Qatar Science & Technology Park Overview

Posted on June 7th, 2012

As part of Qatar Foundation, Qatar Science & Technology Park (QSTP) was established by virtue of law No. 36/2005 (the Law). QSTP is a home for technology-based companies from around the world such as GE, Rolls-Royce, ExxonMobil, Microsoft, Shell, Total. On April 2012, FASI, the largest insurance company in Italy, has signed an MOU with QSTP. This MOU outlines, among other things, collaboration initiatives between QSTP and FASI to exchange relevant information on preventive medicine with a focus on heart disease and diabetes.  QSTP also acts as an incubator for start-up enterprises involved in the development or transfer of technology and offers many programs that help investors develop and commercialize their technologies. QSTP’s members execute, broadly speaking, applied research and deliver commercial technologies in the areas of environment, health sciences and information and communication technologies.

The Law established a free investment zone for the QSTP (Free Zone) that aims to develop and support applied scientific researches and technological researches and to perform “Investment” activities that serve the goals of QSTP. “Investment” is defined by the Law as “incorporating and operating a project including one or more of the following activities: research and development, development of production, technical training, technical advice, the establishment of companies to carry out such activities, the delivery of services to support the entities that perform such activities”.

The Free Zone is managed by a board of directors (BoD). The BoD is duly empowered, among other things, to (i) issue the licenses required for the performance of activities in the Free Zone, (ii) issue the certificates of incorporation and registration of companies, branches and other entities seeking to obtain licenses in the Free Zone and (iii) set up companies that assist  in the achievement of the Free Zone’s objectives.

The QSTP offers investors many advantages. Investors can establish a 100% foreign owned company or operate as a branch of foreign company, trade without a local agent or sponsor and hire expatriate employees and sponsor them (tenants are exempted from workforce quotas that apply to certain countries). Goods, materials, equipments, tools, devices and means of transport that are imported from abroad in order to be used in the Free Zone are exempted from customs duty. Besides, goods and products manufactured in the Free Zone are exempted from exportation’s customs duty. Additionally, entities licensed to perform activities in the Free Zone and workers therein are exempted from all taxes, including income tax, in connection with their activities in the Free Zone. It should be noted however that goods entering the Qatari territories (except for the other free zones) from the Free Zone are subject to customs duty.

It is restricted to operate in the Free Zone before obtaining a license from the BoD. The scope of an investor’s commercial and non commercial activities is set out in his license. That being said, the majority of the activities of an investor, as mentioned above, must contribute to the advancement of technology.

In line with Qatar National Vision 2030, the QSTP is actively contributing to the human and economic development of Qatar.

By Marc Moubarak - Senior Associate - Al Misnad Law - In Association with the Law Offices of Khalifa Al Misnad