The legal system in Qatar witnessed a massive advancement towards modernization. Following is an account of some key legislations.
The Constitution
The State’s constitution became effective in June 2005.
The Constitution states that Qatar has a democratic political system, and shall preserve its independence, sovereignty, security, safety, stability and integrity of its territory, and that it shall defend itself against any aggression.
The Constitution stipulates that the ruling of the State is hereditary within the Al-Thani family, and by male successors of the current Emir, Sheikh Tamim Bin Hamad Bin Khalifa Al Thani.
The Qatari Constitution provides basic citizen and human rights. It stipulates that all citizens are equal in general rights and duties. Additionally, all people are equal before the law and there shall be no discrimination on the grounds of gender, ethnic origin, language or religion. It also provides for the right to individual privacy, and privacy of family affairs and correspondence.
In the judicial process, the accused in a criminal legal proceeding is deemed to be innocent until proven guilty in court. All necessary legal assistance will be provided to the accused person, in order to practice the right of defence. The Constitution provides that judicial authority is to be handled by the courts, and Judges are independent in their judgements.
The Constitution states that the Advisory Council shall exercises the legislation authority. The Council of Ministers may also propose laws and deliver them to the Advisory Council for deliberations. Such proposals of the Council of Ministers are not binding on the Advisory Council.
The Constitution provides that every draft law adopted by the Advisory Council has to be referred finally to the Emir for endorsement.
The Judicial System
The phases of litigation in Qatar are divided into three stages, namely; the court of first instance, the appeal court, and the court of cassation.
The civil courts use written pleadings and rebuttals, but do not, usually, entertain oral arguments.
Proceedings in all courts are conducted in Arabic. The courts provide translators for non-Arabic speaking litigants. Decisions by the lower courts can be appealed to higher courts.
Qatar has acceded to the 1958 New York Convention on the Recognition and Enforcement of the Foreign Arbitral Awards.
Civil Law
The 2004 Civil Code provides the general principals for the establishment of contractual relations and how to deal with obligations arising from them. It specifies such basic elements of a contract being as consent, subject matter, and purpose of contracting. It has further dealt with annulment, construction and binding nature, effect, and cancellation of contracts.
The general principle governing the contract law is that natural and judicial persons are free to agree on whatever they desire provided that their agreement does not conflict with the public order or morality.
The Law deals with the effect of and interpretation of contracts, contractual responsibilities, liability for personal acts, and responsibility for acts of third parties, ownership responsibilities, surety, unlawful enrichment, types of sale, lease, insurance, and rights attached to property, land law, mortgage, wills, legacy, privileges, and gains. It also discusses performance, compensation and compulsory execution, assignment of rights, innovation, impossible performance and statutes of limitation.
Foreign Investments
The Foreign investment Law stipulates that foreign investors are allowed to participate in all national economy sectors, except commercial agencies and real estate trading. Foreign investors can participate in banking and insurance provided that they obtain the necessary approvals from the Council of Ministers.
The general rule is that 51% of the capital is owned by Qatari citizens or by entities owned 100% by Qatari citizens. However, the Law provides that foreign ownership may be increased from 49% to 100% through the passing of a Ministerial Resolution.
In addition, the Law confers upon foreign investors many privileges. For example, the foreign investors are provided with land for the project under a long-term lease for a period of 50 years. Additionally, the Ministry may grant certain exemptions to foreign investors under particular circumstances.
Tax Law
In accordance with the Tax Law, tax is levied on the net income of a taxpayer from its activities in Qatar.
No taxes are levied on companies wholly owned by Qatari nationals. In addition, there are no payroll tax deductions, property tax, municipal tax, sales tax, withholding tax or value added tax.
It is possible to grant tax exemptions and tax holidays for certain businesses upon application to a committee established under the tax law. Contractors executing projects for companies or projects that were granted tax exemptions can avail themselves of such exemptions.