The Qatari legal system is a mixture of civil law and Islamic Shariah law, with the latter primarily being applied in the cases of family and personal matters. Laws in Qatar are proposed by the Council of Ministers. Proposed laws will then be sent to the Amir who has the final say on whether they can be ratified or not. If a law is rejected, then HH shall inform the Council of the reason(s) for doing so. Prominent Qatari legal firms include Al Sulaiti Law Firm and Al Khalifa Law Firm. International firms operating in the country include Dentons, Simmons & Simmons Middle East, DLA Piper, Crowell & Moring, and White and Case.

Publications

Al Sulaiti’s Law Firm Legal Review

Georgetown University Legal Framework Review

Through Qatar’s active membership in the World Trade Organization and flexible business regulations it seeks to attract foreign investors to advance other economic sectors besides the oil and gas industry.

Qatar offers many investment incentives which include the following:

• Low electricity, water, and gas rates
• 100% foreign ownership option
• Nominal lease rate of only 5 Qatari Riyals per square meter per year for industrial land sites for the first three years from site assignment and project operation, after which lease rate will increase to 10 Qatari Riyals 
• Exemption from import taxes on heavy duty machinery and their spare parts and raw materials; exemption from import taxes
• Unlimited quantities of imported materials
• No restrictions on money exchange and transfer of profits abroad
• Flexible regulations and procedures to import skilled and unskilled workforce.

Non-Qatari investors are able to invest in all fields in the following sectors: Agriculture, Industry, Health, Education, Tourism, Development and utilization of natural resources, Mining, Consultation services, Information technology, Cultural services, Artwork services, Sports services, and Entertainment services. In regards to the banking sector, it is possible to establish a bank if approved by the Council of Ministers. Non-Qatari nationals are also able to own real estate in certain locations of the country, which is a rarity for the Gulf region.

Qatar’s wholesale and retail trade expanded at a compound annual growth rate (CAGR) of 21.6% between 2012 and 2017 to $27 billion, or 8.7% of GDP. Wholesale and retail experienced growth of 76.1% in 2017 alone as oil prices rose and the economy picked up.

GCC consumers are among the largest spenders on luxury items, outpacing their European counterparts by almost 10-fold, the report found. As such, luxury goods is a segment with significant potential. Luxury-related expenditure has been strong as the population expanded, living standards raised, tourist numbers increased and infrastructure improved. 

In recent years investors have expected above-average growth in demand for retail space due to rising consumer purchasing power and a projected increase in business and recreational travel prompted by the hosting of global sporting events such as the 2022 FIFA World Cup. As such, investors have poured capital into new retail space, which has translated into a plethora of new shopping malls opening around the country. This trend was further reinforced by the government’s decision to open real estate ownership to non-nationals in 10 different zones across Doha and to allow for 99-yearlong property lease contracts in 16 additional zones. Law No. 16 of 2018, the freehold ownership law that came into effect in March 2019, opened up the market to much larger foreign involvement, along with a new framework for FDI that offered a number of tax exemptions, from income tax to import levies, for new projects supported by FDI.

Qatar had a total of 1.9 million square meters of organized retail space by the end of 2019, a considerable increase from the 1.6 million square meters at the end of 2018. Between 2015 and 2018 the country added 688,700 square meters of retail space.

Some of the largest malls in Qatar are the Villaggio Mall, City Center Mall, the Gate Mall, Lagoona Mall, Doha Festival City, Mirqab Mall, Gulf Mall, Al Hazam Mall, and Mall of Qatar. The Mall of Qatar is the biggest mall in Qatar, with 5.4 million square feet of retail space and 520 shops. 

All of these malls include top of the line retail shops from all of the world, as well as some of the region’s and Qatar’s top brands, such as QELA, Qatar’s luxury label, and Pharmakeia an organic beauty and wellness boutique. There is also Souq.com, the largest e-commerce site in the Middle East.

Qatar has initiated a military modernization program in which the Qatari government is focusing on increasing spending on military and defense. In 2019 Qatar spent $6.5 billion on defense, and the government is expected to expand their defense budget to $8.8 billion in 2024, which is a 5.2% annual growth rate.

