778-Som-Lalit Institute Of Business Management - Gujarat ...

A
GLOBAL COUNTRY REPORT
ON
QATAR
Submitted to
GUJARAT TECHNOLOGICAL UNIVERSITY
In Partial fulfillment of the
Requirement of the award for the degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
SOM LALIT INSTITUTE OF BUSINESS MANAGEMENT,
AHMEDABAD
MBA BATCH – 2011-13
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Sr
No.
INDEX
Different Sectors
Pg No
1 Acknowledgement 3
2 Pharmaceutical 4
3 Packaged drinking water 22
4 Energy 26
5 Healthcare 46
6 Restaurant 57
7 Sports 70
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ACKNOWLEDGEMENT
We take this opportunity to express our profound gratitude and deep regards to our
guide Prof. Kalika Bansal for her exemplary guidance, monitoring and constant
encouragement throughout the completion of the project. The blessing, help and
guidance given by her time to time shall carry us a long way in the journey of life on
which we are about to embark.
We also take this opportunity to express a deep sense of gratitude to Dr. Jagdish
Joshipura, Director, Som Lalit Institute of Business Management, for his cordial
support, valuable information and guidance, which helped us in completing this task
through various stages.
We also take this opportunity to thank Prof. Supriya Bhutiani, Co-ordinator MBA,
Som Lalit Institute of Business Management, for her constant support, guidance and
motivation.
We are obliged to faculty members of Som Lalit Institute of Business Management,
for the valuable information provided by them in their respective fields. We are
grateful for their cooperation during the period of our assignment.
Lastly, we thank almighty, our parents, brother, sisters and friends for their constant
encouragement without which this assignment would not be possible.
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1. INDUSTRY ANALYSIS OF PHARMA SECTOR
FIFA World Cup 2022 & its impact on Qatar: The FIFA World Cup to be held in It
is expected to draw about half a million tourists/visitors, almost around 1/3rd of Its current
population. Thus The FIFA event is expected of having a significant impact and profit the
economy of It. As a part of the plan, the government will spend about more than $40 billion
on the projects, The 2022 World Cup event is expected to increase this FDI flow into the
country
FOREMOST UPCOMING PROJECT IN QATAR WITH RESPECT TO FIFA
The upcoming major project in Qatar is one of the largest hospital by 2020 which
will require more than 8000 medicines for the upcoming World Cup tournament
which is going to be held for the first time
The hospital will be the a superior one in the world, will be part of a plan by Qatar
to amaze the international area when it will hosts the World Cup in 2022, just like
it had done in 2006 when it had organised the Asian games,‖.
Medicines will be borrowed through hospitals or public health centres which will
include sports medicine to their range of services.
They will be appointed by private clinics that present sports medicine.
Health sector
in December 2010 Qatar will strike off opponent bids from the US, Australia,
Japan and South Korea to turn out to be the primary Arab nation to mass the
World Cup
Hamad Medical City, owned and funded by Hamad Medical Corporation, is a $900 million
integrated medical complex consisting of several specialty hospitals. Work is underway to
build an associated medical complex that will consist of the following: a 338 bed-Pediatric
Hospital, a 200-bed Orthopedic Hospital, a 230-bed Physical Medicine and Physiotherapy
Hospital, a 40-bed Day Care Surgery Center, and a 228-room Home Care Center for the
elderly. As stated earlier there are many beneficial points which encourage an individual to start up
an industry in Qatar. The main reason is that the political environment is stable and is a tax free
nation. It has many potential projects coming up and one of the biggest project is that they are
coming up with the world‘s biggest hospital by 2020 the Gulf nation is prepared to host for the game,
so taking this into consideration we have decided to start up with pharmaceutical company as the
future demands of drugs and ointments will be high so in order to meet these demands we would
start up with Pharmaceutical company.
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Qatar pharmaceutical industry :Qatar Pharma is the leader in infusion therapy
and clinical nutrition in gulf and in its most important countries of gulf. There is many
opportunity for pharmaceutical firms. They can grow in gulf country. Qatar pharmaceutical
industry counts among the leading suppliers in the gulf market. The firm is focused on the
intravenous, hemodialysis & topical drugs therapy and care of critically ill patients in and
outside the hospital.
Pharmacy practice in Qatar's strategic plans
At the National level, identity & leadership of the pharmacy practice through
Qatar received boost from National Health Strategy in the time period of
2011-2016. This strategy describes the goal of developing comprehensive &
world-class healthcare system, like the introduction of the disease
management, the health insurance & greater integration between the
government & the private sector. This document also advocated ' community
pharmacy network which was supported by the appropriate policy & process,
decreasing reliance on the hospitals for filling up of drug prescriptions,
leading into the increased efficiency & enhanced access'. The policies &
plans exemplified the national leadership which will be necessary in order to
be able to provide the impetus necessary for a transformation of the
pharmacy practice into being an effective & patient -centered service which
would be provided by the pharmacists & supported by the technicians &
automation.
How will FIFA world cup facilitate the Pharmaceutical Industry?
It is set to benefit a lot from currently planned spending in common, and from the effect of
the World Cup as well. Continued economic development would be the primary outcome,
just when the fast-moving development, stimulated by the huge build-up in ability in the
hydrocarbon segment in latest years, was set to be completed.
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- Advantages
- As large number of people will come to the nation the sale of pharmaceutical
products will enhance. As the people are of all ages, it can be anticipated that there
will be a increase in sales.
- We can propose for the deal of supplying products to the players of the world cup. As
this is a game involving physical damage there would be a great want of supplies of
pharmaceutical products.
- Due to this event, our company can go for capacity expansion and growth
- It will gain a competitive advantage over the competitors as it would easily become a
large company, though it will begin just a short term ago.
Medical & Health Tools: Opportunities and Trends:-The United States is one of
the most important exporters of medical tools, therapeutic supplies, medicines to Qatar.
There is chiefly strong interest in U.S. medical apparatus and supplies in Qatar, since the
nation‘s medical experts are often trained in the U.S.
The latest establishment of the Weill-Cornell Medical School is also helping to stimulate
stronger admiration for United States medical apparatus and procedures. It is working with
the nation‘s government to construct a cutting-edge learning hospital that will pay attention
on women‘s and children‘s wellbeing. It has incorporated the most sophisticated medical
tools and training into the nation‘s healthcare segment. In the country, there are 4
government hospitals, 23 main health care centers, and at least 12 privately owned medical
and dental services.
One of the Gulf‘s most appreciated medical institutions, the Hamad Medical Corporation
provides recent diagnostic and illness treatment care and is the nation‘s most important
non-profit medical service provider. It has a countrywide system of primary health care hubs
and four specialized hospitals in Doha.
It is also developing the region‘s biggest medical facility known as the Hamad Medical City
Complex that consists of three specialized hospitals. The private segment is playing a
stronger position in the healthcare segment in the country, and private medical service now
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stand for around two-thirds of the nation‘s health service providers.
There has been news that working with the Ministry is difficult, mainly in getting information.
So, the Commercial Service suggests that U.S. firms should pay attention on pairing with
personal medical business and using local agents to work on prospective Agency tenders.
Working with the government may advance with the forthcoming selection of a fresh
Minister and structural changes within the Department. There is also news that the Ministry
of Public Health will shortly be replaced by a fresh National Health Authority, which will
supervise all communal healthcare services there.
The Business Service thinks there is particular prospective for sales of U.S. merchandise in
the following goods and services:
• Sports tools and sports-related medical supplies and apparatus, workplace safety
apparatus,
• Diagnosis and disease handling apparatus particularly for diabetes (1 in 5 Qataris suffer
from diabetes), rheumatology, dermatology, smoking-related diseases, cardiology, plastic
surgical treatment, and child disorders.
• Services and tools that offer care for psychologically ill patients, geriatrics, the physically
and mentally challenged, & patients who require long term care,
• Nutrition products and knowledge given the rising problem of obesity.
Business in Qatar
Taking in to consideration the above project the best fitted business will be
“PHARMACEUTICAL COMPANY”
We can enter either by Cost Leadership Strategy or Product Differentiation strategy
We chose Product Differentiation Strategy
By following it, we can come up with sports related medicines to our range of
products.
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Possible Modes Of Entry In Qatar
The entry in the Qatar country can be in ways which are as under:-
Tieing up with the local Manufactures in Qatar
Supplying to Big Medical Centres in Qatar like Aster medical Center(D.M.
Group),Qatar Medical center etc.
Finding Distributers in Qatar and also managing a good sales team if
possible.
The mode which we preferably are willing to select is to tie up with the Local
manufacturers in Qatar because
‣ By this we will be able to exploit the local manufacturer‘s market which has
lot potential and its not yet much exploited
‣ Moreover, it will make us a familiar name gradually
‣ Also we would have not to invest in the setup cost there
MODES WHICH WE WOULD PREFER
To tie up with the Local manufacturers in Qatar because .Aslo government is giving
special benefits like reduction in taxes etc if the locals are involved.By this we will be
able to exploit the local manufacturers market which has lot potential and its not yet
much exploited .It will make us a familiar name gradually Also we would have not to
invest in the setup cost there
Strategy (Present and Future)
Initially we would enter the market by dealing in general medicines offering few
medicines like Glucophage for curing Diabetes ,Euthyrox used for horemone therapy
etc .The health problems like above are very rampant there so we would be focusing
on medicines related to it. Then slowly and gradually once we establish ourselves we
would focus on the ―SPORTS‖ related medicines as World cup will be held and the
biggest hospital will be built which will cater to the sports related health issues. So all
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these factors are playing in our advantage and thus we can grow easily if everything
is well planned and executed.
We can also look forward to distribution of medicines to medical centres or the
distributers who can distribute our medicines in Qatar if any unknown and less
importunate circumstance occurs.
FDI IN QATAR
In Accordance of the Article (2) of Foreign Investment, Foreign Investors are
allowed to invest in all sectors of national economy on the condition that they
should have a Qatari partner(s) whose share in the capital shall not be less
than 51 % and the company is incorporated in accordance to all the laws of
the state. Foreign investors can only upon Minister‘s decision, increase their
share in project capital from 49% up to 100 % in the fields of agriculture,
industry, health, education, tourism, development and exploitation of natural
resources, energy or mining provided that such kinds of projects should
equate with the development plan of Qatar and utmost priority is given to such
projects which will make the utmost utilization of domestics resources or any
resources that would introduce a new product or invent new technology and
would qualify national cadre.
Common Privileges for Foreign Investors:
-No restrictions to import and repatriate funds.
-No restrictions to transfer profits and assets.
-Freedom to exchange money at uniforms rates.
-Free market economy privileges.
Some General Incentives for Investments:
-The full rights given to import the materials and equipment required for the
establishment, operation or expansion of projects undertaken.
-Exemption from income tax for 10 years effective from the date of commencement
of projects.
-Duty-free imports in things like equipment and machinery which are needed for
projects
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-Duty-free imports which is allowed by the law are raw and half manufactured
materials needed for industrial projects which are not available in the market
Indian Pharma Industry
Indian pharmaceutical industry is third largest in term of volume and stands 14 th in
term of value in world. The total turnover of indian pharma industry between 2008
and September 2009 was us $21.04 billion according to department of
pharmaceuticals ministry of chemicals and fertilizers. Thus the local market was
worth us$12.26 billion. Sales relating all types of medicines in the country is hoped to
reach around us$19.22 billion by 2012.
There was many encouragement for growth in pharmaceutical industry by the
government. The government started to encourage the growth of drug manufacturing
by Indian companies in the early 1960s and the patents act in 1970. it was just
because of liberation by Narashima Rao and finance minister Mamohan Shigh.
