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The role of government has never been more critical April 2010

The Qatar Update Official Gazettes 1 and 2 of 2010

Editor’s comment This edition of the Qatar Update details new laws published in Official Gazettes 1 & 2 of 2010, plus recent legal news.

More sectors for 100 per cent foreign investment Reported reforms to foreign investment restrictions have been made official with the publication of Law No.(1) of 2010, amending some provisions of Foreign Investment Law No.(13) of 2000. This eagerly awaited law expands the sectors in which investors may apply for a Minister’s Exemption permitting up to 100 per cent foreign ownership of Qatari companies. The new sectors are services of consultancy, technical and information technology works, cultural, sports and entertainment services, and distribution services. The amendment has created much interest for foreign partners looking to invest in Qatar and for those already doing so in these sectors via joint venture companies. As yet there is no guidance about how the new sectors will be applied in practice or the threshold for obtaining the Minister’s Exemption. The exemption remains entirely discretional, and will continue to be decided on a case-by-case basis. In practice companies involved in projects that will introduce new products, modern technologies or are committed to projects that train and qualify Qatari nationals should continue to be given due regard if seeking the exemption.

Reported Laws (non-Gazetted) Commercial rent increases In the previous Update we reported that February saw the end of the two-year restriction on rental increases for both commercial and residential leases. Law No.(2) of 2010 extends the restriction rent increase of commercial properties for a further year from 15 February 2010. Commercial leases entered into after 1 January 2005 and still existing on 14 February 2010 are extended for a further year on existing terms (unless the tenant wants to terminate, or the contract states a longer term), and landlords may not increase rents for such properties. Rent increases are permitted for commercial leases that started before 1 January 2005 in accordance with specified limits. Whilst this law has not been published yet, it is effective from 15 February 2010 and its publication is anticipated in the next edition of the Official Gazette.

New visa regime The widely reported introduction of a new visa regime, expected from 1 May, has been postponed. The new regime will see nationals of 33 countries (including Britons and Americans) no longer able to obtain visitors’ visas on arrival in Qatar. Instead they will have to apply to the Qatar Embassy in their home country and obtain a visa before travelling. The new regime is intended to reflect reciprocal treatment of Qatari nationals, but concerns from a number of the affected countries have led to a postponement of the introduction of the new rules. Officials have commented that the new regime will go ahead unchanged at a later date.

If you would like more information on an item of interest in this Update or would like to give us your comments, please contact [email protected]. 2

Summary of the Official Gazette 1 for 2010 Law Nos. (23) and (24) of 2009 Adding social service to the list of penalties under the Penal Law No.(11) of 2004 and the Penal Procedures Law No.(23) of 2004. Law No.(25) of 2009 Amending Law No.(25) of 2001 concerning compulsory education. Emiri Decision No.(89) of 2009 Amending a previous Decision appointing vice-chairman and members of the Supreme Council for Health. Decree No.(52) of 2009 Ratifying an agreement between the Government of Qatar and the Government of the Republic of France on mutual exemption of short visit visas for holders of diplomatic passports (Qatari nationals only) and service passports (French nationals only). Decree No.(54) of 2009 Ratifying the Treaty on Exploration and Production Sharing of the Discovery Region “BC” between the Government of Qatar and the Chinese National Offshore Oil Middle East Corporation (Qatar) Limited. Decree No.(56) of 2009 Guaranteeing the financial obligations arising from loans of Qatar Airways for plane rental.

Miscellaneous Decree No.(54) of 2009 Ratifying the definition of Trade Preferences System in the protocol for the special preferential plan for trade preferences among member countries of the Organisation of Islamic Conferences (PRETAS). Decree No.(55) of 2009 Appointing judges.

