This guide covers two routes for a foreign investor entering Qatar. The first is onshore, under Law No. 1 of 2019 Regulating the Investment of Non-Qatari Capital in Economic Activity. The second is an investment free zone under Law No. 34 of 2005 on Free Zones, as amended. This guide explains both from the text of the laws. We assist clients with Qatar from our office in Kuwait, in cooperation with our partners in Qatar. Related guides are linked at the end of this article.
Which law applies
Law No. 1 of 2019 was issued by the Amir in January 2019 (announced by the Amiri Diwan on 7 January 2019) and repealed Law No. 13 of 2000 (Article 26). The Ministry of Commerce and Industry lists it as the law that governs non-Qatari investment. Law No. 34 of 2005 on Free Zones has been amended by Decree-Law No. 21 of 2017 and Law No. 15 of 2021, and the Qatar Free Zones Authority publishes a consolidated version, marked as an unofficial English translation where the Arabic text prevails.
Onshore: up to 100 percent, with an approval step
Under Article 2 of Law No. 1 of 2019, and without prejudice to the laws on non-Qataris carrying on commercial business and professions, and to Article 4, a non-Qatari investor may invest in all economic sectors with capital of up to 100 percent, in accordance with the Executive Regulations.
The route to above 49 percent goes through an application. Under Article 3, an application to approve non-Qatari shares above 49 percent of a company's capital goes to the competent department of the Ministry, on the prescribed forms with supporting documents and fees. The department decides within 15 days of receiving the complete documents. If it does not answer within that time, the application is deemed rejected. The applicant may appeal to the Minister within 15 days of learning of the rejection or of the end of the period, and the Minister decides within 30 days, with silence again meaning rejection. The Minister's decision on the appeal is final. Plan your timetable around these periods.
Fields closed to foreign investors
Article 4 prohibits non-Qatari investment in:
- banks and insurance companies, unless a Council of Ministers decision excludes them from the ban (the exception applies only to banks and insurance);
- commercial agencies, with no exception;
- any other field that a Council of Ministers decision names.
Article 25 says the Law does not apply to companies and individuals to whom the State assigns the extraction, use or management of natural resources under a concession or special agreement, to companies that the government or a public body sets up or takes part in, including companies in which the government holds 51 percent or more with non-Qatari partners, or less with Council of Ministers approval, or to companies and individuals licensed by Qatar Petroleum for petroleum activities or investing in oil, gas and petrochemicals. These carry their own regimes. For natural-resource concessions and special contracts, the Law is excluded only to the extent that applying it would conflict with the concession or the special agreement, so it is not a total exclusion.
Listed companies and contractors
A non-Qatari investor may own no more than 49 percent of a Qatari shareholding company listed on the stock exchange, after the Ministry approves the percentage in the articles. More than 49 percent needs Council of Ministers approval on the Minister's proposal (Article 7).
A foreign company that performs contracts in Qatar must follow the controls in Article 5. Its branch in Qatar carries out the work. The contract must be with a ministry, government body, public authority or institution, or a company in which the State takes part. The branch must register in the commercial register and obtain its commercial license after the award and before signing the contract, meet all requirements of the competent authorities for the term of the contract, and renew its register and license throughout it.
Incentives and protection
Law No. 1 of 2019 provides:
- land may be allocated for the project by lease or usufruct (Article 8);
- the investor may import what it needs to set up, run or expand the project, under the applicable laws (Article 9);
- projects may be exempted from income tax under the controls, procedures and periods in the Income Tax Law (Article 10);
- projects are exempt from customs on imported machinery and equipment needed to set them up, and industrial projects on imported raw and semi-finished materials that are not available locally (Article 11);
- the Council of Ministers may grant further incentives (Article 12);
- no direct or indirect expropriation or similar measure, except for the public interest, without discrimination and against fair and appropriate compensation by the same legal procedures that apply to Qataris (Article 13);
- free transfer of all amounts linked to the investment to and from any destination without delay, including revenues, sale or liquidation proceeds, dispute settlements and compensation, in any convertible currency at the rate on the transfer date (Article 14);
- transfer of ownership to another investor or to a local partner under the applicable laws (Article 15);
- agreement to settle disputes by arbitration or other lawful means, except labor disputes (Article 16).
Penalties
If the investor breaches the Law, the department notifies it to fix the breach within the period in the notice, which may not exceed three months from notification. If it does not, the department cancels the project license and, depending on the case, removes the company or branch from the commercial register (Article 19), and the investor may appeal to the Minister. A person who carries on or participates in an economic activity in breach of the Law faces a fine of up to QAR 500,000 (Article 20), and the same applies to a legal person for violations by those acting for it (Article 21).
Free zones
Under Article 4 of the Free Zones Law as amended, limited liability companies, partnerships and other entities may be set up in the free zone, owned by one or more persons, nationals, residents or others, without the restrictions that other laws set on the percentage of non-Qatari capital or on raising authorized capital. Under Article 6, registered companies licensed to work in or through the free zone need no other license, approval, permit or registration from the State to do that business. Under Article 7, the free zone is not subject to the Income Tax Law or other laws that impose direct or indirect taxes for 20 years, renewable by a Council of Ministers decision. Law No. 22 of 2024 added a minimum-tax regime for in-scope large multinational groups from 2025 that applies despite conflicting special regimes, so do not treat the 20-year exemption as a promise of zero tax for every investor. The implementing rules are in Council of Ministers Resolution No. 2 of 2026, which applies to fiscal years beginning on or after 1 January 2025. Under Article 8, equipment, machinery, raw materials and other inputs that registered companies import, store, make or process are exempt from customs duties when imported into the zone or exported from the State.
Registered companies must exercise their licensed activity under the Law, the Regulations and their contracts with the Authority. Note that free zone benefits attach to the zone. Selling into the Qatari mainland market is a separate question to check with the Authority and the relevant mainland rules before you choose.
Practical steps
- Define the activity and check it against Article 4 and the Council of Ministers decisions.
- Decide between onshore and a free zone, based on where your customers are.
- If onshore and above 49 percent, prepare the Article 3 application and allow for its time limits.
- Incorporate and register, then obtain the licenses your activity needs.
- Register for tax, open bank accounts and handle work and residence permits.
- Keep the contract and incentive documents, since several benefits depend on decisions and controls that are issued separately.
Read also: Qatar Commercial Contracts: Civil Code Guide for Investors | Entering Bahrain: Company Forms and Foreign Ownership Guide | Company Formation in Qatar for Foreign Investors
Frequently asked questions
Can a foreigner fully own a Qatari company?
In principle yes. Article 2 of Law No. 1 of 2019 allows up to 100 percent in all economic sectors under the Executive Regulations. Above 49 percent you need the Ministry's approval under Article 3, and banks and insurance are closed unless the Council of Ministers excepts them, and commercial agencies are closed.
Which law governs foreign investment in Qatar?
Law No. 1 of 2019, which repealed Law No. 13 of 2000.
What governs Qatar's free zones?
Law No. 34 of 2005, as amended by Decree-Law No. 21 of 2017 and Law No. 15 of 2021.
Can profits be transferred abroad?
Yes. Article 14 gives a free transfer of investment revenues and sale or liquidation proceeds without delay, in any exchangeable currency.
How do you help companies with Qatar?
From our office in Kuwait, in cooperation with our partners in Qatar, we map your entry and review approvals, incorporation and contracts.