Qatarisation Law No. 12/2024: Navigating the new regime in the construction sector

November 20, 2024

What is the new law?

The Qatarisation Law No. 12/2024 supports Qatar National Vision 2030 by prioritising Qatari employment in the private sector. The move follows a broader theme in the region to encourage the training and hiring of local nationals.

The new legislation was issued on 1 September 2024 and will be effective six months following the publication in the Official Gazette (on 17 October 2024), in April 2025.

How will it apply to the construction industry?

The new legislation will apply to a broad spectrum of entities across the private sector, including commercial companies operating in Qatar (whether privately owned, state-owned or state-participated), private non-profit institutions and sporting organisations. This would capture the majority of the construction sector operating in Qatar.

There is one exemption to be aware of. This is for Qatar Energy and its affiliates, and any entity associated with petroleum operations and field development.

Whilst further details are still awaited from the Ministry of Labour as to the classification of employers and roles, the application of Qatarisation for the construction sector will likely affect the appointment of highly skilled professionals, such as engineers, project managers and accountants etc.

What should construction companies be looking at?

Any businesses affected by the new legislation will need to review their recruitment and training strategies for both existing and future projects.

Whilst every business will have its own unique considerations and stakeholders, it is worth considering the following points:

• Will the resourcing requirements be able to be fulfilled within existing programme times? For existing projects, it is worth ensuring the workforce is flexible to incorporate any additional workforce needs and realignment. Also consider any contractual relief that might be available for the parties (for example, change in law relief).
• Look ahead to projects on the horizon. For new projects, parties should ensure that resourcing plans and programming takes account of the new regime. This could be addressed during the bidding stage for a project and in discussions around programming and costs. Early collaboration is key.
• Put in place a long-term plan. A scalable plan for workforce quotas can help ensure long-term compliance and sufficient adjustments as regulations evolve.
• Consider additional training requirements. Companies subject to the law are obliged to establish programmes centred around the development and training of Qatari nationals. A review of existing company training programmes for Qatari nationals should be undertaken.
• Be aware of the importance of compliance with the new legislation. Non-compliance with the new legislation could result in significant fines or penalties for the company. Persons in charge of the effective management could also face fines.

Qatarisation Law No. 12/2024 represents a critical shift in the regulatory environment for businesses operating in Qatar. For advice on how your business or project can navigate the changing landscape, speak to one of our dedicated team.