Overcoming challenges, women in Qatar strive to be their own bosses

By: Ankita Menon | March 9, 2014View as "Clean Read" | 4 Comments 254 SHARES EmailUPrint Via Rima Arab More than anywhere else in the Gulf, Qatar residents have expressed a desire to start their own businesses. But the barriers to entrepreneurship here can be daunting. Some 83 percent of Qatar youth recently surveyed by telecom provider Ooredoo said they would like to run their own company – but only 17 percent have actually taken the plunge. Meanwhile, only 38 percent of aspiring entrepreneurs in Qatar are women, according to a Booz & Company study from 2013. That may be because of a lack of female role models here, the report states. But like for men, red tape also plays a role, say many enterprising women who have spoken to Doha News. That, and cultural barriers, are among the main challenges women who wish to be their own bosses face in Qatar. Registration requirements Those who start businesses here must be willing to make a significant financial investment. Before registering a company, Qatar requires business owners to have QR200,000 (US$54,921) in their bank account, and to have secured a one-year lease for office space that’s been approved by Civil Defense – a commitment that can run above QR100,000 ($27,460). According to Layla Al Dorani, CEO and founder of fresh juice company Raw Middle East, local banks only recognize cash, land and stocks as equity. Speaking to Doha News, she said: “Financially, local banks and Qatar central bank are not ‘entrepreneurship’ friendly when it comes to supporting startups. They don’t recognize assets (commercial machinery and vehicles) as collateral.” She added that though she manages a limited liability company (LLC), banks still request personal checks as guarantees, “which contradict the whole concept of what a limited liability is.” Getting started is not the only issue. Rima Arab, a Canadian expat and CEO/founder of consultancy company Executive Training Solutions, said staffing can also be a challenge. “The most challenging situation is not being able to hire a full time employee, unless he/she takes care of their own residence visa, and rent an office,” she said. Al Dorani agreed, adding: “Hiring is a critical step to a company’s success. In Qatar, almost all laborers are imported and it is required by law to sponsor them before they start working for you. In that regard, we can’t afford to pay and invest in labor before we even know if they are qualified to understand our process or work as a team player. These are tough stipulations for small companies on limited budgets.” Sponsorship rules and questions about visas and license procurement were some of the other challenges faced, many female business owners said. Speaking to Doha News, Qatari entrepreneur Fatima Al-Hudifi, owner of six Tasmeem Flowers and Chocolates’ stores, said: “Just make it a little bit easier on giving licenses when it comes to new concepts and projects. It is very normal to see people wanting to open new concepts that we would like to invest in and open in Qatar.” Hillary Kozma, founder of three Glow American Salons, added that “time is money,” and said her greatest challenge was the slow pace of getting government approvals to move forward on projects. Home businesses Some companies who find office rental rates exorbitant opt to rent villas, which can go for QR10,000 a month (as opposed to office space, which can cost some QR25,000 monthly). Other women say they simply work from home. “The rent is way too high. I have my home office and luckily since I offer training, clients prefer me to visit them,” Arab said. Certain home businesses, including ones in which food is prepared from individuals’ kitchens, are technically illegal in Qatar, despite high demand for such services. Glamourous Cakes/Facebook Jihan, an Australian expat, started Glamourous Cakes in October 2013. An agricultural engineer by profession, baking and designing cakes is a hobby that she would like to turn into a full-fledged business. But restrictions on home-based startups have given her pause, she said. “I will be studying the market and the laws for a while before moving to the next step,” she added. There is hope for the future. According to Shareefa Fadhel, managing director and co-founder of Roudha Center for Women’s Entrepreneurship, an in-depth research study is being carried out by Enterprise Qatar to develop a home business law. Cultural challenges As they cope with restrictive laws and financial difficulties, female entrepreneurs here must also grapple with cultural considerations. Al Dorani said that unmarried Qatari women are expected to take full-time jobs for financial security, and to carry out any start-up ideas on the side. Those who veer from that path and push to succeed sometimes get judged for being too masculine, she added. “I am tough, direct, know what I want and not sensitive when it comes to business. These are not feminine qualities that men like to see in a woman in this culture.” Fadhel, however, argued that Qatari culture doesn’t have one mindset with regards to female startups. It depends on the family, she said, quoting an example of the father of a budding designer who accompanied his daughter to London Fashion Week and was eager to