Legal Corner: Ownership of real estate by foreigners Thursday, 28 April 2011 00:49

by Abdelaal A Khalil

Qatar’s economic growth can be partly attributed to its vibrant real estate sector. A number of major real estate projects are either in a stage of planning or have been completed, The Pearl City being an example.

Construction and contracting companies have started to play a key role in the economy. They have demonstrated their ability to meet the needs of the local market and implement various projects.

These companies build residential units for all classes, which in a way balances the real estate market.

This has prompted Qatari legislators to issue laws to invite foreign investors into the local real estate market.

These laws are aimed at attracting foreign capital into Qatar. The government offers incentives that make investing in Qatar more appealing. This is clear in Law No. 17/2004, which regulates real estate ownership and use by foreigners as well as the Ministerial Decree No 75/2006.

The Law allows citizens from the Gulf Cooperation Council countries to own properties in investment areas, according to Cabinet decision No. 5/2006.

Non-Qataris can own properties on The Pearl Island, the West Bay Lagoon, and Al Khor Resort projects.

Non-Qataris, however, cannot own these properties for more than 99 years. Ownership can be extended for another 99 years in the light of Cabinet resolution No. 6/2006.

Properties cannot be used before registration in accordance with the provisions of Land Registration Law No. 14/1964.

Ownerships cannot be revoked before the end of the contract.

They can, however, be revoked if the property is confiscated for public interest. The law gives the tenant the right to use all the services of the leased property and parts intended for common use of the building. The ownership of the unit moves after the tenant’s death to his/her legal heirs.

Landlords have the right to give the property to new tenants after the old tenant has evacuated. They should also ensure freedom for the tenant during the duration of use. They are also committed to maintaining the rest of the construction and maintenance.

The tenant should only use the residential unit for its original purpose. He and his successor, private or public use of a residential unit, should conserve, maintain and return it at the end of the contract.

A tenant should be a member of the federation of property owners where the housing unit is located. All federation’s law are applicable to him.

Also, the owner or the user of real estate or a housing unit can get the residence permit in Qatar for him, his spouse, his children and his parents without a sponsor in accordance with Law No. 4 /2009, which regulates the entry and exit of expatriates, their residence and sponsorship, provided that the landlord or the tenant meet the conditions for the issuance of residence permits. The duration of residence can be for five years. It can be renewed for a similar period/s.

Licensed people may stay out of the country and return without permission or authorisation.

The residence permit of the owner or user of real estate or a housing unit can be cancelled if it is found that he obtained it on the basis of incorrect information or fake documents, or his residence was found to be jeopardising the state security or safety at home or abroad, or harms the national economy, public health or morals.

Finally, the residence is also revoked if he used the residence permit against the purpose for which it was issued from the authority concerned. The Minister of Interior or his deputy may give him a period not exceeding 90 days from the date of the expiry of his residence so that he can get the chance to leave. the peninsula