Qatar is one of area which is leading the market in the Middle East. The country is pretty impressive to do many operations in many sectors. However, Qatar investment challenge becomes something they need to face since the economy was going down fall because of pandemic.
Hence, the government has planned several regulations and restructured the previous ones. The purpose is facilitating new investors that come post-pandemics. It will ease the investment because the information they provide has a big impact for the country’s growth.
Qatar Investment Challenge
Companies which will establish their ground in Qatar have to incorporate to the local law. Thankfully, the law is quite flexible for overseas companies and the cost is pretty low. However, the companies are obliged to register and have local sponsor from Qatar local businesses.
Why does it become a challenge? Normally, the companies have to split the profit and it’s very large number of percentagea, from 49% to 51%. The companies will share based on the agreement they have with the local partnership. It’s the reason why foreign companies must be careful.
Other problems that usually happen is disputes between the foreign and local company. The dispute occurs because of contracts, advice, and some agreements that might not be in contract. The companies usually will follow the local regulations to stay relevant and competitive.
Bureaucracy in Qatar is in a very high level in all sectors. They are very strict because of government rules, transparency, and fluctuation of consumer spending behavior. Even for some areas in Qatar, the challenge is about environmental matters because the regulation isn’t standardized.
Investment Opportunity in Qatar
The good side from the country is Qatar investment opportunity and wide ranges that foreign companies could pick. Though Qatar is well-known as oil and gas country, there are many sectors which can be tried from healthcare, media technology, manufacturing, financial service, consumer and retail.
The country could assist many industries and is identified as a sustainable area to grow the investment. With good strategy, the growth is impressive. Therefore, Qatar isn’t only about energy investment. The potential is very high to return the investment in general.
Solutions for the Challenges
Although foreign companies come to invest in energy sectors, government encourages them to invest in non-energy sectors. Domination of investment won’t happen in energy anymore to boost the diversity. Government also lowers the tax, therefore it invites the investors.
For the bureaucracy, Qatar’s government regulates the specific provisions since they are the most important part. They started by restructuring tax, financing, and anti-money laundering which had been their problems over the years. The enhancement enables both sectors, from private to public sectors.
Another solution that Qatar has been dones ia developing IT infrastructure. It happens massively compared to other sectors. Nowadays, they start to ease the investors with transactions such as e-signatures, e-contracts, and digital transactions adjust to the change of consumer behavior.
As the result, Qatar becomes one of thirty investor-friendly countries in the world. Investors in many sectors support the growth of business by overcoming Qatar investment challenge. The trust they have makes the country collaborate with multi national and unicorn companies in the world.