see her reach her potential. “The Qatari culture is not against women having their own businesses, but the environment of doing the business is the question. I think Qatari women today have shown that they are ready to take their position in business.” Solutions To improve the lot of Qatar’s female business owners, entrepreneurs suggest that the government allocate more funds for local start-ups, such as making it easier to get loans and providing assistance with rent, licenses and visas. Fadhel adds that implementation of free-zone areas for expats to open up their businesses without a local sponsor is also a prospect that is being considered. Further, the concept of venture capitalists and angel investors to make the financial funding easier has still not taken flight in this region and has to mature in terms of implementation. That may begin to change this summer, however, when Enterprise Qatar launches its $100 million investment fund for startups. “At the end of the day, it comes down to the individual person to succeed and gender does not determine success!” Al Dorani also suggested that the subject of entrepreneurship be raised with children in school at an early stage to encourage them to be “innovative and creative in business.” Still, Peter Moore, a mentor at the CNAQ Entrepreneurship Centre, said that while education provided a platform to learn and understand the foundation and principles of business, it could not teach the “experience of taking risks,” which is a critical part of being an entrepreneur. Last year, the Telegraph reported research that proved women make better bosses than men on account of being fair decision-makers and creative problem solvers. However, Kozma concluded by saying that, “At the end of the day, it comes down to the individual person to succeed and gender does not determine success!” Thoughts? ================================ No Entry for Qatari Women: The day I was banned from Jazz Fatima Al Dosari On April 3, 2014 I’m a young woman who has developed a sense of appreciation and fondness for jazz over the last decade. Unfortunately, my love for jazz brought me face to face with a discriminatory law when a female friend and I tried to attend the “Women in Jazz” event last Thursday at Jazz at Lincoln Center (JALC) in the St. Regis Hotel. I was denied entrance for being a Qatari woman. (I am not sure if it is a law or just an arbitrary policy, but in this narration, I will use the term ‘law’.) I was born and raised in Qatar, and both my parents are Qatari. But as a result of my country’s international profile, my education, technology, and friends, I have developed a global identity. I respect local social norms yet I aspire to experience the best of what the world has to offer, including jazz music. I’m one of many Qatari women who enjoy live jazz music. So, I was excited in 2012 when JALC opened in Doha. It quickly became one of my favorite cultural spots and a vibrant venue, which played host to two friends’ birthday parties. Why was national dress not allowed? Was it the presence of alcohol? Wouldn’t anyone who wishes to drink be able to so in Doha or overseas? Before my first visit to JALC I learned that “national dress” was not allowed. Although I didn’t understand the reasons behind the prohibition of national dress, I complied and was able to enjoy the venue and the music. National dress for Qataris means thobes for men and the black robe, or abayas, for women. We wear it as a way of expressing our culture and national identity. I cover my body modestly and hair, in the accompanying, shayla or hijab. So why was national dress not allowed? Was non-Qatari ‘national dress’ allowed? Was it the presence of alcohol? Then why is ‘national dress’ allowed at many restaurants and airlines that serve alcohol? Was it so that no Qataris will drink? Wouldn’t anyone who wishes to drink be able to so in Doha or overseas? If because it is haram, then why import alcohol to Doha in the first place? Nonetheless, I tolerated that no ‘national dress’ rule, donned a colorful hijab, modest shirt and skirt and went for one purpose: to enjoy jazz as it’s meant to be heard – live. Now, it would seem that ‘national dress’ is no longer an issue. Women are the issue. Qatari women. Like the three previous times, I wasn’t in my abaya when I went to JALC. Also, I checked their webpage for any policy changes. I didn’t see any references to the “ID scanning”, which I read as a polite way to say, “No Qataris allowed.” Yet, I was denied entry for being a Qatari woman. Qatari men, on the other hand, are still welcome, just not in their thobes. If the presence of alcohol truly was the issue, venues could be divided into alcoholic and non-alcoholic sections, or even days. I, a Qatari woman, was banned from an event that celebrated the women of jazz. The obvious irony aside, I also was embarrassed when the guest relation’s manager politely, but firmly denied my entrance. What really embarrassed me though was the thought that as a citizen of Qatar, I was banned from enjoying this unique art form…in Qatar! I have always been a responsible person, and that responsibility doesn’t come from any external source, but rather from a freedom of choice, an inner sense of reason and awareness. And this is the case for so many young other