Regulatory Alerts2020-01-01
Minister of Commerce and Industry Decision No. (44) for the Year 2020 on the Executive Regulations of Law No. (1) for the Year 2019 Regulating Non-Qatari Capital Investment in Economic Activities
The Minister of Commerce and Industry issued Decision No. 44 for 2020 to establish the executive regulations for Law No. 1 of 2019, enabling non-Qatari investors to hold up to 100% of capital across all economic sectors. The regulation mandates that natural and legal non-Qatari investors meet specific eligibility criteria, including clean criminal records or aligned corporate objectives, and submit authenticated documentation from their home country and Qatar's Ministry of Foreign Affairs. Furthermore, it establishes a streamlined 15-day application review mechanism with implicit rejection upon expiration and requires competent authorities to coordinate approvals, register successful projects in the Commercial Register, and enforce compliance within their respective jurisdictions.
Minister of Commerce and Industry Decision No. (44) for the Year 2020 on the Executive Regulations of Law No. (1) for the Year 2019 Regulating Non-Qatari Capital Investment in Economic Activities
The Minister of Commerce and Industry, Having reviewed Law No. (1) for the Year 2019 Regulating Non-Qatari Capital Investment in Economic Activities, And the Amir's Decision No. (29) for the Year 1996 regarding Council of Ministers decisions submitted to the Amir for ratification and issuance, And the Amir's Decision No. (12) for the Year 2019 on the organizational structure of the Ministry of Commerce and Industry, And the Council of Ministers' approval of this decision's draft in its ordinary meeting (19) for the year 2020, held on 6/5/2020,
Has decided the following:
Article (1) In applying the provisions of this decision, the following words and phrases shall have the meanings indicated alongside each of them, unless the context dictates otherwise:
- The Ministry: The Ministry of Commerce and Industry.
- The Minister: The Minister of Commerce and Industry.
- The Competent Administration: The administrative unit competent within the Ministry.
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Article (2) Without prejudice to the special legislations regulating non-Qatari practice of commercial activities and professions, and the provisions of Article (4) of the aforementioned Law No. (1) for the Year 2019, a non-Qatari investor may invest in all economic sectors up to (100%) of the capital, as follows:
First: Regarding a Natural Person: A final judgment of felony or crime involving moral turpitude or honesty must not have been issued against him, unless his reputation has been restored.
Second: Regarding a Legal Entity: 1- It must be a company established in accordance with the law of the country where its headquarters are located. 2- The activity for which investment is sought must align with its objectives. In all cases, the non-Qatari investor must provide evidence of the fulfillment of the aforementioned conditions through documented and authenticated documents from the competent authority in the country of headquarters and from the Qatari Ministry of Foreign Affairs.
Third: Regarding a Non-Qatari Investment Project, the following must be met: 1- The project's activity must be among the list of activities approved by the Minister, based on the Competent Administration's proposal. 2- The non-Qatari investor must submit a description of the activity, business plan, and financial plan for the project.
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3- The non-Qatari investor must submit a written undertaking to bear all obligations arising from the project, and must commence his project within a period not exceeding that specified by the Competent Administration; otherwise, the approval decision for the project shall be considered void.
Article (3) The mechanism for ruling on applications from non-Qatari investors exceeding their contribution to (49%) of the capital is determined as follows:
1- The investor submits his application to the Competent Administration, on the form prepared for this purpose, accompanied by supporting documents as specified by the Competent Administration to fulfill the Ministry's and other concerned authorities' requirements, after paying the prescribed fees. 2- The Competent Administration registers the application in a special register prepared for this purpose, noting therein the application date, serial number, applicant's name, subject of the application, and a statement of attached documents. 3- The application is referred to the concerned authorities for issuing their respective approvals in accordance with the legislations they apply. 4- The concerned authorities must respond to the application within the specified period according to the key performance indicators of the service agreed upon between the Competent Administration and the concerned authorities. 5- The Competent Administration must issue its ruling on the application within fifteen days from the date of fulfilling the required documents, and notify the concerned party thereof by registered letter or any other means indicating knowledge; the expiration of this period without response shall be considered an implicit rejection of the application.
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6- In case of approving the application, the Competent Administration shall do the following: a- Register the approval decision for the application in the register specified in clause (2) of this Article. b- Notify the administrative unit competent for the Commercial Register in the Ministry, of the approval decision accompanied by the approvals of the concerned authorities on the application. c- Notify the concerned party of the approval decision in accordance with the provisions of clause (5) of this Article, to take steps for registering the company that will execute the project in the Commercial Register.
Article (4) All competent authorities shall implement this decision, each within its respective jurisdiction. It is published in the Official Gazette.
Ali bin Ahmed Al-Kuwari Minister of Commerce and Industry
Issued on: 16 / 10 / 1441 AH Corresponding to: 8 / 6 / 2020 AD