goods. The General Authority of Customs, the Consumer Protection and IP Protection Departments at the Ministry of Commerce and Industry, and the Ministry of Interior conduct surveys, search shops, and seize and destroy counterfeit products. 

In March 2017, the Cabinet approved a draft law on the protection of industrial designs in an attempt to modernize existing Law 9/2002 on trademarks, trade indications, trade names, geographical indications, and industrial designs and templates, but the new law has not come into force yet.

The existing Penal Code stipulates hefty fines on those dealing in counterfeit products and imprisonment for offenders convicted of counterfeiting, imitating, fraudulently affixing, or selling products, or offering services of a registered trademark, or other intellectual property violations.  However, the level of awareness about IPR and enforcement is low among the public. The IP Protection Department in the Ministry of Commerce and Industry has taken the lead in promoting awareness through workshops and seminars.

The United States Trade Representative Office (USTR) does not consider Qatar a market that engages in, turns a blind eye to, or benefits from piracy and counterfeit products, nor is Qatar listed in USTR’s Special 301 Report.

Qatar is a member of the World Trade Organization and the World Intellectual Property Organization (WIPO), and is a signatory of several WIPO treaties.  For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/wipolex/en/profile.jsp?code=QA  .

Resources for Rights Holders:

U.S. Patent & Trademark OfficeRegional IP AttachéPeter C. Mehravari, Intellectual Property Attaché for the Middle East & North AfricaU.S. Department of Commerce Foreign Commercial Service, U.S. Patent & Trademark OfficeU.S. Embassy Kuwait City, Kuwait+965 2259 1455Email: Peter.mehravari@trade.govWeb:  https://www.uspto.gov/learning-and-resources/ip-policy/intellectual-property-rights-ipr-attach-program/intellectual  

United States Trade RepresentativeIPR Director for the GCCSung Chang+1 (202) 395-9564Email: Sung.E.Chang@ustr.eop.govWeb: http://www.ustr.gov  

A list of local attorneys that may be able to provide assistance in pursuing IP protections and enforcement claims in Qatar can be found at the U.S. Embassy Doha website:  https://qa.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/attorneys/

							6. Financial Sector					

**Capital Markets and Portfolio Investment**

Foreign portfolio investment has been permitted since 2005.  There is no restriction on the flow of capital in Qatar. The Qatar Central Bank (QCB) adheres to conservative policies aimed at maintaining steady economic growth and a stable banking sector.  Loans are allocated on market terms, and foreign companies are essentially treated the same as local companies.

Currently, foreign ownership is limited to 49 percent of Qatari companies listed on the Qatar Stock Exchange.  Foreign capital investment up to 100 percent is permitted in most sectors upon approval of an application submitted to the Invest in Qatar Center under the Ministry of Commerce and Industry. Foreign portfolio investment in national oil and gas companies or companies with the right of exploration of national resources cannot exceed 49 percent. 

Almost all import transactions are controlled by standard letters of credit processed by local banks and their correspondent banks in the exporting countries.  Credit facilities are provided to local and foreign investors within the framework of standard international banking practices. Foreign investors are usually required to have a guarantee from their local sponsor or equity partner.  In accordance with QCB guidelines, banks operating in Qatar give priority to Qataris and to public development projects in their financing operations. Additionally, single customers may not be extended credit facilities by a bank exceeding 20 percent of the bank’s capital and reserves.  QCB does not allow cross-sharing arrangements among banks. QCB requires banks to maintain a maximum credit ratio of 90 percent. QCB respects IMF Article VIII and does not restrict payments or transfers for international transactions.

QCB manages liquidity by requiring a reserve ratio of 4.5 percent and utilizing treasury bonds, bills, and other macroprudential measures.  Banks that do not abide by the required reserve ratio are penalized. QCB uses repurchase agreements, backed by government securities, to inject liquidity into the banks.  

