Foreign investment in Qatar - Research Paper Example

y powers vested with the Ministry of Finance, Economy, and Commerce of the state to ensure that the investors and their activities do not cause any harm to the overall national development plan envisioned by the council of ministers of Qatar. As per this law, all sectors of national economy all open for foreign investors provided they have one or more Qatari partners who own 51% or more of the shares of the capital invested, thereby ensuring that the decision making authority lies with the latter (“Qatar’s Investment Law,” 2000).

It also requires the company to be appropriately incorporated as per the provisions of the law of the state. Nevertheless the Government has identified certain sectors in which the foreign investors are free to pump in capital exceeding 49%, and up to 100% by themselves (“Foreign Investor,” n. d). These sectors include: However this requires a decree of the minister who shall issue the same provided the projects go hand in hand with the development of the state. Preference is also given to projects that may result in “optimum utilization of local raw materials, industries set up for export of products, or for introducing new products, employing new technologies in the state” (“Doing Business in Qatar,” 2012) Qatar has been open to foreign investment in-line with the global economic trend, though not without its reasonable share of restrictions implied upon the investors so that the economic activities are in line with the overall development plan of the State.

The restrictions are in the form of secluding a few sectors from foreign investments which include banking sector, insurance, and real estate (“Investment Incentives”, n. d.). A close look reveals that these are the sectors that will have a direct impact upon the market and keeping them free of foreign investments will ensure that the indices are not pliable from outside the State, thus protecting the autonomy and financial integrity of Qatar. Apart from