The decision was announced during the cabinet meeting chaired by Qatari Prime Minister Sheikh Abdullah bin Nasser Al Thani.
The draft law said that non-Qataris might own and use properties under specific conditions, Xinhua reported.
The law applies to land space, buildings and residential units, in addition to the detachment units in residential complexes.
Last August, Qatar granted visa-free entry to citizens of 80 countries, to be the most open country in the Gulf region.
The Qatari government has undertaken several key measures and has moved quickly to establish other sources of imports to overcome the economic blockade imposed by its Gulf neighbours.
Last June, the United Arab Emirates (UAE), Saudi Arabia, Bahrain and Egypt severed diplomatic ties, and closed off air, sea, and land routes with Qatar, over the latter’s alleged support of “terrorism”.
Qatar has consistently denied the charges.