Qatar’s main domestic legal structure is rooted in a distinctive combination of civil law foundations and Islamic sharia principles, with statutes codified across multiple domains, including commerce, foreign investment, labour relations and administrative sectors.
In recent years, the country has embarked on a comprehensive programme of legal transformation aimed at modernising its regulatory landscape in support of long-term diversification objectives, as outlined in the Qatar National Vision (QNV) 2030 economic framework. These initiatives have prioritised the simplification of business procedures, the facilitation of international capital inflows, and the strengthening of institutional transparency and legal predictability for both domestic and foreign enterprises.
Establishing A Company
Collectively, these advancements have positioned Qatar as an increasingly competitive and also reliable destination for businesses seeking to establish or to expand their existing operations within the broader Gulf and MENA regions.
For businesses and investors, several laws form the foundation of Qatar’s commercial legal landscape:
• The Commercial Companies Law (Promulgating the Commercial Companies Law, Law No. 11 of 2015), which governs company formation, ownership and corporate governance;
• The Foreign Investment Law (Regulation of the Investment of Non-Qatari Capital in the Economic Activity, Law No. 1 of 2019), which liberalises non-Qatari capital participation in particular sectors;
• The Qatar Financial Centre (QFC) Law (Promulgating the Qatar Financial Centre Law, Law No.7 of 2005);
• The Foreign Real Estate Ownership Law (On Non-Qatari Ownership and Use of Real Estate, Law No. 16 of 2018), which allows foreign nationals to own and use property in designated zones;
• The Free Zone Law (Concerning Free Zones, Law No. 34 of 2005);
• The Arbitration Law (On the Issuance of the Arbitration Law in Civil and Commercial Matters, Law No. 2 of 2017); and
• The Public-Private Partnership (PPP) Law (On Regulating the Partnership Between Public and Private Sectors, Law No. 12 of 2020), which regulates partnerships between government and private entities in major infrastructure and service projects.
These legislations form the basis for Qatar’s business and investment environment. Qatar’s legal environment benefits from its active alignment with international norms and best practices.
Many of its legislative updates are influenced by global frameworks on transparency, anti-money laundering (AML), corporate governance and investor protection. These efforts reflect the government’s recognition of the importance of international credibility and cross-border compatibility in attracting foreign direct investment.
Commercial Companies Law
The legal foundation for the regulation of companies in Qatar is Law No. 11 of 2015 (as amended by Law No. 8 of 2021), referred to as the Commercial Companies Law. This legislation applies to all companies established in Qatar, unless specifically exempted (such as is the case for entities operating within QFC or the Qatar Free Zones Authority (QFZ), which have their own regulatory frameworks). The Commercial Companies Law draws from civil law principles while incorporating modern regulatory elements that support Qatar’s broader economic strategy, particularly in terms of the reinforcement of the private sector and attraction of foreign investment.
Regulations Under Companies Law
The law provides a clear and comprehensive legal framework governing incorporation, ownership, governance, financial reporting and corporate restructuring. It offers a balance between flexibility for investors and regulatory safeguards for the market, creditors and minority shareholders.
The 2021 amendments introduced notable changes to corporate governance, AML and counterterrorist financing, general assembly procedures, disclosure obligations, and rules on subsidiary participation in company ownership. The Commercial Companies Law is also used by the Ministry of Commerce and Industry (MoCI) and other regulators as a critical tool for market supervision and compliance monitoring. The most notable aspects of the law include:
• Company types: The law recognises various company forms, including joint liability companies, limited partnerships, joint ventures, public and private joint stock companies, equities partnership companies and limited liability companies (LLCs).
• Incorporation requirements: Companies must complete a formal process involving a memorandum of association, authentication of documents and registration with the MoCI. Legal personality is acquired only upon registration, and documents must be in Arabic and disclose key details.
• Capital requirements & shares: There is no minimum capital for LLCs; the amount is agreed by the partners and fully paid at incorporation. Public joint stock companies must have a minimum capital of QR10m ($2.7m). Capital may be contributed in cash, in-kind or as work. Shares in joint stock companies are generally transferable, while shares in LLCs and partnerships are not represented by negotiable instruments.
• Ownership structure: LLCs must have between two and 50 partners with limited liability, although single-person companies are also permitted. Public joint stock companies require at least five founders, unless exempted. Holding companies, in various legal forms, may own and manage subsidiaries and affiliates.
• Shareholder rights: Shareholders may vote, receive dividends, access records and bring claims for misconduct. Minority shareholders in joint stock companies benefit from protections like possible board representation and oversight of related-party transactions.
