ipr    Info-Prod Research (Middle East) Ltd.
Home      Country Guide      Reports      Services      Business Development-    Clients      About IPR         Publications      Contact Us

	Qatar		Info-Prod Country Guide
JUDICIARY   BUSINESS FORMS & STRUCTURES   CURRENCY & BANKING   INTELLECTUAL PROPERTY TAXATION   INVESTMENT & TRADE   PUBLIC PROCURMENT   ENVIRONMENTAL LAW

Investment Issues General The Government of Qatar encourages foreign investment, particularly in joint ventures with Qatari partners. Wholly foreign-owned firms are permitted to operate in Qatar, provided they have a local agent or a sponsor. Foreign-owned firms and the foreign-owned portions of joint ventures are subject to corporate income tax, ranging from 5 percent to 35 percent of net profits. Qatari and GCC nationals and business concerns are exempted from the income tax provisions. Foreign investors are not allowed to expand their investment beyond limits set forth in the law. An Emiri decree, however, can allow the expansion of a foreign investment in Qatar. Transfer of technology, management and marketing, as was the case in establishing steel, fertilizers and petrochemical industries in the 1970s, were taken as part of the foreign equity (20 or 25 percent). Privatization Qatar, along with the other countries of the Gulf Cooperation Council has adopted a privatization policy, however, full realization of these policies will require additional revisions to the laws relating to foreign investment in business associations in Qatar. The establishment of the stock exchange is expected to facilitate privatization. Stock Exchange Law No. 4/1995 established the Doha Stock Exchange (DSE), and governs transactions in securities, including bonds and shares of Qatari shareholding companies, government or quasi-government, including government companies, bonds and negotiable instruments and other securities which are authorized for trading. The QCB and all licensed commercial banks in Qatar are members of the Doha Stock Exchange. Several trading activities are limited to brokers, and there are licensing rules applicable to brokers. The formal stock exchange began operations in the first quarter of 1997. An international consultant was appointed in November 1996 to assist in drawing up its regulatory framework. The firm will also make recommendations to the DSM steering committee on whether the exchange should use electronic or floor-based trading. Initially, trading will be confined to Qatari nationals, although GCC nationals and foreigners may be allowed to participate at a later date. The DSE will be autonomous but indirectly overseen by the Finance, Economy and Trade Ministry. Principal Growth Sectors Over the past few years, the relative importance of the non-oil sector in the country's GDP ranged from 63 to 69 percent. A review of the performance of the non-oil sector and sub-sectors indicate that agriculture and fishing, electricity and water, building and construction, and communications have all increased their share of GDP while manufacturing industries and services have decreased their share. Foreign business involvement in the Qatari market since the early 1960s consisted principally of providing a wide range of products, including automotive and spare parts, as well as oil field supplies. In recent years, however, American technology, products and services were imported by various sectors of the Qatari market, including those which were previously dominated by European suppliers. Such sectors are electricity and water, oil and natural gas development and enhancement of recovery of these resources. Previous Chapter Contents Menu Next Chapter

Home      Country Guide      Reports      Services      Business Development-    Clients      About IPR         Publications ;   Contact Us