There was growth possible. there were these main factor thus improment of drugs
and growth in Pharma companies possible.
The lack of heredity prescription made the nation market undesirable to the
multinational companies that had dominated the market, while they streamed out.
Indian companies carved a niche in both nation and world markets with expertise in
reverse engineering new process of manufacturing drugs at low costs. all are looking
for innovation in drugs. Although some of the larger companies have taken small
step towards drug innovation.
According to information, exports of pharmaceuticals products increased from
us$6.23 billion in 2006-07 to us$8.7 billion in 2008-09 and both combined growth
was 21.25% annually. There is expert research that India joined among the league of
top 10 global pharmaceutical markets in term of sales by 2020 with value reaching
us$50billion according to price water house coopers. There are major
pharmaceutical firms like cadila healthcare, Ranbaxy cipla sun and piramal
healthcare.
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Pharmaceutical industry today
The Indian pharmaceutical companies‘ number is fairly low. There is cheap labour in
production for that reason there is foreign companies subsidiaries in India. In 2002,
there was over 20,000 registered drug manufacturers in India sold $9 billion worth of
bulk drugs. it was 85% of these formulations sold in India while over 60% of the bulk
drugs exported, more to the United States and Russia. As studied, Mostly the
players in the market are small-to-medium enterprises and 250 of the largest
companies control 70% of the Indian market. Multinationals represent only 35% of
the market, down from 70% thirty years ago according to act 1970.
Challenges
There are many challenges in India for pharmaceutical industry. Each company has
to spend 5-10% of its revenue in r&d department. There are market leaders such as
Ranbaxy and dr. reddy‘s laboratories spent only 5-10% of their revenues on r&d and
western pharmaceutical like Pfizer whose research budget last year was greater
than the combined revenues of Indian pharmaceutical industry. There is much other
reason for difference in product. One is disparity in cost differential. Therefore
advances in genomics have made research equipment more expensive than ever.
Second, the drug discovery process is over involved by a dearth of qualified
molecular biologists. Third, Pharma in India lack the academic collaboration that is
crucial to drug development in the west and so far due to the disconnect between
curriculum and industry.
Pharmaceutical marketing called medico marketing or pharma marketing in some
countries is the business of advertising or otherwise promoting the sale of
pharmaceuticals or drugs. There is negative effect of marketing practices. Some
evidence for marketing practices can negatively affect both patients and the health
care profession. there is limit to advertising by pharmaceutical companies in many
country.
Economics
Pharmaceutical company spending on marketing far exceeds that spent on research.
there are some studies. there was $1.7 billion was spent in 2004 to market drugs to
physicians in Canada and $21 billion spent in 2002. in 2005 pharma company has
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spent more money on marketing estimated at $29.9 billion with one estimated as
high as $57 billion. when the US numbers are broken down 56% free samples, 25%
detailing of physicians, 12.5% direct to user advertising, 4% hospital detailing and
2% on journal ads. even pharmaceutical companies have made large investments in
marketing their products. overall promotional spending has been decreasing over the
last few years and declined by 10% from 2009 to 2010. companies are cutting back
in detailing and sampling while spending mailing and print advertising grew since last
year.
COMPARISION OF INDIA AND QATAR IN TERMS OF PHARMACEUTICAL
INDUSTRY
India is Third largest in term of volume and stands 14 th in term of value in world
where as Qatar is in Emerging State. India‘s pharmaceutical sector expected to grow
14% per year to reach USD 280 billion by 2020 where as of Qatar to become a
Billion dollar industy by 2019. Low investment in innovative Research &
Development in India .In Qatar low cost manpower is available in Science and
Technology unlike India also Inadequate regulatory standards are there in India
where as in Qatar steady political atmosphere.
SWOT Analysis of Pharmaceutical Industry in Qatar
A SWOT analysis tries to identify and estimate the potency, the flaws, prospects as
well as threats a business has to face. A SWOT analysis of the pharmaceutical
industry illustrates to top management, in what the industry is excelling, what
improvements require to be made, where development is possible and what preemptive
methods need to be taken to protect shareholder or business value.
Qatar‘s pharmaceutical sector has been estimated to become a billion dollar
business by 2019, as per the latest report that was published by Business Monitor
International. The sector has been valued at QR1.43billion ($392m) in year 2010 but
is expected to observe the compound annual growth rate (CAGR) of around 12.6 %
to reach $709 million by 2015, BMI supposed.
"Our estimate for long run for Qatar is, to turn out to be a billion dollar
pharmaceutical industry for the first time by 2019 and reach around QR3.99billion
($1.10bn) at the end of our forecast phase in 2020," the report had described.
BMI analysts informed that the expansion will be confirmed by development of the
broader economy, for which growth in actual terms is probable to remain higher than
5% a year over the next 10 years.
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According to recent reports in The Gulf Times, Qatar will have 4 new drugs
producers by the ending of Q1 of 2013. The drugmakers will apparently import their
raw materials and manufacture tablets, syrups and injectables. It is predicted the
drug manufacturers aid restrain reliance on imports and lower prices of retail
medicines in the country due to increased local competition, according to Dr Aisha
al-Ansari of Supreme Council of Health Pharmacy and Drug Control
Department (SCH).
"Qatar‘s feature say that it will be reliant on pharmaceutical imports and as such, the
authorities have been moving in this direction to perk up the functioning of this
segment," the report supplemented.
In the month of February, the Qatar‘s Advisory Council permitted legislation that was
proposed by Qatar‘s Supreme Council of Health that permits the deregulation of
pharmaceutical imports to encourage free market competition in the sector.
"It is likely that this will cut down prices and intensify the accessibility of certain drugs
by means of the closing down of regime controls over the pricing of medicines and
an ending of the monopoly that a little number of importing agents have held in the
emirate," BMI added.
It supplemented that it supposed Qatar was a encouraging proposition for drug
manufacturers but the small on the whole market would persist to discourage
anything more than a sales and marketing presence from the large MNCs, which run
the most of their operations from the state‘s larger economies such as the UAE.
The GCC presently imports 90 percent of its pharmaceutical requirements and
domestic manufacturers need to step up to the challenge, Abdulaziz Bin Hamad Al-
Aqeel, the Secretary General of the Doha- based Gulf Organisation for Industrial
Consulting (GOIC) said last month.
He cautioned GCC states against continuous importing such a high percentage of
medicines and drugs.
In a speech to pharmaceutical industry delegates, he said there were "remarkable
opportunities" for home medicine producers. He also said that the pharmaceutical
sector in the GCC nations and Yemen exceeded $6bn and is expected to make
around $10bn by 2020.
Looking at the enormous potential of pharmaceutical business in Qatar, let us have a
look at the SWOT Analysis of pharmaceutical sector in Qatar.
Strengths:
1) Huge potential in pharmaceutical sector:
• The total market size of medical and health care sector in Qatar in 2011 was
approximately 90.3 thousand US Dollars.
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• While, total local production in this area is nil
• The market depends on imports from European countries, Asia as well as the
United States.
• In fact, the U.S. is one of the principal exporters of medical and surgical
equipments, medical supplies and drugs, medicines as well as
pharmaceuticals to Qatar.
2) Knowledge based, low- cost manpower in science & technology:
• Indian pharmaceutical companies have the benefit of low cost man power in
the field of science and technology.
3) A package of incentives and the exemptions to encourage investment:
• The condition of sophisticated infrastructure and the nominal cost to rent land
in the industrialized areas has been made.
• Duty discharge for construction supplies and equipment imports have been
permitted to major contractors operational on projects undertaken in the oil,
gas, water as well as electricity segments.
• Consent given for overseas investor to invest 100% in several sectors such as
the agriculture, education etc.
• Allotment of the industrial area at a nominal rent starting at 1 Qatari riyal per
square meter for a year for overseas investors which the rent for a long time
period, renewable, but not greater than 50 years.
• Exemption from income tax for 10 years from the date of functional
investment project of the invested foreign capital
• Release of the overseas investor in the business field from the customs duties
on raw supplies imports and semi fabricated materials essential for
manufacturing purpose, which are not accessible in the local markets
• Has also signed agreements of mercantile and economic collaboration in the
security of mutual investments and to prevent double taxation between Qatar
and the number of globe countries.
• Qatar joined of the World Intellectual Property Organization (WIPO) in 1976.
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• They also signed Arab concord protecting the author's rights since 1986 along
with the agreement of Berne that shelters the literary and artistic collections in
2000.
• Qatar has also signed the conformity of Paris for the industrial property
protection in 2000.
3) Cost effective technology:
• India has the benefit of cost effective technology in the field of pharmaceutical
industry.
4) Great natural resources:
• The joint investments with global oil companies in executing a variety of giant
projects in the fields of gas and oil, exceeding hundred billion dollars.
• Qatar possesses 14% of the discovered natural gas reserve on the planet.
The gas reserve in Qatar reaches about 900 cubic foot trillion and is the third
biggest reserve in the globe
• The state contains 51% of the world reserves in oil and gas and 24% of the
world production of oil and gas.
5) Proficiency in path-breaking research:
• India possesses proficiency in the field of pharmaceutical research
• It also has chemical and process development competencies.
6) Low cost manufacturer:
• Indian manufacturers are one of the lowest cost producers of drugs in the
world.
• With a scalable labour force, Indian manufactures can produce drugs at 40%
to 50% of the cost to the rest of the world
7) Excellent chemistry and process reengineering skills:
• Indian pharmaceutical industry possesses excellent chemistry and process
reengineering skills.
• This adds to the competitive advantage of the Indian companies.
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• The strength in chemistry skill helps Indian companies to build up methods
processes, which are more cost efficient.
Weaknesses:
1) Low Indian share in world pharmaceutical market:
• Indian pharmaceutical market is one of the least penetrated in the world.
• However, growth has been slow to come by.
• Due to this, Indian pharmaceutical giants are depending on exports for
expansion.
• To put things in a nutshell, India has almost 16 % of the world population
while the total size of industry is just 2 per cent of the global pharmaceutical
industry
• India‘s share in world pharmaceutical market is very low, around 2%
• There is dominance of countries like US, UK in international market.
2) Manufacturing of duplicate drugs:
• Production of duplicate drugs can also pose a problem
3) Tough competition from US and UK:
• We will have to face a tough competition from US, UK etc from where Qatar
imports most of its pharmaceutical requirements.
4) Lack of resources:
• India lacks in resources to contend with MNCs for novel Drug Discovery
Research and to commercialize molecules on a global basis
5) Production of low cost drugs:
• Production of spurious and low cost drugs tarnishes the image of the industry
at home and abroad
6) Low investment in R & D:
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• There is low investment in innovative R & D among Indian companies as
compared to foreign companies
7) Bad brand image:
• Bad brand image of Indian Pharmaceutical merchandise in the USA, United
Kingdom & other western countries which is obstructing exports.
8) Low level of Biotechnology:
• Indian companies face hindrance in terms of very low level of Biotechnology
in India and also for New Drug Discovery Systems
9) Lack of experience:
• India lacks experience in International Trade in this sector
10) Lack of product patent:
• Indian pharmaceutical sector has been blemished by be short of of product
patent
• This prevents global pharmaceutical companies to initiate new drugs in the
country and discourages novelty and drug discovery.
• But this has provided an upper hand to the Indian pharmaceutical companies.
Opportunities:
1) The Government of Qatar will continue to maintain high levels of capital
spending:
• The Government of Qatar will carry on upholding high levels of capital
expenditure on education and health.
• The government plans to invest $9.9 billion in these sectors in the 2012/2013
fiscal year, accounting for 15% of its 2010/2011 fiscal budget.
