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FOR THE REGULATION OF FOREIGN CAPITAL
INVESTMENT
IN ECONOMIC ACTIVITY |
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We Jassim Bin
Hamad Al Thani, Deputy Emir of the State of
Qatar
Having perused
the temporary amended constitution,
particularly Articles (22), (23), (34) and
(51) thereof, And the Commercial Companies
Law No. (11) for the year 1981 as amended by
Law No. (9) for the year 1998. And Customs
Law No. (5) for the year 1988 and the laws
amending it. And Law No. (25) for the year
1990 regulating non-Qatari capital
investment in economic activity, as amended
by Law No. (9) for the year 1995. And Law
No. (11) for the year 1993 concerning income
tax. And Law No. (22) for the year 1993
regulating the Ministry of Finance, Economy
and Commerce and defining its powers. And
upon the proposal of the Minister of
Finance, Economy and Commerce. And the draft
law submitted by the Council of Ministers.
And having consulted the Advisory Council
Have
promulgated the following law: - |
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Chapter One |
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DefinitionsArticle (1) |
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In the implementation of the provisions of
this law, the following words and phrases
shall have the meanings shown against each
of them, unless the text indicates
otherwise: - |
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The Ministry |
Ministry of Finance, Economy and
Commerce. |
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The Minster |
Minister of Finance, Economy and
Commerce. |
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Foreign Investors |
Non-Qatari persons, whether natural
or juristic, who invest their monies
in any of the projects in which
direct investment is permitted by
the government in accordance with
provisions of this law. |
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Invested Foreign Capital |
What is being invested by foreign
investors in cash or in kind, monies
or rights having financial value in
the State of Qatar, including: - |
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1. |
Cash remitted into the
country through banks and
licensed financial
companies; |
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2. |
Assets in kind imported for
the purpose of investment in
accordance with the
provisions of this law; |
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3. |
Profits, revenues and
reserves emanating from
investing the foreign
capital in the project,
whereby the capital of that
project has been increased,
or if invested in any of the
projects permitted by the
provisions of this law; |
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4. |
Intangible rights such as
licenses, patents and trade
marks registered in the
State; |
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Foreign Investment |
Foreign capital invested in any of
the activities permitted in
accordance with the provisions of
this law; |
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The Investment of Foreign
CapitalArticle (2) |
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1. |
Subject to Clause (3) of this
Article, foreign investors may
invest in all sectors of national
economy provided they have one or
more Qatari partners whose share
shall not be less than 51% of the
capital, and the company is
incorporated in a correct manner in
accordance with the rules of law. |
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2. |
It is however permissible, by a
decision from the Minister, for
foreign investors, to exceed the
percentage of their participation
from 49% to 100% of the project's
capital in the sectors of
agriculture, industry, health,
education, tourism and the
development and exploitation of
natural resources or energy or
mining, provided it is in conformity
with the development plan in the
state. Preference to projects that
achieve the optimum exploitation of
locally available raw materials,
export industries or those providing
a new product or using modern
technology, in addition to projects
that assist in residing
internationally famous industries
and projects that give attention to
national manpower and its
rehabilitation. |
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3. |
It is prohibited for the foreign
investments referred to in the two
previous Clauses to invest in the
fields of Banking, Insurance
Companies, Commercial Agencies and
the purchase of real estate. |
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Article (3) |
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The Minister may, after consulting the
relevant authority, authorise foreign
companies, which are engaged in contracts in
the state, to perform such contracts if they
facilitate the performance of a public
service or utility. |
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Article (4) |
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Where no specific provision is provided for
in this law, the provisions of the laws
prevailing in the state must be followed
with regard to the foreign investor
obtaining the necessary licenses to engage
in any of the activities in which he is
authorised to invest. |
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Chapter 3 |
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Necessary land may be allotted to any
foreign investor establishing his investment
project, through long term lease for a
period not exceeding (50) years, renewable. |
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Article (6) |
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Foreign investor may import for his
investment project, what ever is required
for the establishment, operation and
expansion of the project, in accordance with
the laws prevailing in the state. |
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Article (7) |
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The Ministry may: - |
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1. |
Exempt the foreign capital invested
in the fields provided for in
Article (2) of this law from income
tax for a period not exceeding ten
years from the date of operation of
the investment project. |
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2. |
Grant foreign investment projects
customs duties exemptions with
regard to imported machinery and
equipment necessary for its
establishment. |
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3. |
Grant foreign investment projects in
the field of industry, custom duties
exemption with regard to primary or
