Qatar to Draft New Laws Aimed at Attracting Foreign Investment

Qatar is preparing to implement three new laws as part of a comprehensive legislative review aimed at enhancing the country's appeal to foreign investors, according to the country’s Minister of Commerce and Economy, Sheikh Faisal bin Thani Al Thani.

In an interview with Reuters, Sheikh Faisal revealed that the upcoming legislation will include a bankruptcy law, a public-private partnership (PPP) law, and a revised commercial registration law. These efforts are part of a larger initiative to modernize regulations that impact foreign investment across various sectors.

“We’re looking at 27 laws and regulations across 17 government ministries that affect 500-plus activities,” Sheikh Faisal explained, highlighting the scope of the legislative overhaul. He further noted that both the bankruptcy law and the public-private partnership law are expected to be drafted by the end of March.

Qatar, a global leader in liquefied natural gas exports, has set an ambitious goal of attracting $100 billion in foreign direct investment (FDI) by 2030. This target is part of the Gulf nation's national development strategy, updated last year. However, Qatar has significant ground to cover to meet this objective, as its FDI inflows remain well below those of its regional peers.

For comparison, Saudi Arabia—also targeting $100 billion in FDI by 2030 under its own investment strategy—reported FDI inflows of $26 billion in 2023 following changes to its FDI calculation methodology. Meanwhile, the United Arab Emirates (U.A.E.), widely regarded as the Gulf's commercial and tourism hub, attracted over $30 billion in FDI during the same year, according to the United Nations Conference on Trade and Development.

Qatar, on the other hand, faced a challenging year in 2023, recording negative FDI inflows of $474 million, a stark decline from the $76.1 million in inflows registered in 2022. Negative inflows indicate that disinvestment exceeded new investments within the country.

While Qatar offers various incentives to foreign investors, such as free zones, a favorable tax environment, and long-term residency schemes, it lags behind Saudi Arabia and the U.A.E. in terms of regulatory reforms and business-friendly legislation. Sheikh Faisal’s proposed laws aim to address these gaps and help Qatar compete more effectively in the region.

The introduction of these new laws aligns with Qatar's broader efforts to invigorate its private sector and reduce reliance on government-funded economic growth.

Sheikh Faisal, who joined the government in November 2024, brings extensive experience from his tenure at Qatar’s $510 billion sovereign wealth fund, the Qatar Investment Authority, where he most recently served as Chief Investment Officer for Asia and Africa.

This legislative push marks a critical step in Qatar’s strategy to create a more competitive and attractive environment for foreign investors, fostering sustainable growth across its economy. 

By fLEXI tEAM