Document background
The Equity Participation Agreement serves as a fundamental document for structuring investment transactions in Qatar, whether involving local or foreign investors. It is primarily used when an investor seeks to acquire a significant equity stake in a Qatari company, establishing their rights and obligations as a shareholder. The agreement must comply with Qatar's Commercial Companies Law No. 11 of 2015 and, for foreign investors, the Foreign Investment Law No. 1 of 2019. It typically includes detailed provisions on share transfer mechanisms, corporate governance arrangements, minority protection rights, and exit strategies. The document needs to address specific local requirements such as foreign ownership restrictions, local partner requirements where applicable, and ensure alignment with both civil law principles and Sharia compliance where relevant.