Qatar has become an important banking and financial services center in the Gulf region.  Qatar’s monetary freedom score is 72.6 out of 100 (“mostly-free”) and it ranks 28th out of 180 countries in the 2019 Index ofEconomic Freedom, according to the Heritage Foundation.  Qatar is ranked third in the Middle East/North Africa region in terms of economic freedom and its overall score is above the world average. 

**Money and Banking System**

There are 18 licensed banks in Qatar, seven of which are foreign institutions.  Qatar also has 20 exchange houses, five investment and finance companies, 16 insurance companies, and 17 investment funds.  The Qatar Central Bank (QCB), in its role as the sole financial regulator, continues to introduce incentives for local banks to ensure a strong financial sector that is resilient during economic volatility. 

According to QCB data, total banking assets reached nearly USD 155 billion in the fourth quarter of 2018.  The country is home to the Qatar National Bank, the largest financial institution in the Middle East and Africa, with total assets exceeding USD 236 billion. The IMF estimated that 2.1 percent of Qatar’s bank loans in 2017 were nonperforming – the lowest ratio in the GCC.  International ratings agencies have expressed confidence in the financial stability of the country’s banks, given liquidity levels and strong earnings.

**Foreign Exchange and Remittances**

*Foreign Exchange*

Due to minimal demand for the QAR outside Qatar and the national economy’s dependence on oil and gas revenues, which are priced in dollars, the government has pegged the riyal to the U.S. dollar.  The officially pegged rate is QAR 1.00 per USD 0.27 or USD 1.00 per QAR 3.64, as set by the government in June 1980 and reaffirmed by Amiri decree 31/2001.

There is no restriction on foreign exchange in Qatar and currency declaration is not required of visitors.  Residents of Qatar may also move cash easily and in any form.

*Remittance Policies*

Qatar neither delays remittance of foreign investment returns nor restricts transfer of funds associated with an investment, such as return on dividends, return of capital, interest and principal payments on private foreign debt, lease payments, royalties, management fees, amounts generated from sale or liquidation, amounts garnered from settlements and disputes, and compensation from expropriation to financial institutions outside Qatar.

In accordance with Law 4/2010 on Anti-Money Laundering/Counter-Terrorism Finance (AML/CFT), the Qatar Central Bank requires financial institutions to apply due diligence prior to establishing business relationships.  Certain originator information should be secured when a wire transfer exceeds QAR 4,000 (USD 1,098). Similarly, due diligence is required when a customer is completing occasional transactions in a single operation or several linked operations of an amount exceeding QAR 55,000 (USD 15,109), per the provisions of Article 23 of Law 4/2010. 

Qatar is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF), a Financial Action Task Force-style regional body.  Qatar will undergo its next MENAFATF mutual evaluation in 2021. In July 2017, Qatar signed a counterterrorism Memorandum of Understanding (MOU) with the United States, which includes information sharing, training, enhanced cooperation, and other deliverables related to AML/CFT. 

**Sovereign Wealth Funds**

The Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, was established by Amiri Decree 22/2005.  QIA is overseen by the Supreme Council for Economic Affairs and Investment, chaired by the Amir, and does not disclose its assets (independent analysts estimate QIA’s holdings at around USD 330 billion).  QIA pursues direct investments and favors luxury brands, prime real estate, and banks. Various QIA subsidiaries invest in other sectors, as well. 

In September 2015, QIA opened an office in New York City to facilitate over USD 45 billion allocated for investments in the United States over the course of five years.  QIA’s real estate subsidiary, Qatari Diar, has operated an office in Washington, D.C. since 2014.

QIA was one of the early supporters of the Santiago Principles and among the few members who drafted the initial and final versions of the principles, and continues to be a proactive supporter of its implementation.  QIA was also a founding member of the IMF-hosted International Working Group of Sovereign Wealth Funds. QIA fully supported the establishment of the International Forum of Sovereign Wealth Funds (IFSWF) and helped create the Forum’s constitution.

