Doing Business in Qatar
Do you want to expand your business into Qatar or hire employees there? Here are some key things you need to know about a Qatar expansion.
Qatar Economy Overview
Currency
Qatari Riyal (QAR)
Working hours
48 hours/week
Public/bank holidays
10 public holidays
Capital
Doha
Languages
Arabic and English
Population
2.8 million
Minimum hourly salary
5.21 QAR
Tax year
1st Jan – 31st Dec
Date format
YYYY/MM/DD
Misclassification penalties
Significant penalties and retroactive tax liabilities if employees are misclassified as independent contractors.
Fun fact
The Pearl-Qatar, a man-made island, is shaped like a string of pearls in honor of the country’s history in pearl diving.
The State of Qatar is a small country on a peninsula that borders Saudi Arabia to the south and juts out into the Persian Gulf. This country, which was previously an Ottoman possession and then a British protectorate, achieved independence in 1971 and is ruled by an emir. The country’s population has grown considerably since then, reaching 3.09 million people by the end of 2024.
Qatar’s economy has far exceeded its population growth, however. While pearling and fishing were the country’s main traditional industries, the discovery of oil in 1940 dramatically changed the country. In the 30 years from 1994 to 2024, the nation’s GDP grew from $5.95 billion to $221.41 billion, an incredible increase of over 37 times. Qatar’s economy continues to thrive, driven by oil and gas, and presents growing opportunities for international businesses. In this article, we’ll look at these opportunities and the different ways you can get started doing business in Qatar.
Overview of Qatar’s Economy
Qatar uses its own currency, the Qatari Riyal (QAR), which is valued at approximately 1 USD = 3.63 QAR. In 2025, growth is expected at a moderate 1.9% which should bring the Qatari GDP to $226.22 billion. This will make the small nation’s GDP the 55th largest in the world. In the 21st century, Qatar’s GDP growth has followed global oil prices almost exactly, with noticeable decreases in 2015 and 2020 when oil prices fell.
Agriculture represents only a small part of the Qatari economy, contributing just 0.26% of the GDP in 2022. Services contributed 38.45% of the GDP, while industry made up the lion’s share at 65.45%. The main services contributing to the economy include professional services, logistics and transport, real estate, healthcare, education, and increasing tourism. Qatar’s industrial production includes plastics and fertilizers though its main products are oil and gas, with the country hosting one of the world’s biggest natural gas reserves.
Qatar’s main export products include petroleum, natural gas, polymers, and nitrogenous fertilizers, which it supplies in large part to China, India, Japan, South Korea, and the UK. The country imports products like gas turbines, jewelry, cars, aircraft, and broadcasting equipment. Its main import partners include the UAE, China, the US, the UK, and India.
Qatar has one of the highest per capita incomes in the world at an expected 72 760 USD/year in 2025. The World Bank therefore considers Qatar a high-income country. At the same time, the 2 million-strong labor force in Qatar is largely composed of migrant workers from other countries. The minimum wage in the country is, therefore, relatively low at 1,800 QAR/month (roughly 495 USD/month). This includes 1000 QAR in wages, 500 QAR for accommodation, and 300 QAR for food, which can also be paid in kind.
Employers must also pay 14% of workers’ wages toward social security schemes. However, this only applies to Qatari nationals. For non-nationals, the majority of the labor force, employers bear no such obligation, and this keeps employees quite affordable.
Taxes
Employer tax: 14%
Social security contributions apply exclusively to Qatari nationals. Expatriate (non-Qatari) employees and their employers are exempt from making these contributions.
Social Security
14%
Employee tax: 7%
Social Security
7%
Overview of Qatar’s Business Regulation
Qatar hosts a very business-friendly environment and attracts investment from around the world. In order to compete successfully in this popular market, it’s critical to know some of the main business regulations that your venture will need to comply with, including:
Registration and Compliance
In the past, registered entities in Qatar could not be entirely foreign-owned. However, this has changed, and now wholly-foreign-owned limited liability companies (WLLs) are possible. However, these must work in a limited assortment of industries, including agriculture, exploitation of natural resources, manufacturing, healthcare, education, tourism, entertainment, or telecommunications and consultancy services. They must also receive ministerial approval, which is normally reserved for large multinational companies.
