Qatar’s strategic shift to national workforce empowerment
In a landmark move, His Highness Sheikh Tamim bin Hamad Al Thani, the Amir of the State of Qatar, enacted Law No. (12) of 2024 regarding the Nationalization of Jobs in the Private Sector (the “Law”), as announced on the official Amiri Diwan website on 1 September 2024. This Law, published in the Official Gazette on 17 October 2024, will come into force six months post-publication.
As emphasised by the Ministry of Labour (the “Ministry”), the Law aligns with Qatar National Vision 2030, particularly within the pillar of human development, by facilitating strategic investments and creating opportunities for employment and training for Qatari citizens. It also supports the Third National Development Strategy, which aims to effect a fundamental transformation towards a more productive labour market, focusing on high-skill jobs. This transformation will be achieved by leveraging a highly skilled Qatari talent pool while also attracting foreign talents with advanced skills.
The Mechanics of Workforce Nationalization
Under the Law, nationalization of jobs is systematically implemented. Priority for employment, training, and qualification will be given to Qatari nationals actively seeking work (the “Tier 1”). In instances where Tier 1 candidates are unavailable, the next preference will be given to the children of Qatari women (the “Tier 2”), all within the framework of policies, plans and programs to be established by the Ministry.
The Ministry will specify the roles reserved for Tiers 1 and 2, detailing the requisite qualifications and training programs. Furthermore, the Ministry’s designated administrative unit (the “Administration”) will maintain a comprehensive registry of individuals in these Tiers. Registration is a prerequisite for employment under this Law, with certain exceptions.
To incentivize nationalization, financial incentives may be offered to eligible individuals in Tiers 1 and 2, supported by funds allocated by the Ministry of Finance.
Targeted Entities and Exceptions
The Law applies to the following (the “Targeted Entities”):
- Employers who are natural persons managing private establishments registered in the commercial register.
- Commercial companies operating in the State, whether state-owned, state-participated, or privately owned.
- Private non-profit institutions, sports institutions, associations, and similar entities.
However, the Law exempts the following:
- Companies formed by Qatar Energy, or the latter participating in their establishment or the participation by Qatar Energy in such companies.
- Companies executing agreements for exploration and production sharing, agreements for development of fields and the production sharing, and joint venture agreements in the field of petroleum operations and petrochemical industries.
The Council of Ministers, upon the Minister of Labour’s (the “Minister”) recommendation, may modify the Law’s applicability, either broadening or limiting its reach to certain entities.
Ministry’s Role
The Ministry is tasked to:
- develop a comprehensive plan for nationalisation of jobs in the private sector by classifying entities based on size, workforce, and job types, with policies for training, employment, qualification, and university scholarship programs. This plan should be approved through a decision from the Council of Ministers;
- specify, following the approval of the Council of Ministers, the jobs which will be limited to Tier 1 and Tier 2 as well as their qualification and training programs;
- submit to the Council of Ministers an annual report with respect to the Qatarisation according to the Law; and
- issue the standardized contract templates for Tier 1 and Tier 2.
Compliance
Targeted Entities must:
- inform the Administration of vacancies, job requirements, remuneration, and timelines within a month of a position’s vacancy or creation or availability in any kind;
- provide the Administration with data of appointments of Tier 1 and Tier 2, as well as any information or documents required by the Administration in accordance with this Law within 60 days of hiring and biannually thereafter; and
- implement the decisions to be issued by the Ministry regarding the definition of jobs and the necessary qualifications and training.
Incentives for Compliance and Sanctions for Non-compliance
Targeted Entities compliant with the Ministry’s directives, as per the Law, will be eligible for benefits, facilities, privileges, and incentives, as determined by the Council of Ministers.
In case of non-compliance, the Administration may issue warnings, suspend transactions with the Ministry for a period not exceeding three months, impose financial penalties, and, upon the Minister’s consent, publicly name offenders on the Ministry’s website in the event of repetition of such offense.
Fraudulent acts or misrepresentation to gain undue advantages under this Law will attract severe penalties, including imprisonment for up to three years and fines up to one million Qatari Riyals.
Preparing for Effective Implementation
Next steps for Targeted Entities include preparing for the Law’s implementation by assessing its implications for their operations and ensuring compliance when the Law becomes effective. The Minister will release further directives, including standardized contract templates for nationalisation of jobs, which will be obligatory for the Targeted Entities.
Conclusion
By aligning the goals of Qatar National Vision 2030 with tangible policies and incentives, the Law is set to transform the private sector into a nurturing environment for national talent, thereby contributing to a resilient and self-reliant economy. The forthcoming directives from the Minister, including standardized contract templates, will provide the necessary guidance to facilitate a smooth transition into this new regulatory environment – a process which we are following closely.
