Qatar’s oil and gas industry is entering a new phase of investment and development. Significant expansion projects are under way at the Al Shaheen field, Qatar’s largest offshore oil asset. Located 80km north of Doha in the Arabian Gulf, Al Shaheen has been in production since 1994 and remains one of the world’s largest offshore oil fields, with 40 platforms and more than 400 operational wells.

Project Ru’ya is a multi-year programme led by North Oil Company, a joint venture between QatarEnergy and TotalEnergies aims to develop more than 550 million barrels of oil over five years, encompassing the drilling of more than 200 wells and the installation of a new centralised process complex, nine remote wellhead platforms and associated pipelines. The first oil from the new facilities is targeted for 2027.

A central pillar of Qatar’s energy strategy

Oil and gas underpin much of Qatar’s economy, representing the bulk of export revenues and a large share of GDP. Although the country’s leadership in natural gas and liquefied natural gas (LNG) attracts global attention, crude oil capacity continues to play a strategic role in ensuring reliable supply to world markets.

Production from Al Shaheen accounts for a major share of national output. The current expansion signals a clear intent to optimise recovery from existing reserves and keep production steady over the long term. This approach also fits within the wider aims of Qatar National Vision 2030, which targets a more diverse economy while consolidating the country’s position as an energy leader.

Opportunities in the supply chain

Large-scale upstream projects of this kind create opportunities far beyond direct oilfield operations. Specialist engineering, fabrication, marine logistics, environmental services, safety systems and training providers all have potential roles within the supply chain. Contracts may range from high-value technical packages to ongoing operational support and maintenance agreements.

International companies with proven expertise in offshore engineering, drilling support, subsea technology or asset integrity management will find demand in Qatar’s expanding sector. However, the competitive landscape is regulated and securing work requires a structured market-entry approach, strong local relationships and compliance with national content requirements.

A stable, investor-friendly environment

Qatar maintains one of the most predictable and well-regulated investment frameworks in the Gulf region. Legal and commercial reforms in recent years have encouraged greater foreign participation in priority sectors, including energy and related services. Free zone platforms such as the Qatar Free Zones Authority (QFZA) and Qatar Science and Technology Park (QSTP) offer tax benefits, customs exemptions and full foreign ownership.

The state is also expanding port facilities, transport links and industrial areas to streamline logistics for both offshore and onshore projects. This combination of regulatory clarity and infrastructure investment strengthens the case for long-term contracts and collaborative ventures in the oil and gas industry.

Market entry considerations

Foreign companies entering Qatar’s energy sector need to select the right structure for their operations. Common routes include:

• Forming a local entity – either as a limited liability company or a registered branch, depending on applicable ownership rules.
• Setting up in a free zone – allowing 100% foreign ownership, profit repatriation and exemption from import duties, while enabling participation in certain energy-related activities.
• Appointing an agent or distributor – typically suited for defined equipment supply or shorter-term service arrangements.

Each path comes with specific licensing, regulatory and tax requirements. For energy projects, companies need to meet QatarEnergy’s qualification criteria and follow all health, safety and environmental regulations. Workforce planning should also account for Qatarisation obligations, which set minimum hiring levels for Qatari nationals in certain roles.

Positioning for long-term growth

The Al Shaheen development sits within a broader investment programme in Qatar’s energy sector. Current initiatives include raising LNG capacity at the North Field, modernising refining and petrochemical assets, and expanding renewable energy generation to complement hydrocarbon production.

Businesses ready to commit resources and establish a lasting base can tap into a combination of large-scale project tenders and a business climate that values predictability. Early positioning will help secure roles in upcoming procurement rounds and strengthen long-term supply chain links.

How Sovereign PPG can help

Establishing a presence in Qatar’s oil and gas market requires clear planning, accurate structuring and familiarity with sector-specific approval processes. Sovereign PPG advises on entity set-up, registration, licensing and compliance, helping clients navigate local requirements from the outset.

To discuss your Qatar market entry or explore options across the UAE, Saudi Arabia, Oman or Bahrain, contact Sovereign PPG at sovppg@SovereignGroup.com, call +971 (0)4 456 1761 (Dubai) or +971 (0)2 448 5120 (Abu Dhabi), or complete the enquiry form below.

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As one of the world’s largest exporters of liquified natural gas (LNG), Qatar has embarked on a series of reforms and investments in recent years as part of a long-term strategy, set out in Qatar National Vision 2030, to diversify its economy away from hydrocarbons, attract foreign direct investment (FDI) and secure a sustainable future.

Qatar has set a cumulative target of attracting USD100 billion in FDI by 2030, according to the latest version of its national development strategy published last year. The government is focusing on building an innovation-focused knowledge economy, achieving greater infrastructural and technological competitiveness, and cementing its position as a strategic commercial, financial and logistics hub.

Hosting the 2022 FIFA World Cup accelerated Qatar’s economic diversification. A massive public infrastructure investment programme from 2011, which encompassed the development of ports, roads metros and airports, is now being leveraged to generate new jobs, businesses and opportunities in sectors beyond the oil and gas industries for further economic growth.

