Qatar approves draft law allowing 100% foreign ownership of listed companies

By Amirtha P S, Desk Reporter
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Qatar
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The Cabinet meeting chaired by the Prime Minister and Minister of Interior of Qatar, HE Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani, approved a draft law amending some provisions of Law No. (1) of 2019 regulating the investment of non-Qatari capital in economic activity.

The draft law includes the revision of Article 7 of the law to enable non-Qatari investors to own up to 100 percent of the capital of Qatari shareholding companies listed on the Qatar Stock Exchange.

Further, the Cabinet took the necessary measures to issue a draft law on mortgaging movable funds, after the Council of Ministers reviewed the recommendation of the Shura Council on the draft law.

The draft law aims to enable companies and individuals to get bank loans with the guarantee of mortgaged movables and add to reducing the cost of loans by creating a guarantee for banks to reduce the risk of defaulting payments, thus supporting SMEs and their contribution to the country’s economy.

Among the terms included in the draft law are the provisions related to the scope of application, the establishment of the electronic register in the Qatar Central Securities Depository and the data to be recorded in the register, the establishment and enforcement of the right of the mortgage. The Cabinet approved a draft decision of the Minister of Finance to apply the requirements of substantial action to the economic activities practiced in Qatar.

Further, the Cabinet took the necessary measures to approve an agreement between Qatar and the United Nations (UN) to set up a UN office in Qatar affiliated with the Office of Counter-Terrorism (UNOCT), to establish the ‘International Hub on Behavioural Insights to Counter Terrorism’ as a UNOCT Programme Office in Qatar.

Related: Qatar MoCI adds new services to distributors’ supply program


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