• Board responsibilities: Directors and managers must act in good faith and in the company’s best interests. Public joint stock companies must have five to no more than 11 board members, with one third independent and a non-executive majority.
Conflicts must be disclosed and major transactions may require shareholder approval.
• Disclosure & reporting: All companies must prepare and disclose audited financial statements.
They must also comply with AML laws, identify beneficial owners, and avoid misuse of insider information through regular disclosures.
• Company transformation, merger, & acquisition: Companies may convert to a different legal form, merge, de-merge or acquire others through regulated procedures. These actions require partner or shareholder approval and must protect creditors and ensure public transparency.
• Company dissolution: Companies may dissolve voluntarily or by court order, including upon expiry of term or fulfilment of purpose. The process involves appointing a liquidator, notifying creditors and distributing assets according to legal priorities.
The Commercial Companies law is a cornerstone of Qatar’s commercial legal regime. Awareness of its provisions is indispensable for businesses incorporated under the MoCI.
The government’s commitment to this law is one of many indicators that the country is committed to global best practices and building a competitive business environment.
Free Zones & Qatar Financial Centre
In addition to companies governed by the Commercial Companies Law, Qatar offers two alternative jurisdictions for investors; the QFZ and QFC, each with its own regulatory framework.
Qatar’s free zones, overseen by the QFZ, allows 100% foreign ownership, profit repatriation and corporate tax exemptions. Companies are incorporated under QFZ regulations and typically operate in logistics, technology, manufacturing and trade, benefiting from streamlined procedures and dedicated infrastructure.
QFC, regulated by both the QFC Authority and the QFC Regulatory Authority, also allows for 100% foreign ownership and operates under a common law-based legal framework. Companies are governed by the QFC Companies and Contract Regulations, and disputes are handled through QFC’s independent court system.
The main differences between these jurisdictions and the Commercial Companies Law lie in the applicable legal system – civil or common law – incorporation processes, dispute resolution fora and flexibility in ownership, taxation and governance. Investors choose based on sector focus, regulatory preferences, and strategic goals.
Overall, Qatar’s Commercial Companies Law provides a comprehensive framework for business formation, governance and restructuring, aligned with the country’s economic diversification goals. Alongside the alternative regimes offered by the QFZ and QFC, investors have a range of legal structures tailored to different commercial needs and regulatory preferences.
Foreign Investment Law
At the forefront of Qatari’s economic diversification efforts is Law No. 1 of 2019, referred to as the Foreign Investment Law. This law marked an important shift in policy by allowing for 100% foreign ownership across a wide range of economic sectors. This law replaced the previous framework, which generally required foreign investors to partner with a Qatari national holding a minimum 51% stake. The law also aligns with the broader objectives of QNV 2030, which emphasises economic diversification and private sector development.
Under the Foreign Investment Law, full foreign ownership is now permitted in sectors such as agriculture, manufacturing, health care, education, tourism, technical services and consulting, subject to approval from the MoCI. The ministry maintains a list of strategic sectors open to foreign capital and retains discretion in granting licences. The licensing process involves submission of a detailed investment plan, legal documents and financial projections, with decisions typically issued within 30 working days. In some cases, additional approvals may be required from sector-specific regulators such as the Ministry of Education when establishing private schools or the Ministry of Public Health if incorporating medical ventures. Key provisions of the Foreign Investment Law include:
• Non-Qatari investors may hold up to 100% ownership in companies operating in approved sectors.
• Certain sectors remain restricted, such as banking, insurance and commercial agencies, unless specifically exempted by Cabinet decision.
• Investors may appeal rejected applications or licence cancellations through a formal grievance process.
• Foreign investors are entitled to lease or hold usufruct rights over land allocated for investment projects.
• Investment projects may benefit from exemptions on income tax, subject to conditions under the Income Tax Law.
• Customs exemptions are available for imported machinery, equipment and – where not available locally – raw materials and semi-manufactured goods.
• Investment is protected from expropriation except in the public interest and only with fair and adequate compensation.
• Investors may freely transfer investment proceeds, profit and compensation abroad in any convertible currency.
• Ownership of an investment may be transferred to another investor, including a Qatari partner, in accordance with applicable laws.
• Commercial disputes, excluding labour matters, may be resolved by arbitration or other recognised dispute resolution mechanisms.
Investment Incentives
To further incentivise foreign participation, the law provides a suite of investment protections and benefits. These include non-discrimination between Qatari and non-Qatari investors, full capital repatriation, guarantees against expropriation and the right to transfer ownership between foreign investors. The government may also grant land leases, tax exemptions and Customs duty waivers to qualifying projects, particularly those contributing to national development priorities or employing local labour.