Qatar’s advanced infrastructure, coupled with its geographical location between the markets and customers of the Mediterranean, West Asia, East Africa and the wider Indian Ocean give it a significant competitive edge.

Facilitating foreign direct investment

Structural reforms have also accelerated. Most significantly, Qatar introduced the Foreign Investment Law in 2019, which enabled the establishment of fully foreign-owned companies (in most sectors), marking a departure from the previous requirement for a Qatari national or a Qatari-owned entity to hold at least 51% of the share capital for foreign investors to participate in the Qatari economy.

To attract foreign investment and boost economic diversification, Qatar has also developed free trade and economic zones that provide incentives like tax exemptions, streamlined regulations and infrastructure support for companies operating in these areas. By offering compelling incentives and advanced infrastructure, Qatar’s free zones provide a fertile ground for businesses looking to tap into the region’s dynamic markets.

The primary governing body, Qatar Free Zone Authority (QFZA), oversees two primary free zones: Ras Bufontas and Umm Alhoul. The additional prominent zones that contribute to the country’s economic landscape are the Qatar Science and Technology Park (QSTP) and Qatar Financial Centre (QFC), although the QFC is not technically classified as a free zone.

Qatar has further reinforced its legal framework for protecting intellectual property rights, including trademarks, patents and copyrights to foster innovation and creativity while encouraging investment in knowledge-based industries. And it has set up specialised commercial courts to handle business disputes and enforce contracts, offering companies a dependable and transparent legal system for resolving conflicts and upholding contractual obligations.

Alongside initiatives to improve business efficiency and attract foreign direct investment, Qatar has implemented reforms to its labour laws to strengthen worker rights and protections. It was the first GCC member state to abolish the Kafala sponsorship system for foreign workers and has allowed employees to change employment freely by abolishing the No-Objection Certificate (NOC) requirement.

In recent years it has also introduced a non-discriminatory minimum wage, established a Workers’ Support and Insurance Fund, and introduced a fast-track electronic service for recruiting foreign workers.

The Mustaqel Visa

Last year, Qatar launched a new ‘Mustaqel Visa’, a residency permit specifically aimed at attracting talented individuals and entrepreneurs. The permit programme offers five-year renewable residencies to people with expertise in 13 approved fields, including arts, entertainment, sports, education, scientific research, development or innovation.

Applicants for the Mustaqel Visa must either have a job offer in Qatar or demonstrate financial self-sufficiency. Entrepreneurs are required to present a business plan approved by a Qatari incubator, reflecting a minimum investment of USD68,000.

Ease of Doing Business

Qatar’s key challenge remains transitioning from public sector-led growth to a more diversified, private sector-driven model, as envisioned by Qatar’s National Vision 2030. Achieving this transformation requires bold reforms to boost productivity and foster a more conducive business environment,

In January, Qatar’s the new Minister of Commerce and Industry Sheikh Faisal bin Thani Al Thani announced plans to introduce three new laws – a bankruptcy law, a public private partnership (PPP) law and a new commercial registration law – as part of a sweeping review of legislation to attract foreign investors.

The bankruptcy law aims to strengthen investor confidence and streamline processes for financial restructuring, while the PPP law focuses on encouraging a greater level of collaboration between public sector and private enterprises. The commercial registration law will simplify business set-up and regulatory compliance on the mainland.

Sheikh Faisal, who previously serve as chief investment officer for Asia and Africa at Qatar’s USD500 billion plus sovereign wealth fund, the Qatar Investment Authority (QIA), said: “We’re looking at 27 laws and regulations across 17 government ministries that affect 500-plus activities.” He expects the new bankruptcy and PPP laws to be drafted before the end of March.

Investment ecosystem

Qatar’s investment ecosystem starts with the Ministry of Commerce and Industry (MOCI), which is responsible for managing business activities in accordance with the requirements of national development. Its mandate incudes business development to attract investment and to support and develop exports. It is supported by the following key partners:

• Qatar Financial Centre (QFC) is a leading business and financial centre, offering benefits including 100% foreign ownership, 100% repatriation of profits, a transparent tax regime and a legal framework based on English common law.
• The Qatari Free Zones Authority (QFZ), which is focused on manufacturing and service sectors, offers benefits for businesses seeking to establish operation and expand regionally and globally, providing quality infrastructure, 100% foreign ownership, access to investment funds, tax exemption and partnership opportunities with Qatari entities. QFZA has created specialised clusters for high value-added economic activities including industrial and consumer, maritime and aerospace, logistics and trading, food and agritech, biomedical sciences, advanced mobility industries, and other emerging technologies.
• The Qatar Science and Technology Park (QSTP) provides companies with the infrastructure and tools to develop and deploy tech-based solutions focusing on edtech, AI, ICT, sustainable development and health.
• Media City (Qatar) offers benefits including 100% foreign ownership, streamlined access to licences and permits, financial support and other incentives, as well as access to office facilities and media services.
• Qatar Development Bank (QDB) assist entrepreneurs, start-ups and SMEs with a suite of financial and advisory offerings. QDB operates eight incubator/accelerator verticals under its Business Incubation & Acceleration umbrella, including the Qatar Business Incubation Centre and Qatar Fintech Hub. These initiatives provide crucial support for early-stage companies, from funding to mentorship.
• Qatar Stock Exchange (QSE), ranked as the best-performing exchange among emerging and developed markets worldwide.

