Scaling Qatar’s Startup Ecosystem
05 October 2022

All over the world, startups are experiencing a rapid economic uptick. Led by the tech sector, which has grown 2.3 times more than their non-tech counterparts since the pandemic, startups are on the rise with record amounts of funding funneled into new, innovative ideas. In 2021 alone, a record 540 companies achieved unicorn status with 113 ecosystems producing at least one billion-dollar-plus behemoth.
Within this growing plethora of opportunities, Qatar’s startup ecosystem offers a promising home to many entrepreneurs. The FIFA World Cup 2022™ host is undergoing rapid development, currently ranking 4th globally in SME financing – an indicator of its commitment to startups.
While Qatar, ranked by the World Bank as the 4th wealthiest country in the world on a GDP (PPP) per capita basis, did not build its economic prowess on startups, it is acutely aware of their crucial role in economic prosperity. Particularly as the country is moving away from hydrocarbon dependency towards a diversified economy.
A single job at a startup creates five other indirect jobs in the market. Startups encourage companies to innovate, increase productivity and revenue, and form partnerships to work towards digitalisation and sustainability. Studies have also shown that the number of startups in an economy is directly proportional to GDP growth.
The startup economy is worth more than $3.8 trillion today, more than the individual GDP of most G7 economies. Year after year, investments in early-stage and growth-stage companies are reaching new highs.
While global venture investments reached $300 billion in 2020, in the Middle East, venture capitalists only invested $1 billion, demonstrating that this is an underrepresented market with huge potential. For Qatar, further development of its startup ecosystem will accelerate its transition to the socio-economic standards set out in its national development plan, the Qatar National Vision 2030.
Essentially, a successful startup ecosystem requires three elements: talent, capital and market. Big ideas from academia, science, and business are turned into marketable products by investors and, eventually, patronised by the consumer.
Qatar has already laid the foundation for such an ecosystem.
It has built a robust infrastructure required to support business growth, from ecological sustainability to ICTs. The country’s world-leading educational institutions, including the Qatar campus of Carnegie Mellon University (CMU-Q) and Hamad Bin Khalifa University (HBKU), lead research and development and promote entrepreneurship.
Business incubators and accelerator centres, from Qatar Fintech Hub (QFTH) to Qatar Science and Technology Park (QSTP), support the government’s efforts to create a sound startup ecosystem, inviting promising entrepreneurs from across the world to start their incubation journey in Qatar. Their incentives range from cash injections of $600,000 to scale businesses up to incorporation in the QSTP Free Zone.
On the macro level, the SMEs sector accounts for approximately 97% of total companies in Qatar and 31-34% of total employment. Perhaps unsurprisingly, FinTech startups secured the most venture capital deals last year. Over the years, the country’s startup environment gradually transformed into a full-fledged ecosystem. At its bedrock lies Qatar’s entrepreneurship ecosystem, which ranks 3rd in the Arab world and 8th globally.
The Investment Promotion Agency Qatar’s recently published Qatar’s Startup Ecosystem report, which contextualises the current state of Qatar’s startup ecosystem, and examines regional as well as global trends in the sector to identify common elements and strategies that can further improve Qatar’s ecosystem. The report also includes a comparative analysis to summarise the key features of Qatar’s startup ecosystem.
The result is remarkable, untapped growth potential.
With fewer than 1,000 startups, Qatar is still in its initial phase of the four-pronged Ecosystem Lifecycle Model: Activation, Globalisation, Attraction, and Integration. With its eyes set on the Globalisation phase, Qatar is investing in a fully-fledged startup support network that can generate a 2-4% GDP boost by 2033, nearly 40,000 new jobs, a diversified economy, and increased FDI through global venture investments.
Next to global startup giants such as the US, UK, China, and Germany, Qatar is a small country with only 2.8 million people. However, the experience of countries such as Sweden demonstrates that population size does not determine success. Qatar can create a more substantial market base by developing a labour force that leans on high-skilled labour. Through initiatives like Qatar Development Bank’s Tasdeer Promotion and Tasdeer Development, it is already setting substantial capacity-building incentives for non-hydrocarbon exporters.
What’s more, social attitudes to entrepreneurship are changing – for the better.
Today, 82% of the Qatari population believes that entrepreneurship is a good career choice. The country is meeting this paradigm shift with new programmes that provide training and entrepreneurial skills, such as QSTP’s Arab Innovation Academy, the first and most extensive entrepreneurship program in the pan-Arab region.
Qatar continues to gain momentum as a rising startup hub. A recent partnership between Qatar Development Bank and Startup Genome, a leading research and policy advisory organisation for governments and private institutions, aims to create more opportunities for local startups to get national and international exposure.
