Law & Regulation

Law No. 1 of 2019 Regulating the Investment of Non-Qatari Capital in Economic Activity

QatarForeign Investment, Foreign Exchange / Capital Controls, Companies & CorporateIn Force

The Law establishes Qatar's general framework for investment of non-Qatari capital in economic activity. It permits foreign investment across economic sectors through the statutory approval architecture and allows ownership up to 100% where approved, while preserving excluded activities and regimes governed by special legislation.

Legal Significance

What This Instrument Does

The Law establishes Qatar's general framework for investment of non-Qatari capital in economic activity. It permits foreign investment across economic sectors through the statutory approval architecture and allows ownership up to 100% where approved, while preserving excluded activities and regimes governed by special legislation. It also addresses the investment's legal form, incentives, land-use arrangements, import treatment, protection against expropriation, transfers of investment-related funds, disposal and dispute arrangements. The Law is enabling rather than self-executing in every case. A project may still require company formation, commercial registration, sector licences, land rights, procurement or PPP approvals, and contractual/government consents. Special regimes—including those applicable to particular regulated activities or designated jurisdictions—must be checked separately.

Why It Matters

The Law frames the threshold market-entry question for a foreign sponsor: whether and how the proposed ownership and activity can be approved. For infrastructure projects, it also matters to capital repatriation, land-use structuring, import of project inputs, investment protection and disposal. Its government-contract treatment can be relevant where the foreign party performs a state contract, but it does not eliminate the need to analyse the procurement or PPP route under which that contract is awarded.

Key Provisions

  • Eligible non-Qatari capital

    The forms of cash, in-kind assets and investment-derived value that fall within the statutory concept of foreign capital.

  • Foreign ownership and approval

    The general route for investment in economic sectors and approval for ownership up to the statutory maximum.

  • Restricted or excluded activities

    Activities not available through the general permission, and the need to check sector-specific or special statutory regimes.

  • Investment vehicle and registration

    The relationship between investment approval and establishment/registration of the business vehicle under applicable company and commercial-registration law.

  • Government contracts

    Treatment of non-Qatari participation connected with contracts concluded with the State, public bodies or institutions, subject to the Law's terms.

  • Land allocation and usufruct

    The framework for allocating or granting use of land needed for an approved investment; it does not itself establish title to a specific site.

  • Imports for the investment

    Treatment of machinery, equipment, raw materials or other inputs imported for the approved project under the relevant statutory conditions.

  • Tax and customs incentives

    Authority for exemptions or incentives where granted under the Law; benefits should not be presented as automatic without the required decision.

  • Expropriation protection

    Protection against expropriation or equivalent measures, subject to public-benefit, non-discrimination and compensation conditions recognised by the Law.

  • Transfers and repatriation

    Rights concerning transfer abroad of investment proceeds and related amounts through lawful financial channels.

  • Disposal and transfer of investment

    Rules governing sale, transfer or other disposal of an investment and treatment of the transferee.

  • Dispute resolution

    The statutory framework for resolving investment disputes, subject to any valid agreement and applicable jurisdictional rules.

  • Special regimes

    Preservation of regimes governed by their own legislation; the general Law should not be used to overwrite QFC, free-zone or sector-specific rules.

When You Would Use This

Foreign ownership structuring

Determining whether a proposed sponsor shareholding requires approval and whether the activity is within the general regime.

Market-entry planning

Sequencing investment approval, entity establishment, commercial registration and sector licensing.

Infrastructure bid preparation

Testing whether the foreign bidder/project company structure is compatible with the procurement or PPP process.

Government-contract analysis

Reviewing the investment-law treatment of a non-Qatari contractor while separately applying the relevant award regime.

Project-site structuring

Assessing whether lease, allocation or usufruct support may be available and what separate land instrument is required.

Import and incentives review

Identifying possible statutory support for importing project inputs or seeking tax/customs incentives without assuming automatic entitlement.

Financing and cash-flow diligence

Examining repatriation and transfer protections alongside QCB, tax, account and financing requirements.

Change of ownership or exit

Assessing disposal, transfer and approval consequences for the investor and incoming owner.

Investment-protection analysis

Locating statutory expropriation and dispute provisions within the wider contract, treaty and domestic-law framework.

InfraLex Relevance

This is Qatar's principal general foreign-investment entry point. It connects ownership, approval, corporate vehicle, site access, incentives and transfer protection—issues that recur in energy, transport, utilities, real estate and PPP investment—while making clear that sector, procurement and project-contract layers remain separate.

Legal Framework Position

  • Foreign InvestmentPrimary / Framework Instrument
  • Foreign Exchange / Capital ControlsSupporting / Related Instrument
  • Companies & CorporateSupporting / Related Instrument

Related / Implementing Instruments

Instrument Overview

Official Citation
Law No. (1) of 2019
Instrument Type
Law / Act
Source Language
Arabic
Enactment Date
7 January 2019

Official Texts & Translations

Recent Developments

  • Regulatory · 7 January 2026Cabinet approves draft amendments to Qatar's Foreign Investment Law

    At its regular session on 7 January 2026, Qatar's Cabinet examined and approved a draft law, prepared by the Ministry of Commerce and Industry, amending certain provisions of Law No. 1 of 2019 on the Regulation of Non-Qatari Capital Investment in Economic Activity. The stated aim is to strengthen factors attracting foreign investment and raise the private sector's contribution to GDP under the Third National Development Strategy 2024-2030. This is a Cabinet-level draft approval, not yet an enacted law; the specific amended provisions have not been publicly detailed.

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