Qatar's new economic zone laws to boost economy
A draft law has been cleared by the government allowing new companies set up by a legal professional from Qatar or outside to not have to adhere to current company laws.
In a drive to diversify from its energy-based economy, Qatar's government has passed a draft law, allowing any form of company to be set up by a legal professional from either Qatar or outside, without necessitating adherence to the prevailing company laws applicable elsewhere, reports The Edge.
Nick Witty, director, Real Estate, Deloitte & Touche, Middle East explained: "Finite natural resources coupled more recently with falling oil prices means diversification into non-hydrocarbon based industries/services as a way of attracting foreign direct investment (FDI) is becoming increasingly more relevant."
He outlined that besides driving economic change by encouraging FDI and promoting international trade ties, economic zones make running business easier and increase gross domestic product (GDP) for a country.
He added: "Economic zones also promote wider trade development, which is likely to include the manufacturing sector.
"In the case of Qatar, manufacturing and technology businesses are to be the focus of enterprise zone one, located closest to Hamad International Airport (HIA)."
Qatar presently has three economic zones set up by Manataq, in Ras Bufontas, Al Karana, and Um Alhoul.
The company has been granted a 50-year concession during which it will be in charge of the management, development, operation, and maintenance of the zones. [Read more at ConstructionWeekOnline]
You must be an idiot to invest in any Arab country!
Local banks and their competencies on ground are very limited.
This is the right step in the right direction, because diversification is Qatar's future. However in absence of specialized import and export bank, things will start to move slowly, until the necessity of such a bank is felt. Such a bank would honestly be the key driver to handle the international investments and international business.