semi-manufactured materials
necessary for production not
available in local market. |
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Article (8) |
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1. |
Foreign investment shall not be
subject, whether directly or
indirectly, to expropriation or any
other action with similar effect,
unless it is for public benefit and
done on a non-discriminating basis
against quick and adequate
compensation in accordance with
legal procedures and the general
principles provided for in Clause
(2) of this Article. |
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2. |
Compensation shall be equivalent to
the real economic value of the
investment that has been
expropriated at the time of
expropriation or at the time of the
announcement relating thereto, and
it shall be determined in accordance
with normal economic situation prior
to any threat of expropriation, and
the due compensation must be paid
without delay, and shall be freely
transferable. The compensation
aforesaid will carry interest at the
prevailing rate in the state until
the date of payment. |
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Article (9) |
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1. |
Foreign investors have the freedom
to transfer investments to and from
abroad without delay, such transfers
include: - |
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A. |
Investment returns; |
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B. |
The proceeds of sale or
liquidation of all or part
of the investment; |
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C. |
The proceeds of monies
resulting from settling
investment disputes; |
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D. |
The compensation provided
for in Article (8) of this
law. |
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2. |
Transfer of funds into any
convertible currency shall be at the
exchange rate prevailing on the date
of transfer. |
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Article (10) |
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A foreign
investor has the right to transfer his
investment to another foreign investor or to
a Qatari citizen, or to relinquish the same
to his Qatari partner in the case of
partnership, provided it is carried out in
accordance with the prevailing laws and
regulations.
In aforesaid cases, the
investment shall continue to be treated in
accordance with this law, provided the new
investor continues to work in the project,
and who shall replace the previous investor
in rights and obligations. |
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Article (11) |
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Any dispute arising between the foreign
investor and others may be settled through
an international or local arbitral panel. |
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Article (12) |
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The provisions of this law shall not apply
to: - |
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1. |
Companies and individuals to whom
the state entrusts the task of
extraction, exploitation or
management of natural resources by
virtue of a concession or special
agreement, to the extent which does
not contradict what is provided for
in the concession contract or any
special agreement. |
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2. |
Companies incorporated by the
government or in which the
government and other public
corporations or departments
participate in association with
foreign investors in accordance with
Article (90) of the commercial
companies law referred to above. |
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Article (13) |
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The foreign investor must protect the
environment from pollution, and must abide
by the laws, regulations and directives
relating to public security and safety, and
must refrain from any act, which might
infringe the state's public order and public
morals. |
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Article (14) |
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The provisions of this law shall not
prejudice the benefits and tax exemptions
and any other guarantees and incentives
awarded to the companies and firms existing
at the time when it shall come into force.
Such companies and firms shall continue to
retain those benefits, exemptions,
guarantees and incentives in accordance with
the legislation, agreements and contracts
they are derived from. |
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Penalties and Final ProvisionsArticle (15) |
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The Ministry shall notify the foreign
investor if he contravenes any provision of
this law requiring him to rectify such
violation within a period not exceeding
three months from the date of notification. |
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Article (16) |
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Without prejudice to any more severe penalty
stipulated in any other laws, any foreigner
who practices an economic activity contrary
to the provisions of this law shall be
punished by a fine of not less than fifty
thousand Riyals and not exceeding one
hundred thousand Riyals. Additionally, any
citizen who participates with a foreigner in
such activity shall be subject to the same
punishment. |
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Article (17) |
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The technical staff of the Ministry
delegated by the Minister shall have the
capacity of legal seizure officers, to
investigate and identify crimes committed in
contravention of the provisions of this law
and the implementing decisions thereof. They
have, in this respect, the right to access
premises and firms subject to this law and
to inspect and examine their documents and
records. |
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Article (18) |
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Law No.(25) for the year 1990 referred to
above shall be repealed. |
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Article (19) |
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The Minister will issue bills and decisions
necessary to execute the provisions of this
law, including determining the fees. |
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Article (20) |
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All parties
concerned, each in its own competence, shall
execute this law, and it will come into
force from the date of its publication in
the official Gazette.
