23004755-qatar

7/29/2019 23004755-qatar

1/55

7/29/2019 23004755-qatar

2/55

7/29/2019 23004755-qatar

3/55

Ministry of Economy & Commerce Investment Promotion Department

2 4 6 8 16 20 24 28 36 46

MINISTERS MESSAGE PART ONE - ABOUT QATAR Qatar - A State of Transformation A Great State of Living The State of Creative Energy The State of Attractions Social and Cultural Information The State of Government Reforms PART TWO - STATE OF ECONOMY The Booming State PART THREE - INVESTMENT OPPORTUNITIES The Investor Friendly State The State of Wealth and Well-being APPENDICES 1. Frequently Asked Questions 2. Procedures for Setting up Business 3. Reasons for Investing in Qatar

Part One About Qatar | 1

7/29/2019 23004755-qatar

4/55

MINISTERS MESSAGE

7/29/2019 23004755-qatar

5/55


Yousef Hussain Kamal Minister of Finance and Acting Minister of Economy and Commerce The State of Qatar is going through an unprecedented phase of comprehensiveeconomic and social development under the guidance of His Highness the Emir Sheikh Hamad Bin Khalifa Al-Thani, and his trusted Heir Apparent, Sheikh Tamim BinHamad Al-Thani. The Government of Qatar has adopted major reform initiatives, which have successfully transformed Qatar into a modern state capable of playing avital pioneering role in both the regional and international arenas. The on-going economic expansion is based on proper utilisation of our natural resources and the potentials of our human resources to sustain diversied and balanced economic structures. These objectives have been pursued in conjunction with political and legislative forms. We have also adopted a policy of economic liberalisation to ensure effective participation of the private sectors which play an increasingly important role in the process of economic development. These efforts resultedin a signicant rate of economic growth and have doubled Qatars GDP during the last ve years. The Ministry of Economy and Commerce is committed to continue its role in improving the investment climate in Qatar and making the country an ideal oasis for investors and investment activities. In 2005, the Government introducedan Investment

Promotion Department to facilitate the process of setting up business in Qatar.All potential investors are welcome to participate in the on-going development process. I thank you for taking an interest in the State of Qatar and would also

like to extend my sincere thanks and appreciation to all those responsible for promoting investment in Qatar.

Ministers Message | 3

7/29/2019 23004755-qatar

6/55

Part One About Qatar

QATAR A STATE OF TRANSFORMATION

7/29/2019 23004755-qatar

7/55


For centuries the Indian Ocean, the Arabian Sea, the Gulf and the Mediterranean were considered lakes of peace and cooperation and open areas for trade and cultural exchange... In the history of this area, exchange was not a mere professionbut an integrated culture which recognised the other, reected self condence and the desire of coexistence and acceptance of diversity and differences, which are fundamental human values in democratic societies.- The Emir, His Highness Sheikh Hamad bin Khalifa Al-Thani

was one of the worlds most developed and dominant economies being at the forefront of innovation and knowledge - particularly in mathematics, medicine and architecture. Before its ne cities of knowledge and development were demolished by invading mobs from the West, the Middle East had made invaluable contributions to the world of health and science. Today Qatar is creating opportunities for investors in the elds of nance, science, research, construction, real estate and other enterprises. Investors can move forward with business innovations that may include, but can also have a focus beyond, energy. A Model State

impressive internal remodeling. Qatars recent Government policies have been creating a strong internal infrastructure. Qatars diversication strategy is paying dividends as it grows a global niche market for investors. Qatar has applied lessonsfrom the development successes and failures of other countries that have experienced economic fast-tracking. The Qatar leadership has been analysing and assess

ing this knowledge to develop a sustainable economy in an innovative society.

History Lessons Qatar is reclaiming a history of enterprise and cooperation forwhich the region was once deservedly renowned. In the 5th Century BCE (Before Common Era), the Greek historian Herodotus referred to the seafaring Canaanites asthe original people of Qatar. The Greek geographer Ptolemy, in his map of the Arab world, illustrated gatara, a likely reference to the Qatari town of Zubara, then one of the most important trading ports in the gulf region. From the 8th century to the 12th century CE (Common Era) the Middle East region

Qatar is now the most open Arab economy and the best regional model for its neighbors to emulate.- The World Economic Forum

Nestled on a long peninsula halfway along the Arabian Gulf, Qatar is surroundedon three sides by water. It has a coastline of about 550 km and a general land mass covering 11,525 sq km including islands. Geographically, Qatar is in the middle of the Gulf Cooperation Council (GCC) surrounded by Bahrain, Kuwait, Saudi Arabia, the United Arab Emirates, and Oman. Qatars recent and impressive growth inconstructing world-class lifestyle business and residential facilities is mirrored by the States Part One About Qatar | 5

7/29/2019 23004755-qatar

8/55

A GREAT STATE OF LIVING

7/29/2019 23004755-qatar

9/55


The Winds That Build The Dunes, Blow Dreams Into The Minds of Men.- Toni Briegel, Soul of Sand

State is already demonstrably at the forefront of regional social and nancial enterprise with many projects drawing international acclaim. State of Comfort for Families and Individuals One of the most common sounds in expatriate communitiesis the sound of splashing in swimming pools where parents play with children atthe end of the day or working week. Most couples comment that they get more family time than they would have in their home countries. It is common for housemaids to be hired to help with domestic chores and childcare. Because the country issmall people easily form social groups and visit each other frequently. For those who value leisure time, Qatar offers one of the most attractive deckchair andlounge-bar lifestyles in the world. For those who prefer activity it offers a worldclass golf course, world-class sports centre and a variety of sports clubs.Shopping Qatars shopping malls include up-market boutiques and areas for family activities such as bowling, ice skating and amusement parks with video arcades and adventure rides. The latest lms are screened at multi-cine complexes. Nights are spent enjoying musical and theatre entertainments or dining under a moonlit, star-lled sky. One of the latest malls to open is Villaggio with a design exteriorreminiscent of an Italian hill town and a relaxing interior which

Qatars capital city and centre of Government, Doha, springs from the desert and b

orders the sea. Blue windows sparkle in tall buildings. The long Corniche edgesa serene palm-lined harbor containing ships, luxury cruisers and the Arabian shing boats known as dhows. The landscape is generally at with dust ying up around construction sites where development abounds. Swimming pools glint in the sunlight.Buildings are circled by public parks and gardens, wide and green. The land sweeps around the sea into a sprinkling of towns and villages and beyond, into themysteries of ancient dunes and old forts. A ourishing and evolving cultural and commercial centre, Doha offers living accommodation ranging from average to luxury within various gated communities known as compounds. Perfect for family life,these complexes may contain a clubhouse gymnasium, parks, shop and pools. Otheraccommodation includes apartment buildings and large stand-alone villas rangingfrom basic to palatial. Expatriates can also gain membership to hotels and sports clubs including a world-class golf course. State-of-Architecture Qatar reects a

desire by its leaders to be the most progressive country in the region. The

uses boutique streets to connect shopping and entertainment through to a meandering waterway with a Venetian gondola. One of the largest retail malls in the Gulfis the City Centre-Doha which features four levels including a family entertainment centre, Winter Wonderland and Cineplex. Royal Plaza is an up-market boutiquemall with 105 outlets. Landmark, the Mall, the Al-Asmakh Mall, Lulu and Hyatt Plaza are some of the other ne malls in Doha. The popular supermarkets Carrefour and Giant have large branches in malls and MegaMart is another supermarket with ane range of produce. Other smaller food cooperatives operate in most neighbourhoods. Safety Qatar is comparatively free of petty and serious crime. While it isadvisable to be cautious in any country, parents often comment that Qatar is a safer place to bring up children that many other countries. Young children play i

n malls and parks without the level of associated risks that are prevalent in other countries. The countrys zero tolerance for drugs and the restrictions on purchase of alcohol have created a safer society for growing adults. The drug-induced social and psychological malaise impacting on teens in many Western countriesis not evident in Qatar.


7/29/2019 23004755-qatar

10/55

THE STATE OF CREATIVE ENERGY

7/29/2019 23004755-qatar

11/55


Thought and creativity prosper only in an environment that secures freedom of expression and does not restrict thinking.- The Emir, His Highness Sheikh Hamad bin Khalifa Al-Thani

and entry requirements. In some cases the fees are paid by employers as part ofan employment contract. Most expatriate children attend one of the many international schools, the most popular include the American School which is expanding and is expected to soon become one of the worlds ve top international schools for learning facilities; the Doha English Speaking School which is focused on providing high standard education availability for children of residents on a British passport; Doha College; the Qatar Academy which offers a baccalaureate programme;Qatar International School, Japanese School, Middle East International School and Ideal Indian School. Some of the schools are listed on this website: www.qatarembassy.net/educenters.asp There are also a wide range of nurseries in Qatar such as Tots Corner and Starsh Lane with the latter proving popular for its eco-friendly creative and structured educational environment for children. Qatars State Education Qatar also has a progressive state school system which has been undergoing a massive transformation from state-driven to independent education. This direction is in-keeping with the guiding principle of developing a knowledge-basedeconomy.