							7. State-Owned Enterprises					

The State Audit Bureau oversees state-owned enterprises (SOEs), several of which operate as monopolies or with exclusive rights in most economic sectors.  Despite the dominant role of SOEs in Qatar’s economy, the government has affirmed support for the local private sector and encourages small and medium-sized enterprise development as part of its National Vision 2030.  The Qatari private sector is favored in bids for local contracts and generally receives favorable terms for financing at local banks. The following are Qatar’s major SOEs:

Energy and Power:

- Qatar Petroleum (QP), its subsidiaries, and its partners operate all oil and gas activities in the country.  QP is wholly owned by the government. Non-Qataris are permitted to invest in stock exchange listed subsidiaries, but shareholder ownership is limited to two percent and total non-Qatari ownership to 49 percent.
- Qatar General Electricity and Water Corporation (Kahramaa) oversees all water and electricity activities and is majority-owned by Qatari government entities.  The government has indicated that it may privatize segments of the water and electricity sectors. A first step in this direction occurred when the Ras Laffan Power Company, which is 55 percent owned by a U.S. company, was established in 2001.

Aerospace:

- Qatar Airways is the country’s designated national carrier and is wholly owned by the state.

Services:

- Qatar General Postal Corporation is the state-owned postal company.  Several other delivery companies are allowed to compete in the courier market:  Aramex, DHL Express, and FedEx Express.

Information and Communication:

- Ooredoo Group is a telecommunications company founded in 2013.  It is the dominant player in the Qatari telecommunications market and is 68 percent owned by Qatari government entities.  Ooredoo (previously known as Q-Tel) dominates both the mobile and fixed line telecommunications markets in Qatar.
- Vodafone Qatar, the only other telecommunications operator in Qatar at present, is owned by the semi-governmental Qatar Foundation, Qatari government entities, and Qatar-based investors.  In 2017, Vodafone Qatar announced that it achieved 21 percent market share in Qatar.

Qatar SOEs may adhere to their own corporate governance codes and are not required to follow the OECD Guidelines on Corporate Governance.  Some SOEs publish online corporate governance reports to encourage transparency, but there is no general framework for corporate governance across all Qatari SOEs.  When an SOE is involved in an investment dispute, the case is reviewed by the appropriate sector regulator.

**Privatization Program**

There is no ongoing official privatization program for major SOEs.  Qatar Airline executives state the government plans to take the company public within the next decade.

							8. Responsible Business Conduct					

There is a general awareness in Qatar of responsible business conduct.  In 2007, Qatar created the Corporate Social Responsibility (CSR) Network, a research and reporting entity that publishes annual reports highlighting best practices and honoring CSR leaders in the country.  Many companies in Qatar publicize their CSR policies.

Sustainability is the focus of the National Development Strategy 2018-2022, released in March 2018; it is also an important goal of the National Vision 2030.  Law 30/2002 is the main legislation protecting the environment. It prohibits the use of polluting equipment, machineries, and vehicles, and restricts the dumping and treatment of liquid or solid wastes to certain designated areas.  The law also limits emissions of harmful vapors, gases, and smoke in the energy sector. This applies to all companies working in exploration and production of crude oil and natural gas.

The Ministry of Commerce and Industry has a dedicated Consumer Protection and Combating Commercial Fraud Department which has intensified its efforts in recent years by increasing the monitoring of records and inspection of stores and factories that sell or manufacture counterfeit goods.  The Ministry prosecutes violators when business misconduct is detected or reported and announces these violations publicly.

The Government of Qatar maintains a reporting regime for suspicious transactions and requirements for consumer due diligence and record keeping.

As an economy dependent on extractive industries, Qatar participates in the Extractive Industries Transparency Initiative (EITI).  Nonetheless, the Qatari government has not improved transparency regarding its management of the petroleum industry, as no regulatory body oversees resources extraction or revenue management.  Moreover, Qatar has no freedom of information law.

