Cabinet announces additional support for businesses hit by Covid closure
■ The draft law includes the provision that allows non-Qatari investors to own up to 100% of the capital of Qatari shareholding companies listed on the Qatar Stock Exchange
■ Water, electricity charges exempted until the Sept-end 2021
■ QDB’s National Guarantees Programme (NGP) extended until September-end
■ Interest exemption period for NGP extended from one year to 2 years
■ Salary funding limits raised to QR15mn for a single identity card
■ Continued QCB support to liquidity of local banks, as needed
The Cabinet has announced additional support packages for sectors affected by the closures resulting from the Covid-19 precautionary measures enforced in the country, Qatar News Agency (QNA) reports.
This came at the Cabinet’s regular meeting chaired by HE the Prime Minister and Minister of Interior Sheikh Khalid bin Khalifa bin Abdulaziz alThani yesterday via videoconference.
Following the meeting, HE the Minister of Justice and Acting Minister of State for Cabinet Affairs Dr Issa Saad al-Jafali al-Nuaimi issued a statement giving the details of the proceedings.
In view of the current conditions in the country as a result of the second wave of the Covid-19 pandemic, and in implementation of the directives of His Highness the Amir Sheikh Tamim bin Hamad al-Thani to support and provide financial and economic incentives to the private sector and mitigate the economic consequences of the pandemic, the Cabinet adopted additional support packages for sectors affected by the closures resulting from the precautionary measures taken to deal with the spread of Covid-19, QNA said.
These are as follows:
● Exemption from electricity and water fees for the closed sectors until the end of September.
● Extension of the National Guarantees Programme at Qatar Development Bank until the end of September.
● Extension of the period of exemption from interest for an additional year for the National Guarantees Programme, to become two years without interest, in addition to two years of payment with interest that does not exceed the Qatar Central Bank rate + 2%.
● Raising the limits of funding salaries and wages for closed sectors to QR15mn for a single identity card, while retaining the rest of the relevant terms and conditions.
● Continued support by Qatar Central Bank for the liquidity of local banks as needed.
HE the Prime Minister and Minister of Interior Sheikh Khalid bin Khalifa bin Abdulaziz al-Thani chaired yesterday via videoconference the Cabinet’s regular meeting.
Following the meeting, HE the Minister of Justice and Acting Minister of State for Cabinet Affairs Dr Issa Saad al-Jafali alNuaimi issued the following statement: The Cabinet approved a draft law amending some provisions of Law No 1 of 2019 regulating the investment of non-Qatari capital in economic activity.
The draft law includes the amendment of Article 7 of the law so that non-Qatari investors can own up to 100% of the capital of Qatari shareholding companies listed on the Qatar Stock Exchange. The Cabinet also took the necessary measures to issue a draft law on mortgaging movable funds, after the Council of Ministers reviewed the recommendation of the Shura Council on the draft law. The draft law aims to enable companies and individuals to obtain bank loans with the guarantee of mortgaged movables, and contribute to reducing the cost of loans by creating a guarantee for banks to reduce the risk of defaulting payments, thus supporting small- and medium-size enterprises and their contribution to the national economy.
Among the provisions contained in the draft law are the provisions related to the scope of application, the establishment of the electronic register in the Qatar Central Securities Depository and the data to be recorded in the register, the establishment and enforcement of the right of mortgage, and the rights of the mortgagee. The Cabinet approved draft decision of HE the Minister of Finance to apply the requirements of substantial activity to the economic activities practiced in Qatar. In addition, the Cabinet approved a draft protocol amending some provisions of
the agreement between the government of Qatar and the government of Bermuda regarding the avoidance of double taxation and the prevention of financial evasion with regard to taxes on income.
The Cabinet took the necessary measures to ratify an agreement between Qatar and the United Nations regarding the establishment of a United Nations office in Qatar affiliated with the Office of Counter-Terrorism (UNOCT), in support of the UNOCT programme related to the establishment of ‘International Hub on Behavioural Insights to Counter Terrorism’ as a UNOCT Programme Office in Qatar.