- December 11, 2020
- Posted by: samdenis
 This is the case under UAE law, whereas KSA law contains certain limited provisions that are relevant to contractual joint ventures in the terms of its public procurement legislation, as we will continue to develop at a later date. It is interesting to note that the Trade Policy Companies Act in Qatar contains some general provisions on UJVs, which we will discuss below. By way of comparison, it should be noted that there is also no definition of a joint venture under English or French law (the “temporary grouping of companies” is, to the extent that, in practice). While a UJV or consortium contract is a sui generis contract in which there is a high degree of contractual freedom, it would be wrong to think that local jurisdictional laws in which the project is being implemented should not be taken into account, as explained below.  Contracting parties to a joint venture must not have agreements; their cooperation must be temporary for a particular project. This provision is generally reinforced by a clause in the joint enterprise agreement, which specifies that the parties do not intend to create a separate legal oversight authority. Notwithstanding the terms of the contract, in practice the parties may behave in the same way as the shareholders of a registered company, which may spark a local debate as to whether a company was actually created and what consequences this may have on the commitments of members and shareholders. To complicate matters, a joint venture may be “hidden.” In general, joint venture agreements are formal: during the tendering phase, several companies declare an interest to the employer and propose jointly. When selected, they sign a joint venture or consortium agreement between them, known to the employer. The joint venture usually communicates with the employer and third parties using a header that shows each member`s name and logo and mentions their alliance, sometimes under a specific name. Since the contractual joint venture is not a separate legal entity, but only the merger of several independent companies, it will generally be tax-transparent. As a general rule, there is no need for a separate tax registration, but each member of the joint venture must meet its own tax obligations.
Bank accounts are an interesting feature of a joint contract enterprise. Joint ventures (JVs) are a joint enterprise structure chosen by contractors in Qatar. Two companies interested in jointly carrying out a project often form a joint venture to increase their chances of winning the contract and share the costs and risk of completion. The structure of the joint venture offers companies the opportunity to offer projects for which they could not, other than, be technically or financially able. In cross-border joint ventures between companies, there are many opportunities to participate in current and future mega-projects in Qatar.