Lots of countries protect their citizens and consumers by setting up various business regulations. I couldn't just set up shop in India unless I had a carload of permits including some sort of business or residency visa for myself.

Qatar (as do all other GCC countries) require a local sponsor - this encourages their citizens to get into business and also gives a tie to this country.

Nothing wrong with it, just a different "hoop" to jump through than some other countries.