Wealth Management

The wealth management sector, with its potential to attract international capital and expertise, is a key pillar of Qatar’s economic transformation, fuelled by an expanding high-net-worth individual (HNWI) demographic, robust economic growth and a sophisticated investment environment.

By 2028, the number of HNWIs in Qatar is projected to grow by 23.8%, from 44,140 in 2024 to 54,650. This demographic shift reflects not only the country’s wealth accumulation, but also a flourishing entrepreneurial ecosystem that is creating new opportunities for investment, innovation and wealth creation.

Qatar Investment Authority

A key enabler of this growth is the Qatar Investment Authority (QIA), the national sovereign wealth fund. With assets exceeding USD526 billion, the QIA is the world’s ninth-largest sovereign wealth fund by asset size and a central pillar in Qatar’s wealth management sector. Its involvement in both local and international markets enables a wide range of investment opportunities for private wealth clients. These opportunities span multiple sectors, including private equity funds, exclusive real estate investments and the burgeoning start-up and venture capital ecosystems.

Qatar has ambitious plans to become a magnet for venture capital (VC), powered by significant backing from the government and a thriving start-up ecosystem. The QIA recently launched a USD1 billion fund of funds dedicated exclusively to VC funds, which aims to yield market-level returns while developing a start-up network with an initial focus on focus on FinTech.

More than 100 companies are now operating in the Qatari FinTech space, including payment service providers, digital wallets, buy-now-pay-later services and blockchain technologies. But while FinTech has attracted 15% in venture capital flows, manufacturing has taken the lead, accounting for 36%, with healthcare technology at 12%. This diversity aligns with the country’s broader economic diversification goals as outlined in its National Vision 2030.

Taxation in Qatar

Qatar’s tax system is one of the most business-friendly in the world, featuring no personal income, inheritance, gift or wealth taxes.

For individuals, there is no income tax on employment income in Qatar. Qualifying Qatari-source business income earned by an individual is subject to corporate income taxation.

Qatar does not impose withholding tax on dividends, interest or royalties paid to residents. A 5% withholding tax applies to interest and royalty payments made to non-residents.

For companies, corporations that are partly or wholly foreign owned with Qatar source income are subject to corporate income tax at 10%, although a 35% rate may apply to taxpayers in the oil and gas sector.

Qatar has concluded more than 80 Double Taxation Agreements (DTAs) with most of its economic partners.

Company Structures

Qatar is rapidly establishing itself as a key business hub in the Middle East. Different forms of companies are allowed to operate in Qatar under the Ministry of Commerce and Industry (MOCI) including limited liability company (LLC), limited partnership (LP), limited share partnership, joint liability company, joint venture company, shareholding company (public or private), branch of a foreign company, and holding company.

Qatar’s freezones represent an excellent option for foreign investors. They are considered separate from the domestic state ‘mainland’ area with regards to legal requirements and customs rules and as such have distinct benefits.

Sovereign PPG services in Qatar

If you plan to start a business in Qatar, it is important to understand the various company structures that are available to business investors and how they differ. Each has its own unique benefits, requirements and applications. Our Doha based team can assist you in Qatar company formation, market-entry and on-going company maintenance requirements.

• Company Set Up and Registration

  Sovereign PPG has an extensive team with local knowledge who are dedicated to guiding you on how to start your company in Qatar, either bon the mainland or in the free zones. We provide foreign investors with a completely tailored Qatar company formation services, which begin with identifying the correct legal entity or corporate service for your business.

• PRO and Visa

  Every business in Qatar will require Public Relations Office (PRO) services to liaise with government authorities in Qatar, whether for company formation and on-going maintenance and compliance requirements. Our PRO services in Qatar can be offered to clients as an annual retainer package and encompass visa issuance, licensing and other PRO service requirements.

• Corporate Sponsorship

  Although 100% foreign ownership is now possible in Qatar, some companies setting up in Qatar will still require a local partner and having the right local partner is the key to the success of any business in Qatar. Sovereign PPG understand the role that local partners play, and our company can become your safe and reliable shareholder. In Qatar, Sovereign PPG’s trade name is Venture Partner LLC (VPQ).

• Bank account opening

  Company bank account opening in Qatar requires the Commercial Registration (CR), licence and other supporting company documents. Sovereign PPG can assist in gathering and preparing the necessary documentation, ensuring that all requirements are met, and that the paperwork is properly organised. We also have existing relationships with banks in Qatar, which can facilitate the account opening process and help streamline communication.

