Starting a business in Qatar: features of business culture

Expats make up 85% of Qatar's population and this affects the local business culture: it varies by person and organization. Therefore, an expatriate who does business in Qatar must be flexible, adaptable and open-minded.

However, there are quite a few Qataris among the decision-makers, and this is useful to consider. We talk about local peculiarities of negotiating, hierarchy, etiquette and much more.

In line with the Qatar National Vision 2030 plan, local businesses are becoming more accountable, transparent, ethical and better managed. Many companies now publish Codes of Conduct that communicate how they do business and what they expect from their customers and suppliers.

At first glance, Qatar does not seem as easy to do business as neighboring Dubai or Bahrain, but the situation is gradually improving. The local business culture is welcoming and full of opportunities for expats and foreign investors who are willing to put in the time.

Working hours and conditions in Qatar

Qatari law sets a maximum working week of 48 hours (eight hours a day for six days) or 60 hours a week (10 hours a day for six days) if overtime is paid. During the holy month of Ramadan, the working week for Muslims is a maximum of 36 hours, or six hours a day for six days.

The duration of shifts depends on the company and sector. Most public and private sector businesses operate from Sunday to Thursday. Public institutions, as a rule, open from 6 am to 2 pm, and private companies — from 8 am to 6 pm.

Work-life balance is improving in Qatar, although this will inevitably depend on the culture of the employer. The concept of flexible hours or remote work has not yet spread here; perhaps this is a holdover from the attitude that expat staff is the property of the employer.

It is worth noting that Qatar's National Vision 2030 focuses on society and well-being. Thus, more and more companies are investing in their employees and their health.

Rights of migrant workers

While the rights of migrant workers are theoretically protected by law (however, they cannot join trade unions), in practice this is not always the case. For example, in August 2019, hundreds of migrant workers in Qatar went on strike to protest poor working conditions and unpaid and delayed wages.

Despite the fact that some labor reforms have been carried out in Qatar in recent years, the system of kafala — it implies that the migrant worker visa is linked to the employer, making it more difficult to change jobs. In addition, workers' passports are usually held by the Qatari employer, although this is against the law.

Changes in labor legislation and practice

Since 2017, the government has committed to bring its labor laws and practices in line with international standards. The following reforms are currently being implemented:

• fixing a temporary minimum wage;
• introducing a law for domestic workers;
• creation of new dispute resolution committees;
• organization of collective bargaining committees in enterprises with more than 30 employees;
• creation of a fund for support and insurance of employees;
• avoiding the need to apply for an exit visa through an employer, which was the case for most expats.

In some organizations, locals and expats are kept apart. Qataris have priority in promotion and distribution of funds for staff training. This is due to government policy that companies must hire and develop local talent, not expats.

Even in the office, you can expect expats to be treated differently depending on their nationality. For example, Westerners typically earn higher salaries than their Asian counterparts.

The statutory annual leave is a minimum of three weeks (for employees who have been with the company for less than five years) or four weeks for longer service. There are 14 paid public holidays in Qatar.

Business etiquette in Qatar

Greeting of men and women

It is normal for an expat (male or female) to greet everyone with a handshake. The exception is a meeting with a Muslim woman. In this case, you should wait until she extends her hand to you.

Qatari (or other Arab) men may hug another man or kiss him on the cheek, nose, or forehead as a sign of respect and respect, even in a business setting. But this is not typical for emigrant men.

A woman should never hug or kiss a man in public, but she can hug a woman.

Meetings and office environment

As a rule, meetings in Qatar are rather informal and cordial. Don't be surprised if the meeting doesn't have an agenda, or if no one takes minutes. It may start late, but don't take it as a sign of disrespect.

Also be prepared for breaks. If you're meeting with a big boss, expect the conversation to be constantly interrupted by other visitors, phone calls, and so on. A cup of tea or coffee will help brighten up the waiting time. With any luck, it will be a traditional Arabic version served in an ornate coffee pot and topped with dates.

Communication and taboo

Arabs often love to chat and are excellent storytellers. It's perfectly fine to make small talk first before getting down to business.

Allowed topics — family, business, football and life. But don't mention local politics, religion, or royalty unless you're asked to comment on the topic. On the other hand, it is very useful to share your opinion about the culture, history and achievements of Qatar.

Even if everyone is fluent in English, they will appreciate knowing a few Arabic words.

What to Avoid

Let Qatar be a conservative country, but the locals are used to dealing with emigrants. A foreigner is unlikely to offend unintentionally. However, there are mistakes to be avoided. For example, you can not show your feet, openly discuss sensitive issues with the owner (especially in the presence of others) and raise your voice.

Be realistic in your expectations

As you know, it is very difficult to understand the mood of the Arabs during business negotiations and deals. Even if everything looks positive, this does not mean that you will achieve a result.

The interlocutor rarely answers with a categorical refusal. Moreover, Arab business culture is generally verbal. Therefore, do not be offended if you do not receive a response to the email that was sent after a long meeting.

Dress code

Dress to impress. Offices and meetings require formal dress: a suit and tie for expatriate men, a conservative dress or pantsuit for women, and national dress for Qataris. Some companies may have days for a more informal style, which usually fall on Thursday.

