Qatar Companies

An Overview of Companies in Qatar

Qatar, one of the richest countries in the world, is keen to encourage foreign companies to invest into Qatar, and special incentives exist for companies to invest in areas where it has identified the greatest need.

For more information on legal structure, see Qatar Companies on the Qatar Business Directory.

Industry Background

At the start of the twentieth century Qatar was a poor and almost unnoticed backwater, where people supplemented their income by participating in the country’s only major industry: Pearl Fishing. This industry was, however, about to be devastated by the introduction of cultivated Japanese pearls.

At the start of the twenty-first century Qatar can count itself as one of the richest countries in the world: if its GDP is divided among its minority Qatari population it stands far above the other wealthy countries of the world.

At the start of the twenty-first century Qatar can count itself as one of the richest countries in the world

The key to its wealth lay in the discovery of petrochemicals: oil in the 1930’s and the world’s largest non-associated Natural Gas Field in the 1970’s. Current estimates, which are not validated by an external body, are that Qatar has 19% of the world’s Natural Gas reserves.

To exploit these resources for Qatar, the country formed Qatar Petrochemicals Company (QAPCO) in the 1970’s: this name was later changed to Qatar Petroleum (QP). This government company either directly or indirectly controls all the petrochemical and gas extraction and export in the country.

In order to do this it has formed a number of subsidiaries, often in partnership with foreign companies: these have given rise to companies such as Qatar Gas and Ras Gas. Foreign companies also operate in some offshore areas under licence from Qatar Petroleum.

Qatar enjoys not only huge gas reserves, but a relatively stable political environment and good relations with its major clients. This means, in contrast to Russia and Iran, it is often able to maximise its own share of revenues when dealing with foreign governments and companies.

Diversification Plans

Despite the country’s enormous oil and gas revenues - revenues that created serious problems with inflation for the company in the last few years - Qatar is keen to diversify its income streams.

Qatar is keen to diversify its income streams. In addition to massive investment abroad, it has been encouraging companies to invest in Qatar.

In addition to massive investment abroad, it has been encouraging the growth of companies in Qatar: both by setting up companies itself and by encouraging foreign companies to invest in Qatar.

Encouraging Foreign Companies

Investment Incentives

Since the accession of the current Emir there has been an overhaul of laws covering direct foreign investment with the direct aim of encouraging companies to invest in Qatar. Investment is not equal; some industries are off-limits to foreign companies, others require 51% ownership by a Qatar or a Qatari company – but in areas where Qatar has identified the greatest need companies are allowed to hold 100% ownership of their enterprises.

In areas where Qatar has identified the greatest need companies are allowed to hold 100% ownership of their enterprises.

Areas where direct ownership is allowed include:

Agriculture
Manufacturing
Health
Education
Tourism
Power and Projects

While Qatar does not levy tax on individual’s incomes, foreign companies in Qatar are expected to pay tax. However, companies often enjoy tax holidays and tax incentives. In areas where direct ownership is allowed, companies can enjoy further incentives again including exemption on import duties on certain types of material. While companies entering the country via the Qatar Financial Center can enjoy a low tax levy of just 10%, as well as a legal system run by British Judges.

More information on setting up a company can be found here: Starting a Business in Qatar.

Tourist and Resident Guide to Qatar