• Office Lease

  Your office space in Qatar will be determined by your business and licensing requirements. Whether you are licensed in Mainland Qatar, Qatar Financial Centre (QFC) or in a Free zone, you will be required to have an office space. Sovereign PPG has close contacts with reliable real estate agents, shared offices and virtual office space providers, and we will be able to arrange your office space in Qatar.

• Payroll

  Payroll management is the backbone of any successful company. It is essential to ensure that employees are paid correctly and on time and is also critical for compliance with laws and regulations. Sovereign PPG payroll services in Qatar are designed to take the pressure off our clients and assist with streamlined and automated employee compensation management and compliance requirements as per the Wage Protection System (WPS) and the proper payment of the employee workforce in Qatar.

• Business Support Services

  In addition to the services above, Sovereign PPG can also assist clients with the following key services:
  o Accounting, Bookkeeping, VAT, Corporate Tax registration and Payroll – to ensure that accurate records of all business transactions are kept to maximise productivity and profitability.

  • HR Services – our HR services are designed to include the full scope of recruitment, employee onboarding and maintenance, including employment template documents, policies and handbooks, gratuity calculations and HR consultancy.
  • Compliance – we provide a well-designed compliance programme integrated into your company’s business operations that will ensure compliance with anti-money laundering registration, Know Your Customer (KYC) due diligence, as well as handbooks, policies and risk assessments.

These are exciting times in Qatar and Sovereign PPG is well positioned to provide the comprehensive advice and support to assist companies of all sizes to establish business operations successfully in Qatar, as well as to deliver the on-going administrative support to maximise opportunities and achieve long-term sustainability in the wider Gulf market.

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This initial phase is set to last for 12 months, after which the tender for the construction phase will be launched. Projected to transport eight million passengers and 95 million tons of cargo annually by 2045, the 2,117-kilometer Gulf Cooperation Council network is now seeing contracts awarded across most Gulf countries.

A transformational project for the Gulf

The Gulf Railway Project is a massive USD250 billion infrastructure project which is set to transform connectivity across six Gulf Cooperation Council (GCC) nations including the UAE, Saudi Arabia, Oman, Qatar, Kuwait, and Bahrain.

Each GCC country is responsible for funding and developing its section of the railway, with the choice to involve either private or government entities.

The railway will span 2,177km and will feature passenger trains traveling at speeds up to 220km/h and freight trains at 80 to 120km/h. One of the busiest routes – the Abu Dhabi-Dubai corridor – will feature a high-speed train capable of transporting passengers between the two cities in just 30 minutes at speeds of up to 350km/h.

The GCC is experiencing rapid urbanisation and economic growth, leading to increased congestion on road networks, particularly in Saudi Arabia, the UAE, and Qatar, which have some of the highest road traffic densities in the world.

With a heavy reliance on cars and trucks for travel and trade, expanding rail and public transport networks will help reduce the region’s rising traffic issues, environmental concerns, and logistical inefficiencies. The high-speed train is expected to contribute AED145 billion to the UAE’s economy over the next 50 years.

Recent Progress

Originally approved in 2009, the railway was initially scheduled for completion in 2018, but delays pushed it back to 2021, and now to 2030. Despite slow development, Hafeet Rail began implementing the Oman-UAE connection in April 2024. Later, in November 2024, Qatar’s transport minister reaffirmed the project’s progress toward its 2030 goal.

If completed on schedule, the Gulf Railway will enhance trade, ease travel, and boost regional economic integration, marking a historic step for Gulf transportation. Improving inter-nation connectivity will create new opportunities for businesses and industries, making cross-border trade faster, cheaper and more efficient.

If you want to capitalise on the booming infrastructure and urban development sector in the GCC, contact Sovereign PPG for support with your business set up in Qatar, UAE, Oman, Bahrain or Saudi Arabia.

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Whether you’re new to the market or looking to stay ahead of your obligations, this guide breaks down UAE taxation into its essentials, giving you a clear understanding of the main taxes and providing the insight you need to keep your business running smoothly and compliantly.

Overview of Dubai’s Tax Framework

Corporate Tax

Corporate tax (CT) became effective for financial years starting on or after 1 June 2023. It applies at a standard rate of 9% on taxable profits above AED375,000. Businesses with taxable profits below this threshold are taxed at 0%.

This regime aligns the UAE with global practices, ensuring compliance with international frameworks like the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, but it also offers one of the lowest corporate tax rates globally.

While most companies in the UAE fall under this regime, there are notable exemptions:

• Businesses engaged in the extraction of natural resources, which remain subject to emirate-level taxation.
• Qualifying Free Zone entities that meet specific conditions, such as not conducting business with the UAE mainland, may also benefit from a 0% rate on qualifying income.
• Certain government and public benefit organisations are exempt entirely.

Value Added Tax (VAT)

Introduced in 2018, VAT applies at a standard rate of 5% on most goods and services in the UAE. Unlike many jurisdictions, VAT compliance is straightforward, with businesses required to register if their annual taxable supplies exceed AED375,000. Voluntary registration is also permitted for businesses generating AED187,500 or more.

