DOHA: In a major initiative to support Qatari investors, businessmen and small and medium enterprises (SME), the Ministry of Economy and Commerce has allowed owners of business centres to partition their facilities and lease office space to one or more companies.
The initiative launched in collaboration with the Ministry of Municipality and Environment offers business centre owners several advantages including transforming offices into open workspaces or dividing them into closed ones, separated by barriers that offer more privacy.
It permits owners to lease office space to one or several companies in addition to representatives of local companies, businesspersons, SME owners and startups, the Ministry of Economy and Commerce said yesterday.
The move “aims to streamline and facilitate procedures for the issuance of construction licences of business centres. The purpose of the initiative is to provide businesspersons, investors and entrepreneurs with a comprehensive and integrated range of investment solutions,” said a statement.
Qatari investors were quick to hail the move. Ahmed Khalaf, a prominent Qatari businessman described it a “right decision at the right time” saying it will help individual investors establish several companies in the same premises.
“One person may have many companies functioning in different buildings. The law will now allow him to bring them together in one place,” Khalaf told The Peninsula.
He said the initiative will especially help companies providing various services and small businesses, since they can hire office space at lower rents.
Today an office space costs between QR15,000 to QR30,000, said Khalaf.
The initiative will also help international companies set up representative offices at lower costs. Earlier they had to hire an independent apartment for that. Many companies can now function in a single building.
“This system exists everywhere in the world, including cities like London and New York where companies operate from one room. Then why not here?,” asked Khalaf. He said the move could curb the spiralling commercial rents boosting supply in the market. Firms will benefit from lower rents, with no loss for the landlord since he can lease out the property to them on a long-term basis without reducing total rents.
No safety issues are involved since the offices will be operating with a proper licence. He proposed not to limit the privilege to business centres but expand it to all commercial space.
Business centre owners can acquire a business centre licence by obtaining approvals for subdivision of office space from the Ministry of Municipality and Environment, the General Administration of Civil Defence and the Ministry of Economy and Commerce. All business centres come equipped with support services, including wired and wireless communication equipment, office supplies and conference hosting and delivery services.
The ministry has given details of available space in business centres: In Al Salata area No. 18 (Al Salata towers region), the minimum surface area of the main office is 300sqm. Licence is granted for units of 100sqm. Owners must secure a car parking space for each unit (100sqm).
Doha Modern Towers (Al Dafna): The minimum surface area of the main office is 300sqm. Licence is granted for units of 55sqm. Owners must secure a car parking space for each unit (55sqm).
Commercial and administrative streets of C-Ring, D-Ring, E-Ring in different areas: The minimum surface area of the main office is 485sqm. Licence is granted for units of 20sqm). Owners must secure a car parking space for each leased unit
“The initiative will contribute to improving the business environment and boost the productivity of business people and investors, which will reflect positively on the performance of the business sector,” said the statement.
The Peninsula