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• The Government of Qatar‘s strong obligation to invest in economic
diversification through public expenditure on transportation, medical care,
education schemes and housing projects will create multiplier outcomes on
the rest of the economy of Qatar, contributing to amplified consumption and
demand for superior quality housing, office and retail amenities.
2) Energy Sector:
• Qatar has attracted an estimated $100 billion foreign investment, with roughly
$60-70 billion imminent from the U.S only.
• It is believed by experts that Qatar will invest more than $120 billion in the
energy sector in the next ten years.
• Although a moratorium on North Field development is in place until at least
2015, Qatar is committed to diversifying within the hydrocarbon sector and
developing its petrochemical industries in particular.
• This will be helpful to pharmaceutical sector also.
3) Industry experts presume the pharmaceutical sector to expand:
• As per the estimates of the industry, the market for medical and surgical
equipment will grow rapidly over the coming 5 years.
• The Qatari market depends on imports from European countries, Asia and the
United States mainly.
• In fact, the U.S. is one of the principal exporters of medical and surgical
equipment, medical supplies, along with medicines, drugs and
pharmaceuticals to Qatar.
• Qatar‘s strong interest in importing medical equipment, healthcare technology
and provisions from the U.S.is determined by two reasons:
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• The increase of innovative construction projects for hospitals
and health care centers; and
• Qatar‘s lack of home manufacturing capacity in this sector.
• Therefore, Indian companies have great chances to succeed in this sector.
4) Opportunities in health sector:
• Hamad Medical City, owned and funded by Hamad Medical Corporation, is a
$900 million integrated medical complex consisting of several specialty
hospitals. Work is underway to build an allied medical complex that will
consist of the following: a Paediatric hospice, an Orthopaedic Hospital,
Physical Medicine and also a Physiotherapy Hospital, a 40-bed Day Care
Surgery Center, and a 228-room Home Care Centre for the elderly.
• Sidra Medical and Research Facility, which is owned and funded by the Qatar
Foundation with an $8 billion donation, Sidra in Qatar will be the foremost
educational medical hub that is based on a U.S. model. It is working in
partnership with the Weill Cornell Medical College in Qatar and the Hamad
Medical Corporation (HMC). Its core focal point will be to offer world-class
medical care for women and children, to teach medical students and
clinicians, and to specialize in pregnancy health, infertility, genetic deformities,
and other diseases that are precise to females. Quite a lot of U.S. companies
which are providing medical apparatus have already won lucrative contracts
with HMC
5) FIFA world cup to help the Pharmaceutical Industry:
Qatar is set to profit enormously from currently planned expenditure in general, as
well as from the impact of the FIFA World Cup. Constant economic development
would be the principal outcome, just when the fast-paced development, induced by
the huge build-up in capacity in the hydrocarbon sector in current years, was set to
come to a halt.
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Advantages to these are
- As large number of people will come to the country the sale of pharmaceutical
products will increase. As the people are of all ages, it can be forecasted that
there will be a growth in sales.
- We can bid for the contract of supplying products to the players of the world
cup. As this is a game involving physical strain there would be a large need of
supplies of pharmaceutical products.
- Due to this event, our company can go for capacity extension and growth
- It will gain a competitive advantage over the competitors as it would easily
become a big company, though it will be commenced just a short term ago.
6) Contract manufacturing:
• Our company can also enter into contract manufacturing of medicines and
surgical requirements.
• Can also enter into contract manufacturing arrangements with MNCs
7) Licensing deals and collaborations with MNCs:
• Indian companies can also go into licensing deals and collaborations with
MNCs for Innovative Chemical Entities and New Drug Delivery System
8) Important role of private sector in Qatar:
• The private sector is playing a stronger role in the healthcare segment in
Qatar, and private medicinal services there now correspond to around twothirds
of the country‘s health service providers
• This will really be an incentive for Indian pharmaceutical companies.
9) Growing awareness for health:
• Physical well being is the main concern for the Qatari government
• The Qatari Government is continually improving the quality of its health
services by using latest technology, international expertise and by gaining
knowledge in this sector.
• This will boost the demand for health care sector there
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Threats:
1) Threat from low cost countries:
• Indian companies face threats from various other low cost countries in globe
like China and Israel
• However, on the quality front, India is better placed comparative to China. So,
delineation in the contract production side may wane.
2) Threat from European countries and US:
• The Qatar market depends on imports from Europe, Asia and the United
States for pharmaceutical requirements.
• In fact, the U.S. is one of the principal exporters of medical and surgical
equipments, along with medical supplies, medicines, drugs and other
pharmaceuticals to Qatar.
• This is a big threat for Indian pharmaceutical concerns.
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2) Packaged drinking water industry
The global drinking water sales have exaggerated dramatically over the past many
decades, reaching a valuation of around $60 billion and a volume of over a hundred
and fifteen,000,000 cubical metres (3.0×1010 United States of America gal) in 2006
U.S. sales reached around thirty billion bottles of water in 2008, a small drop from
2007 levels
The GCC countries are set in very arid zones. The region is usually a desert with the
exception of slim coastal areas and mountain ranges. the typical annual precipitation
ranges from seventy to one hundred thirty millimeter except within the coastal zone
on the Red Sea in south-western Saudi Arabia and on the Gulf of Muscat and Oman
on the jap shore, wherever orographic precipitation reaches over five hundred
millimeter. the overall annual evaporation rate ranges from two,500 millimeter within
the coastal areas to over four,500 millimeter midland. the number of renewable
geological formation volume is terribly restricted and shallow sediment aquifers
offer some renewable groundwater solely in those restricted coastal strips
Gujarat has seen many ups and down in packaged drinking water industry.
Drinking water could be a ‗delicate‘ issue and therefore the want for the ‗purity‘ of
water is acknowledged. what's not therefore acknowledge is that the degree of
purity, that it should have for human consumption, and even it's identified, not
several users the planet over area unit conscious of it. Awareness of this all the
same, it's become troublesome to continue orthodox to the wants.
Drinking water comes chiefly from the rivers or from the existent groundwater.
Excessive withdrawal of groundwater for domestic and agriculture functions has
caused the water level to travel down, creating the water briny thanks to salinity
ingress.
Excessive extraction of groundwater led to groundwater depletion caused
brackishness due to salinity ingress. Hundreds of large plants in Gujarat, which
were set up for supplying good and safe water to the public, have been closed
down in their wake. A large number of ‗cottage‘ type Reverse Osmosis (RO) plants
came to be marketed for supplying good and safe water to the consumers under
‗packed drinking water‘ category, and a big market emerged.
The market for the mineral/packed water produced by ‗cottage‘ type industries has
developed very rapidly in Gujarat between 1996 and 2000, especially in North
Gujarat. The water packed pouches has more margins as compared to big-packs of
10 or 20 litres. The price of 10-litre packaged water for the year-round customers
is Rs 1500, or Rs 4.11 per can. One pouch of 250ml has the ex-factory price of
Rs 0.30 and MRP is Rs 1.00. Producing packed water in pouches requires only
an additional investment in packaging machine, which the investors find affordable
as it costs approximately Rs 1 lac. The packed drinking water in pouches has a
large market catering to the people at large as it has ‗any time, any place‘ type.
22 | P a g e

As long as the municipality‘s supply of ground water in North Gujarat is high on
TDS and has more than recommended amount of fluoride, packed drinking water
has a good market. People will spend for good water for the sake of health and
often to avoid doctor‘s fee. Many people are spending extra for the sealed packed
water or chilled insulated plastic can etc.
There is very good growth of this ‗cottage‘ RO industry as the market is very wide.
Even if the ISI certification is made mandatory, there is good number of investors
who would not mind to invest the extra amount required for the ISI
certification, as they know about the quality consciousness of their clientele. In
reality, there are two among the 14 plant owners have started doing the initial
planning of their new plant as per ISI specification.
Sl.
No
.
Table-: Plant and Machinery, Annual Production, Sale,
Expenditure, Profit and Per Litre Expenditure of
Production of Water
Towns
Total
Plant and
Machiner
y
Rs in Lac
Annual
Prodn.
of
Water
Lit in
Lac
Annual
Sale of
Water
Pouch +
Ca
n
Rs in Lac
3.3
15.0 0
07.4
64.2
54.9
17.6 5
42.5
59.4 5
015.8
422.9
25.9
21.7
17.6 3
416.9
215.5 2
Gross
Annual
Expenditu
re
Rs in Lac
Gross
Annu
al
Profit
Rs in Lac
Expd/Prd
= Rs per
Lit
Expd.of
Prodn. of
Water
1 2 3 4 5 6 7 8
1
2
Kadi
Mahesana
4.25
5.25
8.0
43.13
3.8
5.4
-
0.55 9.5
0.4
80.1
3 Mahesana 4.25 012.4
62.9
4.5
0.2 3
4 Mahesana 3.75 310.9
32.5
31.7
40.2
5 Mahesana 5.75 513.6
5.0
- 0 30.3
6 Maktupur/Unj 4.25 22.3 9
13.3
0.06 14.2 70.1
7 ha Visnagar 5.25 36.5
74.4
- 7 50.6
8 Sidhpur/Khali 10.7 49.5 7
76.2
1.92 53.1 80.1
9 Unjha 54.25 030.8
56.6
59.2
30.2
10 Unjha 8.25 346.7
11.3 2 11.5 2 10.2
11 Patan 7.75 42.4 5
55.3
20.5 7 40.1
12 Patan 5.25 05.8
51.2
70.4
30.2
13 Patan 6.25 44.94
65.5
12.0 7 20.1
14 Chanasma 7.25 316.4
84.8
612.0
20.3
Total 82.5 353.8 9
68.9 9 146.54
0.1
Avg. of 14
5.89 225.2
115.3
44.9
710.4
90.1
Plants
7 9 2 7 9
Source: by International Water Management Institute (2010)
EXPORT AND IMPORT FROM QATAR
It would be very costlier to export packaged drinking water from India to Qatar so
plant should be set up there in Qatar and production also be done in Qatar and
Qatar has potential of demand for packaged drinking water because of huge traffic of
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foreigners and business people who visit Qatar and Qatar has many big hotels and
resort and business town which can be cater by packaged drinking water.
KAHRAMAA’S STRATEGY IN THE WATER SECTOR
• Increasing water storage reserve to 7 Days
• Maintaining 24H uninterrupted supply to customers
• Study and development of underground reservoirs
• Reduction of Water Losses
• Revisiting Qatar‘s water infrastructure, especially
underground pipes, on regular basis for timely
refurbishment/replacement
• Studying/implementing alternative energy
source for water production.
Historical Supply and Demand (2000-2008)
Major Areas of Investment in Qatar Water Industry
INVESTMENT ON
Latest Technologies for the management of Water Industry
Water Production Facilities - Seawater Desalination Plants using MSF, MED
& Sea water R.O. technologies
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Feasibility Study on the alternative sources of energy (Solar and Nuclear
Energy) for combined Water Production and Power Generation &
implementation
storage reservoirs to meet the strategy of 7 days storage
New Water Pumping Stations to supply water to all areas in Qatar
Expansion of Water Transmission and Distribution Networks
Investment on Water Transmission and Distribution Networks expansion
Conclusion
Qatar is one of the fastest growing economies and the wealthiest countries in the
world measured by GDP per capita. This has led to rapid development in the
infrastructure of every sector of the society & industries
The demand for water has been rapidly increasing in line with the unprecedented
developments in the country and meeting the demand in time & supply water to all
sectors is a challenge to KAHRAMAA
Today an investor can benefit from the followings: The lowest tax in Qatar.