World-Class Education, Health, Sports and Enterprise High standards of low cost

health care and world-class independent international schools make Qatar a highly popular residential destination for expatriates. Education Pre-School, Elementary and Secondary Schools Qatar hosts some of the most highly regarded international schools in the world. Expatriates are attracted to the high standard of private international schools providing pre-school, elementary and secondary schools. The main international schools are based on the English or American School systems. It is important to note that due to their popularity, applications to private schools should be made as early as possible so as to gain a place, particularly in international schools, which usually have waiting lists

A RAND study released on April 17th 2007 states that: In only a few years, The State of Qatar has successfully implemented a bold redesign of its K-12 educationsystem, incorporating school autonomy, variety in curriculum, parental choice an

d accountability measures. (RAND is a non-prot global-think tank working with governments and private, international and commercial organisations. It is known forrigorous, often-quantitative, and non-partisan analysis and policy recommendations). Higher Education Qatar has its own University, Qatar University, providingan intellectual and scholarly community characterized by open discussion, the free exchange of ideas, respectful debate, and a commitment to rigorous inquiry.All members of the University - faculty, staff, and students - are expected to advance the scholarly and social values embodied by the university. The mission of the University is to promote the cultural and scientic development of the Qatari society while preserving its Arabic characteristics and maintaining its Islamic cultural heritage.


7/29/2019 23004755-qatar

12/55

7/29/2019 23004755-qatar

13/55


We need to look inward to rediscover excellence and outward to realize it.- H.H. Sheikha Mozah Bint Nasser Al-Missned

branch campuses of some of the worlds leading universities, as well as numerous other educational and research institutions. Supported by abundant residential and recreational facilities, the Qatar Foundations agship, Education City, is developing as a community of institutions that serve the whole citizen, from early childhood education to post-graduate study. Education City has attracted one Ivy League and other top-of-their-eld, world-rated, universities to open their doors inQatar such as Carnegie Mellon, Weil Cornell Medical College Qatar, Georgetown,Texas A&M, the College of North Atlantic and Virginia Commonwealth which are housed in Education City. A major vocational training institute has been established with the Canadian College of North Atlantic-Qatar, (CAN-Q). Most of the students are citizens or residents of Qatar, but many come from other countries in theGulf and throughout the Middle East. Some come from as far aeld as the United States, New Zealand, South Africa and Bosnia. The faculty and staff are equally diverse. Education City is a place where bridges are being built, between culturesand to a better future. A community of institutions, Education City serves as the hub for the generation of new knowledge. Researchers have the opportunity towork with a pool of well-trained graduates in world-class facilities, collaborating and transferring ideas into practical applications. The master plan, createdby renowned

Japanese architect Arata Isozaki, is emerging as construction on several major facilities evolves. A 7000-seat convention centre is also being developed in Education City and all-digital Specialty Teaching Hospital are other developing projects. For more information see www.qf.edu.qa For information on the technology investment potential at the Qatar Science and Technology Park (QSTP) at EducationCity see the section on QSTP in the section: Where To Invest in Part Three: The Investor Friendly State. Health The State of Qatar is in an excellent state of health and it is planning to stay that way. Health Services, including dental treatment, are available at a nominal charge to all residents and visitors through thepublic Hamad Hospital and many other health centres in Qatar. There are also private health practitioners in Doha. The private Al-Ahli hospital was establishedin 2005. Hamad Medical City The Hamad Medical City project is estimated to cost

QR 1.5 billion and will include a 300-bed unit, a dialysis unit, medical staffaccommodation and laboratories. The project is part of the QR 12.5 billion budget of the Ministry of Municipal Affairs and Agriculture. Two other new hospital projects worth QR 220 million and QR 100 million respectively are also planned. Part One About Qatar | 11

The Qatar Foundation Education is a major driver in Qatars economic success and the Qatar education success story is underpinned by the Qatar Foundation. This Education, Science and Community Development is a unique private, chartered, non-prot organization, founded in 1995 by His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Emir of Qatar. Guided by the principle that a nations greatest resource is the potential of its people, the Qatar Foundation is developing that potentialthrough a network of centres devoted to progressive education, research and com

munity welfare. It is a development that is fuelling knowledge and deservedly attracting international interest and investment. The fact that the creation of the Qatar Foundation was among the Emirs early initiatives bears testament to its importance to the Emir and the Foundations Chair, Her Highness Sheikha Mozah BintNasser Al-Missned. Education City The Qatar Foundations headquarters are in the unique Education City, a 2,500-acre campus on the outskirts of Doha which hosts

7/29/2019 23004755-qatar

14/55

7/29/2019 23004755-qatar

15/55


A State of Sports Qatar is a major regional and international sports destination. The Doha Golf Club has two grass golf courses, an 18-hole championship courseand a 9-hole executive course, available to both members and the general public.The Doha Golf Club is undergoing extensive renovations and expansions includinga play area for children and swimming pool with a Jacuzzi, new academy buildingand television building. For more information see www.dohagolfclub.com Qatar also has a number of soccer stadiums and clubs which hold international and localtournaments; a Doha Rugby Football Club which has international tours and tennisand squash at various complexes and clubs Diving clubs are popular with peoplewishing to discover the marine world in the Persian Gulf. Other water sports include sailing, boating, jet-skiing and windsurng. Horse racing is held every Thursday at the Race & Equestrian Club in Al Rayyan from October to May. Qatar also holds camel races, an unusual and exciting spectacle for residents and visitors.The City Centre Doha has a bowling and ice skating rink where skates can be rented by the hour. Another bowling and ice skating complex on the third oor is for women and children only. The Qatar Bowling Centre has a ten-pin bowling in a 32-lane facility.

Sports City - Aspire Zone A Place for All to Enjoy Qatars Aspire Zone is a world-class sporting complex containing several sporting venues. These include the Khalifa International Stadium site of the 15th Asian Games, the Hamad Aquatic Centerand the ASPIRE Academy. The Aspire Zone also contains Dohas tallest structure, th

e Aspire Tower. The Academy for Sports Excellence, situated in the Aspire Zone,is an elite facility aimed at identifying, educating and training talented athletes to compete in professional sports at the highest levels. The Academys philosophy is aimed at developing the student fully in all aspects of life both academically and in sports, so that they have the widest possible range of opportunities in adult life. Aspire provides an outstanding learning environment, includingfull educational and recreational facilities, advanced dormitories, an amphitheater, lecture halls, seven outdoor football training elds, and state-of-the-art weight rooms and physiotherapy. Villagio Mall is also part of the Aspire Zone complex. As well as hosting the 15h Asian Games in 2006, Doha also hosted the 3rd West Asian Games in December 2005. The Aspire Zone is also expected to host the 2011 Asian Indoor Games and to make a bid for the 2016 Olympics. For more information on Aspire Zone and its vast range of facilities see www.aspirezone.qa

Other Stadiums Qatar also has a range of other sports stadiums, many of which were renovated to a high standard in preparation for the 15th Asian Games held inDecember 2006. Sports venues in Doha and its suburbs include: Al Ahli Stadium, Al Gharrafah Stadium, Al Itihad Sports Club, Jasem bin Hamad Stadiums (Al Sadd Stadium), the Khalifa Tennis Stadium, the Markhiya Sports Club and the Qatar Sports Club Stadium.


7/29/2019 23004755-qatar

16/55

7/29/2019 23004755-qatar

17/55


State of Communications Transparency and Democracy As a means of ensuring democracy and greater transparency the State has engaged in various public consultations, meetings and symposiums where discussions can take place about the process of change. Other symposiums, conferences and public forums take place through private businesses and the Qatar Foundation and Education City Universities. Underthe Qatar Foundation, the Doha Debates presented by the BBCs Tim Sebastian and aired by the BBC have helped foster an exchange of ideas about issues of importance to the Middle East and global affairs. Six daily newspapers are published in Qatar with three presenting the news in English: The Gulf Times www.gulf-times.com; The Peninsula www.thepeninsulaqatar.com. The Qatar Tribune website is currently under construction. Many international newspapers are also available a day ortwo after publication. Several magazines are produced in Qatar. English television and US stations may be viewed on the cable TV network. Western programs, including movies, are subject to censorship. There is one English-speaking radio station in Doha, QBS (97.5 FM), catering to a range of musical tastes. Other English speaking stations from the United Arab Emirates are also available.

There are two local television channels one in Arabic and the other in English.There is also a local English radio station. The Virgin bookstore stocking a wide range of literature and tapes has recently opened at the Villaggio Mall in Doha. The Jarir Bookstore on Salwa Road is another outlet selling newspapers, magazines, books and art supplies. Al Jazeera Channel Network Located in Qatar, and na

nced by the State of Qatar, Al Jazeera (which means the peninsula) has been broadcasting since 1996, and is uniquely positioned to broadcast the Arab worlds pointof view to the Western public. In 2004 Al Jazeera became the fourth best recognized brand name in the world. It is considered to be the Arab worlds only independent, professional news and information television channel and has a number of specialty channels including Al Jazeera Sports, Al Jazeera Documentary, Al Jazeerachildrens channel and most recently, Al Jazeera English which transmits news worldwide. In 2007, the Arabic Al Jazeera channel has been rivaling the BBC in worldwide audiences with an estimated 40 to 50 million viewers. Al Jazeera English channel has an estimated reach of around 80 million households.