Instead, the normal choice for smaller investors is a joint-venture limited liability company (LLC) with Qatari partners who must own at least 51% of the company. For this kind of joint venture, a resident director in Qatar is required, as is a minimum of two shareholders. Setting up an entity in Qatar is moderately difficult, and the World Bank gives the country a mid-range score of 86.1% for ease of incorporation. This can take between eight and nine days and requires the following eight steps:
- Reserving a unique company name with the Ministry of Commerce and Industry (MOCI)
- Having articles of association approved by the MOCI
- Having articles of association authenticated by the Ministry of Justice (MOJ)
- Registering with the Commercial Registry and the Chamber of Commerce and Industry
- Obtaining a trade license from the MOCI
- Having business premises inspected by the MOCI
- Obtaining a Tax Identification Number (TIN) from the Public Revenues and Tax Department
- Making a company seal
Companies that are 100% Qatari-owned don’t pay corporate income tax (CIT). Those that are partially foreign-owned pay CIT only on the foreign portion of their profits at a rate of 10%, except for oil operations which pay a minimum of 35%. Qatar doesn’t currently assess personal income tax or VAT. However, to come in line with the other members of the Gulf Cooperation Council (GCC), Qatar is expected to introduce a 5% VAT in the future. Employers pay 14% of worker’s salaries toward social security while employees are deducted 7% of their salaries if they are Qatari nationals. If not, neither the employee nor the employer has any such obligation.
Qatar currently has two Free Zones to help it attract foreign investment. Free Zone companies can be 100% foreign-owned and are given renewable 20-year tax holidays on CIT, VAT, and customs duties.
Employment Laws
Qataris normally work eight hours a day and 48 hours a week and receive an unpaid period of rest of one to three hours each day for meals and prayers. If they work overtime, Qataris must be paid 125% of their normal wages and should not work more than 10 hours total in a day. Workers receive three weeks (18 working days) of annual leave and after five years of service, this increases to four weeks.
They’re also entitled to ten paid public holidays each year. Expecting mothers receive 50 days of maternity leave fully paid by the employer. Fathers are not entitled to paternity leave. When workers are terminated for performance or economic reasons, they should receive one month’s notice if they’ve worked for fewer than five years and two months’ notice after that. They should also receive at least three weeks’ salary as severance pay.
Intellectual Property
Patents in Qatar are protected for 20 years. Copyrights last for the author’s lifetime and another 50 years. Trademarks are valid for ten years and can be renewed every ten years.
What Are the Benefits of Doing Business in Qatar?
Investors who choose to do business in Qatar can find themselves gaining several advantages, including:
- Low-tax environment
- Strategic Gulf location providing regional trade opportunities
- Advanced infrastructure
- Relatively affordable labor
- Free zones offering tax vacations
What Are the Downsides of Doing Business in Qatar?
While the benefits of doing business in Qatar are clear, there are also downsides to consider. These include:
- High cost of living
- Competitive market dynamics
- 100% foreign ownership of entities not guaranteed / local partner usually required
- Few protections for minority investors
International Expansion into Qatar
As an investor looking into doing business in Qatar, you have access to many different options. You have a choice of the type of entity you incorporate and there are also several different types of service providers that can help you find and hire employees in Qatar.
Qatar Employer of Record (EOR)
If you don’t own an entity in Qatar but simply want to hire Qatari employees, an Employer of Record is a better choice. It can hire employees for you and also manage their HR needs while maintaining compliance with tax and labor laws.
Recruitment Agencies
A Qatar recruitment agency can help you source employees in Qatar quickly and cost-effectively. Qatar recruiters often work alongside Professional Employer Organizations or Employers of Record (EOR) to ensure your team is hired and paid in full compliance with local labor laws.
Qatar Professional Employer Organization (PEO)
If you own an entity in Qatar, you can engage a Professional Employment Organization to manage HR for your local employees. It will take over functions like payroll, benefits administration, and leave management and maintain compliance with Qatari employment laws.
Subsidiary Incorporation
If you want to establish yourself in the Qatar market and hire local employees on your own, it usually makes sense to incorporate an entity in the country. Most investors set up joint-venture LLCs with Qatari partners who will own 51% of these entities, though 100% foreign-owned LLCs and SEZ companies are possible as well.
Branch Office / Representative Office Registration
It’s also possible to open a branch office in Qatar of a company incorporated in another country. However, foreign companies can only open branches if they’ve been awarded government contracts to provide public services. Branch offices are considered temporary and are limited to the duration of these contracts.
If your company is not yet planning to trade with Qatari businesses, setting up a representative office may be the fastest and easiest choice. The office’s actions will be limited to only market analysis and business promotion in Qatar.
Recruitment Agency
If you need help finding Qatari and foreign nationals to work for you in Qatar, engaging a recruitment agency might be a good choice. It will source talent either from its own talent pools or through external advertisements, and you’ll pay a service fee for each candidate you hire.
Staffing Agency
Staffing agencies in Qatar can help you fill temporary or seasonal positions. These agencies normally assess a daily fee on top of worker’s wages and can often procure workers for you with as little as a day’s notice.
Expand into Qatar, with Remote People
Qatar offers a robust platform for global businesses. Rely on Remote People for streamlined market entry and workforce management.
To learn more about expansion into Qatar, get in touch with Remote People’s local business expansion experts.
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