All About Local Qatari sponsorship

What is local sponsorship in Qatar?

Local sponsorship, also known as a "sponsorship system" or "kafala system," is a legal requirement in Qatar for non-Qatari nationals who wish to work or do business in the country. Under this system, a Qatari national or a Qatari-owned company (the sponsor) acts as a local representative for the foreign worker or business owner (the sponsored).

The local sponsor takes on legal and financial responsibility for the sponsored individual, including obtaining necessary work permits, facilitating visa and residency procedures, and ensuring compliance with local laws and regulations. In return, the sponsored individual is required to obtain the sponsor's permission to change jobs, exit the country, or make other significant changes to their status.

Local sponsorship is a key feature of the labor market in Qatar and is intended to protect the interests of both foreign workers and Qatari citizens. However, the system has been criticized for creating opportunities for exploitation and abuse, particularly in cases where sponsors misuse their power over sponsored individuals.

Who is eligible for local sponsorship in Qatar?

In Qatar, only Qatari nationals or Qatari-owned companies are eligible to act as local sponsors for foreign workers or businesses. This means that non-Qatari individuals or entities cannot act as local sponsors in Qatar.

To be sponsored by a Qatari national or company, foreign workers or businesses must meet certain requirements and obtain the necessary permits and approvals from the Qatari government. These requirements may vary depending on the type of work or business activity, the nationality of the sponsored individual or company, and other factors.

Foreign workers are typically sponsored for employment in specific jobs, and the sponsor is responsible for obtaining a work permit and facilitating the necessary visa and residency procedures. Foreign businesses may also be sponsored by a Qatari company, which can act as a local partner or representative for the foreign business in Qatar.

What are the requirements for obtaining local sponsorship in Qatar?

The requirements for obtaining local sponsorship in Qatar may vary depending on the type of sponsorship and the nationality of the sponsored individual or business. However, some general requirements for obtaining local sponsorship in Qatar are as follows:

For individuals seeking sponsorship:

1. A valid passport with a minimum validity of 6 months.
2. A job offer from a Qatari employer or a company willing to sponsor them.
3. Medical fitness certificate from an approved medical center in Qatar.
4. Clear criminal background check from home country or country of residence.
5. Educational certificates, as applicable to the job position.

For businesses seeking sponsorship:

1. A valid trade license from the Ministry of Commerce and Industry in Qatar.
2. Proof of ownership or partnership in the business, including details of all partners or owners.
3. Business plan outlining the activities of the company in Qatar.
4. Proof of financial solvency, including bank statements or financial statements of the business.
5. Relevant industry licenses or permits, as applicable to the business activity.

In addition to these requirements, all sponsored individuals and businesses must comply with the rules and regulations of the Qatari government, including obtaining necessary permits and approvals for work and business activities. The local sponsor is responsible for facilitating these procedures and ensuring compliance with local laws and regulations.

Is local sponsorship mandatory for establishing a business in Qatar?

Yes, local sponsorship is mandatory for foreign businesses to establish a presence in Qatar. Under Qatari law, non-Qatari nationals are not allowed to own 100% of a business in most sectors. Therefore, to establish a business in Qatar, non-Qatari nationals must partner with a Qatari national or a Qatari-owned company who will act as a local sponsor.

The local sponsor will have a minimum 51% ownership in the business, while the foreign investor can own up to 49% of the shares. The local sponsor will also act as a local representative for the business and will be responsible for obtaining necessary permits, licenses, and approvals, as well as complying with local laws and regulations.

The local sponsorship requirement is designed to encourage foreign investment in Qatar while also ensuring that Qatari nationals and companies play a significant role in the country's economy. The local sponsor provides a level of local expertise, knowledge of the market, and legal support to foreign investors, making it easier for them to do business in Qatar.