Meanwhile, a dedicated Sport Accelerator and Qatar SportsTech offer opportunities for sports businesses looking to establish themselves in Qatar and to match with leading brands and organisations. Building on the country’s upcoming role as host of FIFA 2022, Qatar is leveraging its status as a global sports business hub to create unmatched business and investment opportunities.
Qatar’s commitment and investment have created an, albeit young, innovative startup ecosystem that is eager to offer entrepreneurs across all industries, from sports and ICT to sustainability and logistics, a soft-landing spot. With it comes country-wide venture funding that hit a record of QAR 69 million last year, growing by 92% from 2020, and unparalleled market access to more than 25 economies worth $6 trillion in combined GDP – all within 3,000 km.
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Setting up your Business in Qatar
Here are some key processes to know as you start your investment journey in Qatar.
Businesses can incorporate and operate through Qatar’s licensing platforms including:
- Ministry of Commerce and Industry (MOCI)
- Qatar Financial Centre (QFC)
- Qatar Free zones Authority (QFZ)
- Qatar Science and Technology park (QSTP)
- Media City
Upon the approval of the Ministry of Commerce and Industry (MOCI) and obtaining the commercial registration and license from relevant authorities, businesses can start their operations.
Core focus sectors across platforms vary:
- MOCI oversees commercial and industrial activities
- QFC is a leading onshore business and financial centre providing a world-class platform for domestic and international companies to set up or expand their business in Qatar
- QFZ supports companies in key sectors including emerging technology, manufacturing and chemicals, trade and logistics and maritime activities
- QSTP provides multiple programmes and infrastructural and tech-based support system for companies
- Media City focuses on the growth and development of the media industry with a focus on traditional and digital media, technology, communications, research and development
For registering under the MOCI, for an LLC company, the following are the main requirements:
- Application to incorporate a company
- Commercial registration attested by competent authorities and translated into Arabic
- Shareholders/board resolution
- Model of the project work plan
- Trade license
- Certified copy of memorandum and articles of association attested and translated into Arabic
- Power of attorney
For establishing an LLC company under MOCI, the application fee is around QAR 1,500 (minimum), and the license fee is around QAR 1,020 (minimum).
Hiring
Hiring in Qatar
Critical information you may need regarding the country’s talent landscape
The country provides several facilities for recruitment in both high skilled and low-skilled jobs. These include various globally recognised job sites, services, and agencies, allowing employers to recruit talent at the national, regional, and international levels.
- Employers must enroll their non-Qatari employees and their family members in the mandatory health insurance scheme through contracts concluded with insurance companies registered with the MOPH.
- Qatar’s Law No.17 of 2020 introduced the non-discriminatory minimum wage applying to all workers, with a basic monthly wage of QAR 1,000 ($275 USD), and an allowance of at least QAR 300 and QAR 500 for food and housing respectively.
- On average, the maximum working hours are 48 per week. During the month of Ramadan, it is reduced to a maximum of 36 hours per week or 6 hours per day. Workers are entitled to at least one day of rest per week.
The average monthly wage for the total number of workers amounted to nearly QAR 12,000.
Average annual salaries of skilled workers including data scientists, software engineers, and financial analysts, range from USD 60,000-100,000
The Ministry of Interior (MoI) set up visa centres to provide seamless and efficient service for residency procedures on its behalf in eight countries - India, Sri Lanka, Pakistan, Bangladesh, the Philippines and Nepal. Individuals must complete biometric enrolment, medical examinations, and sign work contracts in their home countries through the Qatar Visa Center (QVCs) before coming to Qatar.
Work permits are issued for a minimum of one year and a maximum of five years approved by the Ministry of Labor (MoL). The MoL offers an e-service for the issuance and renewal of work permits for workers.
There are over 32 higher education institutions in Qatar, with world-renowned universities and local training centres for upskilling talent.
Qatar has a vibrant knowledge ecosystem and rich culture offering:
- Innovative and entrepreneurial: 1st in Arab world in Global Entrepreneurship Index
- World-leading digital infrastructure: 4th in 5G Leadership Index with 99% internet penetration
- 15 renowned international universities and institutes at Qatar Foundation’s Education City
Taxation
Taxation in Qatar
Key for businesses and individuals seeking to understand the tax system in Qatar.
- Under Law No. 24 of 2018 (the Tax Law), non-Qatari nationals and Qatari and/or GCC nationals who are not residents in Qatar are subject to corporate income tax at a flat rate of 10%.
- A different tax rate applies to entities undertaking oil and gas / petrochemical operations, or where the activities are carried out under an Agreement with the Government. Such entities are generally taxed at a rate of 35% or higher.