Jassim Bin
Hamad Al Thani
Deputy Emir of the State of Qatar
Issued at
Diwan Amiri
On: 19.07.1421
Corresponding to: 16.10.2000 |
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RESOLUTION OF THE MINISTER OF FINANCE,
ECONOMY AND COMMERCE NO. 26/2001 ON THE
EXECUTIVE REGULATIONS OF LAW NO. 13/2000
REGULATING FOREIGN CAPITAL INVESTMENT IN THE
ECONOMIC ACTIVITY |
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The Minister
of Economy and Commerce, after reviewing the
amended provisional constitution,
particularly Articles 33 and 34 thereof; Law
No. 11 of 1962 establishing the Commercial
Register system and amending Laws;
Law Decree No. 22 of
1993 regulating the Ministry of Economy and
Commerce and designating its powers;
Law No. 13 of 2000
regulating foreign capital investment in the
economic activity;
Emiri Resolution No. 29
of 1996 on the Cabinet Resolution raised to
the Emir for approval and issue;
Resolution of the
Deputy Emir No. 8 of 1962, issuing the
Executive Regulation of Law No. 11 of 1962
establishing the Commercial Register system;
Approval of the
proposal of this Resolution by the Council
of Ministers in its ordinary meeting 24 of
2001 held on 27 June 2001;
Resolved the following: |
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Article (1) |
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The following forms of Register shall be
established at the Ministry of Finance,
Economy and Commerce for registration of the
economic activities to which foreign
investors contribute capital: |
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1. |
Register of Importers |
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2. |
Register of Contractors |
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3. |
Register of Trade Representation
Offices |
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4. |
Register of Foreign Companies'
Branches |
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A page in the Commercial Register shall be
specified for every person practicing any of
the activities referred to above. |
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Article (2) |
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The Commercial Affairs Department at the
Ministry of Economy and Commerce shall take
charge of issuing the licenses necessary for
the practice of the activities referred to
in the preceding Article, without prejudice
to the provisions of the Laws of investments
in the respective activities. |
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Article (3) |
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Applications
for entry in the Commercial Register, change
of data therein, deletion of an entry for
obtaining a certificate of registration
shall be made on the prescribed forms of
Commercial Registration.
The
applications referred to shall not be
accepted unless accompanied by the documents
supporting the information provided therein. |
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Article (4) |
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To permit a foreign investor to contribute
more than 49% capital to a project, the
investor must attach the following documents
as supports for the application: |
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1. |
Documents evidencing the purpose of
the commercial representation
office; |
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2. |
The Articles and Memorandum of
Association of the company; |
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3. |
Management contract or power of
attorney attested by the competent
authority; and |
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4. |
A copy of the contract governing the
project. |
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Should the documents be drawn-up in a
foreign language, a certified Arabic
translation shall be attached. |
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Article (5) |
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The
applications referred to in the preceding
Article shall be entered in a special
register kept for this purpose where the
date, serial number and subject matter of
the application, name of applicant and
details of the document attached hereto
shall be recorded.
The Commercial
Affairs Department shall examine the
application, ensure that the requirements
stipulated in Article (2) of the Law No.
(13) of 2000 are met and refer the
application with an appropriate
recommendation to the Minister of Economy
and Commerce. |
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Article (6) |
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The approval of the Minister of Economy and
Commerce permitting the foreign investor to
practice the activity shall be entered in
the register referred to in the preceding
Article. |
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Article (7) |
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The fees in respect of the applications
provided for in this Resolution are as
follows: - |
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Permitting the foreign investor to
contribute more than 49% of the
project's capital |
5,000 |
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For the practice of importer
activity |
500 |
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For the practice of contracting
activity |
500 |
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Article (8) |
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All concerned
authorities shall implement this Resolution
effective from the date of publication in
the Official Gazette.
Issued by H.
E. Yousuf Hussain Kamal
Minister of Economy and Commerce
1 October 2001 |
