(MENAFN- The Peninsula) DOHA: The State Cabinet in its weekly meeting yesterday approved the draft law organising investment of non-Qatari capital in the economic activity.
The draft law is to replace Law No. 13 of 2000 organizing the investment of non-Qatari capital in the economic activity and aims to keep pace with modern developments in the field of investment.
The non-Qatari invested capital means whatever is invested by a non-Qatari citizen in cash and/or in-kind and rights of monetary value in the Qatar including: Cash transferred to the State through banks and licensed financial companies; Assets in kind imported for investment purposes, in accordance with the provisions of the Law; Profits, revenues, and reserves accumulated from the investment of non-Qatari capital in any project if added to the capital of this project or if invested in any of the projects permitted under the provisions of the present Law; Moral rights such as licences, patents and trademarks registered in the country.
Under the provisions of this draft law, non-Qatari investors may invest in all sectors of national economy up to 100% of project capital, provided that they have a Qatari services agent. In the case of a Qatari partner, this partner is an agent for the services of that company.
Non-Qatari investors may own up to 49% of the capital of companies listed in Qatar Exchange, after the approval of the ministry on the proposed percentage in the article of association. Foreign investors may obtain even more than 49% of a company, subject to the approval of the cabinet and based on a proposal by the minister. Citizens of GCC member countries are treated as Qatari citizens when it comes to the ownership companies listed in the Qatari stock market.
The provisions of the law are not valid for companies or individuals that the State provides the right to exploration, use or management of a natural resource based on a special agreement or a franchise. Unless the new provisions do not contradict with the special agreement or franchise.
The second exception are for companies that the government, or other public institutions, establishes or contributes to the equity of in partnership with non-Qatari investors.
The law included many investment incentives. It also does not affect tax breaks or other incentives currently offered to companies. Those companies would also maintain those incentives for the duration of their contracts.
Those seeking an appeal, according to the new draft, must do so within 15 days of the verdict of the first committee.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.