Qatar allows non Qataris full ownership of firms

02/02/2010

The state leader of Qatar has made good on his October pledge and enacted an amendment that will enable foreigners to own 100 per cent of a company based in Qatar.

The move will boost the amount of foreign investment and the number of company registrations and office relocations to the Gulf State.

Emir Sheikh Hamad bin Khalifa Al Thana issued the new law yesterday. The 100 per cent ownership law applies to the following industries: consulting, information technology, cultural, sports and entertainment services, distribution services and technical services.

When the law was first announced in October, the cabinet said the legislation would allow for the relaxation of the law on foreign investment for other industries including agriculture, health, tourism, education and natural resource development.

The news follows reports in November 2009 that the corporation tax level in Qatar would be reduced to 10 per cent this year. Forbes also named Qatar as the ‘world’s friendliest tax regime’ in its 2009 Tax Misery and Reform Index. This index looks at the factors that attract and repel investment and talent in various jurisdictions.