Key transactions subject to VAT include:

• Goods sold and services provided within the UAE.
• Imports of goods into the UAE.
• Certain services deemed consumed within the UAE, such as those provided to non-residents in specific cases.

Free Zones add a layer of complexity to VAT, with designated zones treated as outside the UAE for VAT purposes in certain scenarios. Transactions within these zones may be VAT-free, but businesses must still register and file returns if thresholds are met.

Other Taxes

Dubai’s tax framework remains business-friendly by excluding several taxes commonly seen elsewhere:

• No personal income tax: Salaries, dividends and other personal earnings are entirely tax-free, a factor that continues to attract talent from around the world.
• No capital gains tax: Gains on investments, real estate or securities are not subject to taxation, making Dubai a preferred choice for investors.
• No withholding taxes: Payments such as dividends, interest or royalties made to foreign entities are not taxed, ensuring smooth cross-border transactions.

Additionally, Dubai imposes customs duties, typically at a rate of 5%, on imported goods. Specific categories, such as alcohol and tobacco, carry higher rates. Excise taxes are also in place for products like sugary drinks, energy drinks and tobacco to encourage healthier consumption.

Key Tax Obligations for Businesses in Dubai

Registration and compliance

All businesses in Dubai must register with the Federal Tax Authority (FTA) for corporate tax, but only those with annual taxable profits exceeding AED375,000 are subject to the 9% tax rate. Registration must be completed through the FTA portal before the applicable deadline for the company’s financial year.

For VAT, registration applies to businesses with an annual turnover exceeding AED375,000, while those earning above AED187,500 but below AED375,000 have the option to register voluntarily.

Corporate tax returns must be filed within nine months of the end of the financial year, while VAT returns are typically due either monthly or quarterly, depending on the business’s turnover. Missing deadlines can result in significant penalties, starting from AED1,000 for initial delays and escalating for repeated offences.

Reporting requirements

Maintaining detailed and accurate records of income, expenses and taxable transactions is essential for compliance. For VAT, businesses must submit returns that clearly outline input VAT (on purchases) and output VAT (on sales), ensuring proper reconciliation. Corporate tax filings require detailed financial statements that are prepared in line with international accounting standards, supported by evidence of all deductible expenses and applicable exemptions.

Large businesses file VAT returns monthly, while smaller entities generally follow a quarterly schedule. Ensuring compliance with these reporting requirements minimises the risk of audits and financial penalties, which can disrupt operations and damage reputation.

Common mistakes in UAE corporate tax filings

Despite these clear regulations, businesses in the UAE often stumble over the details which can lead to costly errors. Typically, these might include:

• Inaccurate records: incomplete or poorly maintained records lead to tax miscalculations, audits and penalties. Keep detailed documentation, including invoices and receipts, and store them for the required five years to stay audit ready.
• Expense misclassification: misclassifying expenses – such as entertainment or interest, which have deductibility limits – can inflate taxable income. Ensure that you categorise costs accurately and claim only business-related expenses to avoid any issues.
• Missed deadlines: late registration or filing comes with strict penalties. Register with the FTA as soon as you qualify and use reminders or software to track deadlines.
• Incorrect tax calculations: misjudging tax liabilities often stems from misunderstanding deductions or applying the wrong tax rates. Regular reviews and expert advice can prevent costly errors.
• Overlooked tax incentives: many businesses miss out on tax benefits, such as small business relief or Free Zone exemptions. Stay informed to maximise all potential savings.
• Related-party transactions: payments to directors or shareholders must follow the ‘arm’s length’ principle (i.e., for fair market value). Ensure pricing reflects market standards and maintain proper documentation to avoid disputes.

How can Sovereign PPG assist?

Sovereign PPG has both a deep understanding of UAE tax regulations and direct connections with government entities and Free Zone authorities. Having a trusted team to manage your accounting and bookkeeping requirements is essential. We ensure that client businesses stay compliant, handling everything from corporate tax registration to ongoing compliance and reporting.

If you need support with tax or VAT, or any other matter related to company set-up, restructuring, local partner or PRO support in Abu Dhabi, Dubai, the wider UAE, Oman, Qatar or the KSA, then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi. Alternatively, email us at info@sovereigngroup.com or complete the contact form below. We will be delighted to assist you.

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View our webinar below designed to provide you with the essential knowledge and practical guidance to navigate the region’s dynamic business landscape successfully and decide if the UAE, Qatar, Oman, Bahrain or Saudi Arabia is the right choice for your business.

• Overview of Middle East business setup
• Legal, regulatory, and economic factors shaping the region’s business and investment climate
• Overview of Taxes and Compliance requirements in each country and across the region
• Sectors ripe for growth and how to leverage them for your business success
• Strengths and challenges each jurisdiction faces
• Challenges and advice for Companies working in multiple GCC countries

The region has experienced a surge in new business. Should you be considering expansion? Absolutely.

International expansion involves unfamiliar legislation, regulations, and processes, as well as legal and tax considerations. Proper groundwork and execution are essential to gain and sustain competitive advantage and successfully manage growth.

