(MENAFN- The Peninsula) The Peninsula
Doha: A recent study by the Qatar Chamber (QC) recommended reconsidering procedures of finance and allocation of lands, as well as reconsidering some aspects of the investment of Non-Qatari Capital in the Economic Activity Law.
The study, titled“Qatar's Current Investment Climate”, focused on the adequacy of incentives and facilities provided by the State to attract foreign investments, and how encouraging they are for local businessmen and investors.
It also touched on direct and indirect incentives and facilities provided by the State to local and foreign investors and delved into how these incentives are provided and how easy and comprehensive they are. It also reviewed views of a number of Qatari businessmen and private sector stakeholders throughout the focus on two main elements: the finance and the allocation of equipped lands for investment projects.
It noted that the State launched a host of strategies over the past years for the purpose of providing more incentives and facilities to local and foreign investors and paving the way for the private sector to expand its activities and maximise its share in the GDP to expand sources of income away from oil and gas.
Further, it shed light on the Law No.1 of 2019 on Regulating Non-Qatari Capital Investment in the Economic Activity which replaced Law No.13 of 2000 which provided a host of investment incentives for non-Qatari investors including the allocation of land through rent or usufruct in accordance with the legislation in force in this regard, and the exemption from income tax in accordance with the procedures and regulations stipulated in the Income Tax Law.
Elaborating on the features of the law, the study said that it exempted the non-Qatari investor from customs duties on imports of machinery and equipment necessary for their establishment and investment enterprises in the industrial sector are exempted from customs duties on their imports of raw materials and semi manufactured goods that are required for production but are unavailable in local markets.
According to the law, the non-Qatari investor is free to transfer his/her investments from and to Qatar without delay, including the proceeds from the sale or liquidation of all or some of his/her investments, the proceeds of the settlement of investment disputes, and any compensation due to a non-Qatari investor.
It allows non-Qatari investors to own a percentage not exceeding 49 percent of the share capital of listed companies, provided that the Ministry approves the proposed percentage. A non-Qatari investor may also hold a higher percentage after the approval of the Council of Ministers upon the proposal of the Minister. The law allows non-Qatari investors to own 100 percent of the capital in all sectors of the economy across the country. A non-Qatari investor is prohibited from investing in the banking industry and insurance companies, except for companies excluded based on a decision of the Council of Ministers.
A non-Qatari investor is prohibited from investing in commercial agencies and may be prohibited from investing in any other sector as decided by the Council of Ministers.
The Chamber's study indicated that there are other incentives provided for all investors, whether they are Qataris or non-Qataris, including the allocation of lands at nominal prices, the provision of electricity, water, and gas consumption at nominal prices, no taxes on exports, no quantitative quotas on imports and no income taxes.
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