With regard to labor and human rights, Qatari law prohibits all forms of forced or compulsory labor and reserves two percent of jobs in government agencies and public institutions for persons with disabilities.  The law also prohibits employment of children under 16 years old. The Ministry of Administrative Development, Labor, and Social Affairs (MADLSA); the Ministry of Interior; and the National Human Rights Committee (NHRC) conduct training sessions for migrant laborers to educate them on their rights in the country.  International media and human rights organizations continue to allege numerous abuses against foreign workers, including forced or compulsory labor, withheld wages, unsafe working conditions, and poor living accommodations. In January 2018, the United States and Qatar signed a government-level memorandum of understanding to exchange expertise and foster capacity building in combating human trafficking.  In March 2019, the Department of Labor and MADLSA signed an MOU on labor, which focuses on two pillars: labor inspections and protecting domestic workers’ rights in Qatar.

Some non-governmental organizations (NGOs) in Qatar focus on labor rights and often work in conjunction with the government.  Researchers from international NGOs such as Amnesty International and Human Rights Watch continue to visit and report on the country with limited interference from authorities.  International labor NGOs have been able to send researchers to Qatar under the sponsorship of academic institutions and quasi-governmental organizations such as the NHRC.

							9. Corruption					

Corruption in Qatar does not generally affect business although the power of personal connections plays a major role in business culture.  Qatar is one of the least corrupt countries in the Middle East and North Africa, according to Transparency International’s 2018 Corruption Perceptions Index, and ranked 33 out of 180 nations globally with a score of 62 out of 100, with 100 indicating full transparency.

Qatari law imposes criminal penalties to combat corruption by public officials and the government practices these laws.  In recent years, corruption and misuse of public money has been a focus of the executive office. Decree 6/2015 restructured the Administrative Control and Transparency Authority, granting it juridical responsibility, its own budget, and direct affiliation with the Amir’s office.  The objectives of the Authority are to prevent corruption and ensure that ministries and public employees operate with transparency. It is also responsible for investigating alleged crimes against public property or finances perpetrated by public officials.

Law 22/2015 stipulates hefty penalties for corrupt officials and Law 11/2016 grants the State Audit Bureau more financial authority and independence, allowing it to publish parts of its findings (provided that confidential information is removed) – something it was not previously empowered to do.

In 2007, Qatar ratified the UN Convention for Combating Corruption (through Amiri Decree 17/2007) and established a National Committee for Integrity and Transparency, (through Amiri Decree 84/2007).  The permanent committee is headed by the Chairman of the State Audit Bureau. Qatar also opened the Anti-Corruption and Rule of Law Center in 2013 in Doha in partnership with the United Nations. The purpose of the center is to support, promote, and disseminate legal principles to fight against corruption.

Those convicted of embezzlement and damage to the public treasury are subject to terms of imprisonment of no less than five and up to ten years.  The penalty is extended to a minimum term of seven and a maximum term of fifteen years if the perpetrator is a public official in charge of collecting taxes or exercising fiduciary responsibilities over public funds.  Investigations into allegations of corruption are handled by the Qatar State Security Bureau and Public Prosecution. Final judgments are made by the Criminal Court.

Bribery is also a crime in Qatar and the law imposes penalties on public officials convicted of taking action in return for monetary or personal gain, or for other parties who take actions to influence or attempt to influence a public official through monetary or other means.  The current Penal Code (Law 11/2004) governs corruption law and stipulates that individuals convicted of bribery may receive up to ten years imprisonment and a fine equal to the amount of the bribe but no less than USD 1,374.

The Procurement Law 24/2015 is designed to promote a fair, transparent, simple, and expeditious tendering process.  It abolishes the Central Tendering Committee and establishes a Procurement Department within the Ministry of Finance which has oversight over the majority of government tenders.  The new department has an online portal which consolidates all government tenders and provides relevant information to interested bidders, facilitating the process for foreign investors (https://monaqasat.mof.gov.qa  ).

Despite these efforts, some American businesses continue to cite lack of transparency in government procurement and customs as recurring issues faced in the Qatari market.  U.S. investors and Qatari nationals, if they are agents of U.S. firms, are subject to the provisions of the U.S. Foreign Corrupt Practices Act.

