How to Do Business in Qatar
Qatar offers a wide range of opportunities for international companies looking to expand into the MENA region and to establish their presence in Qatar. The country offers a stable institutional framework, strong economic fundamentals, and future-ready infrastructure that enable a business-friendly climate for foreign investors or new businesses.
Tips Along the Way
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The work environment in businesses in Qatar is usually more formal, titles are important, the hierarchy is evident and business attire is often required. Hierarchy and respect for authority is highly valued and decision-making often follows a top-down approach, with seniority and rank playing significant roles in business interactions.
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Doing business in Qatar may require patience and adaptability to navigate bureaucratic processes, cultural differences, and market fluctuations. It is of importance to maintain a flexible yet steadfast approach and be prepared for unforeseen challenges.
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As in most other places, it is important to show a respect for local customs, traditions, and religious norms, and to take the time to understand and adhere to cultural patterns, etiquette, and business protocols, including appropriate dress code and communication styles.
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Business in Qatar is often relationship-driven and it is therefore important to invest time in building strong relationships with local partners, government officials, and key stakeholders; this could be done through networking events, business associations, and trade fairs.
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Qatar's government plays a significant role in the economy through state ownership of institutions and companies, public procurement and infrastructure projects.
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While Arabic is the official language, English is widely spoken, especially in business settings. However, having a basic understanding of Arabic can be advantageous for building rapport and conducting negotiations.
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Qatar has been rated as having one of the least demanding tax frameworks in the world, however, the tax authorities in Qatar continue to align with international tax administration standards. Although the GCC countries have agreed to introduce VAT, and this has been done in several member countries, Qatar has hitherto deferred the introduction of a 5% VAT regime.
In general, a company established in Qatar must be headquartered in the country and be Qatari owned, e.g. foreign investors can own only up to 49% of the share capital, while the other 51% must be held by one or more Qatari partners.
There are however some exemptions wherein foreign investors’ shareholding might exceed 49% up to 100%:
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within certain sectors such as industry, health, education, consulting etc.
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provided that the business (or project) is compatible with Qatar’s development plans.
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adequately exploits available domestic raw materials, local content, provides new products or establishes new technologies, and has the national interests at heart.
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By appointing a commercial agent in Qatar, a foreign business can sell goods and products in Qatar via the agent without incorporating a legal presence here. The commercial agent must be a Qatari individual or a legal entity that is wholly owned by Qatari nationals.
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Several of the major governmental entities require for their contractors and vendors to be included in Approved Vendors Lists and approved contractors list. The approval is either through the entities’ websites, or through the subcontractors' inclusion in tenders or similar.
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The In-Country Value (ICV) principle is a key component in the tender process that requires companies bidding on projects to demonstrate their commitment to contributing to Qatar's economic development by maximising the local value generated from the project, such as the use of local goods and services, creating job opportunities for Qatari nationals, and transferring knowledge and technology to the local workforce. Compliance with ICV requirements is often a significant consideration in tender evaluations and contract awards for governmental entities.
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Testbeds in Qatar, where in a controlled environment or platform new technologies, products, or services are evaluated, tested, and refined before broader deployment or commercialisation, can play a crucial role in driving innovation and development in areas such as Smart Cities, Energy and Sustainability, Healthcare Innovation, Transportation and Logistics. Such test beds serve as valuable platforms for collaboration between government, industry, academia, and international partners to pilot and scale innovative solutions.
Licensing Options
Ministry of Commerce and Industry – MOCI: The Ministry is responsible for overseeing commercial and industrial activities for the State of Qatar and directing these activities in accordance with the requirements of national development. The Ministry’s mandate includes business development needed to attract investments, and support and develop exports. Key business activities/ focus sectors are all from Sports and Cultural services to Industry, Consultancy Services and Health Services
Qatar Financial Centre (QFC): Focusing on Financial banking and investment business, as well as Information Technology, Real Estate and Sports and Event management.
Qatar Free Zones Authority: The initial focus of the QFZA is on the three sectors of logistics, chemicals and emerging technology.
Qatar Science & Technology Park - A technology hub for innovation: Aimed at incubating and growing Qatar’s post-carbon economy and fulfilling Qatar’s 2030 National Vision, the QSTP was established to encourage international corporations and research institutes from around the world to develop and commercialise technology in Qatar and launch entrepreneurial technology businesses.
Media City Qatar: Focusing on media related businesses.
