Qatarisation and the future of employment in Qatar

In this article, we take a closer look at the new Law and its main features:

What does the Law entail?

Qatarisation aims at increasing the employment of Qatari nationals in the workforce. Entities subject to this Law are required to employ, train, and qualify Qatari job seekers. In the absence of suitable Qatari candidates, priority must be given to the children of Qatari women. These are the two categories benefiting from this law. 

Who does the Law apply to?

The provisions of the Law apply to the following entities:

• employers who are natural persons managing private establishments registered in the commercial register;
• commercial companies operating in the state, whether state-owned, state-participated, or privately owned; and
• private institutions of public interest, sports institutions, associations, and similar entities.

The Council of Ministers may, upon the proposal of the Minister, add or exempt any entity from the application of all or some of the provisions of the Law.

Who is not subject to the Law?

Companies established by Qatar Energy, those in which Qatar Energy participates in their establishment, or those in which Qatar Energy holds a stake, as well as companies involved in implementing exploration and production sharing agreements, field development and production sharing agreements, or joint venture agreements in the fields of petroleum operations and petrochemical industries.

How will it work?

The Ministry of Labour (“MOL”) is tasked with creating a detailed and strategic plan to classify entities governed by this Law. This classification will be based on factors such as workforce size, job types, and necessary qualifications. The plan will also include comprehensive policies for training, employment, qualification, and university scholarships for students and job seekers, along with the guidelines for implementing these policies. This strategic plan will require approval from the Council of Ministers before implementation.

Once the Council of Ministers grants approval, the MOL will identify positions that must be exclusively filled by Qataris and the children of Qatari mothers. The Ministry will also develop programs to ensure these individuals receive the necessary training and qualifications within the entities subject to this Law.

Furthermore, the competent administration at the MOL will be responsible for nominating registered individuals for positions that align with their age and technical skills, ensuring a good match with employers.

An annual report on job Qatarisation will be submitted by the MOL to the Council of Ministers. To support this initiative, the Ministry of Finance will allocate the required financial resources.

How do Qataris and children of Qatari mothers register their interest for employment?

Qataris and children of Qatari mothers may submit a request to the competent administration at the MOL to register their details in the job seekers’ lists, following the process to be set by the competent administration and approved by the Minister of Labour (the “Minister”) in due course.

Such employment is contingent upon registration as outlined above. Exceptions are expected to be granted for those in key positions who act as representatives of employers in exercising their authorities, and for those performing occasional work as defined by the Labour Law.

The administration has the authority to cancel a registration request if the applicant is deemed not to be genuinely interested or provides incorrect information. Notification of cancellation will be sent to the applicant’s national address or through any means that ensures acknowledgment within 15 days from the date of cancellation. The affected individual has the right to appeal the cancellation decision to the Minister within 30 days of notification. The Minister is required to decide on the appeal within 30 days of its submission. If no decision is made within this period, the appeal is considered rejected. The Minister’s decision on the appeal is final.

What do entities subject to the Law need to do?

Entities subject to this Law must inform the appropriate administration of the MOL of all available positions, including the qualifications required for candidates, the specified salary for each position, and the appropriate date for filling or performing these roles. This notification must occur within one month from the date the position becomes vacant, is created, or the work becomes available.

Additionally, these entities are required to provide the administration with details of those employed under this Law within 60 days of hiring and supply comprehensive data on both Qatari and non-Qatari employees on a biannual basis.

Benefits and privileges

The Council of Ministers, based on the Minister’s proposal, will determine the benefits, facilities, privileges, and incentives for those included in the Qatarisation plan.

Qataris and children of Qatari mothers who join any entities subject to this Law may be granted financial incentives. These incentives will be provided according to the regulations and percentages established by a decision of the Council of Ministers, following the Minister’s proposal.

Penalties

The administration can take measures such as issuing warnings, suspending transactions of a violating entity with the Ministry for a period not exceeding three months, or imposing fines for violations of specific provisions. 

Violations under this Law include allocating positions meant for Qatarisation to unauthorised individuals; failing to notify the administration of all available positions and their details within one month; not providing the administration with employment details within sixty days of hiring; and not supplying biannual data on Qatari and non-Qatari employees. Penalties for these violations range from 10,000 QAR to 30,000 QAR, depending on whether it is a first, second, or subsequent offense. Failing to comply with the qualification and training plan stipulated in Article 4 of the Law will result in penalties ranging from 50,000 QAR to 100,000 QAR, depending on the frequency of the violation. 
Violators are notified to correct issues within a set period. Repeated violations may lead to public disclosure of the entity’s name on the Ministry’s website. Appeals can be made to the Minister.

Individuals using fraudulent methods or providing false information to unlawfully indicate compliance with the provisions of this Law, or with the intent to unlawfully obtain facilities, privileges, incentives or benefits provided under this Law face imprisonment up to 3 years and/or a fine up to 1,000,000 QAR. Managers of private legal entities are subject to penalties if aware of violations or if violations occur due to their negligence. Private legal entities are fined for crimes committed in their name, without affecting the criminal liability of the affiliated natural person.

What’s next?

The introduction of Qatarisation Law No. 12 is a major milestone in Qatar and presents both challenges and opportunities for businesses operating in Qatar. Companies will now have to reconsider or reassess their hiring practices to ensure that they align with the new requirements in due course and would be well advised to consider the implementation of training programs for hiring managers and recruitment teams. Internal processes will also likely need to be adapted to reflect the changing regulatory environment. While the Law lays the foundation for increased national workforce participation, further ministerial decisions are awaited to provide further implementation details and additional comprehensive measures. We expect that these will include the issuance of mandatory contract templates, which will offer clearer guidelines for compliance and implementation.