Qatari men and women who I know. If this ban was because of alcohol, I appreciate the intention to protect Qataris potential discomfort. However, such a law can be an obstacle in our practical development, independence and sensibility. Additionally, this law doesn’t help in sparing us from the cultural shock when we leave our Doha bubble. Furthermore, if the presence of alcohol truly was the issue, venues could be divided into alcoholic and non-alcoholic sections, or even days. If self-monitoring doesn’t suffice and there are other religious, cultural or legal reasons, then simply don’t serve alcohol to Qataris. It saddens me that now in order to enjoy live jazz music I must either wait for the public concerts at the MIA Park, or travel abroad. When jazz came to Doha with the opening of the Jazz at Lincoln Center at St. Regis, I was ecstatic. Unfortunately, the recent rule changes have made this jazz venue more like a speakeasy to those like me, and I don’t know the password or the secret knock, I hope for a change, an equitable change. JustHere contacted St. Regis for a comment, to which an official said, “We do make our JALC Doha musicians available to the entire community through our family afternoons and free concerts in MIA Park.” [Photo courtesy: JALC website] Note: This article has been updated with a quote from a St. Regis official. ============================ [LEGAL COLUMN] On visas and sponsorships JustHere Qatar On March 16, 2014 If you are living and working in Qatar, you, like most others, have a lot of questions on the laws that govern you. JustHere receives dozens of labour-related queries from our readers every week. In this column, advocate Ghada M Darwish provides legal clarification on the oft-asked questions. In the first installment of the series, we address issues regarding visas and sponsorship. [Q] We bought a work visa from a company who sell them for QR10,000-15,000. The visa has expired, and the company is delaying the renewal. What can we do?* [GD] According to Law No. 4 Of 2009 Regulating The Entry And Exit Of Expatriates In Qatar And Their Residence And Sponsorship, the sponsor shall complete the residency procedures and its renewal, provided that such renewal shall be done within 90 (ninety) days from the expiry date of the Visa. It is illegal for a worker to out stay his residence permit term. In the event of the failure of the sponsor to renew the residency without repatriation of the foreign worker, it is possible for the worker to apply for a transfer of sponsorship from the Ministry of the Interior (MOI) on the basis of this delay. In order to secure a transfer of sponsorship from the MOI, a complaint should be lodged with the Human Rights Department at the MOI. The complaint must demonstrate that the employer/sponsor is indeed abusing his power. [Q] What is the procedure to transfer visa from husband to company? Do I have to exit the country? [GD] The procedure to transfer a sponsorship from husband to company is by obtaining a No Objection Certificate from the husband and completing the transfer of sponsorship form which must be signed by the husband and the company you wish to transfer your sponsorship to. Please note that the Ministry of Interior has absolute discretion to approve or disapprove the transfer request. Helpful numbers NHRC Hotline: 66626663 Ministry of Social Affairs Hotline: 44841137, 44841340, 44841959 Ministry of Labour: Department of Labour Relations: 44406546 Note: Ministry of Labour and Social Affairs receive calls from 7am-2pm. [Q] For how many days after expiry of permit am I allowed to stay in Qatar? [GD] According to Article (9) of Law No. 4 of 2009, the residence permit must be renewed within 90 days from the date of its expiry. [Q] Is the NOC policy different to those locally hired and those hired from other countries? [GD] It is the same. [Q] Can we change sponsorship after completing more than two years in a company/Qatar, though the current employer isn’t granting NOC? [GD] The procedure to transfer a sponsorship requires obtaining a No Objection Certificate from the current sponsor. In the event of the failure of the sponsor to grant the NOC, it is possible for the worker to apply for a transfer of sponsorship from the Ministry of the Interior (MOI). However, please note that the Ministry of Interior has absolute discretion to approve or disapprove the transfer request. [Q] I joined a new company upon obtaining an NOC from my previous employer. Can I get an NOC from him, if I want to shift again? [GD] No, you need an NOC from your current sponsor. * Please note, buying and selling of visas is illegal as per Qatar law. Next column: Gratuity and leave eligibility Disclaimer: Neither the law firm of Advocate Ghada Darwish nor JustHere is responsible for actions taken on information mentioned here. All efforts have been taken to provide accurate response to the queries. ===================== Ghada M. Darwish law firm is established by an experienced Qatari lawyer. Ms Darwish, currently a PhD candidate at Cairo University, graduated from Qatar University with a Bachelor of Law degree. Her experience includes working at the National Human Rights Committee (NHRC), Qatar University and Qatar Chemical Company Ltd. Ms Darwish is ably assisted by lawyers with different