7/29/2019 23004755-qatar

18/55

THE STATE OF ATTRACTIONS

7/29/2019 23004755-qatar

19/55


A Unique Tourist Niche Doha Cultural Village The Cultural Village will offer a superb chance for visitors to experience traditional connections converging day and night routines. It will be a place to wander, listen, learn and dream while sampling local food. The visitor can for a short time at least, become a villager. The Cultural Village is located in the West Bay area of Doha with a total areaof 99 hectares. The project will reect the heritage of Qatar through traditionalarchitecture that accommodates a large number of cultural activities. In addition to the libraries, art galleries and museums the Cultural Village includes anamphitheater, heritage centres, and other academic facilities. It is due to be completed by the end of 2007. Museum of Islamic Arts The Museum of Islamic Arts,which is expected to be completed by end of 2007, will become one of the interesting and appealing landmarks in Doha. As well as displaying items of considerable cultural and artistic value in an impressive location, the museum will serve as an educational institution offering support to local schools and providing facilities for research scholars from Qatar and overseas. It will display the QatarNational Collection of Islamic Art ceramics, metalwork, jewelry, woodwork, glass and other items collected from countries in the Islamic World from medieval Spain to Central Asia and India. For more information

see www.cnc.com.qa/english.asp Qatar National Museum Expansion The expansion ofthe Qatar National Museum has been designed by the renowned French architect Jean Nouvel. The museum will adopt the most modern concepts in museology providing

a lively experience, and will house six main themes - the land, the origins, historic settlements, sea, Nomadic life, and the wonders of nature. For more information see www.cnc.com.qa/english.asp Oryx Farm and Equestrian Club The nationalanimal of Qatar, the Oryx, can be viewed in its natural surroundings at the OryxFarm located in Shahaniya. Arabian horses are famed around the world for theirmystique and beauty. The pure-bred Arab show and race horses at Al Shaqab Stud Farm create an opportunity for visitors to view the horses from close-range. Other facilities include the Qatar Race and Equestrian Club, where visitors may viewthe stables and the Rayyan Racing and Equestrian Club which holds races and show-jumping events. Contact local tour operators to arrange visits. Calm Cruises and Sea Adventures Scuba divers are able to experience the balmy wonderland of Qatars underwater world of marine life around two articially formed reefs. Sailing is also a popular pastime and several private companies offer dinghies and windsu

rfers for rent, as well as sailing lessons for novice and experienced sailors.

A sunset cruise on a traditional dhow in Doha Bay is a unique and refreshing wayto view the city at night or day, dhow trips to outer islands are also popular.Luxury yachts and boats can be rented for half and full day shing trips. Jet-skiing and water-skiing, pedal boats, water cycle, and kayak rentals are also popular. Other adventurous pursuits include parasailing, surng, or wind-surng. The mainhotels and local tour operators can assist in arranging such activities. Sand and Seafaring Safari trips to the inland sea or dunebashing in 4x4 vehicles in themiddle of the desert create exhilarating memories for families and outdoor trekkers. Tour operators provide safe and dramatic tours of the desert topped off bya lunch and siesta or an overnight stay. Longer tours are also available. Souks(Traditional Markets) The traditional souks offer a rich and enchanting world of

tiny shops, malls, open and walled markets frequented by locals and tourists. Souk Waqif was recently restored and expanded. The beamed ceilings and old wallsprovide a cool tranquil place to wander through alleyways scented by food and perfume spices. The oldest of Dohas traditional markets, the Souk was originally used by Bedouin traders as a trading centre to stock up on meat, wool and milk. The ne silks and cottons in the fabric souks usually sell for far less than their value in Europe or the US. Part One About Qatar | 17

7/29/2019 23004755-qatar

20/55

7/29/2019 23004755-qatar

21/55


The gold souks provide an array and display of intricately crafted gold. Jewellers may create or repair jewelry on request. Bartering for the best best price is usual in these shops. Corniche and Parks From early morning to late at night promenading along the Corniche is a popular past-time for locals and expatriate residents. The seven-kilometre stretch of coastline runs parallel to the warm watersof the Arabian Gulf and is used by walkers, runners, roller-bladers and children on cycles. The park at the corniche also offers a relaxing environment for a game of ball or family picnics. Many parks in Doha have play equipment or providespace for family ball games, quiet siestas can be enjoyed under shady trees. Some parks are also used as venues for nighttime entertainment. Childrens indoor activities and facilities including food courts are also provided in most large shopping malls. Clubs and Interest Groups From cultural and language groups to gardening, natural history, dancing or formal extra-mural education there is a widerange of interest and leisure groups. Information about these and upcoming events can be obtained in frequently produced brochures and guidebooks which are available at most bookstores or the magazine section of supermarkets.

For more information on sightseeing and tourism developments see www.qatartourism.gov.qa For information relating to hotel and real estate investments see The Where to Invest section in Part Three: The Investor-Friendly State.


7/29/2019 23004755-qatar

22/55

SOCIAL AND CULTURAL INFORMATION

7/29/2019 23004755-qatar

23/55


According to UN report of human development resources, Qatar was ranked NO. 1 inMENA (Middle East and Northern Africa) region.- UN Human Development

Qatar, many transactions are conducted in English. English is also now being taught at state schools and is increasingly the favored language for internationalcommunications and business. Translators can be requested for business situations where English is not understood. Urdu, the language of Pakistan, is also spoken frequently. Greetings Shaking hands - the common form of greeting between Westerners - is not always used by businesspeople in the Middle East particularly between men and women. If a Qatari person refrains from shaking hands this doesnt mean they are not being friendly. When a Qatari person takes their hand and places it against their heart they are adopting a traditional expression of greetingor farewell. Literacy The adult illiteracy rate has been declining rapidly since2000 due to endeavours by the State including policies which guarantee and promote education and community education programs for those who missed out on an education in earlier life. The rate of University graduates out of the total population is steadily rising in keeping with the Governments emphasis on education. In 2000 28% of Qatari people had a university degree compared to 34% in 2005. Thegure is expected to continue to rise signicantly.

A Multi-Cultural Workforce Based on labour force data from the Government Planni

ng Council, the Government sector and Government companies hire more than 90% ofworking Qatari nationals. Non-Qataris constitute approximately 90 % of the private sector workforce. A Warm Welcome The weather in Qatar is one of the appealing aspects of the lifestyle and contributes to the relaxing carefree atmosphere.The climate is generally pleasant most of the year with a mild winter from November to January and a hot summer from June to August. Temperatures generally range from 14c to 27c in winter and from 27c to 45c in summer. Some families chooseto take their annual holidays during the summer period. Air conditioning is generally provided in homes and buildings. State Prohibitions As mentioned in the section on the state of living, Qatar prohibits the brewing and trafcking of alcohol. Drunken behaviour in public or driving under the inuence of alcohol is an offence punishable by a period in prison, a ne or both and cancellation of the offenders driving license. It is also illegal to transport liquor in a vehicle except f

rom the point of sale directly to home. Alcohol should only be consumed at homeor in a private residence or at authorized Part One About Qatar | 21

Facts and Tips for Businesspeople and Families Religion and Social Customs Islamis the ofcial religion of the State of Qatar and mosques are found in abundance.The Sharia (Islamic Law) is the principal source of legislation in the country.Protestant, Roman Catholic and some other smaller faith communities offer weekly services, in English and other languages, in rented spaces in Doha. Dress CodeRespectful dress code is generally required in Qatar, particularly in businesssituations and local markets and malls. Women should wear clothing that covers the knees and wear short or long sleeved shirts rather than sleeveless tops. Menare advised to cover their upper bodies and refrain from wearing shorts in business or most public situations. Dress is more relaxed in hotels, expatriate clubs

and accommodation complexes. Languages While Arabic is the ofcial language in

7/29/2019 23004755-qatar

24/55

restaurants. Public displays of drunken behaviour may lead to arrest. Alcohol must never be consumed in public places such as parks. The import of pork is prohibited. Photography Visitors and residents should exercise sensitivity and caution when taking photographs. It is necessary to seek permission before taking photographs of people. Qatar is a security conscious country and photographs of certain government and public areas are not permitted. Qatar has a popular photography club and many photographic competitions and exhibitions. Time Zone Qatar timeis three hours ahead of Greenwich Mean Time and 7/8 hours ahead of New York EST/DST. There is no daylight savings time in Qatar. Currency The Qatari Riyal (QR)is the currency of the country and $1 U.S. purchases QR3.65 (xed rate). ATMs arewidely available with NYCE and CIRRUS cash access networks. Most major establishments accept major credit cards; some will accept US Dollars. State of Growth -Population The total number of people living in Qatar was expected to be 910,000 at the beginning of 2007, with most living in Doha. Other people live mainly in Al Rayyan, Al Wakra, Umm Slal, Messaid, Al Khor and Al Shamal.