Good business environment
Joining the new global initiatives on ―green energy‖, KM will endeavor to tap
―renewable energy‖ from the abundant solar energy resources available in
Qatar for the generation of electricity and water production
Qatar‘s policy of allowing multi-national companies‘ participation in the
investment in Water industry is creating a culture of opportunity.
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3) Energy sector in Qatar
In this summary of the Energy sector of Qatar various important sectors with their
technological advancement and needs are explained briefly. The trade linkage
between India and Qatar is and business opportunities are also explained at the end
of the summary. Trade linkage sows the economic relations between these two
countries and the details of import and export between the two countries. The
business opportunities covers various aspects and shows whether it is beneficial or
not to do business in Qatar.
Qatar has 3 rd largest natural gas reserves in the world and by further development it
makes Qatar king of the desert and wealthiest gulf country. Telecommunications
system of Qatar is one of the most advanced in the world. The government of Qatar
had plan investment in new industries like Banking, Finance and other services
industries to build strong, active and diversified economy. QATAR has become a role
model for the rest of the world. Right now it consist of relatively young population that
is growing up with the latest technologies.
Infrastructure of Qatar is among the world‘s best infrastructures. Qatar benefits
from a modern transport network of roads, ports and international airports that
guarantees connections to all areas of the country.
New Doha International Airport is expected to be the first airport in the world to fully
handle the Airbus, the world‘s biggest commercial aircraft. Three times the size of
the current airport, at its ultimate development the NDIA will handle 50 million
passengers, 2 million tons of cargo, and 320,000 aircraft movements in each year.
New Doha Port will be a catalyst for regional economic growth upon completion in
2015. Connected to the major transportation routes planned as part of the Qatar
Master Plan, initial capacity will be two million tens seven times the capacity of the
existing port. Ras Laffan Port is undergoing a US$1.7 billion expansion project to
upgrade all quay walls to liquefied natural gas berths, container berths and
administrative buildings. Mesaieed Port a world-class port handling commodities
accounting for 60% of national GDP and a wide range of petroleum products..
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The Museum of Islamic Arts, which completed by 2006 in time for the Asian Games,
is a notable landmark for the city of Doha and provides the highest standards of
display conversation and renovation. And the museum will also be served as an
educational institution offering support to local schools and providing facilities for
research within Qatar and from overseas.
Medical Facilities of Qatar is very advance. Qatar has opened very advanced
medical equipment and training into the country‘s healthcare sector. In Qatar, there
are 4 govt. hospitals, 23 elementary health care centers, and minimum of 12 private
medical and dental hospitals. It is a highly respected medical institution of the Gulf,
the Hamad Medical Corporation renders modern diagnostic and disease treatment
care and it is country‘s one of the best non-profit healthcare providers. It has a
countrywide network of elementary health care centers and 4 specialized hospitals in
Doha. Qatar is also formulating the region‘s largest medical facility called the Hamad
Medical City Complex, which includes specialized hospitals.\
Qatar Environment and Energy Research Institute: Its work on pollutants
affecting mankind considers issues such as mercury and lead levels in the
environment, carbon diffusion and other contaminants that increase risks for human
health.Qatar Computing Research Institute: QCRI‘s mission is to create knowledge
generally available and support changed integrity with national priorities by
conducting leading position, multidisciplinary applied computing research in jointly
with Qatari corporation, government, and institution.
If we look at Finance and Insurance Sector then we can see that Qatar owns six
commercial, three Islamic and the specialized Qatar Development Bank. In addition,
two Arab and five foreign banks are present in Qatar. The Qatar Financial Centre is
a financial and business centre set up by the Government of Qatar in 2005 and
located in Doha to demonstrate Qatar as an attractive environment for a wide range
of financial services in the Gulf region. . By October 2008 a total of 96 regional and
international financial services institutions and major transnational corporations held
Qatar Financial Centre licenses to participate in the developing market for financial
services in Qatar and elsewhere in the region.
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Defence Sector of the state needs to be highly advanced because of its location.
The country is considered very high profiled because of its enormous resources of oil
and ntural gas. There many other country who wish to have same kind of resources
but lack of these resources they are depended mainly on gulf countries so these
countries need to be very carefull othervise there condition will also be like that of
Iraq. As the economy is highly depended on petroleum sector revenue it has to take
keen steps to protect it self from any possible attack. Even a singe attack can create
major impact on the country because of its major oil fields. It can ruin the economic
growth of the country ad can create devastating condition.
The petroleum sector of Qatar is well developed because of its huge oil and
natural gas reserves and the technologies the country is using. Qatar gas is the
largest LNG producing company in the world. Their goal is, by 2015, to be the whole
world‘s premier LNG Company, known for people, innovation, operating excellence,
environmental responsibility and corporate citizenship. The major players in
petroleum industry are Exxon Mobil, Anadarko, Royal Dutch/Shell, Total, Conoco-
Philips, Chevron Texaco, Sasol, Occidental, Talisman, and Maersk Oil Research.
Infrastructure of Qatar is among the world‘s best infrastructures. In recent years, with
the expansion of the city of Ras Laffan, Qatar's technological crown jewel. Medical
Facilities of Qatar is very advance. Qatar has opened very advanced medical
equipment and training into the country‘s healthcare sector If we look at Finance and
Insurance Sector then we can see that Qatar owns six commercial, three Islamic and
the specialized Qatar Development Bank. Qatar Exchange set up in 1995, the Doha
Securities Market officially began operations with 6 listed companies in May 1997.
Defence Sector of the state needs to be highly advanced because of its location. The
country is considered very high profiled because of its enormous resources of oil and
ntural gas.
Qatar is an oil- and gas-rich nation, with the third largest gas reserves and with one
of the highest GDP per capita in the world. Qatar is investing a lot of their revenues
on improving of their Research & Development program. Qatar is investing heavily
in protecting and preserving the environment. Sustainability and ―green‖ initiatives
are more and more important on all projects in the country. The State of Qatar, also
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famous as the Dawlat Qaṭar, is an Arab emirate, in the Middle East, residing the
small Qatar Peninsula on the northeasterly coast of the very larg Arabian Peninsula.
The State of Qatar has the world's highest per capita production and proven
reserves of both natural gas and oil. In the year 2010, Qatar had the world's largest
GDP per capita, while the economy rose by 19.40%, the fastest in the world. It is
presumed that Qatar will invest approx $120 billion in the energy sector in the
coming ten years. The Qatar National Vision 2030 outlines Qatar‘s long-term vision
by providing a framework within which national strategies and implementation plans
can be carried forward properly. The Qatar National Vision 2030 foresees Qatar's
development through four interconnected pillars including human development,
social development, economic development, and environmental development.
The Qatari government is planning to spend more than $5bn by end-2013 to
increase its electricity and potable water production capacity According to
Commercial Bank Capital, the government will infuse $6.9bn and $9bn in the water
and power sectors respectively over the coming years.
"The State of Qatar is very important global energy hub and the Doha Energy Forum
provides an excellent opportunity for industry representatives to discuss changes
and developments in the worldwide energy market and also local," Energy City Qatar
is the region‘s first integrated business hub dedicated to the hydrocarbon industry
providing a single point of access to markets and expertise, in what will be the
Middle East‘s home for global players in the hydrocarbon value chain.
Energy City Qatar will bring leadership of energy industry in one location, which will
exert a pull on investment from considerable global players in the hydrocarbon chain
and hence will provide a distinctive investment opportunity offering high yields and
low risk. Energy City Qatar is the country‘s first integrated business hub dedicated to
the hydrocarbon industry providing a one point of access to markets and expertise.
At Qatar, they have seven LNG trains, from them four are the biggest in the worldwhich
is known as mega-train – each train has 7.8 million tone production capacity
per annum. Today, the customers for Qatar are spread throughout the four corners
of the world in all the European, Asian and the Americas markets. At Qatar, they are
going to add to the global energy diversity and remain committed to the long-term
29 | P a g e

mix of energy supplies. Their goal is, by 2015, to be the whole world‘s premier LNG
Company, known for people, innovation, operating excellence, environmental
responsibility and corporate citizenship.
Their commitment is care for the environment continues to be amply demonstrated in
their award winning, project for coral conservation, working with the Ministry of
Environment of Qatar (MOE), for scientific study and marine biological conservation
to support long-term coral conservation in the State of Qatar.
Pulse-Chlorination has introduced by Qatargas into its cooling seawater systems and
has become the first company in the Indian Ocean region to research and use this
pace-setting technology. This new innovative technique allows Qatargas to reduce
the amount of chlorine added into the cooling seawater by over 50%. It reduces
blockages caused by fouling.
Some of the recent LNG projects of Qatar are mentioned here. One of them is
RasGas LNG 3, 4 & 5.The scope of this project is to produce near about 1.5 BSCFD
of gas for LNG export to India (Petronet) and Italy. RasGas LNG 6 & 7: This project
is expecting the US market with two trains each of sized for 7.8 MMTA. Qatargas III
Project:The proposed train will benefit from Qatargas II studies and that will have the
maximum synergy as possible extent. Gas-to Liquids (GTL) Projects: for the
production of base oil stocks and synthetic fuels. Pearl GTL: Shells GTL is an
integrated project which will develop near about 1.6 BSCFD of North Field gas to
result approximately 140,000 BPD of base oils and synthetic fuels. Sasol Chevron:
The project will produce diesel and naphtha as the primary products. ExxonMobil:
The project will produce stocks of base oil in addition to the synthetic fuels.
Marathon: The Marathon GTL project will produce near about 120,000 BPD of diesel
and naphtha.
Qatar Petroleum (QP) is a state owned petroleum company in Qatar. The petroleum
company operates all types of oil and gas activities. It includes production,
exploration, refining, transport, storage, etc. It was founded in 1974.
The major players in petroleum industry are Exxon Mobil, Anadarko, Royal
Dutch/Shell, Total, Conoco-Philips, Chevron Texaco, Sasol, Occidental, Talisman,
and Maersk Oil.Research and Development department of Qatar Petroleum
30 | P a g e

executes needs for new business opportunities and existing business and initiate,
lead and support initiatives toward development and retention of new knowledge that
will deepen and broaden the technical capabilities of QP. It will be central in forming
QP‘s long-term strategy for technology, and remain forefront of key technologies
through collaborative research with international partners. Recently Qatar extends oil
field pact with France's Total
In Water and Energy Technology Qatar is taking very good initiatives. Lack of water
resources it is highly active on water saving and green technology. With one of the
world‘s lowest level of rainfall, Qatar depends on water from three sources:
desalination, groundwater and recycled water, all subject to inefficiencies that may
create stresses and eventually pose a threat to water security..
Power distributed through Qatar‘s grid is produced water using gas turbine
technology. The gas used to produce domestic power has an opportunity cost in
forgone export revenues. For a few large industrial users, power is provided through
standalone generation facilities. Qatar could achieve greater efficiencies through
technical enhancements. Such changes could save 5% of domestic gas
consumption—and possibly may be more. By burning less natural gas, Qatar would
support the national goal of lowering carbon dioxide, reducing the country‘s
contribution to global climate change. With air conditioning accounting for 67% of
residential power consumption, a shift to modern energy-efficient systems would
bring significant savings. Government will look to encourage the use of energyefficient
technologies, such as automated sensor lighting systems that cut power
demand directly, Wider use of district cooling systems on domestic and commercial
premises would save on power and further the environmental benefit of expanding
the market for recycled water. For new structures, gains will come from efficient
design.
