Due diligence requirements
What due diligence is necessary for buyers?
As in other comparable jurisdictions, the buyer should consider what level of due diligence is required, based on the target’s business and the circumstances of the transaction. Generally, at least 51% of an ‘onshore’ company must be owned by a Qatari national or entity.
What information is available to buyers?
Company searches are generally unavailable for onshore Qatari companies. Only the relevant company (or an individual authorised via a power of attorney provided by that company) can obtain a copy of the trade licence and commercial registration certificate. Thus, the ownership structure should be verified through the due diligence process.
What information can and cannot be disclosed when dealing with a public company?
The following cannot be carried out when dealing with a public company:
- the provision of false information, statements or data that could affect the market value of securities and an investor’s decision on whether to invest; and
- the exploration of undisclosed information to achieve personal benefits that could affect the prices of securities.
How is stakebuilding regulated?
The Qatari Financial Markets Authority and Qatar Stock Exchange regulate stakebuilding.
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