The last formal census was in 2004. About a quarter of the people are Qatari nationals; other ethnic groupings are Indian, Pakistani, Iranian, other Arabs, Asians and Western expatriates (Arab 40%, Pakistani 18%, Iranian 10%, other 14%). Work Permits Expatriate-Friendly Visas In February 2000, Qatars expatriate-friendlyapproach was evidenced with new work visit visas. Holders of these visas can bring their families to Qatar, get an ofcial ID card from the Bureau of Immigration,obtain a health card and driving license and enrol their children in schools. The visa is valid for one year after which it is renewable. Two other new visas we

re also introduced the personal visit visa which applies to an expatriates spouse nd children and the commercial visit visa. More information on Visitors visas maybe obtained at the Visiting Qatar section of the Ministry of Chamber and Commerce website: www.qcci.org. Other information on visas may be obtained on the website of the Ministry of Interior: www.moi.gov.qa. Business Hours These hours are aguideline as the work hours often vary between businesses. Government ofces: 7amto 2pm Private Establishments: 8am to noon and 4pm-8pm. Shopping Centres: 10amto10pm.

Public Holidays Independence Day: September 3rd. Eid Al-Fitr: At the rst Shawal month (a month within the Islamic calendar) for four days. Eid Al-Adha: starts atthe ninth of Zil-hijjha month (arriving two months after Shawal it has the Al-Adha Islamic feast) for ve days. Beyond Doha Beyond the capital city of Doha, Qata

r has many old settlements and new developments. From old pearling ports to theworlds most signicant and accessible industrial location, Qatar offers history andmodernity in cities and townships. In one area a small shing eet, sand-dusted playground and museum full of relics, in another, towers of a different sort to those in the city - pipelines and workers in helmets. Ras Laffan Industrial City Ras Laffan is signicant, being one of the worlds most important and accessible emergent industrial export locations. The States ambitious vision to exploit its largenatural gas resource culminated in LNG projects Qatargas and Rasgas. As a result of rapid expansion the production capacity was expected to reach 26.2 millionby the end of 2006. Other natural gas utilization plans led to the Dolphin project and various developing Gas to Liquids projects (GTL).

7/29/2019 23004755-qatar

25/55


Al Rayyan Lying 10 kilometres north of Doha Al Rayyan is the largest residentialarea outside of the capital. The Equestrian Federation is based in Al Rayyan where it runs many events including races and shows. Al Khor Further to the north about 58 km from Doha, Al Khor is a charming old port still harboring small ships and shing eets. It has wide white sandy beaches, an historic tower and interesting mosques. Al Wakra The town of Al Wakra lies halfway between Doha and Umm Said. Once a small pearling and shing village, it now has a population of about 30,000 people. A museum in the old fort displays local marine life, art and architectural exhibits and natural history. Messaid A major industrial city 45 km south of Doha, Messaid is home to basic industries and operates as a large sea port aswell as the main terminal for oil exports. Major industrial projects such as QAFCO, QAPCO, QAFAC, QVC, QPR, Q-CHEM and others are located in the city along withdeveloping projects including Q-Chem 11, Qaton and LAB. Situated 37km south of Doha on the east coast it has reneries and other industrial sites producing steel,natural gas liquids, fertilizers and petrochemicals.

Messaid is also acclaimed for its beaches and dunes which are popular with tourists. Restaurant and accommodation is available at the recently renovated Movenpick Sealine Beach Resort. Dukhan Qatars main land-based oil production centre, Dukhan is halfway along the western coastline of the Qatar Peninsula. This is the site where the production of the countrys oil reserves rst began in 1949, as a result Dukhan has been described as the oil nerve centre of Qatar. Madinat Al-Shamal A

relatively new town on the northern tip of the peninsula about 107km north of Doha, Madinat Al-Shamal operates as the administrative centre for various coastalvillages. Al Ruwais This is a town well worth a visit for those interested in modern inuences on the Bedouin lifestyle. About 110 km from Doha, on the northerntip of the peninsula, the town of Al Ruwais is a place where tents and camels, hand woven materials and slowpaced life are converging into the modern world of cars, buildings and communications. Al Zubara An important archeological site, AlZubara, 113 km north-west of Doha, is famous for its old fort which has three circular towers

and a rectangular tower. The fort is now a museum. Like other former forts thisisolated outpost which quietly ushers in the wind, the light and troughs of shade, is a place both for dreamers and photographers.


7/29/2019 23004755-qatar

26/55

THE STATE OF GOVERNMENT REFORMSOur determination to increase popular participation in decisionmaking and bear its consequences is rm and irrevocable.- The Emir, His Highness Sheikh Hamad bin Khalifa Al-Thani

knowledge, innovation, and culture-based activities play a central role in the activities of all businesses. This is a state where oil and natural gas reserveshave brought the sweet smell of riches; where the Governments diversication policies offer a highly attractive investment location. Qatar offers nancial incentivesto investors as well as a superb location close to Europe and Asia. The State has an affordable and hard-working skilled and unskilled labour force and has a national education policy of targeting skills towards energy and other elds whereinnovation and technological skills are paramount. Since the 19th Century Qatarhas been governed by the Al-Thani family. In 1916, following a treaty ratied withBritain, Qatar became a British Protectorate. In April 1970 Qatar moved to invoke full independent statehood by enacting a provisional constitution. The Statebecame fully independent on September 3rd 1971. In 1993 HH Sheikh Hamad Bin Khalifa Al Thani acceded as Head of State, Emir to the Country. Ten years later H.H.Sheikh Tamim Bin Hamad Bin Khalifa Al Thani was declared the Heir Apparent. H.H. Sheikh Abdullah Bin Khalifa Al Thani held the post of Prime Minister until resigning in early 2007 when he was replaced by Qatars Foreign Minister Sheikh Hamadbin Jasem who still retains the foreign ministry portfolio. The Council of Ministers is responsible for proposing draft laws and decrees; it implements these laws and supervises the

nancial and administrative affairs of the Government. The Advisory Council has 35members who are chosen from all sectors of Qatari society. It reviews draft laws proposed by the Council of Ministers prior to their ratication by H.H. the Emir. This council also has ve permanent committees. The rst step towards democracy was taken in March 1999 with Qatars rst civic polls, the elections for a Central Municipal Council (CMC). The second CMC elections were held in 2003 during which the rst woman was elected to the council. The council acts as an advisory body forthe Ministry of Municipal Affairs and Agriculture. The States National Constitution The creation of the National Constitution Committee marked a major step forward in the political reform programme of H.H. the Emir, Sheikh Hamad Bin KhalifaAl-Thani. This committee presented a draft of the permanent constitution in July2002 calling for the creation of a 45-member national parliament with two-third

s of the members being directly by the people. It also calls for the national parliament to have legislative powers while the powers of the executive and judiciary would be dened for the rst time. The draft also ensures equality and the rightto vote and run for ofce for all citizens including women. The draft constitution provides for the freedom of press, expression, of association and of religion.It was met with an overwhelming positive response from the

A State of Opportunity A country engaging in a process of modernisation and transformation, Qatar is reaching beyond its borders to attract the imaginative initiatives of entrepreneurs. This is demonstrated by the fact that Qatari ofcials are expecting at least USD$65 billion to be invested in expansion projects in thenext few years. Under the inuence and driving desire of H.H the Emir of Qatar, Sheikh Hamad Bin Khalifa Al-Thani to establish a democracy, the State and its peop

le have shown courage, demonstrating a willingness to turn old laws into new laws that grasp enterprise and encourage change. As a result, Qatar has been undergoing critical transformations within recent years making it one of the most genuinely modern states in the Middle East. Through the vision of the Emir, Qatar has been creating reforms that address the need for diversity in order to sustaina stable economy well beyond the 200 years of gas reserves. Qatars policies are directed at the development of a creative economy where

7/29/2019 23004755-qatar

27/55


public in the referendum held in April of the following year which resulted in it the draft constitution becoming effective in June 2005. The State Legal SystemThe judicial system was dramatically overhauled in October 2004 following the establishment of the new Judiciary Law issued in 2003. This allowed the previoustwo-court system to merge into one. A Higher Court called the Court of Cassation(The Supreme Court) was established and is considered to be the highest Court of Appeal in the country. State of Foreign Relations and Global Organisations Qatar is a member of the Gulf Cooperation Council (GCC) which includes Bahrain, Kuwait, Oman, Saudi Arabia and the United Arab Emirates; the Organisation of Petroleum Exporting Countries (OPEC) and other international and multilateral organisations such as the United Nations, the International Monetary Fund, the International Bank for Reconstruction and Development and the World Trade Organisation. During the GCC summit in December 2001, the GCC Supreme Council approved the establishment of a GCC customs unit which is now in place. This sets unied customs tariffs at 5 % for all imported goods into the region. The GCC summit also approved proposals for a monetary union and the introduction of a single GCC currency by 2010.