In parallel, Qatar has developed several investment-friendly jurisdictions that operate under separate legal and regulatory regimes, such as QFC and the QFZ. The QFZ is a major initiative that oversees critical zones such as Ras Bufontas – adjacent to Hamad International Airport – and Umm Al Houl near Hamad Port.
These zones offer 100% foreign ownership, corporate tax exemptions, Customs duty waivers and fast tracked administrative procedures. They are designed to cater to sectors such as logistics, advanced manufacturing, digital services, aerospace and maritime industries. Companies operating within these zones benefit from flexible labour laws and access to modern infrastructure, making them a key component of Qatar’s strategy to attract major players throughout global supply chain operations.
Dispute Resolution
Qatar has strengthened its legal framework for dispute resolution, providing foreign investors with accessible and credible mechanisms for resolving commercial disagreements. The Qatar International Court and Dispute Resolution Centre, operating under QFC, offers a common law court system with jurisdiction over civil and commercial matters involving QFC-licensed entities. It operates independently from Qatar’s civil law courts and provides enforcement of judgments and arbitral awards in accordance with international standards. Arbitration is also supported through institutions such as the Qatar International Centre for Conciliation and Arbitration, established by the Qatar Chamber of Commerce and Industry, which offers services for both domestic and international commercial disputes.
These reforms reflect Qatar’s wider efforts to create a modern, transparent and business-friendly legal environment. The combination of full foreign ownership, strong investor protections, sector-specific free zones and reliable dispute resolution infrastructure positions the country as one of the region’s most progressive jurisdictions in terms of foreign direct investment.
Real Estate Law
Qatar has taken major steps to liberalise and regulate its real estate sector to attract long-term investment and strengthen market transparency. The framework for foreign ownership is governed primarily by Law No. 16 of 2018, as amended by Law No. 1 of 2025, and its implementation is detailed in Cabinet Decision No. 28 of 2020.
In parallel, the development and sale of real estate projects, particularly off-plan units, is regulated by Law No. 6 of 2014, amended by Law No. 5 of 2023. This legislation formally came into full effect in April 2025.
• Designated areas & property rights: Non-Qataris are permitted to own or use real estate in designated areas, including The Pearl, West Bay, Lusail, Al Dafna, Al Khor Resort and Musheireb, among others listed in Cabinet Decision No. 28 of 2020. Foreign ownership is permitted for a range of properties, including apartments, offices and retail units. Detached units may be owned in commercial and residential complexes, provided no changes are made to their external appearance.
• Usufruct & heirship rights: Non-Qataris may also obtain usufruct rights for up to 99 years, which are renewable and inheritable unless otherwise agreed. Owners of vacant land must construct within four years of registration or risk repossession by the state with compensation. Both ownership and usufruct entitle the holder to lease or dispose of the property, subject to the law’s requirements.
• Residency & privileges: The law incentivises investment-linked residency:
◊ Properties worth QR730,000 ($200,000) or more grant owners a five-year renewable residence permit without a local sponsor, if they reside in Qatar at least 90 days annually.
◊ Properties valued at QR3.7m ($1m) or more entitle the owner to benefits similar to permanent residency, including access to health care, education and investment opportunities in selected sectors.
• Real estate development regulation: The full implementation of Law No. 6 of 2014 in 2025 has introduced a structured regime for licensing, supervising and auditing real estate developers, especially in off-plan sales. Developers must be registered with the Real Estate Regulatory Authority, open escrow accounts, and submit regular financial and technical reports through approved consultants. Only licensed developers are permitted to carry out promotional sales or project execution.
• Investor protections in off-plan sales: Under the new regime, purchasers of off-plan units benefit from enhanced legal protections. Funds must be deposited into regulated escrow accounts, and developers may only withdraw based on certified progress and regulator approval. Interim title deeds are then issued upon sale and developers must deliver units on schedule and in compliance with contract specifications. Violations carry penalties and may result in licence suspension or revocation.
• Application & oversight: Ownership and usufruct applications are submitted through the Ministry of Justice, while licensing of real estate developers is handled by the Licensing Committee under the Real Estate Regulatory Authority. All transactions are subject to a 1% registration fee and digital services are available for application submission and status tracking.
By linking property ownership rights with enhanced investment and residency benefits, and by enforcing structured regulatory standards for real estate development, the country has created a significantly more transparent and investor-friendly environment.
OBG would like to thank Essa Al Sulaiti Law Firm for their contribution to THE REPORT Qatar 2025
Read More from OBG
