Qatar sees surge in FDI in 2022, according to IPA Qatar Annual Report
18 May 2023
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Booming FDI ecosystem witnessed USD 29.78 billion in capital expenditure and 13,900+ new jobs created across 135 FDI projects in 2022
18 May 2023, Doha – Qatar: The Investment Promotion Agency Qatar (IPA Qatar) released its 2022 Annual Report today, highlighting significant growth in the country’s foreign direct investment (FDI) Capex, and new projects and jobs created, putting Qatar at the forefront of FDI attraction globally and regionally.
Qatar marked substantial success in 2022, achieving USD 29.78 bn in FDI capital expenditure. Backed by the country’s strong and stable economic growth and attractive investment prospects, 135 new FDI projects were recorded, creating 13,972 new jobs in 2022. This represents almost 25 times the value of FDI projects from the year before and a doubling of jobs created compared to 2021. The new jobs spanned across diverse sectors, including the oil and gas, software and IT, as well as business services and automotive OEM sectors. The report further reveals that over 800 new foreign commercial establishments were initiated across the business licensing platforms.
Leveraging the global spotlight on Qatar brought on by the country’s hosting of the first FIFA World CupTM in the region, IPA Qatar adopted a targeted multi-channel marketing approach to promote Qatar’s attractiveness as a rapidly growing international business hub. This led to a remarkable surge in engagements across key markets, accomplished through 85 impactful business events and productive meetings, involving investors, trade delegations, and other important stakeholders. IPA Qatar actively pursued its objective of showcasing lucrative investment prospects within the country.
The Agency also established and expanded key partnerships with organisations from the region and globally, including Iberdrola, Microsoft, Invest India and Business France, among others. Additionally, IPA Qatar released its first multilingual ‘Guide to Investment’; three ‘How-to’ guides for setting up business, hiring and living in Qatar; as well as 12 in-depth sectoral studies, along with reports and policy papers, to bolster the local investment environment. In line with its efforts to enhance the investment landscape, IPA Qatar also launched the Invest Qatar Gateway platform, a digital resource that connects foreign investors with business opportunities and facilitates the growth of businesses in Qatar.
H.E. Sheikh Mohammed bin Hamad bin Qassim Al Abdullah Al-Thani, Minister of Commerce and Industry and Chairman of IPA Qatar, said: “Last year saw us forge ahead on multiple fronts and across sectors and geographies. It has demonstrated the resilience of the country’s economy, established through a long-term strategy and decades of prudent investments. This year also offered invaluable opportunities for us to spotlight Qatar’s unceasing potential as an investment destination of choice and to further our engagement with partners and stakeholders worldwide.”
Sheikh Ali Alwaleed Al-Thani, CEO, IPA Qatar, commented: “2022 was a solid steppingstone for IPA Qatar, marked by substantial growth and deepened engagement with the international investment community, that saw us partner with numerous organisations in line with Qatar’s economic diversification efforts. We continue to improve and develop our services to make the Invest Qatar brand an embodiment of excellence and a long-term partner for investors. Building on last year’s successes, I am confident that we will support prospective investors into Qatar through a growing number of opportunities in 2023 and beyond."
Download the full 2022 IPA Qatar Annual Report.
Qatar’s Bright Economic Outlook
Qatar has been named number one on the "FDI Standout Watchlist 2023" by fDi Intelligence due to its robust economic and investment outlook for the year. Qatar's economy, driven by strong non-hydrocarbon sectors such as construction, trade and transportation. Qatar’s GDP is expanding rapidly, jumping from USD 125.12 bn in 2010 to USD 237.79 bn in 2022. This is expected to continue into 2023. The International Monetary Fund (IMF) predicts that Qatar's fiscal balance prospects will also remain strong in the coming years. Similarly, the latest “Investment Monitor’s FDI Report 2023: A Focus on the Middle East & Africa” shows that Qatar continues to strengthen its position as a top destination for foreign investment, with a remarkable six-fold increase in FDI. It is now ranked as the 5th largest inbound FDI market in the Middle East and Africa.
Despite global economic uncertainty in 2023, some regions are poised to see positive FDI growth. According to fDi Intelligence, the MENA region, along with India, is predicted to uphold its strong economic and investment activity throughout the current year. Countries with resilient growth drivers, such as a strong digital infrastructure and an open market, are expected to see the most benefits from foreign direct investment.
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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
Introducing the first digital platform for investors in Qatar
The Invest Qatar Gateway enables you to:
- Find companies to partner with
- Access real business opportunities in the public and private sectors
- Find resources to support the growth of your business in Qatar
- Connect with the Invest Qatar team to set up your business and facilitate introductions
Looking to start and expand your business in Qatar?
Companies Directory
- 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
- Showcase your locally established company and gain exposure to other companies and foreign investors
Support Services
- 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
- Feature your business services and grow your customer base
Tenders
- Gain access to public sector tenders from Monaqasat
- Find tenders posted by private companies on the platform
- Post your tenders to attract bidders
Opportunities
- Explore public-private partnership (PPP) opportunities in Qatar
- Get matched with relevant opportunities based on your company profile and preferences
- Post opportunities to find business partners or to raise or invest capital
Investor Relations
- Connect with the Investor Relations team at Invest Qatar through messaging or book a meeting
- Receive assistance in setting up and growing your business in Qatar
- Get matched with relevant business opportunities based on your industry and interests
Insights
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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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Access Qatar
Access Qatar is designed to streamline the journey of foreign investors in Qatar by offering premium and fast-tracked services including but not limited to
- Dedicated support prior to arriving in Qatar for visa and entry requirements
- Customized information packs
- 24/7 digital chat service
- And other supporting services
Contact us for more information