Ministry of Commerce and Industry Orders Temporary Closure of Sharmax Group for One Month

26 Oct 2025

The Ministry of Commerce and Industry has issued Administrative Decision No. (31/2025) ordering the administrative closure of Sharmax Group for one month for violating the provisions of Article (7) of Law No. (8) of 2008 on Consumer Protection and its Executive Regulations. The violation involved false advertising and providing misleading information of a product.

The closure followed the company’s advertisements claiming that it was the official agent and distributor of the Xiaomi car brand, despite not holding any official agency or authorization to this effect— whereby violating Articles (7) and (9) of the law.

Investigations also revealed that the group collected advance payments (‘deposits’) from consumers and set future dates for vehicle deliveries, despite holding a commercial licence limited to contracting activities – raising concerns on its ability to fulfil its commitments toward consumers and posing a significant risk to consumer rights. The company also failed to provide guarantees for refunding the amounts collected in the event of failure to deliver the vehicles, constituting a further violation of Article (7) of Law No. (8) of 2008 and its Executive Regulations.

The Ministry affirms that this measure is part of its ongoing efforts to strengthen market oversight and ensure suppliers’ compliance with laws and regulations. The Ministry stresses that it will not tolerate any violations that may harm consumer rights or disrupt the business environment in the State of Qatar.

The Ministry encourages consumers to report any violations or illegal practices at:
• Call Centre: 16001
• Ministry social media accounts: @MOCIQATAR