State Privatisation Program The rst stage of the privatisation program, preparedin collaboration with The World Bank, occurred with the transformation of the Qatar Public Telecommunication company into a joint stock company called Qatar Telecom (Q-Tel). Forty-ve per cent of the shares of Q-Tel were offered for sale for

all investors without exception. The shift towards privatisation reects the strong resolve of the Government to involve the private sector in development processes. The privatisation policy is an important aspect of the Governments strategy of realising economic development, upgrading the performance of companies and improving the standard of services. It is a means of achieving a number of other goals: contributing to remedy the budget decit; reducing administrative and nancialburdens; increasing economic growth rates and reducing the prices of commoditiesand services while enlarging the ownership base in the country.


7/29/2019 23004755-qatar

28/55

7/29/2019 23004755-qatar

29/55


State of New Technology Microsoft Microsoft, is one of the worlds biggest investors in research, technology development and training, will invest around $4 million in six pioneering technologyrelated projects at the science park over the next year The worlds largest IT Company will work closely with university and government partners in Qatar to deliver many of the programs, which will bolster computing skills and capabilities in the country. ICTQatar ICTQatar is the policy making and regulatory body for Information and Communication Technology (ICT) in Qatar. It promotes the development of an advanced ICT society through infrastructure and human capital development, the delivery of e-services and the establishment of a regulatory environment that is conducive to sustainable growth and offers benets all users. ICTQatar also facilitates an environment in which e-health, e-government, e-nance and e-tourism services prosper with the protections of world-class cyber-security. For more information see www.ict.gov.qa A State of New Developments The New Doha International Airport (NDIA) When the New Doha International Airport

opens in 2009 it sill be a world- class facility merging in terms of design andoperational efciency. At its ultimate development in 2015, the new airport will handle 50 million passengers, 2 million tonnes of cargo, and 320,000 aircraft landings and takeoffs each year. It will be three times the size of the existing airport in Doha, and have six times the capacity. Its opening day capacity in 2009will be 24 million passengers. It will also be able to handle 750,000 tonnes of

cargo every year. By opening day, as many as 8,700 passengers will be able to go through the terminal complex in a single hour. At opening day, the 350,000+ square meter passenger terminal facility will be the largest building in Doha, covering an area equivalent to 50 full size football pitches. It will be bigger than Dohas City Centre Plaza which has an internal area of 290,000 square meters. Flights and passenger processing facilities will be organized in a way to minimizewalking distances for travellers. Many of the new airport buildings have a water theme. The passenger terminal roof is shaped like a wave. Water is also featured along the way for arriving passengers. The Emiri terminal is externally shaped like sail boats. The 80 meter high control tower is shaped like a crescent providing a key night feature shining on the NDIA facilities. More than 100 hectares alongside the new airport have been reserved for commercial

development. Private development opportunities include free trade zone, ofce andbusiness park, hotels and retail mall For more infomation: www.ndiaproject.com Friendship Bridge - New Causeway A proposed bridge, referred to as the FriendshipBridge will link Qatar and Bahrain via a 45-kilometre causeway - the worlds longest xed link. A Danish consortium headed by renowned engineering consultants Cowi,has recently completed a feasibility study. Qatar and Bahrain signed a Memorandum of Understanding (MOU) in February 2005 for the setting up of a causeway between the two countries. In June 2006, an agreement was signed to start the work onthe construction of the $3 billion 40 kilometre causeway between the two countries. The project is expected to take four years to complete. In its September 2006 Qatar Economic Review, the Qatar National Bank estimated that the causeway would have a major impact in further enhancing bilateral ties between the two countries.


7/29/2019 23004755-qatar

30/55

Part Two State of Economy

THE BOOMING STATE

7/29/2019 23004755-qatar

31/55


Doha is a boom-town and Qatar is a booming country with a leadership that is both insightful and far-sighted. Demonstrating their learning from other rich and less richlyresourced countries, Qatars leaders are constructing a strong platformfrom which to sustain and grow wealth in the long term. In recent years Qatar has witnessed massive economic improvement manifested by surplus in current account of expenditure scale, reduction of decit in general budget and stability of ination and exchange rates. According to the Qatar Economic Review compiled by the Qatar National Bank in September 2006, the contribution of LNG has increased signicantly during the last few years. The QNB has estimated that the oil and gas sector would continue to hold a prominent share in the overall GDP and is expectedto stay at 60% in 2007. The State of a Growing GDP Now one of the wealthiest countries in the world, Qatars GDP more than trebled from 1999, when it was at a level of QR45.1 billion, to QR 154.6 billion in 2005. Qatars nominal GDP growth hasaveraged 25% for the ve years from 2002 to 2006 with the oil and gas sector accounting for the main component. In relation to 2006, Planning Council preliminaryestimates show Qatars nominal GDP rising by 24.2% to reach QR 191.9 billon. (US 52.6 billion). In 2006, the oil and gas sector showed a signicant growth of 28.9%.The non-oil and gas sector grew by

17.1% in 2006 and has in the past ve years - from 2002 to 2006 - witnissed a substansial growth of 22.8%. State of a Healthy Budget In April 2007 Qatars 2007 to 2008 State Budget was released. The largest and one of the most revealing budgets

in Qatars history, it forecasts a surplus of QR 6.7 billion (US 1.8 billion), reecting the massive strength in the oil, gas and petrochemical sectors. Total revenues are forecast to increase by 27.3% reaching QR 72.5 billion (US 19.9 billion), with total expenditures expected to increase by 20.4% reaching QR 65.7 billion (US 18 billion). The oil price assumption for the budget period is US $40 p/bcompared to US $36 p/b in the 2006 to 2007 budget estimates. Allocations for major projects have been increased by 14.4% in the 2007 to 2008 budget to reach QR22.9 billion (US 6.2 billion) compared to QR 20.0 billion (US 5.5 billion) in the previous annual budget. This is in-keeping with the States commitment to maintain substantial allocations for major public projects. The State has also established a stabilisation fund to this purpose. State of Foreign Trade A DiversicationSuccess Story The reason for the rapid increase in Qatars exports and imports during the last ve years from 2002 to 2006 is due to the increased and increasing d

evelopment in the oil, gas, industrial sectors and infrastructure,

educational and tourism-related projects. Qatars diversication policy is contributing to the telling results. State of Exports Figures released by the Qatar Planning Council show that exports have grown exponentially. Exports averaged a growth rate of 22.3% during the last ve years from 2002 to 2006, reaching QR 104.1 billion (US $28.6 billion) in 2006. State of Imports Qatars imports have been averaging a growth rate during the last ve years from 2002 to 2006 of 35.6%. Qatars imports have increased by 59.3 % in 2006 to reach QR 52.6 billion (US 14.43 billion)from QR 33.0 billion (US 9 billion) in 2005. Preliminary information from the Qatar Planning Council reveal that the main imports in 2006 were machinery and mechanical appliances, base metals, vehicles and transport equipment, and food products. The import emphasis on machinery and mechanical appliances reects consiste

nt development in the various energy sector, infrastructure and industrial projects. Qatar consistently imports base metals such as iron and steel to meet the related demand in the construction eld. Economic Sectors Oil and Gas Sector Qataris ensuring that growth is sustained. With proven oil reserves of 15 billion barrels and natural gas deposits in excess Part Two State of Economy | 29

7/29/2019 23004755-qatar

32/55

of 900 trillion cubic feet Qatar has a clear competitive advantage in hydrocarbon activities. The Governments heavy investment in LNG over the last decade has been the main conductor for the countrys present meteoric growth. The development of GasTo-Liquid (GTL) technologies is also a good indicator for the future. Qatarrecently unveiled several large projects in other energy intensive industries.These include a USD 3 billion joint venture with Norsk Hydro for an aluminum plant and a further USD 3billion investment into the petrochemical industry. Thesedevelopments highlight the Government view that competition is healthy and its strategy for obtaining the greatest possible revenue from its natural resources.In recent years the State has stepped up its efforts to provide the best possible use of its hydrocarbon wealth, taking different approaches to maximise this objective. Government exploration projects in the oil and gas elds have been expanded and the Government has offered incentives to attract foreign investors to carry out similar projects. Laws aimed at simplifying investment procedures are having a positive impact. The economy is being liberated and new techniques of marketing gas from giant plants have been developed. As a parallel measure, the Government implemented an economic policy in public expenditure and diversied sourcesof national income to include non-oil sources.