Qatar is not a party to the Organization for Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials.

*Resources to Report Corruption*

In 2015, the Public Prosecution’s Anti-Corruption Office launched a campaign encouraging the public to report corruption and bribery cases, establishing hotlines and a tip reporting inbox and vowing to protect the confidentiality of submitted information:

Public ProsecutionAnti-Corruption OfficeHotlines:  +974-3353-1999 and +974-3343-1999Email: aco@pp.gov.qa

							10. Political and Security Environment					

Qatar is a politically stable country with low crime rates.  There are no political parties or labor unions, or any credible organized domestic political opposition.  The U.S. government believes the potential exists for acts of transnational terrorism to occur in Qatar.

In June 2017, the neighboring countries of Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt severed diplomatic and economic ties with Qatar.  This geopolitical rift has not altered the political and security environment for U.S. investors in Qatar.

U.S. citizens in Qatar are encouraged to stay in close contact with the State Department and the U.S. Embassy in Doha for up-to-date threat information.  U.S. visitors to Qatar are invited to enroll in the State Department’s Smart Traveler Enrollment Program to receive further information regarding safety conditions in Qatar:  https://step.state.gov/step/.

							11. Labor Policies and Practices					

According to the World Bank’s *Migration & Remittances Fact Book 2016*, Qatar has the world’s highest level of migrant workers relative to population, with foreigners making up around 90 percent of the country’s population.  Qatar’s labor force consists primarily of expatriate workers. In the private sector, foreigners make up over 95 percent of the labor force per statistics from the country’s Planning and Statistics Authority.  Qatar’s resident population is estimated at 2.7 million as of February 2019, doubling in the last decade. Qatari citizens are estimated to number approximately 300,000 – 11 percent of the total population. The largest group of foreign workers comes from the Indian sub-continent.  Men make up more than 75 percent of the population, while unskilled and limited-skilled labor makes up around 66 percent of the population.

Unemployment rates in Qatar are among the lowest in the world, with 0.1 percent unemployment rate for men and 0.4 percent unemployment rate for women as of December 2018.  The Ministry of Interior and the Ministry of Administrative Development, Labor, and Social Affairs (MADLSA) regulate recruitment of expatriate labor.

Labor Law 14/2004 largely governs employment in Qatar and stipulates that employment may be terminated without any reason being given by the terminating party.  The effect of termination will be for the employer to pay the employee his wages and other benefits due to him in full, provided that the employee performs work as usual during the notice period, which varies depending on years of employment.  Companies registered with Qatar Financial Centre (QFC) are governed by English common law, and labor issues are administered by QFC’s Regulation 10/2006. The rules that govern recruitment and immigration of QFC employees differ from those that govern other expatriate employees in the country.

Labor Law 12/2004 and subsequent regulations grant Qatari citizens the right to form workers’ committees in private enterprises with more than 100 Qatari citizen workers.  Qatari citizens employed in the private sector also have the right to strike, but the restrictive conditions imposed by the law make the likelihood of an approved strike remote.  There are no labor unions in the country. Non-citizens are not eligible to form worker committees or strike, though according to an agreement signed between the MADLSA and the International Labor Organization (ILO), joint worker committees including 50-50 representation of workers and employers are planned for all medium to large-sized companies.  Those working in the government sector, regardless of nationality, are prohibited from joining unions. Over three-quarters of Qatari citizens are employed by the government.

In November 2017, the MADLSA issued a ministerial decree to set a temporary minimum wage of USD 195 per month.  Local courts handle disputes between workers and employers though the process is widely regarded as inefficient.  Recently, in an effort to speed up the process of resolving labor disputes, the government created new Labor Disputes Settlement Committees headed by a judge and representatives from the MADLSA.  As of March 2018, there are three such committees, all of which operate outside of the traditional Supreme Judicial Committee structure and are required to address any complaints within three weeks.