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Chart shown below mentions the rate of CO2 emission in Qatar
Solar Technology can benefit Qatar and nearby countries because of their
geographical location .It is a real opportunity for achieving significant reduction in
global carbon emissions if such solar energy is captured and utilized efficiently. The
eco-villa will include an in-house energy generating system, irrigation and intelligent
building control systems. The $5.3 million, one-hectare pilot plant is built to turn the
desert into greenery and produce energy.
Qatar Solar Technology aspires to become one of the world‘s leading integrated
solar company, by using products domestically and exporting in other countries. It
will ensure a sustainable industry for Qatar beyond the country‘s natural oil and gas
capabilities. Due to the World Cup in Qatar 2022, the planned stadiums will use solar
power as part of the organizing committees aiming to host a carbon neutral event.
Increasing Energy consumption and production, oil and gas production and
exploration (accounting 67% of total carbon diffusion) and increasing usage of
vehicles increasing stress on environment safety issues.
With the help of construction business, hydrocarbon sector and growing number of
high-income individuals, Qatar has created more than 7,000 tonnes of solid waste.
Qatar will adopt a multifaceted strategy to contain the levels of waste generated by
individuals, commercial plants, and industrial units and to recycle much more of what
waste is generated.
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Energy Profile Qatar
Before the emergence of petrol-based industry, Qatar was just a pearl fishing
country. The exploitation and production of oil and gas fields began in 1940. In 1973,
oil and gas production and exploitation revenues increased drastically, taking the
state out of the ranks of the world's poorest countries and offering it with one of the
highest per capita incomes in the world.
The State of Qatar has the world's highest per capita production and proven
reserves of both natural gas and oil. In the year 2010, Qatar had the world's largest
GDP per capita, while the economy rose by 19.40%, the fastest in the world.
Oil production will not remain long at apex levels of 500,000 barrels per day, as oil
fields are calculated to be mostly depleted by 2023. However, large natural gas
reserves have been located off Qatar's northeast coast. Qatar's reserves of gas are
the third-largest in the world, exceeding 250 trillion cubic feet.
Qatar's heavy industrial plans, all based in Umm Said, include a refinery with a
50,000 barrels per day capacity and there are also some other projects like a
fertilizer project for urea and ammonia, a steel project, and a petrochemical project.
All these industries are depended on gas fuel. Most are joint ventures between
European and Japanese firms and the state-owned Qatar General Petroleum
Corporation (QGPC). The U.S. is the biggest equipment supplier for Qatar's oil and
gas industry, and U.S. companies are playing a vital role in North Field gas
development.
QATAR POWER REPORT – 2012 – Q4
The Qatari government is planning to spend more than $5bn by end-2013 to
increase its electricity and potable water production capacity, according to Qatar
Electricity & Water Company CEO Abdulsattar al-Rasheed. $2.4bn will be invested
by 2012, while $2.8bn will be spent in 2013. New projects include a 2,250 megawatt
(MW) power plant. During the period 2012-2021, Qatar‘s overall power generation is
expected to increase by an annual average of 6.7%, reaching 46.6 terrawatt hours
(TWh). Driving this growth is an annual 6.0% gain in generation of gas-fired, which
remains the key form of power supply in the country.
Qatar's Energy Leader
"The State of Qatar is very important global energy hub and the Doha Energy Forum
provides an excellent opportunity for industry representatives to discuss changes
33 | P a g e

and developments in the worldwide energy market and also local," said Deputy
Managing Director, Maersk Oil Qatar,Sheikh Faisal Al-Thani. The company currently
produces around one-third of Qatar's daily oil production. " Maersk Oil is a long-term
partner with Qatar Petroleum and the State of Qatar and is therefore pleased to
encourage on-going dialogue between industry peers to help share knowledge and
ideas."
In 2000, shale gas represented just 1% of American natural gas supplies. Today, it is
30% and rising, and triggering energy prices to fall. While the scale of Shale oil could
be even greater than gas, with some forecasts claiming there exists 8 barrels of
crude locked in shale rock for each 1 barrel of conventional oil. The International
Energy Agency's most recent World Energy Outlook predicted that the US will lead
the world in both oil and natural gas production by the end of the decade, overtaking
Saudi Arabia and Russia.
The Trade Linkage between India and Qatar
The Trade Linkage between India and Qatar can be understood from the following
details.
India Qatar Economic Relations
The very large India has a long history of friendly relations with Qatar country
marked by commercial ties and people to people contacts. The relationship today is
very rich, close and multi-dimensional. Indian community acts as the catalyst for
enhanced ties across a spectrum of bilateral relations
India‘s bilateral trade with Qatar country rose up from US$ 1.2 billion in 2005 to US$
3.7 billion in 2009. Indian exports to Qatar country increased from US $ 380 million
to US$ 900 million at the time of this period. Main items of Indian exports are
machineries and equipments, transport equipments, textiles, food products, ores and
minerals etc. Qatar‘s exports to India amounted to US$ 2.8 billion in the year 2008
as compared to US$ 896 million in the year 2005. India is the 4 th largest export
market for Qatar country after Japan, South Korea and Singapore countries. In
terms of Qatari import, India ranks at the 10th position. As per Indian statistics data,
India‘s exports in amount to Qatar country for the year 2009-10 were $537 million
while India‘s imports in amount from Qatar country for the same period amounted to
$4.6 billion.
India and Qatar have signed a trade agreement and accordingly India will purchase
LNG of 7.5million tons for the next 25 years. The first shipment has taken place in
the year 2004. The countries have also signed Memorandum of Understanding in the
import of petrochemicals and fertilizers for the Indian industry. India has also sought
34 | P a g e

investment from Qatar in crude storage facility being developed by Indian Oil
Corporation. From our side, we have indicated interest in setting up a petrochemical
and a fertilizer plant in Qatar but Qatar has indicated that these projects can only be
considered after an embargo is lifted over further allocation of gas.
A large number of Indian companies such as L&T, Dodsal, Punj Lloyd, Voltas,
Simplex, Wipro, Aptech, Satyam Mahendra, NIIT etc have set up offices in Qatar and
have secured major contracts/ business. The Indian community is estimated to be in
the range of 500,000. Indian professionals constitute an important component. There
are eight Indian schools following the CBSE syllabus. The annual remittance from
Qatar is estimated to be over US$ 1 billion. Air India, Indian, Jet Airways and Qatar
Airways operate direct flights between India and Qatar. Qatar Airways has been
continuously increasing its services to India and has 86 weekly flights to India now.
Indian professionals and businessmen constitute a small but important component of
the Indian community in Qatar. The Indian Business and Professionals Network
(IBPN), the Institution of Engineers (India), Indian Medical Association and the
Institute of Chartered Accountants maintain active chapters in Qatar with an
expanding membership and on-going activities. There are a number of exchange
houses run by involving Indian banks, which channelize remittances to India. The
three major exchange houses involving Indian banks are Eastern Exchange (Canara
Bank), Trust Exchange (State Bank of India) and National Exchange (Syndicate
Bank). India is a major buyer of ethylene, propylene, ammonia, urea and
polyethylene from Qatar. However, India has not been a major customer for Qatari
crude oil / products.
It is evident that economic relations between India and Qatar are strong and are
rapidly expanding and diversifying. There is a shared desire on both sides to further
deepen these relations.
As there are very less taxes nowadays Qatar is known as the Tax Haven. This factor
has attracted investment from number of companies. There are also some strict
rules to start up a business like to join hand with any Qatari firm doing similar
business or interested in it. But the benefits overweigh the drawbacks.
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In conclusion we can say that there is still need of advancement in the technology
the state of Qatar using in water purification. Because the present technology is too
costly and it is not capable enough to provide clean water to the increasing
population of the state. Because of its location the residents have to bear sometimes
very hot environment. This leads the demand of the water. It also creates business
opportunity for those who are providing water purifying technology and involved in
the business of gardening.
1. Introduction
Large number of power projects (XI and XII five year plans) is under construction to
overcome the power shortages and meet the growing energy requirements in the
country. However, the sector has been encountering problems on account of
inadequate / depleting conventional fuel resources, slippages in capacity addition,
transmission / open access constraints and high Aggregate Technical & Commercial
(AT & C) losses in the country. Since the formulation of Electricity Act 2003,
Government of India (GoI) has been taking several initiatives and announced various
regulations to strengthen the sector. Significant GoI / regulatory initiatives in recent
times have been those pertaining to Mega / Ultra Mega Power Generation projects
revised tariff regulations for existing central government projects, competitive bidding
for all future power generation projects, tariff norms for renewable energy /
introduction of Renewable Energy Certificates, new transmission pricing grid code,
power market regulations, Re – structured Accelerated Power Development Reform
Programme (APDRP2), National Electricity Fund, etc.
2. Projected demand, XII plan capacity additions and projected investment
• According to 17th Electric Power Survey (2007), the energy requirement in the
country is projected to grow at a CAGR of 7.5% during 12th plan period reaching
from 9,68,658 Giga Watt
hour (Gwh) in FY 2012 to 13,92,065 Gwh by FY2017, while peak load requirement is
projected to grow from 1,57,324 MW in FY2012 to 2,23,660 MW in FY 2017 at a
CAGR of 7.4%.
36 | P a g e

• Ministry of Power and Central Electricity Authority (CEA) have projected a total
investment
requirement of Rs. 11,35,142 crore for the power sector during the 12th Plan period,
which also
includes investment for generation capacity addition of about 1,00,000 MW. (Existing
capacity is 1,64,508 MW)
• According to Crisil report (June 2010), about 82,000 MW of generation capacity at
an investment of Rs. 5,10,000 crore is likely to be added in the next five years i.e.
during FY2011 to
FY2015. The Central (with NTPC having the major share), State and Private sectors
are estimated to add about 21,500 MW, 15,000 MW and 45,500 MW respectively
during the next five years. Further, about 12,900 MW of captive generation capacity
at an investment of Rs. 75,000 crore is expected to be implemented by several
players. The investments in transmission and distribution segment are projected at
Rs. 3,44,000 crore during the above period.
• According to Crisil report (June 2010), out of the 82,000 MW capacity (scheduled
for commissioning over the next five years), more than 90% of the projects have
received environmental /forest clearances, acquired land, achieved financial closures
and placed equipment orders. About 80% of the above projects have either signed
PPAs or earmarked a
portion of their total power for merchant sales.
Emerging Developments
The emerging developments in the power sector are highlighted below:
Competitive procurement of power
As per the National Tariff Policy, the procurement of power by distribution licensees
have to be made through competitive bidding. From January 2011, Central / State
37 | P a g e

public sector companies also are expected to compete with private sector to supply
power to the distribution companies through competitive bidding. Thus, volume of
power contracted through competitive base bidding {Case 1 2 (location, technology
or fuel not specified) & Case 2 (location specific where the GoI assists developer in
securing land, clearances, etc)} is likely to increase in the medium term.
Thermal projects & Supercritical technology
In the medium term, thermal power is likely to remain the major source of generation
as the coal based (particularly pit head plants) /gas based projects presently have a
competitive tariff advantage over renewable energy projects. Thermal based
capacity of about 29,000 MW is under construction (under Eleventh Plan) and about
75,000 MW coal – based capacity and 10,000 MW gas based capacities are being
planned for twelfth plan period. There is continued emphasis on technology in
proximity to the coal mines (pit head plants) or at coastal regions (for imported coal)
in the country to leverage on economies of scale / fuel efficiency.
