Qatar
Answer ... Typical structures/vehicles include limited liability companies (LLCs) and joint ventures (incorporated or unincorporated). However, the type of structure adopted for a project will depend on the applicable licencing and commercial requirements for that project.
For LLCs, the Foreign Investment Law (Law No 13/2000) states that the incorporation of a company in Qatar requires that a Qatari partner have a minimum 51% shareholding in the company. Article 2(2) allows for 100% foreign ownership (upon the minister’s decision), but not within the banking, insurance, commercial agency rights or real estate trading sectors.
In terms of joint ventures, it is common for local companies to partner with international companies to bid for projects in Qatar. Joint ventures are governed by the Commercial Companies Law (Law No 11/2015), which provides that unincorporated joint ventures can operate once they comply with the relevant laws and regulations, as they are not seen as a legal entity. An incorporated joint venture is recognised as an independent legal entity.
Qatar
Answer ...
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LLCs:
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- Advantages: No minimum capital required; owners are not personally responsible for business debts and liabilities.
- Disadvantages: It may be challenging to raise capital, particularly in current market conditions.
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Joint ventures:
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- Advantages: Companies can engage in construction projects in different geographic locations.
- Disadvantages: The on-the-ground relationship with the partner company may be culturally challenging and costly.
Qatar
Answer ...
- Size – mega project versus large, medium or small;
- Private sector or public sector;
- Complexity – number of contractors and specialist subcontractors involved;
- Project value;
- Type of project – for example, major infrastructure or building construction;
- Finance;
- End user requirements;
- Employer influence and ‘wasta’ (ie, degree of influential connections).