Energy Developments The Qatar Shell Research and Technology Centre at the QatarScience and Technology Park will be a hub for developing such environmental solutions. On a wider scale the company is working with SCENR and UNESCO on the concept of establishing a biosphere in Qatar. Qatar Petroleum Qatar conducts its principal oil operations through State-owned Qatar Petroleum (QP) which manages Qat

ars oil, gas, fertilizer, petrochemicals and rening enterprises in Qatar and abroad. The Governments two-pronged oil policy has the aim of replenishing proven reserves within currently producing elds and identifying additional new reserves. InJuly 2006 Shell and Qatar Petroleum launched the Pearl GTL project which is thelargest integrated GTL complex in the world and also the largest energy projectever launched with in the borders of Qatar. Shell is also a partner in the large-scale Qatargas 4 LNG project. In regards to environmentallyfriendly enterprise,Shell designed the offshore plant using the most modern technology so that it will not discharge any process efuent water to the sea, all process water will berecovered, cleaned and re-used - the largest industrial full process water recovery and zero-liquid discharge system in the world. By 2010 Qatar is likely to bethe worlds

single largest producer of liqueed natural gas (LNG), with a projected productioncapacity of 77 million tons per year, some 3 times current production. The output of associated condensates - light oil extracted during gas production - is growing and other gas-based industrial projects, such as the Oryx Gas to Liquid facility, are reaching completion, further increasing Qatars capacity in the energysector. In the oilelds, intensied development programmes are increasing and oil production will exceed 1 million barrels per day (bpd) by 2011, which combined with LNG and GTL output will total some 6 million bpd equivalent. Two gas super-trains are planned, each capable of producing 7.8m tonnes per year. These super-trains are expected to supply 15.6m tonnes per year to the US market from 2008. Asimilar amount is planned for the UK, also from 2008, and the worlds largest liqueed natural gas import facility is currently being built at Milford Haven, a project which will bring 16 million tonnes of gas annually from Qatar into the UK ga

s transmission network. In September 2005 RasGas II signed a 25-year sale-and-purchase agreement with Chinese Petroleum Corporation of Taiwan to supply 3 million tones a year of liqueed natural gas. Qatars energy sector is ourishing and is setto enjoy long-term stability with Japan, South Korea, India and Taiwan alreadybeing

7/29/2019 23004755-qatar

33/55


long term buyers and Italy and Belgium committing to buy gas from Qatar. To enable it to supply gas to its global customer base, Qatar will expand its eet of 20vessels by around another 60 vessels, at a cost of some $15 billion, by 2009. OnNovember 28, 2005, HE Yousef Kamal, Minister of Finance, announced a $3 billiondeal with Samsung, Daewoo and Hyundai for 12 of the largest LNG carriers, as part of Qatars strategy to optimise the total LNG value chain to its energy sectorcustomers around the world. Qatar launched the worlds largest liqueed natural gasrenery project in November 2005, with most production being exported to the U.S.In the $14-billion strategic alliance between the two countries, Qatar Petroleumhas a 70% stake and ExxonMobil Ras Laffan III Limited, a subsidiary of the US oil major ExxonMobil, the remaining 30%. On the manufacturing front, Qatars rst helium plant came on stream in August 2005. Around the same time Qatar Vinyl Company announced a plan to triple its ethylene dichloride production capacity. Qataraims to be a major producer of condensate, naphtha and lube oil by the end of the decade. Qatar Steel Company has embarked on a programme to increase its iron and molten steel capacity by a half and Qatar Petroleum has developed a joint venture with Norsk Hydro to set up an aluminum smelter plant. A State of Natural Gas Qatars Natural Gas Sector was discovered

in 1971 and is the largest non-associated gas eld in the world with proven reserves currently estimated at more than 910 trillion cubic feet which is the equivalent of about 164 billion barrels of oil. These reserves translate into 14.4% of

the worlds total and will be sufcient to support planned production of the naturalgas for more than 200 years. Qatar Petroleum has initiated and developed two major LNG projects with foreign shareholders for the purpose of utilising the North Field gas for exports in the form of LNG. These projects are Qatargas and RasGas. Expansion of LNG facilities through Rasgas 2, Qatar Gas 2, Rasgas 3, Qatargas 3 and Qatargas 4 is being pursued to meet additional export opportunities. Qatar Liqueed Natural Gas Company (Qatargas) Established in 1984, the main activities of Qatargas are divided into two main projects with separate shareholder groups: the upstream joint venture (offshore production and the onshore receiving facilities) and the downstream joint venture (onshore LNG Plant). In 2005 Qatargasexported a total 9.9 metric tonnes of LNG, with contracted exports expected to reach 41.5 metric tonnes by 2011. Non-Oil and Gas Sector The Non-Oil and Gas sector contributed 38.1% of total GDP in 2006, recording

a growth of 17.1% over 2005. The main components of this sector are the following: Other Services In 2006, the Other Services sector, which includes governmentservices, social services, household services, imputed bank service charges andimport tariffs, made the largest contribution to GDP of the non-oil and gas sectors. This sector grew by 49.1% in 2006, contributing USD 4,710 million which represented 8.9% of total GDP. Finance, Insurance and Real Estate The Finance, Insurance and Real Estate sector is comprised of ve sub-sectors: banking, insurance, nancial intermediation services, real estate and business services. In terms of relative contribution to GDP, this sector contributed USD 4,323 million, the second highest among the non-oil and gas sectors and grew by 6.6% at current pricesin 2006. This sector represented 8.2% of Qatars GDP in 2006. Manufacturing Industry In 2006, the Manufacturing sector made the third largest contribution to GDP

among nonoil and gas sectors. This sector grew by 8.1% at current prices, contributing USD 3,867 million which represented 7.3% of total GDP. This sector is strongly supported by the Government as a part of a general policy to diversify income sources and to maximise the utilisation of Qatars natural resources. The major sub-sectors of the Manufacturing Part Two State of Economy | 31

7/29/2019 23004755-qatar

34/55

7/29/2019 23004755-qatar

35/55


sector are petroleum rening, industrial, chemicals, fertilisers and steel, whichutilise natural gas as feed-stock and/or fuel. Other important activities include the production of our, cement, concrete, plastics, textiles and footwear, household articles and paint. Building and Construction The rapid pace of developments in the Building and Construction sector is quite evident around Doha in recentyears, and as such this sector continues to be a major contributor to the GDP and employment of labour force. This sector witnessed a growth of 17.7% in 2006,contributing USD 2,823 million to overall GDP. Public expenditure is a very important factor affecting the prospects for the building and constructions sector,and the realisation of budgetary surpluses in the last seven scal years has increased the level of public spending. Allocation for major public projects in the 2007/08 Budget increased by 14.4% to reach USD 6.28 billion, which covers the areas of public services, infrastructure, social and health services, and educationand youth welfare. Trade, Restaurants and Hotels The Trade, Restaurants and Hotels sector contributed USD 2,089 million to Qatars overall GDP in 2006, representing 4.0% of total GDP. This sector grew by 10.9% in 2006 and will be one of themost promising in the coming years, as business, cultural, sports, education andtourism events aimed at promoting Qatar, gathers even more

momentum. Qatars hotel room capacity in the luxury sector is expected to increaseby an additional 8,468 rooms in the coming years as result of up-coming projects such as the Pearl -Qatar and hotels including the Bavaria Suites, the Hilton D

oha, the ShangriLa, La Cigale, the Marriott Courtyard and the Rotana. The QatarTourism Authority which was established in the year 2000, is actively promotingQatar as a tourist destination. Transport and Communication This sector contributed USD 1,539 million to the overall GDP in 2006, and witnessed a growth of 9.7%. Qatar Airways is the principal airline operating from Qatar, designated as theNational Carrier, and is a joint public and private sector enterprise (being 50%owned by the Government). Qatar Airways currently ies to over 80 destinations inthe Middle East, North Africa, Europe, the Indian sub-continent and the Far East. Qatar Airways operates an all-Airbus eet of 57 aircraft and will triple its eetto 110 by 2015. Qatar telecom (Q-Tel) under license has been the sole owner andoperator of all national and international services. With the opening up of thetelecom sector in early 2007, a new mobile operating license is currently underbidding with a new operator to be announced by the last quarter of 2007. Electri

city and Water The Electricity and water sector witnessed a growth of 9.7% in 2006, contributing USD 665 million to Qatars overall GDP. Most

of Qatars electricity generation capacity comprises of gas turbines, which are fuelled by natural gas. Water desalination is achieved in tandem with electricitygeneration. A number of industrial companies, such as QAPCO and QAFCO, have their own electricity generating facilities. Qatars rst independent water and power project (IWPP) located at Ras Laffan has a capacity of 750 MW of power and 40 million gallons of water a day. The Ras Laffan B IWPP was completed in June 2006 andwill start full commercial operations in 2008. Agriculture and Fisheries The Agriculture and Fishing sector has traditionally played only a minor role in the modern Qatari economy because of unsuitable weather and environmental conditions.Cultivable land accounts for only approximately 0.7% of Qatars total surface are

a. This sector grew by 7.9% in 2006, contributing USD 63 million to Qatars GDP.