About 60% of the thermal capacity planned in the twelfth plan is on Supercritical
technology, which is considered to be fuel – efficient and environment friendly
technology. The overall share of Thermal power in total installed generation capacity
is likely to increase from 64% (FY2010) to about 74% by the end of twelfth plan. 3.3
Hydro / Nuclear / Renewable energy
The developments in Hydropower, Renewable energy (wind & solar) and Nuclear
power are mentioned in Annexure IV. Under Jawaharlal Nehru National Solar
Mission (JNNSM), GoI has planned an addition of 20,000 MW solar power by
FY2022 (1100MW of Solar power has been planned under the phase I of the
JNNSM
Power trading / power exchange
Several players participating in competitive bid projects are planning to set aside 15
– 20% of their capacities to sell through the merchant route to profit from the spread
between merchant power prices and power purchase agreement (PPA) tariffs.
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According to Crisil report (June 2010), by FY2015, merchant power capacities are
expected to account for 5.0 – 6.0% (13,000MW) of the country‘s generation capacity
vis – a – vis 1.0 – 1.5% (2000 – 3000 MW) in FY 2010. Going forward, the
generation of power from future capacity addition is likely to be increasingly routed
through the power traders / power exchanges gradually increasing the liquidity in the
bilateral / OTC / power exchange market. The share of volume of power sold in short
– term market (bilateral / OTC / power exchanges) which is currently at 4.1% of the
total electricity generated is likely to increase in the medium term.
Developments in Hydropower, renewable energy and nuclear projects
Hydro power projects
As on FY 2009, there were 40 hydro power projects with an aggregate capacity of
13,085 MW under construction. Hydro Power projects have been facing difficulties
on account of factors such as difficult and inaccessible potential sites, difficulties in
land acquisition, rehabilitation issues, environmental and forest – related issues, inter
– state issues, geological surprises and long gestation period. 84 schemes with an
installed capacity of 22,383 MW have been allotted to private developers by states.
There were 11 schemes with an installed capacity of 4,111 MW under construction in
private sector. As on FY 2009, out of the 162 projects for which preliminary feasibility
reports were prepared under the 50,000 MW Hydro Electric initiative, 77 schemes
33,951MW have been taken up for detailed survey & investigation and preparation of
detailed project reports implementation of which DPRs for 18 schemes have been
completed.
Central Electricity Authority has identified about 31,000 MW capacity under Twelfth
Plan. Of this about 25,316MW is considered feasible
Renewable Energy
GoI has envisaged National Action Plan on Climate Change, which envisages
increase in usage of green energy with an aim to minimize the carbon footprint in the
country as also provide
electrification through distributed generation to remote areas. NAPCC has stipulated
that minimum renewable purchase standards may be set at 5% of the local power
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purchase in 2010 an dtherafter should increase by 1% each year for 10 years.
Regulatory commissions in the country are also emphasizing the procurement of
renewable energy by Distribution companies as stipulated by the Renewable
Purchase Obligations. GoI has set target of 14,000 MW for renewable energy during
Eleventh Plan period, of which only 60% capacity addition is likely to be achieved.
Potential for wind power is estimated in the range of 50,000 MW to 1,00,000 MW in
the country. Wind energy has been the main contributing force which has witnessed
increase in level of indigenization in the manufacturing of wind generators and
increasing trend towards state of the art technologies such as use of lighter and
large blades in turbines, more aerodynamic design, higher towers and direct drive
and variable speed gearless operation using advance power electronics. GoI is also
encouraging the addition of solar power under Jawaharlal Nehru National Solar
Mission, where in 20,000 MW of solar power have been planned in three phases
upto the 13th Five Year Plan (i.e. FY 2022). Under the first phase (up to March 2013)
of the mission, upto 1,100 MW grid – connected solar power plants have been
targeted. Under the Mission, NTPC, Vidyut Vyapar Nigam Ltd. is designated as the
nodal agency to procure solar power from PV the thermal project developers at a
tariff by the Central Electricity Regulatory Commission.
Nuclear Power
India has signed 123 agreements (Concerning peaceful uses of Nuclear Energy)
with the United States in October 2008, paving the way for development of civilian
nuclear energy in the country. The ban on nuclear fuel imports into the country has
also been lifted by the Nuclear suppliers group thus enabling the country to procure
nuclear reactors / equipment as well as nuclear fuel. The integrated 14 energy policy
has envisaged a possibility of reaching a nuclear power capacity of 21000 – 29000
MW by 2020, and 48000 – 63000 MW by 2030, through a mix of indigenous
Pressurized Heavy Water Reactors, Fast Breeder Reactors, and Light Water
Reactors which however is continent on availability / import of fuel / reactors through
international cooperation as also on the evolving nuclear policy / regulatory
framework and issues pertaining to nuclear liability / legal and institutional
framework.
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Developments in Transmission
Power evacuation has been a critical issue on account of factors such as a)
development / augmentation of transmission system to cater to the long term
requirements of large number of upcoming inter – state private sector generation
projects as also need to harness renewable energy / non – firm power into the grid,
b) requirements of maintaining the redundancies and reliability of interconnected
network (as per the grid code) with increasing complexity and c) requirements to
cater to the increasing volume of short – term / open access transactions.
GoI is planning to develop National Inter State transmission Grid with interregional
transfer capacity of 37,700MW at an investment of Rs. 55,000 crore by FY 2012.
The power grid of the future is expected to be more intelligent, effective and
environmentally sensitive comprising of several elements such as Ultra High Voltage
/ HVDC (765KV ac, 800KV HVDC and 1200 KV AC) lines, flexible alternating current
transmission system (FACTS), dynamic control systems, wide area monitoring
system and distribution network management. Power Grid Corporation of India Ltd is
planning an additional investment of Rs. 80,000 crore over the next eight years to
build transmission corridors and strengthen the grid in the country. PGCIL is
planning to complete nine transmission corridors over next five years to evacuate
50,000 MW of upcoming projects by IPPs in various States. PGCIL is also exploring
to set up transmission project to evacuate power from neighboring countries such as
Myanmer, Banglahesh, Nepal, Bhutan and Sri Lanka. Seven transmission projects
with investment of Rs. 5000 crore have been planned during Eleventh Plan period,
while 14 other (Ultra Mega Transmission Projects) at an investment of Rs. 20,000
crore have been identified by the empowered committee on transmission that are to
be awarded through tariff based competitive bidding to the private sector.
CERC has recently notified regulations on sharing of inter – state transmission
charges and losses which have replaced the ‗Regional Postage Stamp‘ method by
‗Point of Connection(PoC)‘ system. Under the regional transmission on a pooled
basis in the ratio of quantum of power drawn through the inter – state transmission
system. A state in the southern region buying power from a state in the eastern
region have to pay for the pooled transmission charges and losses of both eastern
and southern regions leading to pancaking of charges. Under PoC, transmission
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charges will be locationally differentiated the generators will have to take a view both
on transmission costs of electricity and transportation costs of fuel. With many new
independent power producers (IPPs) expected to come up in the near future and
bulk consumers being allowed to buy power through open access from anywhere in
India, even across regions, the change seems relevant. Under the new transmission
– pricing framework, all the power users will be default signatories to the
transmission service agreement, requiring these users to pay the point of connection
charge, which covers the revenue of transmission licensees. This commercial
arrangement is expected to help financial closure of various transmission
investment, as the transmission licensees will no longer be faced with the uncertainty
in power generation project and the difficulties in getting the bulk power transmission
agreements (BPTA) signed by all the expected beneficiaries of the transmission
system. 15 Under the new system, the entire network is divided into various nodes
based on geographical continuity, electrical contiguity and major consumption areas
and major generation areas (load centers). Under the new mechanism, both the
generator (who till now has been exempted) and load serving entity need to pay
transmission charges and losses based on their location / connection level in the
network (defined by node / zone comprising network of nodes) and the
corresponding network usage chares as per the load flow studies conducted for each
node one at a time.
Thus the location of generating company will impact its share during the allocation of
transmission charges and losses as computed in the respective network node /
zone. The new pricing system is also likely to facilitate the development of
competitive market by enabling interregional Case I bids to overcome distortions
pertaining to pancaking of transmission charges, rationalize long – term, medium
term and short term open access charges and encourage solar power projects (by
allowing Zero transmission charges and losses) and merchant power plants.
Development in procurement of Power equipment / EPC contracts
There has been increasing reliance on the imports of Chinese equipment for the
ongoing power projects. About 30,000 MW of capacity (of which 10,000 MW are
planned for twelfth plan projects) has been ordered with Chinese equipment
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companies. Several companies have also been awarding Engineering, procurement
and construction (EPC) contracts to Chinese companies. While there have been
issues pertaining to design and technical parameters (such as improper design,
ability to run on domestic / low calorific value and high ash content coal, boiler tube
failures, water leakage, etc) with Chinese equipment, several domestic companies
have had a satisfactory experience with Chinese equipment. Thus as the lifetime
costs of main plant equipment are influenced by operation and maintenance costs,
availability of spare parts and technical support, the long run cost – to performance
will remain critical for the companies relying on Chinese equipment. GoI has recently
imposed restrictions on Chinese workface which however has been recently relaxed.
GoI has also directed the Central and State sector generation players to source
supercritical equipment from domestic companies. GoI is also contemplating to
impose duty on power equipment imports. While the domestic companies (BHEL,
L&T, etc) who are currently running full order books are augmenting their capacities,
several joint ventures (L&T and Mitsubishi Heavy Industries, JSW Group and
Toshiba Corporation, Bharat Forge Ltd. and Alstom, etc) have come in to power
equipment market to cater to the increasing demand for BTG and other equipment. It
is estimated the to fulfill the demand for power by different sectors, domestic power
equipment manufacturing capacity of about 40,000 MW needs to be created every
year till FY2017.Restrictions on Chinese workforce may compel the domestic players
to restrict the contracts to boiler turbine and generator (BTG) only rather than the
manpower intensive EPC contracts.
Coal supply outlook
India has Coal resources of about 267 billion tonnes of which proven reserves are
about 106 billion tonnes. Recent initiatives / plans in domestic coal sector such as
competitive bidding of coal, improvised / underground mining efforts, New Coal
Distribution (NCDP), revision in coal prices, fuel supply agreements with power
utilities, pricing of coal based on Gross calorific Value rather than Useful Heat Value,
creation of coal regulator, etc might give a fillip to the domestic coal production (by
Coal India Ltd.). As on March 31, 2009, 201 coal blocks with geographical reserves
of coal of 45.89 billion tones have been allocated to eligible companies. Of the 201
blocks, 3 blocks have been de – allocated and mining lease of one block has been
declared void. Out of remaining 197 blocks with reserves of 16 27.59 Billion tonnes
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have been allocated to PSUs. Out of the 100 blocks allocated to private companies
with geographical reserves of 17.93 Billion tonnes production has commenced in 23
blocks. According in industry sources, in FY2011, domestic production of coal is
projected at 572 million tonnes(mt) (6.8 % increase compared to previous fiscal) and
imports are projected to reach 84 million tonnes (21% increase from previous fiscal).
While Coal India Ltd, the major producer of domestic coal is aggressively planning to
increase its production and also acquire overseas coal assets, the overall demand is
unlikely to be met from the domestic supplies alone in the medium to long term.
Power sector consumes about 72% of the total consumption of coal in the country.
Domestic consumption of coal by power sector is projected at 442 million tonnes in
FY2011, while the domestic availability is projected at 389 million tones.