Gifts

Expats are advised not to give gifts to business contacts. If you don't know each other very well, this can cause discomfort. It is preferable that the gift be modest. Never give alcohol. On the other hand, an expat may well receive a gift from a welcoming Qatari.

Business cards

At the beginning of the meeting, it is customary to exchange business cards. It would not be superfluous to add information to them in both English and Arabic.

Organizational structure and hierarchy in Qatar

Qatari society is hierarchical, which is how many businesses are structured. A local company usually has a chairman, a board of directors, and a CEO responsible for day-to-day decisions.

Authoritative figures are highly respected in Qatar, and their decisions and opinions are rarely, if ever, openly questioned.

As a rule, employees are not encouraged — or do not empower — make contributions that go beyond their immediate work. Many prefer submission over proactivity.

In family businesses, which tend to be centrally managed, lines of accountability can be blurred.

Business strategy, planning and decision making

Many companies in Qatar are guided by the National Vision 2030 roadmap.

Multinational corporations or foreign JVs operating in Qatar generally make their strategic decisions from their head office.

Family businesses in Qatar tend to adapt, plan and make decisions more slowly.

In general, decisions are made at the highest level. Depending on the company, line managers may not influence strategy. Annual business reviews, while not ubiquitous, are becoming more common.

Meetings and negotiations in Qatar

Business meetings in Qatar can take place in offices, hotel lobbies, or over lunch. If the meeting takes place in the office, it is worth allocating enough time. Remember: they do not always start on time, and before business matters, it is worth devoting a lot of time to small talk.

Most Qataris speak excellent English and have studied abroad, so they know international business etiquette. Meetings are usually held in English, even if you are the only person present who does not speak Arabic. However, don't be offended if the meeting switches to Arabic when sensitive issues need to be resolved.

After the meeting, it is highly recommended to send an email summarizing the discussions and confirming any verbal agreements.

If you're selling a product or service, remember: haggling — This is fine. But don't be too pushy or rush. Be polite and never lose your temper. Success in the Arab world is about building relationships, so invest time and build trust.

Networking in Qatar

Doha — business city, and here a lot of time is spent on networking. Hotel lobbies are filled with businessmen in suits chatting over coffee. Conferences and exhibitions — a great place to make new contacts or meet old friends.

Professional business associations are also good places to network. The Qatari Businessmen's Association, the American Chamber of Commerce in Qatar and the Qatar Chamber organize trade missions and business lunches. The Rotary Club in Doha also supports local initiatives and provides networking opportunities.

Embassies in Doha sometimes host events, such as when trade delegations are in the city. You can use groups on Meetups, LinkedIn, and Facebook* to find contacts.

Business communication in Qatar

In the local expat community, the lines between business and pleasure are often blurred. Golf, brunch on Fridays, visits to a bar or club — all these are reasons for meeting and discussing matters.

The Qataris are not very fond of entertainment, although they can invite you to dinner. It is worth noting that a local resident will rarely accept an invitation to lunch or dinner from an expatriate. There are special rules at the table: it is not customary to start eating before the host or invitation, and you should not offer to pay.

Companies in Qatar can organize team building events outside of the office that provide networking opportunities.

Women in business

In Qatar, women make up 51% of the workforce, higher than other Arab countries and the global average.

The Qatar National Vision Plan 2030 places significant emphasis on the role of women in business. 80% of working Qatari women are employed in government, but they are increasing their presence in other sectors traditionally dominated by men, including at the managerial level.

For example, on Texas A&M University's Doha campus, women make up about half of the total student body, and all of them are pursuing engineering degrees. At the same time, the proportion of women among students of the main campus in Texas is only 20%.

Despite this, there is still a long way to go before equality is achieved. According to the World Economic Forum gender pay gap report, the country ranked 142 out of 156 in 2021.

Qatar Business Women's Association — is an active group that exists to "empower business and professional women and unleash the potential of future generations in support of Qatar's National Vision 2030."

Qatar Professional Women's Network "inspires women to become part of a professional, diverse and supportive network by expanding their skills and knowledge base."

Business and Society

The Qatar National Vision 2030 provides a focal point for social action and ethical practices, and most Qatari companies are actively pursuing corporate social responsibility programs in support of local social, community and environmental goals. Support comes in the form of cash donations, volunteer work (such as beach cleaning) and mentoring programs.

QatarCSR serves as a showcase for the many projects taking place in Qatar.

Social Security

Expatriates are not eligible for government pensions in Qatar. Instead, they receive an end-of-service allowance if they have served more than one year, up to one month's salary for each year of service. Some companies offer corporate pension plans.

Business corruption and fraud in Qatar

Qatar has the lowest level of corruption in the Middle East and North Africa. However, wasta — using connections to influence deals — remains part of everyday business culture in Qatar.

At the same time, anti-corruption laws are effectively enforced: any payment for "facilitating the procedure" considered illegal.

* Meta and its members Facebook and Instagram have been recognized as extremist organizations whose activities are banned in the Russian Federation.