Part Two State of Economy | 33

7/29/2019 23004755-qatar

36/55

Finance - Surging Forward Qatars banking and nance sectors are among the best in the world in terms of governance, products, service quality, technology and regulatory framework. Qatars rapidly accelerating economy - with a GDP the International Monetary Fund expects to grow by over 13 per cent next year (2008), is luringtop tier rms and attracting specialist providers with the experience and skillsto strengthen Qatars investment strategy. Qatar has made adjustments to become averitable powerhouse for nancial investors and many of the worlds leading nancial rs have set up bases in Qatar. The rules and regulations covering for instance, insurance or collective investment schemes specially tailored for these rms are worldclass. The worlds attention is now on the nancial opportunities being manifested in Qatar. Equally the changing attitudes and approaches of the regional regulators and governments are arousing international interest. For information on theQatar Financial Centre (QFC) which helps nancial service companies and specialist support service providers gain licenses to operate in Qatar see the section onthe QFC in Where To Invest under Part Three: Investor Friendly Services.

The State of Banking Local, Regional and International Qatar has a growing number of banks. Presently nine are Qatari-owned institutions including ve commercialbanks: Al Ahli Bank; Commercial Bank; Doha Bank; International Bank of Qatar andthe Qatar National Bank. Three of the Qatari-owned banks are Islamic: Qatar Islamic Bank; International Islamic Bank and Al-Rayyan Bank. The specialised QatarIndustrial Development Bank is also Qatari-owned. The Al Khaliji Bank was founded in Doha, Qatar in January 2007 with the support of nearly 200 major shareholders from Qatar, Oman, UAE, Kuwait, and Bahrain. The Qatar National Bank is the la

rgest Qatari bank and the rst national bank. It has an equity base split equallybetween the Government and private shareholders. Signicantly in 2005 QNB was the rst bank in Qatar to establish mutual funds with a mutual fund for locals and theAl Watani Fund 11 mutual fund for expatriates. The local branches of seven foreign banks operate in Qatar including: Arab Bank; Bank Saderat Iran; HSBC; Mashreq Bank; BNP Paribas; Standard Chartered and United Bank. Qatar Development BankQatar Development Banks objective is to play an active role in the economic and industrial development of the State of Qatar by helping to diversify its industrial base through the promotion and nancing of small

and medium-sized projects in key economic sectors. The authorised captial of thebank is QR 5 Billion. Banking Results The latest available results for the Qatari banking sector - including Qatari and foreign banks - showed that the gures ke

ep rising with net prots increasing by 101.8% reaching QR 4,726 1 million. Totalassets increased by 38.1% to QR128.4 billion, customer deposits rose by 34.2% toQR 91.2 billion, loans and balances rose by 37.0% to QR 72.7 billion. Shareholders Equity also rose, growing by 50.9% to QR 23.7 billion. The State of Qatars Monetary Policy The monetary management in Qatar is called the Qatar Monetary Agency (QMA). Established by Law no. 15 in 1993, it is implemented by Qatar Central Bank (QCB). The Qatar Central Bank (QCB) regulates the monetary, credit and banking policies in accordance with the general plans of the State in order to support the national economy and the stability of the currency. The QCB has full powers over the monetary policies of the State, and supervises and controls banks andnancial institutions. Interest Rate Policy Free of Policy Restrictions Qatar removed its ceiling on interest rates for local currency deposits in 2001, freeingthe banking system from all interest rate policy restrictions.

7/29/2019 23004755-qatar

37/55


The States short-term interest rates closely follow those prevailing in the United States, with a slight positive differential. Public Finance Being oil and gasrelated, the Governments primary source of budget revenues, are mainly generatedby Qatar Petroleums activities. In addition to such export receipts, the Government obtains revenues mainly from the dividend income of other industrial enterprises. Other sources of Government revenues are tax, custom duties and charges. Balance of Payments The balance of payments have shown a trend as impressive as the exports and imports. (The rapid rise in exports/imports is outlined in the State of Foreign Trade A Diversication success story in Part Two State of Economy).Surpluses in the Balance of Payments have been consecutively recorded since 1999. The State of Qatars Chamber of Commerce and Industry The Chamber of Commerce has been performing efciently since it was founded in 1990. It has been effective at encouraging national industries and introducing national products to the worldmarkets. Signicantly, it also works to support the private sector, advocate itscauses and procure modern technology as a means of assisting Qatar businesses toparticipate in joint ventures.

Qatar has joined the international conventions dealing with international commercial arbitration. In 1996 the Chamber also inaugurated the symposium titled Methods of Stimulating Foreign Private Investments in the GCC Countries. More information may be obtained at: www.qcci.org The State of Business Entities These are various types of business entities in Qatar: Partnership Company: This is the most

basic form of commercial arrangement for two or more individuals to combine together for the purpose of commercial activity in Qatar. The partners have unlimited liability and the trade name of the partnership company will reect the names of the partners. (Read Law (5) of the year 2002 articles (19)-(43). Joint VentureCompany: An entity comprised of two or more persons that combine to carry out aproject. The joint venture company provided for in the law is an unincorporatedentity without legal personality. (Read Law (5) of the year 2002 articles (52)-(60). Public Shareholding Company: Also known as a joint stock company or Qatarishareholding company. The law recognises different variants of the public shareholding company including: 1- Public shareholding company-open. 2- Private or closed public shareholding company. (Read Law (5) of the

year 2002 articles (61)-(205). Limited Share Partnership Company: This type of c

ompany has at least one or more joint partners and at least four trustee shareholding partners. The minimum share capital of the company is 1,000,000 QR. (ReadLaw (5) of the year 2002 articles (206)(224). Limited Liability Company: Is themost commonly used business entity in Qatar. (Read Law (5) of the year 2002 articles (225)(260). Holding Companies: A holding company must be a shareholding company or limited liability company which has nancial and management control on thecompanies by owning at least 51% of that company. The minimum capital should be10 million QR. (Law (5) of the year 2002 articles (261)-(266). For more information please view: www.qcb.gov.qa

Part Two State of Economy | 35

7/29/2019 23004755-qatar

38/55

Part Three Investment Opportuniities

THE INVESTOR-FRIENDLY STATE

7/29/2019 23004755-qatar

39/55


Qatar is the fastest growing economy within the GCC and is one of the desirable investment destinations in the world.- The Director for Middle East Affairs at the ofce of the US Trade Representative, Mr. Edmund R. Saums.

Attractions for Investors Investors to Qatar are attracted by factors such as industrial land at a token rent, electricity and natural gas at nominal rates, waiver of duties or taxes for 10 years, stable exchange rates, foreign ownership and the freedom to repatriate the capital or prot. The aforementioned excellent Medical and Educational facilities. Stability and clarity of laws and rules which contain the required guarantees. Stability and exibility of foreign exchange and its rate. Aforementioned world class telecommunications. Investor help and information Industrial land has a nominal and minimal rent of US$0.27 per square metreper year annually. (The Qatar Riyal is xed to the US dollar - US$1 = QR3.64). The cost of electricity is extremely low at approximately US $0.0178 per KWH witha lowered price of approximately US$0.016 for industrial plants and approximately US $0.0274 cents for hotels.

Another low cost item, natural gas, is priced at approximately US$0.60-0.75 permillion BTU. Water is provided for industrial plants at a lowered price of approximately US$0.12 cents per cubic metre. Petrol costs are extremely low. There isan absence of export duties and a policy of no taxes being paid on corporate pr

ots for pre-determined periods. There is also an exemption from taxes on exportedproducts of the enterprise. There are no custom duties on the import of machinery, equipment and spare parts. There is an exemption from income tax for companies for ten years. There are no export duties and no taxes on corporate prots forpre-determined periods. The Government also offers an attractive business climate to investors with the following: 10-year tax holidays provided the Governmentgrants approval. No income tax on salaries of expatriates. No exchange control regulations. Excellent medical and educational facilities. Easy access to world market with rst class air and sea connections. Important economic liberalisation policies have resulted in increased inward investment with the private sector playing a signicant part in the development of the economy.

According to the 2000 Foreign Investment Law: Subject to provisions of item 3 of t

his article Foreign Investors may invest in all sectors of national economy provided that they shall have Qatari partner(s) whose share in the capital shall notbe less than 51% and the company is legally established in accordance with provisions of law. Nevertheless, Foreign investors may, upon Ministers decision, increase their share in project capital from 49% up to 100% in the elds of agriculture, industry, health, education, tourism, development and exploitation of naturalresources, energy or mining provided that such projects match with the Development plan of the State (Qatar) and due preference shall be given to projects thatwould achieve the optimal utilization of domestic raw materials, export industries, or project that would present a new product or in which modern technology is used, in addition to projects that seek to locate worldwide leading industry or develop a qualify national cadre. It is prohibited for Foreign investment mention in items (1) and (2) above, to invest in banks and insurance companies as we

ll as commercial agency rights and trading in real estate. For more informationsee Laws and Regulations in www.investinqatar.com.qa