To combat the problem of late and unpaid wages, the government issued Law 1/2015 amending certain provisions of Labor Law 14/2004 on wage protection and mandating electronic payment to all employees subject to the local labor law. The law notably does not cover domestic workers.  The government requires all employers to open bank accounts for their employees and pay wages electronically through a system subject to audits by an inspection division at the MADLSA. Employers who fail to pay their workers faced penalties of USD 550 – USD 1,650 per case and possible prison sentences.  The system currently covers over 1.4 million workers.

In an effort to eliminate forced labor, the government issued reforms to the sponsorship system through Law 21/2015 to allow employees to switch employers at the end of their contract, which can be up to five years, without the permission of their employer.  In September 2018, Qatar passed Law 13/2018 to allow most workers – those covered by the Labor Law – to leave the country without exit permits from their employers. Employers still have the right to require up to five percent of their workforce to request permission to leave, after submitting their names to the MADLSA with justifications based on the nature of their work.  However, this reform does not cover domestic workers. The law prohibits the practice of employers withholding workers’ passports and increases penalties for employers who continue this practice. A further loosening of these restrictions is expected, given the three-year technical agreement signed with the ILO in November 2017 to address weaknesses in Qatar’s labor oversight and recruitment system.

To protect workers from fraudulent employment contracts, the Ministry of Interior signed an agreement with a Singaporean company in November 2017 to establish Qatar Visa Centers (QVCs) with the aim to simplify residency procedures for expat workers from India, Nepal, Sri Lanka, Pakistan, Bangladesh, Indonesia, the Philippines, and Tunisia (workers from these countries constitute 80 percent of Qatar’s workforce).  In cooperation with both MOI and MADLSA, the contracted company established QVCs in these countries to facilitate biometric enrollment, medical records verification, and the signing of work contracts before these workers enter Qatar. To date, QVCs have been established in Sri Lanka, Pakistan, Bangladesh, and India.

Qatar is a member of the ILO and claims that its labor law meets ILO minimum requirements.  In November 2017, Qatar made commitments to address some ILO complaints by launching a comprehensive three-year ILO technical cooperation program in Qatar.

In January 2018, the Qatari Minister of Foreign Affairs signed an MOU with the U.S. Department of State during the U.S.-Qatar Strategic Dialogue.  The MOU lays out plans for cooperation in combating trafficking in persons including strengthening the labor sector to reduce instances of forced labor.  In March 2019, the MADLSA signed a new MOU with the US Department of Labor to enhance cooperation in the fields of labor inspection and protecting domestic workers rights.

							12. OPIC and Other Investment Insurance Programs					

The Overseas Private Investment Corporation (OPIC) has not maintained a presence in Qatar since 1995.  Qatar is a member of the World Bank’s Multilateral Investment Guarantee Agency (MIGA).

							13. Foreign Direct Investment and Foreign Portfolio Investment Statistics					

*Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy*

* Source for Host Country Data: Qatar’s Planning and Statistics Authority http://www.mdps.gov.qa/en/  

*Table 3: Sources and Destination of FDI*

* Source: 2017 Data form Qatar’s Planning and Statistics Authority http://www.mdps.gov.qa/en/  

							14. Contact for More Information					

Economic SpecialistU.S. Embassy22nd February Street, Al Luqta District, P.O. Box 2399, Doha, Qatar+974-4496-6000Email: EskandarGA@state.gov

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### On This Page

                    -  Executive Summary 
                    -  1. Openness To, and Restrictions Upon, Foreign Investment   
                    -  2. Bilateral Investment Agreements and Taxation Treaties   
                    -  3. Legal Regime   
                    -  4. Industrial Policies   
                    -  5. Protection of Property Rights   
                    -  6. Financial Sector   
                    -  7. State-Owned Enterprises   
                    -  8. Responsible Business Conduct   
                    -  9. Corruption   
                    -  10. Political and Security Environment   
                    -  11. Labor Policies and Practices   
                    -  12. OPIC and Other Investment Insurance Programs   
                    -  13. Foreign Direct Investment and Foreign Portfolio Investment Statistics   
                    -  14. Contact for More Information   

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