Speakers:

James Swallow, Commercial Director – UAE & Oman

Nazar Musa, CEO – Qatar & Saudi Arabia

Anas Al Adawi, Sales Director – Bahrain

The post Webinar – Doing Business in the Middle East – Insights for Foreign Investors appeared first on The Sovereign Group.

The resource-rich Gulf is rapidly becoming a major player in the global aviation market with massive new investments across Qatar, Saudi Arabia and the UAE. And with good reason: according to the International Air Transport Association, Middle East passenger traffic is forecast to double in the next 20 years, climbing to 530 million passengers by 2043.

The Gulf’s geographic position makes it an ideal aviation hub, with 80% of the world’s population reachable within an eight-hour flight. According to Airbus, traffic between the Middle East and Asia is expected to increase three-fold by 2042, and more than double between the Middle East and Europe.

So, it is no surprise that the Gulf states are strengthening their positions and setting new benchmarks in the aviation industry. New airports, bigger capacity, new aircraft and state of the art facilities are all part of the plan to turn the Gulf into a global travel and business hub.

Qatar, which already has a strong reputation in the aviation industry, expanded Doha’s Hamad International Airport (HIA) in advance of the FIFA World Cup 2022 to accommodate more than 58 million passengers annually. It has seen a huge increase in passenger numbers with monthly figures now exceeding four million thanks to an expanded network that now includes partners such as Japan Airlines, Garuda Indonesia, China Southern Airlines and Akasa Air. These follow the arrival of Iberia, Xiamen Airlines and Vistara to the airport’s network late last year.

HIA is also upgrading its aviation infrastructure with advanced air traffic management systems such as the Long-Range Radar (L-BAND) and Medium-Range Radar (S-Band), which will improve the coverage and efficiency of airspace management.

There’s also been massive investment in Qatar and regionally into new aircraft with huge orders to modernise the fleet and meet future travel demand. As well as increasing operational capacity these will also help achieve sustainability goals by introducing more fuel efficient and environmentally friendly aircraft.

Dubai, which is already home to the world’s busiest airport by international traffic, has started work on an even larger airport. Last year, Dubai International Airport (DXB) handled 86.9 million passengers and retained its crown as the world’s busiest international hub for the tenth year running. At the same time, tourism in the emirate is mushrooming, with 17.15 million international arrivals last year, up from 16.73 million visitors in 2019, according to Dubai’s Department of Economy and Tourism.

DXB is connected to 262 destinations across 104 countries through 102 international carriers. India was DXB’s top destination country in terms of traffic with 11.9 million passengers last year, followed by Saudi Arabia with 6.7 million, the UK with 5.9 million and Pakistan with 4.2 million.

But options for expansion of DXB, which is less than three miles from the city centre, are limited by nearby residential developments and infrastructure. The answer is a huge USD35 billion expansion of Dubai’s second largest airport, to make Al Maktoum International Airport (DWC), which lies 35 miles away outside the city, into the emirate’s main international airport within a decade.

Once completed this airport will have five runways and five terminals and capacity to handle up to 260 million passengers a year, making it the world’s largest airport. DWC will also be able to process 15 million tons of cargo annually via a multi-modal cargo hub enabling air, land and sea connection with dedicated freight storage space on the airside, landside and by the seaport.

These facilities will support the growth of the nearby Logistics District, planned as an international base for global cargo and shipping companies, and is part of the bigger Dubai World Central (DWC) initiative to create a self-sustained economic zone that will strengthen Dubai’s position as a global hub for aviation, logistics and business.

Neighbouring Saudi Arabia has equally big plans. The Kingdom aims to triple its passenger numbers to 330 million by 2030, connecting to over 250 destinations and increasing air freight to 4.5 million tons a year.

Last year, it announced a USD31 billion expansion plan for King Abdulaziz International airport (KAIA) in Jeddah to increase its capacity to 114 million passengers a year by 2035, while the King Khaled International Airport (RUH) in Riyadh will increase its capacity to 40 million passengers by 2038.

The upcoming USD30 billion King Salman International Airport (KSIA) in Riyadh aims to accommodate up to 120 million passengers a year when it opens in 2030 and 185 million passengers, with the capacity to process 3.5 million tons of cargo, by 2050.

All these airport upgrades and expansions in the Gulf are doing more than just increasing capacity; they’re making the region more accessible. With the new and expanded airports, airlines are adding more routes and destinations making it easier for tourists and business travellers from all over the world to explore what the Gulf has to offer and connect to more international destinations.

They will also create a growing demand for aviation-related services, including maintenance, catering and logistics services, ground handling, security and aircraft fuelling.

Beyond the runway, as these airports grow and more tourists arrive, there will be a ripple effect across various industries. Tourism will boost hotels, restaurants and retail shops and will create demand for hospitality services and new retail opportunities. Real estate will also benefit with demand for commercial spaces to accommodate new businesses and residential properties for the growing workforce.

