Qatar’s draft law on the “Regulation of Foreign Investment” provides many incentives to foreign investors including “exemption from customs duties and possibility of exemption from income tax”, according to the Ministry of Economy and Commerce (MEC).
Besides allocating land for the establishment of projects by foreign investors, the law stipulates that “foreign investments are not subject to expropriation”.
A major incentive for potential foreign investors is that they can “transfer investment ownership from one investor to another.”
Another incentive, the MEC said, is free transfer of investments within and outside the country.
The draft law regulating the investment of non-Qatari (foreign) capital in the country’s economic activity will attract 100% foreign capital in “all economic and commercial activities,” the MEC said.
The aim of the draft law is to “accelerate economic development, attract foreign investment in all economic and commercial activities, achieve economic diversification in line with the Qatar National Vision 2030, facilitate foreign investors’ entry and increase confidence and investment safety in the country.”
The most important features of the bill are that it “provides many guarantees that enhance the investment environment and allows investment in banks and insurance companies by a cabinet decision, provides for an increase in the State’s tax revenues.
The draft law, the MEC said, is “based on the government’s spending power in settling foreign investments and provides many guarantees that enhance the investment environment.”
It also “offers attractive investment incentives and protects foreign and domestic investors from the risks of side agreements.”
The law “restricts commercial concealment and has been prepared in accordance with the best regional and global practices in this field.”
In a statement issued on Friday, HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohamed al-Thani said the Cabinet agreed to take the necessary measures to issue a draft law on the regulation of investment of non-Qatari capital in economic activity, having been informed of the recommendation of the Advisory Council on the draft law, and in accordance with the directives of His Highness the Amir Sheikh Tamim bin Hamad al-Thani, on the importance of completing the legislation and decrees necessary to facilitate investment.
Sheikh Ahmed added that Qatar has become very attractive to foreign investment thanks to the well-studied economic policies, which contributed to creating a promising investment environment.