Qatarisation Law No. 12/2024: Implications for Qatar’s Construction Sector and Private Enterprises

Qatar’s new Qatarisation Law No. 12/2024, effective from April 2025, marks a significant shift in the nation’s employment landscape. Supporting Qatar National Vision 2030, the law prioritizes the hiring of Qatari nationals in the private sector, encouraging local workforce development across industries. For businesses, particularly in the construction sector, this law necessitates strategic adjustments to recruitment, training, and compliance frameworks.

Key highlights of the Qatarisation Law No. 12/2024

The Qatarisation Law No. 12/2024 was issued on September 1, 2024 and will come into effect six months after its publication in the Official Gazette – on October 17, 2024 – making it effective in April 2025.

The 2024 Qatarisation Law introduces a comprehensive framework to bolster the employment of Qatari nationals. Private sector employers must prioritize Qatari citizens, followed by children of Qatari women, for all job opportunities. Only when suitable candidates are unavailable can expatriate workers be hired.

The law applies to:

• Private establishments registered in Qatar’s Commercial Register;
• Commercial companies, whether privately owned, state-owned, or state-participated; and
• Private institutions, including non-profits, sporting organizations, and public utility associations.

However, companies associated with Qatar Energy, as well as those engaged in petroleum exploration, field development, and production-sharing agreements, are exempt from the Qatarisation law.

The Ministry of Labor (MOL) is tasked with implementing the law, establishing workforce quotas, approving Qatarisation plans, and overseeing compliance. Executive regulations are expected before the law’s implementation, addressing ambiguities like exemptions for small enterprises or companies registered in special jurisdictions such as the Qatar Financial Centre.

Implications for the construction sector

The construction sector, a cornerstone of Qatar’s economic growth, is among the industries most impacted by the Qatarisation Law. The sector’s reliance on a highly skilled workforce—including engineers, project managers, and technical specialists—makes workforce planning a critical challenge under the new regime. While the MOL’s executive regulations are awaited, companies must proactively address the following areas:

1. Workforce resourcing and flexibility: Construction companies managing ongoing projects need to assess their existing workforce and ensure flexibility to incorporate Qatari nationals. This may involve revising timelines, adjusting resource allocation, and identifying contractual relief mechanisms (e.g., “change in law” clauses) to manage disruptions caused by workforce changes.
2. Strategic planning for new projects: For future projects, companies must factor Qatarisation requirements into their bidding, programming, and cost-estimation processes. Early collaboration with stakeholders is essential to align resource plans, mitigate risks, and ensure compliance from project inception. Employers should anticipate longer lead times for recruitment to account for MOL approvals and Qatarisation quotas.
3. Long-term workforce strategies: Construction firms must adopt scalable workforce plans to meet Qatarisation quotas over time. These plans should include:
   • Proactive recruitment of Qatari nationals;
   • Robust training programs to equip Qatari employees with technical and managerial skills; and
   • Partnerships with educational institutions to create a talent pipeline aligned with industry needs.
4. Training and development requirements: Under the law, companies are obligated to provide training and development opportunities to Qatari nationals, ensuring they possess the skills necessary to succeed in their roles. Construction firms must audit existing training programs and invest in upskilling initiatives tailored to technical roles. This is particularly relevant for high-demand positions, such as engineers, accountants, and project managers.
5. Compliance and penalties: Adherence to the Qatarisation Law is paramount to avoid severe penalties. Non-compliance may result in financial fines ranging from QAR 10,000 to QAR 100,000, suspension of immigration-related transactions, and public disclosure of non-compliance on the MOL’s website. Repeated violations could escalate to substantial fines up to QAR 1 million or imprisonment for responsible personnel. Employers must ensure:
   • Timely notification of job vacancies to the MOL;
   • Biannual reporting on workforce composition; and
   • Accurate implementation of Qatarisation plans.

Ministry of Labor’s role and employer incentives

The MOL will oversee the classification of employers, determine job positions subject to Qatarisation, and set policies for onboarding Qatari candidates. Companies demonstrating compliance may benefit from financial incentives and recognition, boosting their reputation within Qatar’s business community.

Employers must also collaborate with the MOL to facilitate job-seeker registrations. While priority remains with registered candidates, the law allows employment of unregistered individuals for occasional work or key positions. This provision offers flexibility but underscores the importance of maintaining accurate records to avoid penalties.

Challenges and ambiguities

Despite its clear intent, the Qatarisation Law raises questions that require clarification through executive regulations:

• Scope for SMEs and special jurisdictions: It remains uncertain whether small and medium enterprises (SMEs) or companies in special jurisdictions (e.g., free zones) will be exempt from compliance.
• Sector-specific implementation: The MOL may establish sector-specific quotas or policies, which could affect resource planning and training requirements in the construction industry.
• Timelines for compliance: With the law taking effect in April 2025, companies must act swiftly to align recruitment and training strategies with Qatarisation goals.

A path forward for construction companies

To navigate the regulatory shift effectively, construction firms should adopt a proactive approach:

• Workforce audits: Assess current workforce composition and identify opportunities to integrate Qatari nationals into key roles.
• Engagement with stakeholders: Collaborate with project owners, contractors, and regulators to align on Qatarisation requirements and manage expectations.
• Invest in training and development: Develop targeted training programs to upskill Qatari employees, ensuring their seamless integration into technical and leadership roles.
• Compliance management: Establish robust processes for monitoring workforce quotas, reporting obligations, and ongoing compliance with MOL requirements.

Conclusion

The Qatarisation Law No. 12/2024 signifies a key step toward achieving Qatar’s National Vision 2030 by fostering local employment and workforce development. For the construction sector, the law presents both challenges and opportunities—requiring strategic adjustments to workforce planning, recruitment, and training frameworks. By prioritizing compliance, collaboration, and proactive planning, companies can position themselves for long-term success in Qatar’s evolving regulatory environment. As executive regulations are awaited, businesses must remain agile, ensuring they meet Qatarisation obligations while sustaining project timelines and operational efficiency.

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