qatariseller: There is reason why your company did not issue the contract. It is simply because they are crooks and criminals and they know how play with the labour laws of Qatar. If your friend goes to the labour office you have absolutely no chance of getting your money the legal way. This is because the first thing the authorities will ask for the contract in the absence of which no case stands.
I am writing this from first hand experience. I had worked for several years for a contracting company in Doha which also never signs any contracts with its employees. They are crooks and criminals. When they did not pay me my End of Service Benefits, I filed a case against them at the labour office. In my complaint I had mentioned clearly that the company refuse to issue any contract. Rather than call the company and question them why a contract was not issued to me. my case was not even heard due to absence of a contract. I withdrew the case and the Admin. Director who is the biggest criminal in Doha laughed at me right on my face. He knew very well in advance what the end result of my case would be.
As such, while it is very sad but I guess your friend may have to leave empty handed but lots of painful memories of Qatar. As for authorities not knowing about this ongoing practice by unscrupulous companies, they know about it yet no actions is taken against such people. If just one or two such companies are shut down and their directors put in the lockup, there will be some fear in the hearts of such crooks and criminals. This is never done nor do I believe it ever will.
Please overlook the comment by Molten Metal as she always posts a lot of rubbish.