The growth of the aviation sector in Qatar, the UAE and KSA is a long-term boon for the region’s economies and presents many business opportunities. If you want to expand your business in this fast-growing sector, Sovereign can help you through the complexities and enable you to capitalise on growth across the Gulf region.

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Qatar’s industrial sector has been experiencing significant growth, with the number of registered and licensed firms reaching 1,449 during the first half of this year.

According to the Ministry of Commerce and Industry (MoCI), 966 firms were registered and 483 industrial licences were issued, amounting to a total investment of QAR233.14 billion (c. USD64 billion) and production valued at QAR2.56 trillion.

The top industrial sectors in Qatar by number of firms include fabricated metal products (216), non-metallic mineral products (217), rubber and plastics products (198), food products (169) and chemicals (124). In terms of investment, the leading sectors are coal and refined petroleum products, chemicals, basic metals, transport equipment and non-metallic mineral products.

Last year, MoCI reported 932 registered firms and 489 licences issued, total investments of QAR232.5 billion in investments and production valued at QAR2.56 trillion.

Qatar is focused on supporting small and medium enterprises (SMEs) and enhancing the industrial sector’s contribution to the economy. MoCI’s Industrial Services Platform offers electronic services for industrial projects, including issuing and renewing licences, modifying production data, and requesting incentives and exemptions.

To stimulate economic growth and support the Qatar National Vision 2030, the Ministry of Municipality recently reduced rental rates for industrial zone lands, lowering costs from QAR100 to QAR10 per square meter annually.

“Sovereign-PPG can assist clients with the set-up of companies in Qatar and will also provide expert guidance on navigating the regulatory requirements, securing necessary permits and leveraging local opportunities to ensure a successful business establishment,” said Martin Zubeldia, Business Development Manager at Sovereign-PPG.

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Effected by Ministerial Decision No. 60 of 2024, the decision followed analysis of the business environment and investor requirements, and the need to attract both local and foreign businesses. It is intended to encourage business growth and foster economic expansion in line with the Qatar National Vision 2030.

The most significant changes include the reduction of the fee for registration in the commercial register with one main activity from a maximum of QR10,000 (c. USD2,700) to QR500. The annual renewal fee and the fee for registering each additional activity in the commercial register has also both been lowered by the same amount.

The licensing fee for commercial, industrial, or public premises, including branches, has been reduced from a maximum fee of QR10,000 to QR500, with the same reduction applying to annual licence renewal. The fee for the licensing of home-based business activities has further been reduced from a maximum fee of QR1,000 to QR 300, with the same reduction applying to annual licence renewal.

Applications for registration in the Commercial Agents Registry have been reduced from QR3,000 to QR1,000, with the same reduction applying to annual renewal. Application for amendment endorsement in registration in the Commercial Agents Registry have also been reduced from QR1,000 to QR300 per application.

Minister of commerce Sheikh Mohammed bin Hamad bin Qassim Al Thani said that the decision to reduce fees was part of MOCI’s strategy aimed at enhancing the investment environment and developing the trade and industry sectors in Qatar.

“MOCI’s fee reductions cover several crucial services, enhancing accessibility and affordability for businesses to operate in Qatar,” said Nazar Musa, Head of KSA & Qatar at Sovereign.

“It is expected that the decision will have a significantly positive impact on the market, specifically services related to company formation, issuance of commercial registrations and the licensing of commercial outlets.”

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The government of Qatar deposited its instrument of accession to the Madrid Protocol – the governing Treaty of the Madrid System for protecting trademarks worldwide – with World Intellectual Property Organisation (WIPO) Director General Daren Tang on 3 May.

The Madrid Protocol aims to provide international legal protection for trademarks by submitting the application in one country. The Madrid System offers a convenient and cost-effective mechanism for national or regional trademark holders to obtain and maintain protection of their brands simultaneously in up to 131 countries worldwide, representing over 80% of world trade.

Qatar is the 115th Member of the Madrid System and its accession to the Madrid Protocol means that national trademark holders in four – Bahrain, Oman, Qatar and the United Arab Emirates – out of the six countries that make up the Gulf Cooperation Council can now use the Madrid System to secure cross-border protection of brands.

This is an important step for entrepreneurs and businesses in Qatar who wish to expand the protection of their trademarks internationally and protect their IPs through one application. The Treaty guarantees benefits such as maintaining and renewing the registration, registering and transferring ownership of the international registration to others, or changing the name and/or address or other data in a single procedure that applies to all designated contracting parties.

Acceding to the Madrid Protocol is part of a series of initiatives taken by Qatar to strengthen frameworks for protecting IP rights and build an attractive economy to foreign investments within its National Development Vision 2030. In 2023, Qatar ranked 50th out of 132 economies listed in the WIPO’s Global Innovation Index (GII).

Qatar has recently strengthened its strategic partnership with WIPO through a number of memoranda of understanding (MOUs) and joint academic programmes to develop expertise in the field of intellectual property and in resolving disputes related to intellectual property.