- A legal entity incorporated in Qatar, which is wholly owned by Qatari and/or GCC nationals that are tax resident in Qatar, is exempt from corporate income tax.
All taxpayers operating businesses in Qatar must obtain tax cards from the General Tax Authority (GTA).
Applications should be submitted within 30 days from commencing activities or registering with the Ministry of Commerce and Industry Commercial Register.
A body corporate is considered resident if it is formed and registered under Qatari law or if it conducts business through a head office or place of effective management in Qatar.
There are no taxes imposed on employed individuals’ salaries, wages and allowances in Qatar.
Currently, Qatar imposes no VAT or sales tax on operations in Qatar.
Qatar imposes excise tax on the following goods at their respective rates:
- Tobacco and its products: 100%
- Energy drinks: 100%
- Carbonated drinks: 50%
- Special-purpose goods (consumed under specific conditions and authorisations): 100%
Regulations
Laws and Regulations
Information on business laws and regulations
The General Authority of Customs (GAC) is the competent government authority responsible for monitoring and implementing all import and export regulations, working closely with other public and private agencies to ensure compliance with Qatar’s customs legislation.
In alignment with the GCC Customs Union, Qatar imposes a 5% ad valorem tariff on the value of cost, insurance and freight (CIF) invoice of general cargo goods, excluding those exempted by law provisions. The tariff may also include a fixed amount levied on each unit of the goods. The limited tariff exceptions are:
- Records and music instruments: 15%
- Steel: 20%
- Urea and ammonia: 30%
- Alcoholic beverages: 100%
- Cigarettes and tobacco products: 100% or QAR 1,000 per 10,000 cigarettes, whichever is higher
The Qatari Labour Law enables employees to terminate their employment during their probationary period by providing a one-month notice to their employer.
The one-month notice period applies to employees who are in their first two years of service, whereas the two-month notice period applies to employees who have served longer.
TThe Commercial Companies Law provides for the following types of legal entities that may be formed and registered in the State of Qatar:
- Joint Liability Company
- Limited Partnership
- Joint Venture Company
- Public Shareholding Company
- Private Shareholding Company
- Partnership Limited by Shares
- Limited Liability Company
- Holding Company
Foreign Investment Law (Law No. 1 of 2019) allows the establishment of 100% foreign-owned companies, with various incentives and benefits for non-Qatari investors as outlined by the law.
The 100% foreign ownership law does not apply to the banking and insurance sectors, companies engaged in the exploitation of natural resources, commercial agencies, and any other sectors decided by the Council of Ministers.
Supports
Qatar creates a supportive environment for foreign investors.
With its strong economic foundation, future-ready infrastructure, and unparalleled connectivity, Qatar is rapidly transforming into an extraordinary hub that offers a promising outlook and creates a lucrative world of opportunities for today's ambitious investors.
Qatar has created a business-friendly climate for investors with offerings including:
- Up to 100% foreign ownership across various sectors
- 10% corporate tax rate
- Zero tax on personal income
- Expanded economic zones (with Tax Holidays)
- Double Taxation Agreements (DTA) with 80+ countries
- No restrictions on profit repatriation
- Single-window registration services to simplify commercial registration
- Access to the international court for alternative dispute resolution (QICDRC)
- The foreign investment law in Qatar offers various incentives for non-Qatari investors, including land allocation, income tax exemption, customs duty exemption for machinery, equipment and raw materials, fair compensation in case of expropriation, transfer of ownership, and dispute settlement through arbitration.
The Investment Promotion Agency Qatar (Invest Qatar) oversees investment promotion activities under the Invest Qatar brand and acts as the country’s umbrella organisation for FDI attraction. As part of its mandate, Invest Qatar manages financial incentives under a centralised national incentives programme, developed to complement the nation’s value proposition to attract foreign investors.
Ministry of Commerce and Industry (MOCI) offers a range of investment incentives, including land allocation for foreign investment projects by way of use or renewable rent. The foreign investor has the right to import what is necessary for the establishment, operation or expansion of their investment project, and the investor may be exempt from income tax and customs duties for machinery and equipment.
Qatar Development Bank (QDB) offers a range of mechanisms—from reviewing your feasibility study and supporting you with the necessary funding to providing legal and financial advisory services—to helping you launch and run a business successfully in Qatar.
Qatar National Research Fund (QNRF)programmes provide funding opportunities in the academic, public and private sectors to foster research in priority sectors such as engineering and technology, physical and life sciences, medicine, humanities, social sciences, and arts.