Qatar is also projected to continue to be one of the quickest growing defense markets in the Middle East over the next 10 years. This is due to its underdeveloped defense sector. Between 2013-2017, Qatar bought most of its defense products from American companies, with US companies accounting for 2/3 of Qatar’s defense imports. The biggest defense purchase for Qatar was aircrafts, which accounted for over 30% of all defense purchases, followed by missile systems and armored vehicles. 

Al Udeid Air Base is the largest US base in the Middle East, with over 10,000 soldiers stationed there. It is the headquarters for the US Central Command, US Air Force Central Command and the Forward Command Center for US Special Operations. Al Udeid is positioned in an advantageous location, centrally located within the Middle East, with 80% of aerial refueling in the region taking place there.

A vital step in defense spending is the $3 billion expansion ($1.8 billion already completed) of Al Udeid Air Base. This expansion will include more recreational facilities and build family compounds for more than 200 officers, which in turn will promote the enduring US presence in Qatar. Established in 2000, As Sayliyah Army Base stores reserve equipment for CENTCOM to be used in Afghanistan and Iraq. Qatar also has ambitions to expand its naval forces from 3,000 to 7,000 by 2025.

As of January 2021, Qatar has $25 billion in active US Foreign Military Sales (FMS) and a predicted $40 billion in the next five years. Some of the major entities in the Qatari defense industry are Raytheon, Boeing, Lockheed Martin, Northrop Grumman, Honeywell, and Barzan Aeronautical.

The media sector in Qatar is growing and has a promising future. The two major newspapers in Qatar are Gulf Times, which was founded in 1978, and Al Raya, which began circulating in 1979. Gulf Times competes in the English language market with The Peninsula, which was founded in 1996, and the Qatar Tribune, which began publication in 2006, whilst Al Raya competes with Al Sharq, founded in 1985, and Al Watan, founded in 1995.

Qatar’s international broadcasting segment, however, is more developed and well established, particularly following the launch of Al Jazeera in 1996. It has grown to become a major outlet for such things as news, current affairs, and entertainment, and broadcasts to over 220 million households in more than 100 countries. Al Jazeera has more than 70 bureaus and 3000 staff worldwide. It has a wide variety of networks, including Al Jazeera English, which commenced operations in 2006; Bosnia and Herzegovina based Al Jazeera Balkans, which was founded in 2011 and is offered in the Bosnian, Serbian, and Croatian languages; and Al Jazeera Turk, which is based in Istanbul. Al Jazeera’s North American channel, Al Jazeera America, began operations in August 2013, and garnered multiple awards for journalism before disbanding in April 2016.

Qatar also recently created “Media City”, an organization that was founded for the purpose of promoting media-related activities in the country. Similar to the Qatar Free Zones, Media City is established under different laws and offers special concessions to the companies within it. Qatar’s Media City is focused on three different types of media: TV channels, publications, and social media. They have attracted more than 33 different news outlets and continue to search for more partners.

Qatar is investing in their sports industry and is becoming an internationally known sports hub. With that in mind, Qatar is looking to establish a $20 billion sports sector by licensing 150 sports companies before the opening kickoff of the 2022 FIFA World Cup. Some of the types of companies that Qatar is looking to attract are sports service companies, legal companies, education and training, sportswear and equipment.

By establishing the Sports Business District, Qatar hopes to attract multinational sports companies that can take advantage of a number of incentives and service packages.

Qatar already has a large presence of Sports in the country with amenities such as Aspire Zone, Aspire Academy, Aspetar Orthopedic and Sports Medicine Hospital, and the eight stadiums being built for the FIFA World Cup. Aspire Zone is a 2.5 square kilometer sports complex with Khalifa International Stadium, Hamad Aquatic Center and Aspire Zone, the world’s largest multi-purpose sports hall. 

Qatar also hosts a number of major international sporting events including the ATP Qatar Open, the WTA Tour Tennis Championships, the Qatar Masters, the FIM Moto Racing World Championships, the FEI Equestrian Global Champions Tour, the IAAF Diamond League, IHF Handball Super Globe, and the FIVB Club World Championships. 

In preparation for the 2022 FIFA World Cup, Qatar has also hosted the 2019 and 2020 FIFA Club World Cup. 