Thus, the domestic demand supply gap of coal for the power sector is projected to
be about 53 million tonnes FY2011. After factoring Gross Calorific value, the
projected imports are estimated at 35 million tonnes in FY2011. The domestic coal
demand supply gap for power sector is projected to increase to about 120 million
tonnes by FY2013. According to industry sources, Coal requirements for the power
sector is projected to reach to about 800 mt by FY 2017 and increase to 1070MT by
FY2022. However, domestic coal supply is projected to increase to 554 Mt by FY
2017 and 756MT by FY2022. Total Coal imports are projected to reach about 200
million tonnes by FY2017. NTPC the largest power company in the country plans to
raise its existing 32,000 MW capacity to 51,000 MW by 2012 and 75,000 MW by
2017. It is estimated that NTPC (currently 80% of capacity is coal based) which has
consumed 150 Mt during Fy2010 would be requiring about 280 MT of coal annually
by the end of the 12th plan period (2017). Around 70% NTPC coal requirement by
the end of 12th plan period is expected to be met from domestic sources, while
another 20% through its mines and the remaining 10% through imports.
There have been also issues pertaining to the coal imports such as steep escalation
in international coal prices and proposal by Indonesia to impose a cap on their
exports. With the sudden emergence of China as a major buyer of thermal coal,
global coal prices had also witnessed sharp escalation till FY 2008, which moderated
subsequently. However the international sport prices have been witnessing upturn
and is projected to be firm in the long term. In Jan 2010, GoI has made allocations
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for IPPs (which are feasible for commissioning in Eleventh plan period). GOI have
recently issued notice to cancel the coal blocks allocations where the respective
players have failed to develop the same considering the shortage scenario of coal.
GoI has prioritized coal linkages during Twelfth plan period based on Sector and
technology. GoI is also planning to stop allocating domestic coal linkages to UMPPs
which henceforth have to fully rely on imported coal and directed the domestic
players to have the technical capability to process blended coal by importing upto
20% of their coal requirements.
Several players are also scouting for acquisition of overseas coal assets. Recently
companies such as Reliance Power, JSW Energy, Essar, NTPC and Tata Power
have bought overseas coal mines.
Gas Supply outlook
In Fy 2010, the overall demand for natural gas (from sectors viz., Power, Fertilisers,
Petrochemicals, Spongeiron / Steel, City Gas Distribution, CNG, etc.) in the country
is 190 mmscmd against overall suppliers (from Administered Price Mechanism
(APM) gas, Joint Venture (JV) gas, natural gas supplies by private under National
Exploration and Licensing Policy (NELP) and Regasified Liquefied Natural Gas
(RLNG) of 175 mmscmd witnessing a shortage scenario to the extent of 15
mmscmd. At present, the total allocation of domestic gas to the power sector stands
at 79 mmscmd. Gas based power plants have operated at 67.3% Plant Load Factor
(PLF) in FY 2010, which is an 17 improvement over 57.6% in FY09, on account of
increase in allocation of gas supplies from KG basin to power sector. Potentially, gas
power plants can operate at 90% PLF and thus have a potential shortfall of about 19
mmscmd. At the end of eleventh Plan period, projected shortfall in gas supplies are
35 mmscmd @90% PLF) /14 mmscmd @70%PLF). About 90 mmscmd of additional
supplies are projected to need the requirements (at 70% PLF) of planned capacity
during 12th plan period. The development in national grid is likely to facilities the
continuity in supplies to the power plants and facilitate setting up of power plants
closer to the load centers. While the Reliance has begun gas production from KG
basin, the gas supplies from recent discoveries of ONGC and GSPC is likely to
partially materialize by FY2017. Overall gas supplies by Reliance, ONGC and GSPC
are likely to be in the range of 50 to 70 mmscmd by FY2017. By FY2017.
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4) Healthcare sector in Qatar
Qatar has been ranked top for per capita health expenditure list from the Gulf
cooperative Council (GCC) by the World Health Organization (WHO). Some vital
health statistics has been positively affected by this expenditure. As for example, the
rate of the crude death in the year of 2006 was reported 2.09 per 1000 of the
population. The average life expectance at birth and total fertility rate for some period
was 2.67 and 75.8 years.In the year of 2005 the National Health Authority (NHA)
was established and which has replaced the Ministry of Public Health. The NHA
brings necessary medical services from other countries and puts them in the
wellbeing of public health and entrust them to public health institution. The main
institution names Hamad Medical Organization (HMC). Doha is the capital city of
Qatar which is having numerous clinics and hospitals. For convenience, health
centers has been set-up along the highways.Since Qatar opened its first hospital 50
years ago, numerous variations and developments have been presented. The
healthcare system is accessible to all; whether you are a national, deportee or a
traveler. Qatar has a public health service that provides free or highly subsidized
healthcare and, generally speaking, it is of an outstanding standard.
HOSPITALS
There are 9 hospitals in Qatar, 5 are government operated and 4 are privately run. In
2006, there were a total of 2,077 hospital beds, which equates to about 25 beds per
10,000 of the population. The main hospitals include the Hamad General Hospital,
which is having 616 beds covering all general medical areas, with specialties in
pediatrics, surgery and internal medicine; the Rumaillah Hospital and the Al Amal
Hospital, a ground-breaking specialist center for the detection, treatment and
rehabilitation of cancer. In 2006 there were 27.6 physicians and 73.8 nurses per
10,000 of the population.
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EMERGENCY SERVICES
The ambulance service has improved spectacularly in numbers in 2002 and, as
such, ambulances are available countrywide. As a result, there is very low average
response time to an emergency call. For better service, ambulances are linked to the
Hamad Hospital via satellite.
Since the country's first hospital opened its doors almost 50 years ago Qatar's
healthcare sector has come a long way. Today, the industry claims the highly
qualified staff and most advanced medical apparatus, a countrywide web of hospitals
and healthcare centres, as well as a cardiology department that is referred to by
outside specialists as "one of the best in the world". A report given by the general
secretariat of the GCC ministers of health, Qatar has the region's lowermost
maternal mortality rate.
PRIMARY HEALTH CARE
Primary health care aims to realize social development by adopting health programs
that help citizens to become productive elements in society. The programs
implemented by the Primary Health care include health consciousness, maternity
and childhood health care, immunization against childhood diseases, diagnosing and
treating chronic diseases, providing medicinal drugs, healthy food and clean water
and ambulance and medical emergency services.
HAMAD MEDICAL ORGANIZATION
Hamad Medical Organization is considered to be one of the most outstanding
specialized medical creation in the Arabian Gulf region. It was established in 1982
after completing the merger of all hospitals belonging to HMC into an integrated
administrative body comprising Hamad General Hospital, Rumailah Hospital and the
Women's Hospital.
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PRIVATE HOSPITALS
AI Ahli Hospital: AI Ahli Hospital looks set to be a major private hospital in Qatar. It
opened with limited services in December, and full operations are scheduled to be
launched in phases throughout the first half of 2005.
AI Emadl Hospital: Besides nursing patients back to health, the management at AI
Emadi Hospital aims to provide comprehensive healthcare education to its patients.
It believes in knowledge-sharing and planning with patients and their families. Its
wide range of specialty care includes treatment of obesity, general surgery, plastic
and reconstructive surgeries, dermatology, dental services and emergency services.
See page 218 for further details. American Hospital Doha: Opened in mid-October
1999, American Hospital Doha was Qatar's first private hospital and has recently
upgraded its apparatus and facilities. Doha Clinic Hospital: Doha Clinic started life as
a polyclinic in 1994 and expanded over the years to become a fully integrated
hospital in 2001. It was renamed Doha Clinic Hospital.
How to obtain a Health Card
To obtain a Health Card, expatriates must provide the following:
Copies of passport and Residence Permit
Copies of Qatar ID
Two passport-sized photographs
A fee
These should be taken to the Rumailah Hospital, or alternatively to any HMC clinic.
The card takes two to three weeks to process, and can be collected from the
hospital, or delivered for an enhanceitional fee. A medical file is also opened for the
holder, and kept at their nearest government health centre. Employers often
undertake to carry out the above procedures on behalf of the employee.
Cards last for the same number of years as the holder's Residency Permit, and
can be renewed online on the Qatar government Hukoomi website.
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MEDICAL R&D IN QATAR
Currently, there is lots of investment in research and development, through
organizations such as the Qatar Foundation. There are also funds to attract
researchers to come to Qatar with financing for existing research and development
projects that occur in several places around the world. This is not yet up to speed but
the growth of projects and breakthroughs year by year is quite high. If we compare
the level of medical research and development in Qatar to the region, it is much
better in Qatar. If we compare it to international standards and to what Qatar wants
to achieve, there are still a lot of efforts that have to be made.
SWOT Analysis of Qatar healthcare sector
Strength
Qatar has the most advanced medical equipment .Highly qualified staff available in
Qatar.A countrywide network of hospitals and healthcare centers Cardiology
department that is referred to by outside specialists as "one of the best in the world"
Driven by new government strategy and regulatory reforms, more investments are
expected in the GCC healthcare industry .Great Infrastructure provide by
Government .
Weakness
Laws governing private practice are strict, and licensing Problem to get is always
challenging in Qatar. Qatar has small population .Lack of Nursing Staff and Doctors
because of number of colleges for them is low
Opportunities
HMC, the Qatari government has also promoted the private sector providing
healthcare to the publicCommon health difficulties include alcoholism (particularly
among bachelors, owing to loneliness and depression) and respiratory difficulties
caused by sand and dust in the air – a situation exacerbated by non-stopping
building work in most states. Hard work and long hours in often extreme heat can
also affect the immune system and compromise the body‘s ability to counter illness.
Demand of Healthcare is always highest level
Threat
Government Hospitals are threat for Private Hospitals Also At these HMC facilities,
medical and dental treatment is free for people of Qatar.Residents and visitors are
required to apply for a QR100 health card, which allows them to pay small charges
for various tests and consultations as well as a nominal fee for inpatient care.Dubai,
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Saudi Arabia, Kuwait are Investing largely so the market is sharing also these
healthcare services
PESTEL ANALYSIS OF QATARS HEALTHCARE SECTOR
Political
Qatar Government Established Hamad Medical Corporation (HMC) was comes to
provide state-of the-art diagnosis and treatment of dieses Since in October 1979,
HMC has become Qatar's leading non-profit healthcare provider through its network
of Primary Health Care Centers and four highly specialized hospitals in the capital,
name Doha.Also HMC, the Qatari government has also promoted the private sector
providing healthcare to the public. Driven by new government strategy and
regulatory reforms, more investments are expected in the GCC healthcare industry,
aimed at enhancing and developing healthcare infrastructure and value chain. This
increase in investment will lead to a significant expansion in the healthcare sector
and will create attractive opportunities for private sector participation in the industry.
Environmental
Respiratory difficulties caused by sand and dust in the air, Expatriates – particularly
manual workers – can suffer sunstroke and sunburn. You should be excused work
outdoors if the temperature reaches 50oC (122oF), which isn‘t uncommon at the
height of summer, although it‘s unusual for work to be stopped under these
conditions. In the summer, humidity causes enhanced discomfort, with eye infections
common. Dehydration is also a threat and is a potentially fatal condition that
shouldn‘t be underestimated – not only by those working outdoors but also by
anyone playing outdoor sports, including ‗leisurely‘ pursuits such as golf.
Social
Increased urbanization and rising per capita income have also led to a more
sedentary lifestyle in the GCC. This has substantially increased the prevalence of
lifestyle-related diseases such as diabetes, cardiovascular ailments and cancer.
According to the World Health Organization, the GCC has the highest ranking in the
world in incidences of diabetes and obesity. The higher incidence of lifestyle
diseases is projected to lead to an increase in per capita healthcare costs and more
demand for specialized tertiary medical facilities. Additional investment and private
sector participation are required to reduce the demand/supply gap.
