QATAR: An Introduction to Corporate/Commercial
There are numerous legal and economic trends that have shaped the business landscape in Qatar, and continue to do so as it continues to evolve beyond its successful hosting of the FIFA World Cup 2022.
Qatar continues to demonstrate its role as a major player both in the global economy and in the context of geopolitical developments, particularly regionally. While the economy has historically been driven by its vast hydrocarbon resources, under the guidance of the Qatar National Vision 2030 Qatar has made significant advancements in diversification, and from a corporate perspective the legal developments over recent years – both onshore and within the various free zones – continue to encourage investment and inspire confidence that Qatar is a safe place to conduct business. On the back of economic diversification, Qatar actively promotes sectors outside of the energy industry, including tourism, finance, education, health and technology, not to mention seeking to capitalise on its demonstration of experience and competence earned through the delivery of FIFA World Cup 2022 and related events.
Qatar recognises the importance of economic diversification, focusing on fostering innovation and technology-driven industries. Through their various programmes, institutions such as the Qatar National Research Fund and the Qatar Science and Technology Park support research and development, technology transfer and the development (and sustainability) of entrepreneurship.
Important from a legal perspective, Qatar has enhanced its corporate governance framework in recent years, with significant amendments to the Commercial Companies Law coming into effect at the end of 2021 to strengthen the rules on conflicts of interest, with appropriate restrictions on senior executive management holding roles in competing businesses. From a practical perspective, the Qatari Ministry of Commerce and Industry (MOCI) has also continued to streamline processes through its Single Window Platform, which is accessible for incorporation and registration purposes, easing access whether an investor is in Qatar or abroad.
While no business, domestic or foreign, seeks to find itself in a position of dealing with an unresolvable dispute, in the event of such the Qatari authorities have also recognised the importance of efficient dispute resolution forums. Not only has the country seen continued confidence in the Qatar International Court of Dispute Resolution, which sits within the Qatar Financial Centre, but in the past couple of years there has been increased confidence in the resolution of matters before the Investment and Commerce Court, which presides over a wide range of matters relating to commercial contracts, assets and agency, together with disputes between shareholders and partners, competition law, IP rights and the operation of banks, commercial securities, financial and investment companies.
Globally, Qatar’s regional engagement is often seen through a lens of diplomatic engagement and the provision of humanitarian assistance.
The legal and economic trends that are shaping Qatar’s business landscape are a reflection of the country’s ambitious vision for sustainable growth, economic diversification and global competitiveness. Qatar’s success in hosting the FIFA World Cup 2022 pushed non-oil-related activity within the country and, while regional tensions may impact the continued strength of growth in areas such as tourism and hospitality, Qatar’s commitment to diversification generally and to the development of its legislative frameworks to support international investment continues to create a strong environment for investment and growth.