Qatar has also promoted itself further in the sport of soccer. Qatar Airways sponsors teams such as AS Roma (Italy), Boca Juniors (Argentina), Paris Saint Germain (France), FC Bayern Munich (Germany), Al Saad SC (Qatar), and K.A.S. Eupen (Belgium). Qatar Airways is also a FIFA marketing partner. FC Barcelona has also previously been sponsored by Qatar Foundation and Qatar Airways. 2011, Qatar Investment Authority bought Paris Saint Germain, turning it into one of the premier soccer teams in the world.

Qatar is the largest producer of liquified natural gas (LNG) in the world. Qatar produces 77 million tons per year. In 2019, His Excellency Saad Sherida Al Kaabi, Minister of State for Energy Affairs, and Deputy Chairman and President & CEO of Qatar Petroleum, confirmed gas reserves of Qatar’s North Field were 1,760 trillion standard cubic feet, making it the largest natural gas reserve in the world.

In February 2021, QatarEnergy (QE), previously Qatar Petroleum (QP), signed a contract for the North Field Expansion Project. Upon its completion in 2026, phase one will see their LNG production jump from the current output of 77 million tons of LNG per year to 110 million tons per year by 2026, a 43% increase. By 2027, phase two will also be complete and will increase production even further to 126 million tons per year. This will be a 64% increase from the current production. 

The North Field Expansion will also include production of 5,000 tons of ethane per day, 260,000 barrels of condensate per day, 12,000 tons of liquified petroleum gas per day, 1,800 tons of sulfur per day, and 20 tons of helium per day.

Established in 2009, the Golden Pass LNG Terminal is a liquified natural gas terminal and regasification facility in Sabine Pass, Texas. QatarEnergy (QE) has a 70% stake in the terminal. With the capacity for 15.6 million metric tons of LNG per year, it is one of the largest liquified natural gas terminals in the world. The Golden Pass Terminal is located at one of the only deep-water ports in the U.S. Gulf Coast.

In 2018, QE, previously QP invested $18 billion into the US energy sector: $10 billion went to the Golden Pass Terminal, while $8 billion went to a petrochemical plant on the coast of Texas.

The US also has several major oil and gas companies and engineering companies involved in Qatar’s LNG sectors. Some of these include Chevron, ConocoPhillips Chemical Company, Exxon Mobil and Zachry Group.

In 2018, petrochemical products exports from Qatar totaled for approximately $72,491,897,830; This is 86% of the country’s exports. As for imports, the United States is Qatar’s largest partner. Qatar imported $6,156,825,048 from the US in 2018, which is nearly double that of Qatar’s next largest import partner.

The human health and social work industry added over $4 billion to the Qatari gross domestic product. Out of the 19 universities in Qatar, 2 of them are for medicine. There is the Medical School at Qatar University and Weill Cornell Medicine – Qatar. Qatar continues to focus on health and expand. From 2016 to 2018, there was an increase in 4 hospitals from 16 to 20. In turn there was also a 1,200-hospital bed increase to over 3,500, and an increase of nurses by nearly 4,000, up to 21,000 nurses. In Qatar there are also approximately 9,000 doctors.

The Qatari government allotted $6.23 billion and $6.2 billion to the health sector in 2019 and 2020, respectively. However, even though there was a slight drop, the health sector is projected to grow by 2.2% per year until 2022. Qatar has five health centers, in Al Wakrah, Al Mashaf, Al Saad, Al Khor and Ain Khaled, all of which will be receiving expansion. Additionally, there are plans to build more healthcare centers in Qatar.

Some of Qatar’s largest healthcare providers are the International Medical Centre, American Hospital Clinics, Al Ahli Hospital, Doha Clinic Hospital, and Sidra Medical and Research Centre.

With only one local producer of pharmaceuticals, Qatar Pharma, the country is highly dependent on imports. There are also no regulations on pricing of medicines, making pharmaceutical prices in Qatar some of the highest in the MENA region. In 2018, the pharmaceutical sector was valued at more than $537 million, with 4/5 of Qataris using branded medicines over generic medicines.

 The majority of pharmaceuticals are imported via Pharma Express, which is operated by Qatar Airways Cargo.

