Qatar’s Law No. 12 of 2024 (the “Qatarisation Law”), published in the October 2024 Official Gazette, is a landmark piece of legislation that follows a regional trend to promote local participation in the private sector.

New Obligations on Local Companies

The Qatarisation Law introduces new obligations for companies to prioritize the employment of Qatari nationals. The law requires companies to employ, train, and onboard Qatari job seekers. Companies looking to hire must give first priority to Qatari citizens. If no suitable Qatari candidate is available, priority is then given to the children of Qatari women, expanding the eligible pool for certain roles.

The law applies to private establishments registered in the Commercial Register (maintained by the Ministry of Commerce and Industry), commercial companies operating in Qatar (whether privately owned or with state involvement), and private institutions of public utility, sports institutions, associations, and similar entities. There is an exception for companies established by Qatar Energy, entities in which Qatar Energy participates, and companies engaged in petroleum operations under exploration, field development, and production-sharing agreements are explicitly excluded from the law’s scope.

Reporting Requirements and Penalties

The Qatarisation Law sets out reporting and compliance obligations. Covered entities must notify the Ministry of Labour of all available positions, specifying conditions for candidates, wages, and filling timelines, within one month of a vacancy or job creation. Additionally, businesses must submit biannual workforce composition reports and comply with any onboarding and training plans prescribed by the Ministry of Labour. Non-compliance may result in penalties, including warnings, financial fines ranging from QAR 10,000 to QAR 100,000 (depending on the violation), and potential suspension of dealings with the Ministry.

Executive Regulations and Implementation

The law will become effective six months from the date of publication—or around April 2024. The executive regulations have not yet been issued as of this writing but are expected to be published before April. 

Until those regulations are issued, certain questions remain with respect to the new system. For example, it remains to be seen if the Qatarisation Law will be applied to companies of all sizes (by headcount, revenue or other measure) or if the executive regulations will set a baseline and allow smaller companies to be exempt from compliance. Second, while Qatar Financial Centre companies are expected to be exempt, it remains to be seen if companies registered in other special jurisdictions will be required to comply with the new Qatarisation requirements.

Conclusion

The Qatarisation Law is a landmark piece of legislation that is expected to have a substantial impact on many companies in Qatar. Much important detail remains to be clarified in the executive regulations. We will monitor these developments and expect to share updates in 2025.

Authors: Dean Jaloudi, Partner and Jehan Saleh, Associate.