Qatar’s new Foreign Direct Investment law likely to make it a hub for re-exports
Qatar is expected to pass and implement its new Foreign Direct Investment (FDI) law by the end of the year.
Once established, the special economic zones is sure to make the country a perfect hub for trade and re-exports, said Abdulbasit Talib Al Ajji, the Director of Business Development and Investment Promotion Department at the Ministry of Economy and Commerce (MEC).
The Ministry in cooperation with The Business Year, has organized a roundtable entitled “Qatar’s business climate and new FDI law” to discuss the key incentives and advantages that Qatar is offering to investors on the organizational level. #qatar pic.twitter.com/E17noKjXwR
While Qatar is going to open up almost all economic sectors to 100% FDI, the crucial sectors of banking and insurance will still need formal approval by the country’s Prime Minister, said Al Ajji, according to Gulf Times.
“The draft law that aims to attract non-Qatari capital to the country and promote economic development is ready and is expected to be launched anytime soon,” he said.”
Al Ajji said the new FDI law, in some cases, would exempt the foreign capital investments from income tax for up to 10 years. There is also a proposal to abolish taxes and customs duties on imported equipment and raw materials, reported Qatar Tribune.
He said the new FDI law would likely make Qatar an attractive re-exports hub, thanks to the country’s existing shipping lines and prospective ones to neighbouring countries.
“We’re getting to hear from companies that Qatar can be used as a hub for re-exports,” he was quoted as saying by Gulf Times.
He added that Doha could help target Iran, Iraq, Pakistan, Turkey and other neighbouring countries with a combined consumer base of more than 400m people.
Meanwhile, Qatar’s Minister of Economy and Commerce HE Sheikh Ahmed bin Jassim bin Mohammed Al Thani said Qatar, one of the fastest growing economies in the region, was an attractive destination for investments from the USA, reported Qatar Tribune.
Sheikh Ahmed said Qatar welcomed US investors who can benefit from the promising investment opportunities offered by the Qatari economy.