Part Three Investment Opportunities | 37

7/29/2019 23004755-qatar

40/55

7/29/2019 23004755-qatar

41/55


Eyes on the Prize Investors turning from the West to the East recognise that theState of Qatar is a safe stable country, that it is governed well and foresightedly by an investor-friendly leadership. Investors realize that Qatar is both nancially and politically secure, providing a safer environment than many cities and countries. Such investors have been moving rapidly to gain a position in whatis proving to be the strongest most creative and exciting niche market in the Middle East. Investors coming to Qatar are seeking a warm, secure, dynamic place to ourish. They are staking their claim in a success story that merges the best oftraditional life with the latest global advancements in business and lifestyle.For those with a vested interest in protmaking Qatar represents an ideal base for investment - from small entrepreneurs to corporate giants wanting to branch into the region, and for those in-between who wish to take a medium-sized companyand grow it successfully. Where to Invest - Investment Fields, Locations and Opportunities Ideas grow from the experience that comes with competition and when competition comes into a local market the experience and innovations resulting from that competition produce a domino effect on the rest of the market. Opportunities for Industrial Investment After extensive study, Qatar opened the doors

of the gas sector for foreign investments and sought the best possible partnership offers in exploration and production. This has been conducted in accordance with a large-scale program aimed to develop and use gas resources to the best advantage. The State is exerting an outstanding effort to create opportunities for

industrial development and prepare feasibility studies. The North Gas Field development agreements were in line with the States policy to develop industry and diversify elds of investment. Major Projects and Companies in the Energy-Related Sector Facilitated by Qatar: Liqueed Natural Gas Company (Qatargas) Ras Laffan Liqueed Natural Gas Company (RasGas) The Dolphin Project Enhanced Gas Utilization (EGU) Project Natural Gas Liquids (NGL) Gas to Liquids Projects (GTL) Arab C Gas Recycling Qatar Fertilizer Company (QAFCO) Qatar Fuel Additives Company (QAFAC) Qatar Petrochemical Company (QAPCO) Qatar Vinyl Company (QVC) Qatar Chemical Company (Q-Chem) Qaton Ras Laffan Ethylene Cracker (RLEC) Encouraging Foreign Investment Boosting the Private Sector The way the gas sector has developed for investment provides a clear example of the way Qatar is creating new economic and

commercial liberalisation policies to stimulate, expand and involve foreign inve

stments and develop the national private sector. Investment Potential in Residential, Tourism and Related Developments The Qatar National Banks Economic Review (September 2006) predicted that the trade, restaurant and hotel sector would be one of the most promising in coming years as business, cultural, sports educationand tourism events gather increasing momentum. The domino effect on the marketis clearly visible. Qatar has a revolving protability cycle with strong activityand substantial investments in energy leading to an inux of workers increasing the demand for real estate and other services. This in turn leads to strong activity in real estate, construction and servicing. The Governments policy of diversication is also contributing to the emergence of new developments attracting investment. Qatars hotel capacity in the luxury sector is expected to increase by an additional 9.318 rooms. For more information view the Qatar Tourism Authoritys website: www.qatartourism.gov.qa The Pearl A development that is already receiving i

nternational acclaim, The Pearl-Qatar is a US multi billion man-made island covering 985 acres (400 hectares) of reclaimed land offshore the Arabian Peninsula state of Qatar. The Pearl-Qatar is the countrys rst Part Three Investment Opportunities | 39

7/29/2019 23004755-qatar

42/55

international real estate venture, its largest real estate development and the rst to offer international investors freehold. A four-phase mixed-use development,it will comprise 10 distinct, themed districts to be developed over ve years with beachfront villas, elegant town homes, luxury apartments, exclusive penthouses, 5 star hotels, marinas, schools as well as upscale retail and restaurant offerings. A destination in its own right, The Pearl-Qatar is a lavish, secure and exclusive island retreat with a Riviera-style community. A secure, family-orientedenvironment modeled on the best of the Mediterranean, The Pearl-Qatar will be the Arabian Riviera, offering a lifestyle reminiscent of France and Italy in theheart of the Arabian Gulf. With 40 kilometres of reclaimed coastline it will bea superb tourist and lifestyle destination with world-class shops, community facilities, schools and marinas. Porto Arabia, the largest of the Pearl-Qatars marinas will capture the vibrant sophistication of the Riviera. Colorful, rened and conducive to the highest standards of living, Porto Arabia will be a continental marina with a heart, which beats to the rhythm of Arabia. Apartments, penthousesand elegant town homes will embrace a promenade akin to those found in the Southof France. Distinct districts within Porto Arabia will offer investors a choiceof locations - from a lively piazza, a festive peninsula or a unique, secluded island-within-an-island getaway. A vestar hotel will operate from the central island.

Specialised individual and corporate investors will nd prime investment opportunities within the hotel and leisure facilities. More information is available at the investor information section of: www.thepearlqatar.com Visa relating to Prope

rty Ownership Under Article 3 of Decree No: 17 issued on June 6, 2004 by the Emir of Qatar, his highness Sheikh Hamad Bin Khalifa AlThani property owners are entitled to apply for a residency visa upon the purchase of a property. This visaincludes dependent children and is valid until the resale of the property. Al Waab City Al Waab City, founded on the principle that at the heart of every vibrant community is a public gathering space, will be a community that is integratedinto the existing fabric of the city. It is a development on an area of more than 1.4 million square meters that integrates a variety of housing types, small and large scale retail, ofces, health facilities, a culture center and a world class hotel. Al Waab City, located 10 km from the Corniche, is composed of over 2,100 residential units, commercial space and a world class 300 room hotel. AlthoughAl Waab will provide housing for over 10,000 people, it boasts the lowest density ratio in any new major development in the country with statistics proving it

has half the density ratio of other development areas.

The heart of Al Waab City is Barahat Al Waab; an urban piazza hosting an array offacilities. This will be Dohas rst urban square or piazza, lled with shade structures, water features, formal landscaping and a spectacular sunken garden. Barahat Al Waab is accessible to all residents by foot and without crossing any vehicularstreets. Animated with outdoor cafes, restaurants, street vendors and a world class hotel, Barahat Al Waab will be the center of activity in Al Waab city, a placefor public events, concerts and exhibitions. City of Lusail The city of Lusail which houses ECQ (the Energy City Qatar) is a meticulously planned extension of Qatars capital city. A development on an unprecedented scale, Lusail will be home to 200,000 people in distinct residential areas. ECQ will be nestled beside Lusails corporate, waterfront, marina and entertainment districts. The Lusail Real Est

ate Development is a 35 sq km mixed-use development along an 8.5 km shoreline. This is the second major resort project planned in the West Bay area, after The Pearl-Qatar project. The development of this progressive world-class city is expected to attract up to 200,000 people who will live, work, raise their families and enjoys their lives. During the next 10 to 15 years, Lusail will be released in a series of controlled developments. Lusail will have 10 districts including:the Lusail Marina, Fox Hills, Energy City,

7/29/2019 23004755-qatar

43/55


Entertainment District and the Marina District. Each district will have its owndistinctive features that celebrate traditional Qatari and Islamic architecturein a striking, contemporary way. Strict developments and architectural guidelines are laid down to ensure the quality and design standards, intent and aestheticprinciples of the overall design. It will also include approximately 10 hotels,3,000 houses, 12,000 apartments and over 300,000 square metres of real estate space. Entertainment City There has been strong investor interest in the Entertainment City being set up at Lusail. Abu Dhabi Investment House (ADIH) is settingup a $ 500 million Entertainment City. Entertainment City will cover 1 million square metres of land, running alongside a 1 kilometre stretch of beachfront at Lusail. It is set to become the anchor development for the entire Lusail project withthe Doha Golf Course and Energy City Qatar located nearby. Designed to be a mixof hospitality, leisure and recreational facilities with complementary commercial and residential components, there is already strong interest in this development. The destination will offer spectacular themed parks and hotels, specialty shopping, ne dining restaurants, cinemas, a theatre and alternative entertainmentcomponents offering a fusion of traditional Arabic hospitality and contemporaryleisure lifestyles. Sub-themes will revive legends surrounding

the areas famous traders and seafarers, ancient Arabic castles, forts, cities andforgotten kingdoms. Various attractions within the Entertainment City communities will include a family entertainment centre, water theme park, family natural at

tractions, Cineplex, theatre and bowling alley. All segments of Entertainment City are open to investors. In accordance with local legislation, GCC citizens canown property outright, with 99-year leases available for foreigners. Energy City The Middle Easts rst Energy Business Centre is intent on becoming the Houston or lgary of the Middle East. Ofcially launched at the end of March, 2006 and locatedwithin the impressive Lusail development in Doha, Energy City Qatar (ECQ) is theregions rst integrated energy business centre. Consolidating a range of industryand marketing services under one roof, it has been successful in attracting industry leaders in oil and gas production, international and national oil companies, support services, infrastructure and downstream activities, shipping and trading, market and resource data, intellectual property and energy trading. Gulf Energy - the consortium of international energy experts behind ECQ has signed a MOUwith Microsoft providing the development and implementation of the next generat

ion of enterprise-level solutions to

form the necessary IT infrastructure. Catering to commercial, technical and human resource needs, the ECQ will have cutting-edge facilities and services. ECQ isintended to be an innovative, intelligent, vibrant energy centre lled with customers, suppliers and related service providers freely interacting, co-operating and competing for the advancement of energy business. It will also be the base for a dedicated energy trading platform the International Me

23004755-qatar

Documents

Transcript of 23004755-qatar