What does the draft law on non-Qatari investment mean for you?
Recently the Cabinet approved a draft law regulating and welcoming non-Qatari investments in all sectors of the economy, including the fields of banking and insurance (subject to a decision from the Council of Ministers), but excluding commercial agencies and real estate.
Should this law be implemented, benefits for the foreign investor, will mean that approved non-Qatari projects shall be exempt from income tax. They will also be exempt from custom duties on imports of machinery and equipment required for establishment of the business; and exempt from custom duties on imports of raw materials for production (which are not available in local markets), in accordance with local legislation and laws.
There may be opportunities for 100% foreign owned companies, however these will be subject to stringent assessment and economic demand from the Qatari Government. Most new foreign businesses investing 100% of the share capital will still need to comply with the current procedures for company formation, which for both services and trading is usually to open a Limited Liability Company (LLC).
The Ministry of Economy and Commerce has prepared this draft law with the aim of attracting foreign investment and to continue the drive of economic development and confidence within the country. The government will favour companies with a local presence when awarding contracts and has resolved to proceed with regulatory reforms and incentives to encourage inward invest.
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