Qatar Science and Technology Park (QSTP) provides multiple funding opportunities for local and international tech founders and entrepreneurs. Through the Product Development Fund (PDF), QSTP provides up to 50% of the total budget as a grant to encourage local startups and SMEs, and the QSTP Tech Venture Fund (TVF) provides source-seed funding and follow-on capital for local and international tech founders and entrepreneurs looking to scale-up in the region.
With its future-ready digital and physical infrastructures, abundant natural resources and global connectivity, Qatar is a major international hub that provides unparalleled market access, enabling international investors to benefit from an increasingly seamless flow of trade and capital.
- More than 2 billion people across 25 countries worth $6 trillion in combined GDP are located within 3000 km of Qatar
- Qatar is connected to over 140 international destinations, through Qatar Airways and Hamad International Airport (HIA)
- Hamad Port is one of the largest green ports in the world, stretching over 28.5 sq. km
Qatar offers a set of incentives for expatriate labour:
- Permanent residency opportunities
- Visa-free/on-arrival entry to 80+ nationalities
- Planned legal provisions for retirement
- Liberal immigration and employment rules
- Minimum wage and wage protections
- Laws to protect foreign workers
- Instant access to e-Government services
Gateway
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- Explore a network of companies that are already present in Qatar and learn about the services and opportunities they offer
- Request introductions to companies that you want to partner with
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- Find business support service providers that can help you set up and grow your business
- Request a service and communicate with service providers directly on the platform
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Tenders
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- Find tenders posted by private companies on the platform
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Opportunities
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Overview
A stable and resilient economy
Here are some key processes to know as you start your investment journey in Qatar.
Qatar’s stable and competitive economy has been growing at a faster rate on average than advanced economies. The country's high per capita income, vast hydrocarbon reserves, and strong economic fundamentals support its credit profile.
Early indicators are signaling robust economic activity and strong business conditions. The economy is expected to record strong growth thanks to favorable hydrocarbon prices and increased demand during the 2022 FIFA World Cup. Cup.
Qatar’s S&P rating is AA-, Moody’s Aa3, and Fitch AA-, displaying a stable outlook.
Qatar is a key contributor to global energy security as the largest exporter of natural gas globally. Qatar’s top five export partners include China, India, South Korea, Japan, and the UK.
FDI markets estimate ~QAR 4bn worth of projects in 2021, a 33% increase compared to the previous year.
In 2022, Qatar recorded the highest total investment in the region, attracting USD 23.7 bn worth of projects. According to fDi intelligence, Qatar ranked 1st globally in terms of investment momentum for 2023.
Life
Living in Qatar
Settle into your new home in Qatar
Qatar provides a wide range of accommodation options from modest to high-end, smart, and sustainable living environments. Some of the world-class central and modern living places are found in Msheireb Downtown Doha, West Bay, Lusail City, and the Pearl.
The average monthly rent for a one-bedroom apartment varies from $1,118 to $1,763. Whereas the average monthly rent for a three-bedroom apartment lies between $2,130 and $3,137.
Qatar has over 207 private schools offering a comprehensive and integrated curriculum, and over 332 private schools offering various curricula – like the International Baccalaureate (IB), British curriculum, Indian curriculum, among others.
Qatar offers a multimodal transport system, including the:
- Doha Metro, a state-of-the-art automated rail network with single fares of QAR 2 (Standard)
- Mowasalat (Karwa) Public Bus Service with fares attractively priced from QAR 2.50 - QAR 9
- Mowasalat (Karwa) Taxi Service
- Lusail Tram with single fares for QAR 2
Qatar provides world-class healthcare through 27 regional Primary Healthcare Care Corporation Centers (PHCC), 12 public hospitals run by Hamad Medical Corporation (HMC), and over 20 private hospitals and clinics.
To apply for a Qatari Driving License, you must be a resident in Qatar, at least 18 years of age.
To apply for a Qatari Driving License, simply present the required documents to the traffic departments located in driving schools.
Documents include:
- Qatari ID card and passport
- A copy of the ID card of the sponsor (if the sponsor is a person)
- A letter from the sponsor to approve the request for a new license
- 3 recent colour photographs (passport size)
The license fee is QAR 250 for non-Qataris (valid for 5 years), and QAR 300 for heavy vehicles (valid for five years for non-Qatari). Additional fees apply for driving and vision tests.
Qatar is home to an innovative and advanced banking ecosystem – offering digital and mobile banking for users to seamlessly transfer and transact online. There are around 18 banks operating in Qatar through 202 local branches and about 20 exchange companies.
To open a bank account, the following are typically required:
- - Documents including a copy of Qatar ID, and passport
- - Minimum deposit per bank requirements
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