CITATION - Thomson Reuters



Qatar Financial Centre Real Estate Ownership REgulationsVersion No. – Month/Year of IssuanceQatar Financial CentreQATAR FINANCIAL CENTREQatar Financial Centre Real Estate Ownership Regulations These regulations are hereby enacted pursuant to Article 9 of Law No. (7) of 2005.______________________________________ Ali Ahmed Al-Kuwari Minister of Commerce and Industry of the State of Qatar______________________________________ Ali Sharif Al-Emadi Minister of Finance of the State of QatarIssued at: the Qatar Financial Centre, DohaOn:Corresponding to: ?Contents TOC \o "1-3" \h \z \u Article?1 PAGEREF _Toc36611791 \h 4Article?2 PAGEREF _Toc36611792 \h 4Article?3 PAGEREF _Toc36611793 \h 4Article?4 PAGEREF _Toc36611794 \h 4Article?5 PAGEREF _Toc36611795 \h 4Article?6 PAGEREF _Toc36611796 \h 5Article?7 PAGEREF _Toc36611797 \h 5Article?8 PAGEREF _Toc36611798 \h 5Article?9 PAGEREF _Toc36611799 \h 6Article?10 PAGEREF _Toc36611800 \h 6Article?11 PAGEREF _Toc36611805 \h 6Article?12 PAGEREF _Toc36611806 \h 6Article?13 PAGEREF _Toc36611807 \h 7Article?14 PAGEREF _Toc36611808 \h 7Endnotes PAGEREF _Toc36611809 \h 8CITATION These Regulations are the Qatar Financial Centre Real Estate Ownership Regulations. APPLICATION These Regulations are made by the Minister in accordance with Article 9 of the QFC Law and apply in the MENCEMENTThese Regulations come into force on the date of their signature by the Minister. DEFINITIONSThe following terms have the meanings assigned to each:State: means the State of QatarDesignated Areas: means that areas designated by the Ownership Law as areas where non-Qatari Persons may own Real Estate or have usufruct rights over Real Estate. QFC Courts: means courts established in accordance with the provisions of the QFC Law.QFC Entities: means a body corporate or partnership or un-incorporated association established, licenced, or registered in the Qatar Financial Centre. QFC Law: means Law No. 7 of 2005 on establishing the Qatar Financial Centre (as amended)Restriction Period: means the period set out in Article 7(3).Ownership Law: means Law No. 16 of 2018 on the Regulating Ownership and Use of Real Estate by Non-Qataris.CRO: means the Companies Registration Office established pursuant to Article 7 of the QFC Law.Board: means the Board of Directors of the QFC Authority.Person: means a natural or legal person.Real Estate: means real estate as defined by the Ownership Law.The provisions of the Ownership Law apply to QFC Entities. A QFC Entity that is wholly owned, directly or indirectly, by a Qatari Person may own, or have usufruct rights, in Real Estate located in the State.The following are considered to be wholly owned by a Qatari Person:entities listed on the Qatar Stock Exchange or any other regulated exchange in Qatar.entities wholly owned by entities listed on the Qatar Stock Exchange or any other regulated exchange in Qatar.entities wholly owned by bodies, ministries, public institutions, other government agencies and authorities whose budget is financed by the State; andentities wholly owned by private institutions for public benefit which recieves financial subsidies from the State.A QFC Entity whose shareholders include, either directly or indirectly, a non-Qatari Person:may own, or have usufruct rights in, Real Estate located within the Designated Areas;must not own, or have usufruct rights in, Real Estate in areas located outside the Designated Areas, unless otherwise permitted by a law of the State.A QFC Entity that:meets the qualifications set out in Article 6 of these Regulations, andwishes to own Real Estate, or have usufruct rights in Real Estate, that is located outside the Designated Areas,must apply to the CRO for approval to do so in such form as may be prescribed by the QFC Authority from time to time. The CRO will approve the application after confirming that such QFC Entity meets the qualifications set out in Article 6 of these regulations.Before issuing the approval, the QFC Authority will impose a restriction on the QFC Entity’s licence such that any transfer of the QFC Entity’s shares to third parties may not be registered without the written consent of the CRO. The registration of any transfer of shares made without the written consent of the CRO is null and void.All legal persons who own the QFC Entity must be owned by Qatari persons during the period of the QFC Entity’s Real Estate ownership or the period during which it has a usufruct right. Where such legal person is a QFC Entity, the QFC Authority will extend the restriction set out in Article 9(3) of these Regulations to such QFC Entity, and in case they are more than one QFC Entity, to all such QFC Entities;not a QFC Entity, the QFC Authority will obtain an undertaking from any Person who directly or indirectly own shares in that QFC Entity that any transfer of shares of such non-QFC Entity shall be made only in accordance with Article 8. The form and content of such undertakings will be determined by the QFC Authority. A Qatari Person who is a shareholder of a QFC Entity may, during the Restriction Period, apply for CRO’s written consent to transfer their shares in the QFC Entity in such form as may be prescribed by the QFC Authority from time to time. If the proposed transferee of a Qatari Person's shares is a Qatari person, the CRO will issue its written consent to the transfer of shares.If the proposed transferee of a Qatari Person's shares is a Non-Qatari person, the CRO will verify whether the concerned QFC Entity owns Real Estate, or have usufruct rights in any Real Estate located outside the Designated Areas. Where the QFC Entity owns a Real Estate, or has usufruct rights in any Real Estate, that are located outside the Designated Areas, the CRO will reject the transfer of shares, unless the relevant shareholder or the QFC Entity proves that it does not own such Real Estate or have usufruct rights, as the case may be.A shareholder of a QFC Entity thatowns, or has usufruct rights in, Real Estate in a Designated Area anddoes not own, or has usufruct rights in, Real Estate outside the Designated Areas, may transfer its shares to a third party without obtaining the written consent of the CRO.The QFC Authority may request the QFC Entity to provide full and accurate information related to its shareholding and Real Estate ownership within 10 days of the date of the request.Without prejudice to any other penalty, the QFC Authority may impose a financial penalty on any person who contravenes Articles (7), (8), (9) or (11) of an amount no less than QAR 500,000 and no more than QAR 10,000,000.Without prejudice to any other penalty, if a Person contravenes any of the provisions of these regulations, the QFC Authority will direct the QFC Entity to take remedial action.The QFC Courts have the jurisdiction to resolve any matter arising from the implementation of these Regulations.The Board may issue any necessary decisions to enforce the provisions of these regulations.The Board may determine the types of QFC Entities which are entitled to own, or have usufruct in, Real Estate in accordance with the provisions of these Regulations.Endnotes1 Abbreviation keya=afterom=omitted/repealedam=amendedorig=originalamdt=amendmentpar=paragraph/subparagraphapp=appendixprev=previouslyart=articlept=partatt=attachmentr=rule/subruleb=beforerenum=renumberedch=chapterreloc=relocateddef=definitions=sectiondiv=divisionsch=scheduleg=guidancesdiv=subdivisionhdg=headingsub=substitutedins=inserted/added2Regulation history3Amendment history ................
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