Qatar: Nationalization Law Forthcoming, Employee Reporting Requirements Proposed

Qatar has approved a draft law on the nationalization of jobs in the private sector which aims to increase employment of Qatari nationals, in particular through introducing obligations which require employers to determine if there are any eligible local candidates available (the requirements are in the nature of labor market testing obligations used in other countries). Under the proposed law, certain private sector employers will need to prioritize eligible Qatari nationals, or children of Qatari women who are married to foreign nationals (these children are not considered Qatari citizens), over foreign applicants. To meet this requirement, affected employers will need to publish job vacancies through an online jobs portal (including the recently launched ‘Ouqoul’ platform) within one month of the vacancy opening. Additionally, affected employers will need to inform the Ministry of Labor about hiring a candidate (whether a foreign national or Qatari national) within 60 days of the employment contract start date, and submit information about their entire employee headcount every six months. Penalties for violating these rules are expected to include substantial fines and potential imprisonment.

These new requirements will apply to private business owners, commercial companies (including state-owned and private firms), as well as private non-profit organizations in Qatar, among others. Companies involved in petroleum exploration, production, and petrochemicals are expected to be exempt from these provisions, allowing them greater operational flexibility.

Additionally, to incentivize the employment of Qataris in the private sector, financial support will be provided to Qatari employees and their employers. The government is expected to publish related regulations in the near future, which will provide further details on the nationalization plan, including a list of positions that are expected to be reserved for Qataris.