Due to Qatar National Vision 2030, the 2022 FIFA World Cup and the expansion of its liquified natural gas production, Qatar’s construction industry is expected to continue to grow substantially over the next several years.  Qatar’s construction sector is predicted to grow over 8% annually until 2025. In 2018, construction added $28 billion to the country’s GDP.

Qatar is investing heavily in developing infrastructure and construction projects. Over $220 billion is being invested into its road network, FIFA World Cup stadiums and facilities, hotels, and leisure and recreation projects.

For the 2022 FIFA World Cup had to renovate one stadium and construct seven others, all of which will be completed in 2021. In total, Qatar has invested $6 billion in the stadiums and facilities for the World Cup, but this does not include anything else.

Under Qatar National Vision 2030, Qatar has planned $85 billion in construction projects that it is preparing to commence. As of mid-2020, roughly $9 billion of projects are under study, $32 billion worth of projects are in tendering, and $44 billion worth of projects are in the design phase. Approximately $12 billion of this is dedicated to the oil and gas industry.

Some of the major construction companies in Qatar are QD-SBG Construction, Gulf Contracting Company, HBK Contracting Company, AlJaber Engineering, and Qatari Diar. 

The financial services sector is one of Qatar’s most fruitful industries in its economy, adding approximately $14.3 billion to the country’s GDP in 2018. There is a major influx of investments continuing to flow into Qatar. 

In 2019, Qatar Financial Centre reported a 33% increase in members in just the one year, to 816 total members. In 2019, the Central Bank of Qatar saw 24% growth in revenue and a net profit gain of 21%, both of which were the best in the bank’s history. Ahli Bank also had an increase in assets, up $1 billion or 8.7% from the previous year. In the same year, Al Khaliji’s assets grew by $500 million, its revenue grew by $11 million, and it had a gain in net profits of 6.2% or $10 million. 

As the overall banking sector has grown, so has the Islamic banking sector. Qatar Central Bank reported that Islamic banks saw a 10.3% CAGR increase compared to a 9.8% increase in conventional banks from 2012-2018. Furthermore, from 2015-2019 islamic financial service institutions recorded an 8% increase in assets overall. According to the Qatar Financial Centre, investment portfolios of Islamic banks had a higher rate of investments in Qatar than conventional banks, a 19% to 9% comparison. Two examples are Qatar Islamic Bank and Masraf Al Rayan. In 2019, both banks had an approximate increase of 11% in financing and deposits, and had assets grow by about $3 billion. 

Since the 1960s domestic insurers have had control of Qatar’s insurance market. However, there still are not that many insurance companies; just eight local and four foreign firms. Qatar has had the fastest growing insurance sector in the GCC from 2013-2018. In that time frame, the country’s compound annual gross rate (CAGR)  increased by 16%. From 2019-2024, it is estimated that Qatar’s insurance sector will grow by a CAGR of 2.4%. Economic advancement, population growth and infrastructure development are all set to drive this expansion.

FinTech is also being promoted in the country. Through initiatives from QDB, QFC, and QCB, Qatar has set itself up to be a regulatory sandbox, making it easier for FinTech companies to establish themselves and thrive in the country. One major initiative is the Qatar FinTech Hub (QFTH). QFTH has an incubator and an accelerator program. While the incubator is for new startups and the accelerator is for established companies, both are set up to nurture and grow FinTech companies in Qatar, with aspirations of becoming a regional leader in FinTech.

Qatar also has one of the region’s leading stock exchanges. Qatar Stock Exchange (QSE), established in 1995 as the Doha Securities Market, supports Qatar’s economy by providing a venue for capital raising for Qatari companies as part of their corporate strategy and giving investors a platform through which they can trade a variety of products in a transparent and efficient manner. With companies 48 listed in the QSE, it has been a member of the World Federation of Exchanges since 2007.

Qatar’s largest banks are Qatar National Bank, Qatar Islamic Bank, Commercial Bank of Qatar Doha Bank, Masraf Al Rayan (merging with Al Khaliji), Qatar Islamic International Bank, Al Khaliji, and Ahli Bank Qatar. Qatar National Bank is by far Qatar’s largest financial institution, with more $200 billion in total assets than the second largest bank in Qatar, Qatar Islamic Bank.