Decision of the Minister of Business & Trade No.(191) of 2009 Establishing a private Qatari shareholding company named Al Faisal International for Commercial Investment. Decision Nos.(154), (155), (156) & (158) of 2009 Authorising employees of the Ministry of Municipality and Urban Development to be law enforcement officers. Decision No.(157) of 2009 Authorising employees of the Ministry of Labour to be law enforcement officers. Decision Nos.(159) & (160) of 2009 Authorising employees of the Ministry of Business & Trade to be law enforcement officers. List No.(51) For medicine and pharmaceutical prices. 3

Summary of Official Gazette 2 for 2010 Law No.(1) of 2010 Amending some provisions of Law No.(13) of 2000 regulating non-Qatari capital investment in economic activity. This law extends the application of the exemption to the restriction of foreign investment in Qatari companies to new sectors. Companies may seek an exemption allowing up to 100 per cent foreign ownership in additional sectors of services of consultancy, technical and information technology works, cultural, sports and leisure services, and distribution services. Decree No.(1) of 2010 Ratifying an agreement between the Government of Qatar and the Government of the Republic of Malta avoiding double taxation and preventing evasion of income tax. Decree No.(1) of 2010 Ratifying the memorandum of understanding on the implementation of the comprehensive redesign initiative between the Government of Qatar and the World Economic Forum (Davos). Decree No.(39) of 2009 Ratifying an agreement and attached protocol between the Government of Qatar and the Government of the Kingdom of Norway avoiding double taxation and preventing evasion of income taxes. Decision No.(7) of 2010 Ratifying the Treaty between the Government of Qatar and the Government of Montenegro on encouragement and mutual protection of investments. Decree No.(8) of 2010 Ratifying an agreement between the Government of Qatar and the Government of the Republic of Indonesia avoiding double taxation and preventing evasion of income tax.

Miscellaneous Emiri Decision No.(3) of 2010 Re-forming the Board of Trustees of the Qatar Museum Authority. Emiri Decision No.(4) of 2010 Re-forming the Board of Directors of Qatar National Hotels Company. Emiri Decision No.(5) of 2010 Amending provisions of a previous Decision establishing the Crown Prince’s award for youth. Decree No.(2) of 2010 Ratifying the memorandum of understanding between the Government of Qatar and the Government of the Republic of Yemen to establish the Qatar Foundation for Development in Yemen. Decree No.(6) of 2010 Ratifying the Treaty on Economic, Commercial and Artistic Co-operation between the Government of Qatar and the Government of Montenegro. Decision of Council of Ministers No.(1) of 2010 Forming the committee for tenders to celebrate Doha as the Arab Culture Capital of 2010. 4 Decision of Council of Ministers No.(2) of 2010 Issuing Executive Regulations of Law No.(13) of 2006 on Retirement and Pensions of Military Personnel. Decision of the President of the Council of Ministers No.(1) of 2010 Appointing a manager for Qatar Aeronautical College. Decision of the President of the Council of Ministers No.(2) of 2010 Establishing a steering committee for main roads projects. Minister of Municipality and Urban Planning Decision No.(6) of 2010 Appropriating land at Umm Guwailina for public benefit for electricity sub-stations. Minister of Municipality and Urban Planning Decision No.(7) of 2010 Appropriating real estate number (24943) for public benefit. Minister of Municipality and Urban Planning Decision No.(8) of 2010 Appropriating real estate number (19006) for public benefit. Minister of Municipality and Urban Planning Decision No.(9) of 2010 Appropriating land for the first phase of expansion of the A Ring Road. Decision No.(1) of 2010 Authorising employees of the Ministry of Energy & Industry to be law enforcement officers. Publishing the records of the Extraordinary General Assembly meeting of Ezdan Real Estate Company held on 4 November 2009. 5 Denton Wilde Sapte is a leading international law firm. We are one of the largest law firms in the Middle East, having been established in the region for more than 30 years. We have offices in Amman, Abu Dhabi, Cairo, Doha, Dubai, Kuwait, Muscat and Riyadh, with more than 160 lawyers, many of them bilingual in Arabic and English. We operate as a full service office in Doha, and our lawyers have acted on most of the major energy, project finance, finance (Islamic and conventional) and corporate deals undertaken in Qatar in the past six years as well as providing advice and opinions on Qatar, QFC and English law. We have bilingual Arabic and English capability, plus a variety of other European and Asian languages. Furthering our key sector strategy, the Doha office has specialist lawyers in areas including: energy, transport and infrastructure, real estate, banking and finance and technology, media and telecommunications. In addition to these practice areas, we also have lawyers specialising in employment, public and administrative law.

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