Weill Cornell Medicine-Qatar (WCM-Q

Law. Approval from the Council of Ministers is required for foreign investment in banking and insurance. • Foreign capital is protected against expropriation (although the State may acquire assets for public benefit on a non-discriminatory basis, provided the full economic value is paid for the asset). • Subject to Ministerial approval, a foreign company performing a specific contract in

Qatar may set up a branch office if the project facilitates the performance of a public service or utility. • A non-Qatari company operating in Qatar under a Qatari government concession to extract, exploit or manage the State's national resources is exempt from the Foreign Investment Law.

In practice this covers all large oil and gas companies. • A company formed by a non-Qatari entity with the government or a government entity ('Article 207

Company') may be subject to special rules and exemptions from the Commercial Companies

Law No 11 of 2015. • All international companies securing mega infrastructure development work must share at least 30% of the contract with local entities. • Law No 7 of 1987 governs the practice of commercial activity by GCC citizens in Qatar, and was amended in April 2017 under Law

No 6 of 2017. GCC citizens as individuals or legal personalities can practice retail and wholesale trade in Qatar. However, the

GCC citizen engaging in the activity must be directly responsible for it. Those undertaking retail business must do so via direct sale to customers in a shop, and those in wholesale trading are required to import and export the goods. NB: following the signing of AlUla

Declaration regarding the blockade against

Qatar, legal advice is recommended for this type of commercial activity. • Law No 12 of 2020 regulating the partnership between the public and the private sector became law in July 2020, as per one of the following regulations: Allocation of land through a rental or usage licence, for development by the private sector; build-operate-transfer (BOT); buildtransfer-operate (BTO); build-own-operate-transfer (BOOT); operations and maintenance (OM); or any other form adopted by the Prime Minister, upon the proposal of the relevant minister. The

Government or other administration may, on its own initiative or at the suggestion of the private sector, identify a project for its implementation through partnership.

Choosing A Business Structure

To conduct business in Qatar on a regular basis, foreign investors are required to establish or register a legal presence from the following options: • Incorporating as a company under the

Commercial Companies Law which allows full access to Qatar's market and to work on an unlimited number of projects. A Qatari partner is required to own 51% of the capital of the company, except in the circumstances mentioned above. Various exemptions are available to attract foreign capital. • Obtaining a licence for a branch office or trade representation office which does not require a Qatari partner. The licence for a branch is granted in respect of a specific project for a government client. The existence of the branch office is dependent on the duration of a particular project: once the project is completed, the branch office must close unless it has secured additional qualifying projects.

Branch offices are only permitted to perform a specific contract and may not engage in general commercial activities with the larger local market. The branch will be fully taxable unless granted a special exemption. Trade representation offices are only permitted to market goods and services; they are not permitted to engage in commercial activities. • Under Law No 7 of 2017 companies in GCC states can now establish companies in Qatar, subject to having had a commercial registration in one of the GCC states for at least three years, and be fully owned and managed by a

GCC citizen. Refer to the preceding caveat in

Investment Regulations regarding the blockade. • Appointing a commercial agent means a non-

Qatari company does not establish a presence in Qatar; instead a 100% owned Qatari entity or Qatari national is appointed as an agent to market the relevant goods and services.

Commercial agencies must be exclusive and registered in order to be afforded the protections provided under the Commercial Agents Law No 8 of 2002; non-registered distributorships are subject to the Commercial Law No 27 of 2006. • There is a separate regime for establishing an entity in the Qatar Financial Centre (QFC).

This allows 100% foreign ownership and aims to attract international financial services companies and some professional support companies