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The Economic Development Board (EDB) of Mauritius signed a Memorandum of Understanding (MoU) on 12 May with the Qatar Financial Centre Authority (QFCA) aimed at promoting collaboration in areas of mutual interest including financial sector cooperation and skills enhancement.

The MoU marks a significant step towards fostering closer ties between Mauritius and Qatar in the financial services sector. Under the MoU, the QFCA and EDB Mauritius will foster the creation of a community between the fintech ecosystems of Qatar and Mauritius, which will support fintech initiatives in banks and other regulated financial institutions in both countries.

They will further assist each other in fast-tracking fintech development by providing institutional support for entities setting up in each other’s jurisdictions, sharing best practices to advance Islamic finance and joint promotion through round table events, conferences, seminars and other activities.

Finally, the two parties will cooperate on facilitating skills and capacity-building initiatives, involving technical assistance, knowledge transfer and policy development. They will share best practice between QFC and Mauritius institutions, implement staff secondment programmes to exchange expertise, develop training programmes for financial institutions and exchange information on investment and trade policies.

“Through this collaboration, we aim to capitalise on our respective strengths and expertise to drive innovation, promote sustainable development, and create new avenues for economic growth,” said QFC chief executive officer Yousuf Mohamed Al-Jaida. “By working together, we can enhance the competitiveness of both our jurisdictions and create a conducive environment for businesses and investors in Qatar and Mauritius.”

“The signing of this MoU signifies not just the formalisation of a partnership but the beginning of a journey towards deeper collaboration and synergy between our two organisations,” said EDB Mauritius chairman Hemraj Ramnial. “It represents a commitment to leveraging our respective strengths and resources to foster economic growth, innovation and prosperity for both our nations and beyond.”

This Memorandum of Understanding underscores the QFC’s steadfast commitment to driving economic progress and diversification and its vision to transform Doha into a leading global financial and commercial capital while cultivating stronger ties between Qatar and Mauritius.

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The Qatari government signed Double Taxation Avoidance Agreements (DTAAs) with both the UAE and Saudi Arabia on 30 May, signalling a significant step in strengthening economic and trade relations between the three Gulf nations and promising to unlock a number of benefits for businesses and individuals operating in these countries.

Individuals and businesses operating in Qatar and the UAE or KSA will benefit from provisions aimed at avoiding double taxation on income earned across borders. This will promote investment and economic activity by providing certainty and clarity on tax liabilities.

The treaties also facilitate the exchange of tax-related information between Qatar and the UAE and KSA, enhancing transparency and compliance with tax regulations. This is intended to enhance efforts to combat tax evasion and ensures a level playing field for businesses operating in the region.

Both treaties further establish mechanisms for resolving tax disputes between contracting parties in a partner state, offering a framework for timely and efficient resolution of any disagreements. This provision will create a more stable and predictable tax environment for taxpayers and investors.

By reducing tax barriers and providing greater certainty in respect of tax liabilities, the treaties and intended to promote cross-border investment flows between Qatar and the UAE or the KSA. This fosters economic growth, job creation, and prosperity across the region.

The two DTAAs were signed on the side-lines of the 121st meeting of the GCC Financial and Economic Cooperation Committee in Doha and will enter into force following the exchange of ratification instruments between treaty partners.

“These new double taxation agreements are indicative of Qatar’s strong economy, which has recently ranked 4^th globally for economic performance, and the growing relationships for regional and international business.” – Nazar Musa, Head of KSA & Qatar at Sovereign Corporate Services

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The Qatari Ministry of Justice confirmed that Law No. (5) of 2024 on Real Estate Registration, which introduces digital property registration for the first time in Qatar, was brought into force on 4 April.

The most significant reform of real estate registration since Law No. 14 of 1964, the new Law is in line with the government’s commitment to Qatar National Vision 2030, which identified real estate as a critical pillar in the countries efforts to diversify its economy beyond the traditional oil and gas sector.

The Law includes comprehensive and substantial measures to improve real estate services provided to the public. These include registration, record keeping, document generation, updating of real estate registration data, processing of applications for registration, objections and arbitration of property rights for unregistered properties and those expropriated for public purposes.

Under the new legislation, digital copies, procedures, requests and transactions carried out electronically will have the same legal validity as paper originals.

The Real Estate Regulatory Authority (RERA), which was set up last year, is actively working to develop the Real Estate Platform, in coordination with the Ministry of Justice (MoJ), to enhance its capabilities to provide accurate data on available properties.

The first phase of Platform development involves the provision of data and information to individuals and investors, including transactions and occupancy volumes. The second phase will include electronic linking between government agencies, and the third phase will offer full-functioning real estate services.

RERA chairman Khalid bin Ahmed Al Obaidli said the procedures included in the Law will facilitate buying and selling transactions, both for Qataris and foreign investors, and will support developers in implementing major real estate projects.

The new Law, he said, will also provide the optimal framework for off-plan sales and will improve the investment environment by providing clear data for investors in transactions in respect of rulings or charges against real estate.

The MoJ is in the process of drafting regulations and executive rulings in support of the new Law to finalise the procedures necessary to implement the new law’s provisions.

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