General Information

Qatar is a wealthy country and a member of the Gulf Cooperation Council (GCC), a political-economic organisation that includes Qatar, Kuwait, the Sultanate of Oman, Saudi Arabia, Bahrain and the United Arab Emirates. Compared to some Gulf countries, Qatar is a small oil producer. On the other hand, Qatar has the 3rd largest natural gas reserves in the world.

It is illegal to do business in Qatar without establishing a legal presence or designating a local agent, distributor or franchisee.

As a general rule, under the Foreign Investment Act, foreign shareholders may not hold more than 49% of the shares in a limited company. This obligation is waived if it is a branch or a company established in a Free Zone. There are no foreign exchange or currency regulations. The Qatari Riyal is pegged to the US dollar.

Since 2011, the authorities have embarked on a policy of diversification. In the long term, Qatar National Vision 2030 aims to attract foreign investors to priority sectors (including agri-food, health, logistics, industry, education, etc.), address environmental issues (water consumption and pollution), and reform the labour market.

The introduction of VAT has been postponed but is expected to be introduced soon in Qatar. The standard VAT rate should be 5%, but some goods and services will be exempt from VAT or subject to a 0% VAT rate.

It is important to note that there is a gap with the West regarding the weekend: Friday-Saturday.

Following the FIFA World Cup, there has been a general slowdown in infrastructure projects. Rising oil prices, on the other hand, provide more income and comfort to the government as it repays its public debt.

Many promising economic sectors including Services, Transport, Agro-industries, Sustainable Development, Fintech, Agritech and Tourism. SMEs established in the Qatar Free Zone have the possibility to respond directly to public tenders.

Means of Payment & Banking Specificities

The recommended payment method for commercial transactions is the confirmed documentary credit payable upon receipt or after 30 days.

It is possible to require a deposit if the sum justifies it.
The US dollar and the Euro are the most commonly used currencies for trade transactions.