The government’s new decision to allow foreign companies and individuals to own real estate in more areas in the country will significantly boost investors’ confidence and accelerate the inflow of foreign capital to the Qatari economy, said top officials of local business and investor organisations.
According to a cabinet decision yesterday, Qatari and non-Qatari citizens may own residential and commercial properties in more areas. The owners of property that is worth no less than QR730,000 ($200,000) will be offered residency. Owners of the property are granted residency for themselves and their family for the duration of their ownership.
Interviews with senior representatives of leading business entities and foreign investors suggest that the decision will not only boost the real estate market but also help attract more foreign investments to the country which will have positive impact on other sectors of the economy.
“This is a very good initiative on the part of government that will bring more investment to the country. It’s a very positive step for the overall economy and will add value to the country. And it’s a priority for us. This will help boost the confidence of local as well as foreign investors, Qatar Chamber First Vice-Chairman Mohamed bin Ahmed bin Towar Al Kuwari told The Peninsula on telephone.
Al Kuwari, a prominent Qatari businessman with significant exposure to the real estate market, added: “I believe that this will also help increase the value of real estate properties which was needed and long overdue.”
Azim Abbas, President of the Doha-based ‘Indian Business and Professionals Council’ (IBPC), voicing similar opinion, said: “This is one of the best and most welcoming decisions the government of Qatar has taken over the last few years towards economic diversification, which is in line with its long-term objective to achieve a sustainable economy. Keeping in view the global situation, Qatar is being considered as one of the safest and most progressive countries in the world. And this decision will significantly increase the investors’ confidence on the Qatari economy.”
Abbas, who is one of the prominent Indian businessmen and investors in Qatar, added: “In line with the Qatar National Vision 2030, I understand that there are many more such decisions in the pipeline in terms of liberalizing the economy that will further strengthen the investors’ confidence and boost inflow of foreign capital. The feeling of having your own property and residence visa for long time is like a ‘cherry on the cake’. It will attract a lot of new foreign investors to Qatar.”
He further said that the increase in the number of freehold areas will not only boost the real estate market but also have positive impact on other sectors as investors will be attracted to invest in some other promising sectors of the economy such as industry, manufacturing, IT and retail sectors. This is will also attract more investment in Qatar’s rapidly growing free zone areas as the Qatar Free Zone Authority is offering a lot of incentives such as tax holidays, nominal rents, and long-term visa and many other benefits.
Some analysts suggested that this decision will also reinforce the confidence of existing businesses and investors on the local economy and self-regulate the outflow of capital.
The real estate market has already started rebounding after the coronavirus lockdown began easing. The total value of property sale activity in Qatar reached QR685.7m from September 20-24. The property sale market witnessed a significant growth in the number of deals closed during the same period, which climbed to 243 transactions. Building sales which included residences, residential buildings, complexes and towers reached QR553.6m, while land lot sales reached QR132m, according to the latest Ezdan Real Estate weekly report.