backgrounds and qualifications offering many decades of lawyering expertise in the Middle East and beyond. For more information, visit gdarwish.com or call 44889050. Note: If you have a query, please leave a comment. The queries, if not already covered in this or an earlier piece, will be addressed in subsequent installments of the legal column. =============== Qatar Legal System The legal system in Qatar witnessed a massive advancement towards modernization. Following is an account of some key legislations. The Constitution The State’s constitution became effective in June 2005. The Constitution states that Qatar has a democratic political system, and shall preserve its independence, sovereignty, security, safety, stability and integrity of its territory, and that it shall defend itself against any aggression. The Constitution stipulates that the ruling of the State is hereditary within the Al-Thani family, and by male successors of the current Emir, Sheikh Hamad Bin Khalifa Al-Thani. The Qatari Constitution provides basic citizen and human rights. It stipulates that all citizens are equal in general rights and duties. Additionally, all people are equal before the law and there shall be no discrimination on the grounds of gender, ethnic origin, language or religion. It also provides for the right to individual privacy, and privacy of family affairs and correspondence. In the judicial process, the accused in a criminal legal proceeding is deemed to be innocent until proven guilty in court. All necessary legal assistance will be provided to the accused person, in order to practice the right of defence. The Constitution provides that judicial authority is to be handled by the courts, and Judges are independent in their judgements. The Constitution states that the Advisory Council shall exercises the legislation authority. The Council of Ministers may also propose laws and deliver them to the Advisory Council for deliberations. Such proposals of the Council of Ministers are not binding on the Advisory Council. The Constitution provides that every draft law adopted by the Advisory Council has to be referred finally to the Emir for endorsement. The Judicial System The phases of litigation in Qatar are divided into three stages, namely; the court of first instance, the appeal court, and the court of cassation. The civil courts use written pleadings and rebuttals, but do not, usually, entertain oral arguments. Proceedings in all courts are conducted in Arabic. The courts provide translators for non-Arabic speaking litigants. Decisions by the lower courts can be appealed to higher courts. Qatar has acceded to the 1958 New York Convention on the Recognition and Enforcement of the Foreign Arbitral Awards. Civil Law The 2004 Civil Code provides the general principals for the establishment of contractual relations and how to deal with obligations arising from them. It specifies such basic elements of a contract being as consent, subject matter, and purpose of contracting. It has further dealt with annulment, construction and binding nature, effect, and cancellation of contracts. The general principle governing the contract law is that natural and judicial persons are free to agree on whatever they desire provided that their agreement does not conflict with the public order or morality. The Law deals with the effect of and interpretation of contracts, contractual responsibilities, liability for personal acts, and responsibility for acts of third parties, ownership responsibilities, surety, unlawful enrichment, types of sale, lease, insurance, and rights attached to property, land law, mortgage, wills, legacy, privileges, and gains. It also discusses performance, compensation and compulsory execution, assignment of rights, innovation, impossible performance and statutes of limitation. Foreign Investments The Foreign investment Law stipulates that foreign investors are allowed to participate in all national economy sectors, except commercial agencies and real estate trading. Foreign investors can participate in banking and insurance provided that they obtain the necessary approvals from the Council of Ministers. The general rule is that 51% of the capital is owned by Qatari citizens or by entities owned 100% by Qatari citizens. However, the Law provides that foreign ownership may be increased from 49% to 100% through the passing of a Ministerial Resolution. In addition, the Law confers upon foreign investors many privileges. For example, the foreign investors are provided with land for the project under a long-term lease for a period of 50 years. Additionally, the Ministry may grant certain exemptions to foreign investors under particular circumstances. Tax Law In accordance with the Tax Law, tax is levied on the net income of a taxpayer from its activities in Qatar. No taxes are levied on companies wholly owned by Qatari nationals. In addition, there are no payroll tax deductions, property tax, municipal tax, sales tax, withholding tax or value added tax. It is possible to grant tax exemptions and tax holidays for certain businesses upon application to a committee established under the tax law. Contractors executing projects for companies or projects that were granted tax exemptions can avail themselves of such exemptions. =====================