Qatar allows residency permits for home buyers

DUBAI: Qatar has implemented a new rule that allows foreigners to own real estate and get residency permits in the country.

The new ruling allows foreign home owners to substitute a sponsor for property ownership. Earlier, non-Qataris were required to have sponsors to receive a residence permit.

The rule, which was endorsed by the Cabinet in 2006, turns properties into sponsors, local reports said adding that an Egyptian and a Pakistani have become the first foreigners to receive residence permits.

So far, 10 leaseholders, who have been handed ownership certificates, have applied for residence permit under the sponsorship of their properties, an official of the Ministry of Municipality and Urban Planning was quoted by Qatar's newspaper The Peninsula as saying.

According to Abdullah Ebrahim Al Sada, director of the Real Estate Registration Office for Non-Qataris, 70 foreigners from Arab, European, American, Canadian and Asian countries have signed up to own real estate properties since the decree was issued.

Many foreign companies, seeking to benefit from the new rule, had shown interest in buying towers in Doha, he said.

"We expect to register the first tower owned by a non-Qatari by May," Al Sada said, adding that two foreign firms have already got ownership of several towers in Doha.

Ownership procedures for administrative units would start soon and a high demand for such units from foreign investors had been expected, he said.

The first five properties owned by non-Qataris were registered in 2009 and had been issued ownership certificates.

Conditions for non-Qataris to buy and own properties under the new decree include an agreement from the original sponsor to transfer the sponsorship to the property.

An investor coming from abroad should have a Qatari visa before buying the property.

Under the new rule, the beneficiary will be purchasing leasehold from the property owner on a 99-year renewable basis.

Those who lease the property are considered investors and they are entitled to use the properties commercially or for their own benefit, transfer the lease to another party, sublet or rent.

They will also have residency rights including that for their family provided the Ministry of Interior's permission is granted. The land or residency unit will act as sponsor.