DOHA: A law to encourage fair competition in business and to prevent monopolies for the benefit of consumers is on the anvil. Details of the draft law may soon be made public.
Once the legislation is in force — which could be as early as sometime next year — exclusive dealerships of branded goods, including cars, may be a thing of the past.
The Ministry of Economy and Commerce is currently busy preparing the draft law, which, after implementation, would target government monopolies as well.
The idea is to also shield the private sector from competition from government monopolies in line with recent directives of the Premier, H E Sheikh Abdullah bin Nasser Al Thani.
He has instructed that no government ministry or agency can set up a new business or expand an existing one without approval from his office with a view to encouraging the private sector.
The economy ministry is consulting the private sector on some articles of the draft law still in the making.
After realising the importance of fair competition and the dangers of monopoly, Qatar has made competition a cornerstone of its economic policy.
It is changing the laws and setting up institutions to protect the market against monopolistic practices. According to observers, monopolies lead to inflated cost.
Qatar already has a committee to help protect competition and prevent monopolies. It is headed by the Chairman of Qatar Chamber, representative body of the private sector, Sheikh Khalifa bin Mohamed Al Thani.
The panel has members from different ministries (economy, finance and justice, among them) and state agencies including the Qatar Central Bank and Ports and Customs General
Authority.
The panel is authorised to conduct market surveys and studies. Additionally, there is a ‘competition protection department’ at the Ministry of Economy and Commerce. It is headed by Sheikh Jassim bin Jabor Al Thani, assistant undersecretary at the economy ministry for consumer affairs.
Once in force, the law may also monitor acquisitions and mergers and government support for projects and state corporations.
The Peninsula
