Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there  are opportunities.
Last Published: 8/15/2019

The Qatari government is the biggest end-user of a wide range of products and services.  Previously, all government procurement contracts were previously administered under provisions of bidding and tender regulations included in Law No. 26/2005.  The Central Tenders Committee (CTC) of the Ministry of Finance was formerly responsible for processing the majority of public sector tenders in excess of QR 5 million.  The CTC applied standard tendering procedures and adhered to established performance practices and established standards that regulated bidding procedures.

In November 2015, the Amir issued a new procurement law No. 24/2015 which has been in effect since June 2016.  The law disbanded the Central Tendering Committee and created a Government Procurement Department within the Ministry of Finance which has oversight of most government tenders.  The new department also created a website to consolidate all tenders and provide relevant information to interested bidders, facilitating the process for overseas investors. The law aims to promote a fair, transparent, simple, and speedy tendering process, permitting each regulated government entity to create its own tender committee, whose members must include representatives from the Ministry of Finance and the Diwan Audit Bureau.

Bid and performance bonds are required in the form of unconditional bank guarantees with a local bank or certified local bank checks.  The standard bid bond is 5% and performance bond is 10% of the contract.  However, the above rate can be larger for certain projects.  Foreign architectural, contracting, and engineering firms are not required to have a local presence for the bid process.  However, by the time a contract is ready to be signed, participating foreign firms may need to have satisfied local establishment requirements. It is important to note that the government ministry requesting the bid has the right, during the contract period, to increase or decrease the required services, materials, or deliverables, after the committee’s approval.

Government contracts may include arbitration clauses.  Unless stated otherwise in the contract, disputes emanating from government contracts will be subject to arbitration in Qatar.  U.S. firms are advised, whenever possible, to reserve the right to appeal local arbitration decisions abroad.

Foreign and local contractors are usually paid 20% of the contract awarded to them against unconditional bank guarantees.  Further payments are made according to a standard payment schedule based on the progress of the project.  It should be noted that the payment schedule almost always authorizes the government to retain portions of payments due until after the completion and acceptance of the project.  Foreign and local contractors may experience delayed payments, which do not accrue interest, usually due to bureaucratic red tape.

Arabic is the official language in Qatar, though English is widely used.  Bids should be in Arabic unless the tender document specifically indicates that English is required or accepted.  Specifications generally conform with British/European and, in recent years, U.S. standards.
 

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.