In applying the provisions of this Law, the following words and phrases shall have the meanings assigned thereto, unless the context otherwise requires:
 
“Ministry” means the Ministry of Economy and Commerce
“Minister” means the Minister of Economy and Commerce
“Central Bank” means Qatar Central Bank
“Market” means the Doha Stock Exchange Market
“Fund” means a legal entity established in accordance with the provisions of the law for the purpose of
investing money
“Bank” means any of the banks operating in the country
“Investment Company” means any financial company licensed by the Central Bank to carry out
 investment business
“Founder” means Bank or Investment Company licensed to establish investment funds
“Fund manager” means Natural or legal person appointed by the founder of a fund’s management
“Investment trustee” means the Bank that acts as the Secretariat of an investment fund
“Investment units” means the shares that make up the fund’s capital
“Securities and financial instruments” mean stocks and bonds of Qatari companies, securities and treasury bills issued by the government or one of the Qatari bodies or public institutions, or any other currency licensed for circulation, other investment tools within the State of Qatar and abroad, and all that is also considered as such by legislation or custom or known to the Central Bank
“Private placement” means an invitation to a particular category or particular persons to subscribe to the fund’s capital.

Investment funds may be established and developed in securities, financial instruments and funds in accordance with the provisions of this Law, its implementing bylaws, and the instructions issued by the Central Bank.
 
Investment funds may be established to invest money in real estate and development projects, both in the State and abroad

A fund that proceeds to invest in real estate, monies and stocks abroad shall be established by a licence issued by the Central Bank.
 
A fund that proceeds to invest in shares of Qatari corporations, publicly traded shares, real estate and projects within the State shall be established by a licence issued by the Central Bank on the approval of the Minister.

A fund’s capital shall be divided into equal investment units, and the liability of the owners of these units shall be limited in accordance with their shares in the capital. It is not permissible for the owners of such units to participate in the investment activities of the fund.
 
Each unit of the fund’s capital shall have a nominal value in Qatari Riyals, or any other currency.
In all cases, the nominal value of the unit shall be paid as a lump sum amount, or as the fund’s Articles of Association impose.

Funds intend to register their investment units in the market shall first obtain the approval of the market and the Central Bank, in accordance with the legislation and regulations in force.
 
After the establishment of a fund, it must be registered on the commercial register of the Ministry in a special record maintainedfor funds.
 
The founder may establish more than one fund.

Each fund shall have a legal identity and independent financial disclosure from the founder. A fund’s monies may not be attached unless as fulfilment of the obligations arising from the investment of its funds.
 
The founder may appoint a Secretary of a fund investment, in accordance with the instructions approved by the Central Bank.
 
The Secretary may not hold or own any investment units in a fund.

Each fund shall have a manager to represent it before courts and in its relationships with third parties, has the right to sign documents on a fund’s behalf. A manager may not be a member of the Board of Directors of a fund, or an executive of the founder.
 
The appointment of the manager of a fund shall be subject to the approval of the Central Bank, and this shall be undertaken in coordination with the market in the case of funds that list their investment units to trading on the market.

Funds that offer their investment units for trading shall be subject to the legislation, bylaws and decisions regulating the market.
 
In all cases, the accounts and activities of the funds shall be subject to the control, supervision and instructions of the Central Bank.

Investment units shall be available for public or private offering.
 
Non-Qatari natural or juristic persons may participate in the funds, and their rates of participation in funds that deal in stocks, real estate, and projects shall be determined by the Minister in consultation with the Minister of Finance and the Governor of the Central Bank. 

Each fund shall have one or more auditors, each of whom is assigned in accordance with the conditions and procedures approved by the Central Bank.

A fund shall expire for any of the following reasons:
 
1.                  The elapse of the period established for its existence;
2.                  The end of the purpose for which it was created;
3.                  A judgement issued requiring its dissolution;
4.                  Applicability of a requirement for liquidation provided for by its Articles of Association;
5.                  The expiration of the founder or a declaration of bankruptcy, unless management of the fund is assumed by another party on the approval of the Central Bank.
 

Without prejudice to any more severe penalty provided for by other legislation, a punishment of imprisonment for a term not exceeding six months and a fine of not more than Five Thousand (5,000) Riyals per day, or either of these, shall be applied to the founder of a fund who does not obtain a licence, and the offender shall be committed to the liquidation of the fund, returning underwriters’ funds and bearing the expenses of liquidation.
 
Any person who violates any other provision of this Law shall be punished by imprisonment for a term not exceeding three months, and a fine of not more than Fifty Thousand (50,000) Riyals, or either of these.

On the proposal of the Central Bank and the recommendation of the market, the Minister shall issue the bylaws and decisions for implementing the provisions of this Law. The executive bylaw shall be issued within three months from the date of publication of the Law in the Official Gazette.
 
The bylaw shall specify the conditions and procedures for licensing, subscription, underwriting and issue in a fund, appealing against a decision refusing the establishment of a fund, the rights and liabilities of its management, appointment and removal of auditors, method of redeeming or trading units of investment, the statement of the prospectus, the conditions to be offered in both types of public offering, the rules and provisions and procedures to be followed when liquidating the fund, and other procedures concerning its activities.

All competent authorities, each within its own jurisdiction, shall implement this Law, which shall be enforced from the date of its publication in the Official Gazette.