Qatar introduces new legislation to nationalize the private sector
Qatar has enacted Law No. (12) of 2024, issued by His Highness Sheikh Tamim bin Hamad Al Thani, focusing on nationalizing jobs in the private sector. The law aligns with the Qatar National Vision 2030 and the Third National Development Strategy (2024-2030), aiming to transform the labor market toward higher-skilled roles while fostering increased participation of Qatari citizens and children of Qatari women in private enterprises.
The primary goals of the law are to increase the appeal of the private sector to Qatari professionals, enhance companies' abilities to recruit and integrate citizens, and ensure long-term job stability for national employees. It also focuses on boosting professional development, meeting market demands for qualified personnel, and incentivizing private companies to actively employ Qataris. The new framework emphasizes creating sustainable employment opportunities and reducing reliance on expatriate labor.
Scope and Coverage
Law No. (12) of 2024 applies to a wide range of entities, including private companies, state-owned enterprises, non-profit institutions, sports organizations, and associations. This broad coverage aims to ensure a comprehensive transformation of Qatar’s employment landscape by encouraging national workforce integration across multiple sectors.
Training, Scholarships, and Incentives
The Ministry of Labour (MoL) is tasked with implementing nationalization strategies through detailed policies covering workforce classification, job categorization, and employment programs. The MoL will offer financial incentives to encourage employers to recruit Qataris and will support citizens with university scholarships and vocational training. These programs aim to equip the local workforce with skills needed for specialized roles and ensure alignment with market demands.
Standardized Employment Contracts and Job Security
To ensure job stability, the law mandates the use of standardized employment contracts for all nationalized roles. This move seeks to provide consistent terms and conditions, fostering a stable work environment. It also ensures that employees and employers have clear guidelines, reducing ambiguity in employment relationships.
Monitoring Compliance and Supporting Integration
The Ministry of Labour will closely monitor companies to ensure compliance with nationalization policies. In collaboration with private sector partners, the MoL will develop tailored training programs to integrate Qataris into the workforce smoothly. It will also work with companies to address challenges related to job retention and workforce development.
Opportunities and Implications for Businesses
This law represents a significant shift in Qatar's labor market policies, with implications for both local and foreign businesses operating in the country. Companies will need to adapt their hiring, training, and operational strategies to align with the nationalization requirements. Deloitte has advised businesses to prepare by reviewing their employment contracts, restructuring training programs, and leveraging the financial incentives offered under the law.
Conclusion
Law No. (12) of 2024 is a cornerstone of Qatar’s efforts to create a dynamic labor market that aligns with the country’s long-term economic and social goals. By promoting national workforce participation in the private sector, Qatar aims to build a sustainable economy driven by local talent. As further details of the nationalization framework are announced, businesses must stay proactive and ensure compliance to align with Qatar’s vision of a highly skilled, inclusive workforce.