What is Qatarization? 

Qatarization was launched as part of Qatar’s National Vision 2030, which aims to reduce the reliance on foreign labour and workforce and integrate more Qatari nationals into private sector companies. Much like its GCC neighbours’ initiatives (i.e. Emiratization in the UAE and Saudization in Saudi Arabia), Qatar’s drive is a response to an expatriate dominated workforce. 

Currently, expatriates account for roughly 85% to 90% of Qatar’s total population, and an even higher share of its private sector employees, leaving the vast majority of Qatari citizens to work in government and public sectors. It is estimated that in 2023, only 10% of Qatari’s were employed in the Private Sector, and that disparity is what Qatar is seeking to address.

The Ministry of Labour (MoL) in Qatar are aiming to raise the proportion of Qataris in the private and mixed sector employment up to 20% by 2030, with 50% being the target goal in its Overall Vision target in core industries by 2040. It is important to understand the Qatarization requirements when setting up a business in Qatar and how it might effect your people operations plans. 

What Are The Legal Obligations for Employers?

Most businesses in Qatar’s mainland fall under the Qatarization requirements, companies that are associated with Qatar Energy, including its subsidiaries, joint ventures, or any businesses engaged in oil & gas, petroleum operations or petrochemicals are currently exempt.

Registration On Tawteen

All employers in Qatar are required to register their Company on the Tawteen portal, with details about the Company, the organisation structure, and more. All new job vacancies must be posted on this Tawteen portal as well to allow Qatari nationals first priority to apply to it through the Istamer portal.

Priority Hiring

For any new vacancy, companies must seek to first hire a Qatari national to fill that position who meets the role’s requirements. Only if the Ministry of Labour confirms that no suitable local candidate is available can the position then be filled by a non-Qatari. This is partly due to the law’s “Qatari’s-first” agenda.

Reserved Roles

The Ministry of Labour will begin identifying certain job roles that must be held exclusively by Qatari’s. Much like their neighbouring counterparts in Saudi Arabia, specific professions or positions, particularly those in skilled roles or strategic sectors, will be off-limits to foreign employees. Employers will need to have succession plans and recruitment strategies in place to ensure they meet this regulation.

Training & Development

Employees aren’t only required to hire Qatari employees, but they must also seek to develop their skills. Employers are obliged to train and qualify their Qatari employees to ensure they can effectively fill roles and advance their careers. The MOL have confirmed they will be releasing a Qatarization plan which will include policies on training and education for Qatari nationals.

Notifying The MOL On Job Openings

The law states that all eligible employers must notify the MOL of any new job openings within one month of a position becoming vacant. Employers need to provide the Ministry’s designated team details such as job title, required qualifications, proposed salaries, and expected start dates. This is to allow the MOL to nominate qualified Qatari candidates for such roles. Companies need to utilise this method before they can start looking at the open market for talent to fulfil these roles.

General Retirement and Social Insurance Authority (GRSIA) Registration

Pensions in Qatar are governed by Law No.24 of 2002 and the regulated by the General Retirement and Social Insurance Authority (GRSIA). GRSIA registration and contributions ​are required for all Qatari nationals who work in GCC countries under the common system to extend the insurance protection. 

Rates of Contributions

Contribution is calculated on the basis of monthly basic salary and all allowances included (total salary). Pensioners registered after 30th August 2010 will adhere to the following: 

• Employer monthly contribution - 11.5%
• Employee monthly contribution - 8%
• Total contribution = 19.5%

To Note: 

The Qatarization  law also does not mention companies incorporated within the Qatar Free Zone (QFZ) or Qatar Financial Centre (QFC), which operate under their own separate regulatory laws, and rather only focuses on those in the Mainland, however, the Council of Ministers do have the authority to add or exempt any entity, sector or jurisdiction from the law’s application as and when deemed required.

Compliance

To help employers meet these requirements, the Qatar government is launching support and incentive programs. Much like the NAFIS program in the UAE, companies that actively embrace Qatarization will stand to benefit from various government provided incentives such as financial incentives for employees with salary support, subsidies and grants, preferential treatment and prioritisation in government tenders and contracts, awards and public recognition for being a leader in Qatarization, and improved government services.

Penalties for non-compliance

Employers who fail to adhere to the rules will face escalating penalties. For all initial and minor infractions, the MOL can issue formal warnings to the employer, in addition to suspending certain services or transactions for a period of up to 3 months. Direct breaches can result in fines up to QAR30,000 per offense, this includes when a company allocates a job reserved for Qataris to an unauthorized (expatriate) person, or fails to notify the authorities of a new vacancy within the one-month window, or does not submit the required biannual employment data, they can be fined. Repeated offenses will result escalating repercussions from imprisonment and fines of up to QAR 1,000,000.

Supporting your Employee Processes

It's important to note that, while the law is in effect, there is no clear guidance provided on classifications and quotas. The MOL will most likely classify companies by size, industry or sector, and job types. For each category of employer, the MOL will set target ratios or number of Qatari employees. Larger companies or ones in specific sectors might be required to hire a higher percentage of Qatari nationals, however, the MOL is currently awaiting the Qatar Government Cabinet resolution to pass these classifications and quota guidelines.

Our HR Outsourced Services are designed to support your employee processes from adhering to Labour Law requirements, finding the appropriate candidate for the role and the full onboarding and employee lifestyle. This includes registering your Qatari nationals with the General Retirement and Social Insurance Authority (GRSIA), end of service benefit contributions, payroll management and employee wellbeing programme development.