Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 8/15/2019
  • Limits to Foreign Ownership:  Qatar generally encourages foreign investment. As part of the government’s efforts to attract more foreign companies and investors to the Qatari market, a new foreign investment law was approved in January 2019 (Law 1/2019). Whereas Qatar’s former foreign investment law (Law 12/2000) generally limited foreign investment and ownership of local entities to 49% of capital, the new law, upon enactment (NB as of the writing of this document, the implementing regulations for this have not yet been issued.  Thus, this remains a market challenge), will allow 100% foreign ownership 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.  Investors must obtain an exemption from Qatar’s Council of Ministers prior to investing in the banking and insurance sectors. Additionally, to allow more foreign real estate investment, the government enacted a new law (Law 16/2018) to allow foreign individuals, companies, and real estate developers freehold ownership of real estate in ten designated zones and ‎usufructuary rights up to 99 years in 16 other zones.  Foreign real estate investors and owners will also be granted residency in Qatar for as long as they own their property. 
 
  • Banking:  A total of 178 banks operate in Qatar, including 101 Qatari institutions and seven foreign bank branches.  Out of the 101 Qatari banks, seven are commercial institutions (Ahlibank, Al Khaliji Bank, Commercial Bank of Qatar, Doha Bank, International Bank of Qatar, Qatar Development Bank, and Qatar National Bank); the other four are Islamic banking institutions (Masraf Al Rayan, Qatar International Islamic Bank, Qatar Islamic Bank, and Barwa Bank).  In 2019, International Bank of Qatar merged with Barwa Bank in the country’s first bank consolidation.  The seven foreign banks include: Arab Bank, Bank Saderat Iran, BNP Paribas, HSBC, Mashreq Bank, Standard Chartered and United Bank. Qatar National Bank represents 50% of the local banking market.  It should be noted that while there is no restriction on the flow of capital, tightened liquidity within the local banking market exists.  Bank loans are based on market terms with priority given to local organizations for the purpose of public development projects.
 
  • Commercial Agents:  The Commercial Agents law requires all agency agreements to be exclusive arrangements.
 
  • Payment Delays:  The U.S. Commercial Service and the U.S. Embassy have received some reports of payment delays by both Qatari private sector companies and the Government of Qatar after the completion of large and small purchases and/or services rendered by U.S. firms.
 
  • Government Procurement:  Procurement Law 24/2015 aims to promote a fair, transparent, simple and speedy tendering process.  The law removed the Central Tendering Committee and created a Government Procurement Department within the Ministry of Finance which has oversight responsibility over the majority of government tenders. The law also called for the forming of committees for tender disputes resolution, allowing two-stage tendering, and providing performance bond waivers for SMEs.  Nonetheless, there are some persistent concerns regarding transparency in procurement by government entities, particularly due to a lack of clarity in the conditions and criteria of tenders, improper notification or explanation to non-qualifying companies, and the inability of bidders to formally challenge awards. Qatar gives preferential treatment to suppliers using local content in bids for government procurement.  Bids for government contracts that contain goods with Qatari content are discounted by 10%.  Participation in tenders with a value of QAR 5,000,000 ($1.37 million) or less is limited to locally registered contractors, suppliers and merchants. The Government Procurement Department also created a website, Government Procurement Services, to consolidate all tenders with the goal of providing relevant information to interested bidders; unfortunately, not all government tenders are included in this portal.  Qatar is not a signatory to the WTO Agreement on government procurement.
 
  • Import Duties:  The import duty for most processed food products is a flat 5% ad valorem.  There are no import duties for live animals, fresh fruits and vegetables, seafood, grains, flours, tea, sugar, spices, and seeds for planting.  As a GCC country, Qatar applies the Unified Customs Law.  This includes the imposition of a 5% tariff on the cost, insurance, and freight values of products such as textiles, apparel, and travel goods.  An excise tax of 50% was introduced on energy and sugary drinks on January 1, 2019.  A 100% excise tax was also introduced on alcohol and “specialty” products, including tobacco and pork.
 
  • Import Restrictions:  Qatar has no import quotas. Non-tariff barriers, however, arise occasionally.  For instance, unlicensed military and security items are not allowed.  Furthermore, prior to 2012, the government maintained a ban on pork imports.  The sale of pork remains heavily regulated and sales are restricted to only one distribution point managed by the Qatar Distribution Company (QDC).
 
  • Standards and Labeling:  As part of the GCC Customs Union, Qatar works with other member states toward unifying custom standards and conformity assessment regimes. Nonetheless, each member state is applying its own existing standards until a uniform GCC standard is set.
 
  • Food Labeling and Packaging: Labeling and marking requirements are compulsory for any products exported to Qatar. Labels must be either be in Arabic only, or bilingual with Arabic as the second language.  Labels must be applied prior to transportation. Production and expiration dates are required to be on all “original” food labels.
 
  • Corruption: Corruption in Qatar does not generally affect business although the power of personal connections plays a major role in business culture.  Qatar has risen in ranks to 30th on Transparency International’s 2018 Corruption Perceptions Index, with a score of 62/100 (with 100 being very transparent) and is one of the least corrupt countries in the MENA region.
 
  • Travel Advisories:  U.S. citizens visiting Qatar are advised to check the U.S. Embassy’s website for the latest information on travel to Qatar.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.