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Legal
The main government hospitals are administered by the Hamad Medical
Organization (HMC), while the Ministry of Health is responsible for the units known
as Primary Health Care Centres. The Supreme Council of Health oversees the
country's healthcare system and policies. English is widely
Economic
According to the Economic Intelligence Unit (EIU), the Gulf Cooperation Council
(GCC) population reached 45 million in 2010 and is forecast to reach close to 57
million by 2015, posting a cumulative annual growth rate of 5%. The GCC population
is relatively young with the vast majority of people under the age of 29. But this
structure is expected to change in the next 10 years, with the over-65 age segment
experiencing the fastest growth rate. This segment has a proportionally higher
healthcare cost per capita associated with the treatment of diseases such as heart
ailment, hypertension and diabetes.
BUSINESS PLAN
Medical Tourism India
Medical Tourism in India is a million dollar booming business, drawing loads of
overseas patients. Medical Travel India is projected to capture 2.5% of the
International Medical Tourism Market by the year 2012, with concurrent revenue
projects of $ 2.3 billion. It has been estimated, that the Medical Tourism Industry in
India will attract over 1.1 million patients from across the globe, by the end of 2012.
Contemporary and state of the art infrastructure, high end technological support, and
excellent quality of health care, make India, an alluring Medical Trip destination,
chiefly for patients in the U.K., and U.S., where health care costs are exceedingly
steep. Coming to India for a Medical Trip helps save a significant amount of money,
sometimes to the tune of 50 % to 70 %. Importantly, low cost of medical care, in no
way indicates substandard or poor quality. Indian hospitalsprovide first-class
services and facilities. Also, Medical Travel to India, helps to do away with the long
waiting lines that patients experience in their home country, and thus, assists them in
gaining easy access to timely medical care.
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There are several factors which are favoring exports of the healthcare services.
These factors are
1) Shift from the socialized to private providers.
2) Booming economy and high literacy rates.
3) Shift to the lifestyle related diseases.
4) Easier financing
5) Increasing life expectancy
6) Recognition by government priority sector
The majority of healthcare services in India are provided by the private sector. 60
percentage of hospitals in India belong to the private sector. Private sector owns
about 75 % of all dispensaries. Government spending on the healthcare sector is
declining relatively and Indian government spends only 0.9 % of GDP on the
healthcare sector. Developed countries spends around 5 % of GDP on the
healthcare sector.
GUJARAT HEALTH CARE SECTOR:
SNAPSHOT ON GUJARAT HEALTH CARE
INFRASTRUCTURE
Primary health care share 70% of total health care sector, Gujarat has district
hospitals as well as sub district hospitals.
MEDICAL EQUIPMENT
Well tronix, ABC sons and GE health care are supplier of medical equipment
PHARMACEUTICAL INDUSTRY
Zydus, cadila, lupin, sun pharma, intas, Aventis and many foreign [players are
operating in Gujarat.
HEALTH INSURANCE
GOVERNMENT SCHEMES
PRIVATE COMPANIES
Bajaj Allianz, TATA AIG life insurance Company, national insurance company.
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MEDICAL TRAVEL
Medical tourism, treatment at cost effective rates
CLINICAL RESEARCH:
Many of drugs are under trial and some of them are patented continuous research
and development is done to improve quality of life. Stem cell therapy and various
R&D on HIV, cardiac and diabetic Drugs are under clinical trial.
EDUCATION
Many courses including medical and para medical courses are in the state
TECHNOLOGY AS DRIVER OF THE SECTOR:
Gujarat has well equipped medical services for e.g. Muljibhai Patel hospital of
Gujarat is 2 nd hospital after AIIMs to start nephro – neurological surgeries by robotic
technology.
Anand is known globally for in vitro fertilization technique.
HEALTH INSURANCE
Heath insurance not only cover expenses incurred but also covers the pre and post
treatment expenses of medicines and tests.
Integrated insurance scheme, Gujarat
The community based insurance scheme is done by the nonprofit government
organization (NGO) or by the SEWA (Self- employed women Association),
Ahmedabad
Primary activities by them include providing financial services to women they also
have package including the life, accident and asset insurance
This package covers
In patient care
1) Hospitalization cover, member can use any kind or hospitals weather it is
public, private or trust.
2) Delivery benefits for FD members
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The scheme delivered by SEWA is purchased from Government insurance company
and ICICI Lombard.
GOVERNMENT INITIATIVE SWASTHYA BIMA YOJNA GUJARAT
Insurance scheme for the workers in unorganized sector belongs to BPL category
and five family member are beneficiary of scheme.
Pilot project launch in Dahod , Bharuch ,Jamnagar, Kutch and Patan covers 4.5
lacks BPL families and 42 talukas and 3500 villages .
Whole state will be covered in 5 years
Which gives securities against unforeseen health expense upto 30000.
BUSINESS OPPORTUNITIES IN FUTURE
Gujarat has medical expertise and good facilities which are better than the other
nations in Asia. Hospitals are trying to sell hard abroad for that they are developing
themselves at each axis in services to customized package and other efforts they put
to get client from abroad.
The state Gujarat offers potential to develop medical tourism in the major cities like
Ahmedabad, Vadodara, Surat, and Rajkot
Gujarat has world class medical facilities of super specialty hospital which is
competitive at international level
Health care treatment is available at very competitive rates so it makes Gujarat
lucrative for the people who wants medical services cost effective rates.
There are excellent infrastructure facilities which offers foreigner attractive option to
choose.
There are so many resorts and premium hotels which provides good services to
attract both local and foreign tourist.
PUBLIC PRIVATE PARTNERSHIPS (PPP)
Gujarat government with EMRI (emergency medical research institute) take care of
emergency of fire and road accidents and provide services 24 hours by just dialing
108.
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CHCs are run by community based organization (Malav, Shamlaji, Rajsitapur,
Chansad, and MotaPhospholiya).Shamlaji hospital is located in sabarkantha and
managed by all India movement for sewa.. CHETNA (center for health education,
training and nutrition awareness support 14 NGO‘s to implement RCH (reproductive
and child program)
SSA( SarvaSwawstaAbhiyan) which is an NGO linked to improve quality of health at
remote area they have opened 10 centers in the tribal area of Mundra , Prantij , Idar ,
Bardoli , Hansot ) that are connected to nearby superspecialty hospital of
Ahmedabad, Vadodara,Nadiyad, Surat .
WHG (wockhardt hospital group) manage 275 beds civil general hospital at
palanpur.
PPP model also used for chiranjiviyojna (approx. 900 gynecologist are part of the
scheme)
MEDICAL EQUIPMENT MARKET
Gujarat medical equipment industry include surgical, medical and dental products for
treatment.
The demand for hi-tech devices in Gujarat is growing
Severs factors that makes the industry potential are well developed industry,
economic growth, free market environment, and investment opportunities.
MEDICAL EQUIPMENTS
Medical disposables
Surgical instruments
Otoscope
Short wave diathermy
Ear currets
Hot and cold therapy
Equipment
Muscle stimulator
Fitness equipment
Ultrasonic therapy
Lumber traction
Traction table
Interferential therapy
Slimming equipment
Physiotherapy equipment
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SOME OF THE MAJOR SUPPLIER OF MEDICAL EQUIPMENTS
Welltronix instruments
A.B.C sons
Bhupendrasurgicals
Excel enterprise
RLS techno services
GE healthcare
HEALTHCARE OUTSOURCING
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5) Restaurant business in Qatar
Current scenario of Qatar
Qatar has an array of world-class restaurants and night-spots, with something to
offer everybody Fun and food for all Hotels in Qatar serve not only their own guests
but also cater for a large number of local residents. Their restaurants cover the full
range, from coffee shops to fine dining and specialty outlets and the standard of
service is on a par with the best in the world. The night-life is equally varied, with
many bars, and discos open until the small hours.
International Cuisine
Standards of international cuisine in Doha are high and the choice is wide. Top class
western restaurants in the city‘s hotels include French, Italian, Swiss, Spanish,
Greek, British and American.
International fast food chains are also represented by such names as McDonald‘s,
Kentucky Fried Chicken, Pizza Hut, Pizza Inn, Taco Bell, AFC, A&W, Burger King,
Hardee‘s, Dairy Queen and Al Tazaj Fakieh.
GOVERNMENT POLICY ON SMALL-MEDIUM ENTREPRISES (SMEs)
AND ENTREPRENEURSHIP IN QATAR
Foreign Entrepreneurship
Like all countries, Qatar has its own guidelines for foreigners interested in doing
business in Qatar. Foreign investors must appoint an agent or sponsor in order to do
business with Qatar. There are two types of agents a service agent and a
commercial agent. In the case a foreign investor is planning a project, which is to be
executed for Qatari private entities and leave the country upon completion, a service
agent is required to take care of all administrative work with the government. If the
business intends to import to Qatar a commercial agent is required to act as a sales
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or distributor representative. Experts believe that the requirement for a service agent
in Qatar is becoming more lenient, and may be abolished in years to come. If foreign
investors wish to do business in Qatar it has become the common practice to
establish a Limited Liability Company. In this case, foreign ownership cannot exceed
49% of the capital with a Qatari partner owning at least 51%.
Finance and Banking
In Qatar, there are no personal taxes, social insurances, or other statuary
deductions from salaries and wages paid in the country. Qatari and GCC nationals
are not subject to income tax in Qatar. This may seem misleading because Qatar is
not a tax free zone. Foreign investors, partnerships and companies operating in
Qatar must pay a tax on corporate business. By law, all occupations, professions,
service trades, contract executions or any other business are subject to these terms.
Certain tax exemptions are allowed in Qatar depending on whether the activities of
the foreign firms are directly benefitting Qatar, incorporating modern technology,
and/or fulfilling a strategic goal for the government.
The Qatar Development Bank (QIDB) was founded in 1997 and specializes in the
promotion and financing of small and medium enterprises. The objectives of QIDB
are to:
(1) provide industrial loans and finance imports of raw material, machinery, and
technical equipment,
(2) provide loans for export of industrial products,
(3) undertake studies, provide advisory services and promote sound projects
identified through a comprehensive development strategy, and
(4) promote small and industrial projects and
monitor their implementation phase.22 In this way, Doha hopes to increase the
number of local business owners and consequently improve competition in various
sectors.
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Doing Business in Qatar
In keeping with the objectives spoken in its National Vision 2030, Qatar has driven to
shift its economic and developmental focus away from a dependence on oil and gas
by promoting a policy of economic diversification as evidenced by the now
internationally recognized brands of Qatar Airways and Al Jazeera, and its fruitful bid
to host the 2022 FIFA World Cup. Knowing that the contribution of non-Qatari
investors is an essential part of the successful recognition of this policy, Qatar
continues to implement new legislation intended at liberalizing the business
atmosphere for such investors, and presenting incentives and exemptions that
supplement the country's already significant investment appeal.
1. Investment restrictions
(a) Non-Qatari investors may only invest in Qatar in harmony with the provisions of
the Foreign Investment Law (Law No. (13) of 2000 as amended).
(b) Non-Qatari investors may invest in all parts of the national economy (other than
those set out in (c) below) with a Qatari partner who must have at least 51% of any
enterprise.
(c) Non-Qatari investors may not invest in commercial agencies or, broadly
speaking, real estate and infrastructure. Authorization from the Council of Ministers
is necessary for foreign investment in banking or insurance.
(d) The Minister of Business & Trade (Minister) may license non-Qatari investors to
own up to 100% of an initiative in precise business sectors, being, agriculture,
industry, health, education, tourism, the development of natural resources, energy or
mining, consultancy and technical services, information technology, culture, sport
and recreation/entertainment services and distribution services, though such
approval is not granted frequently.
(e) Foreign capital is guaranteed in contradiction of expropriation (although the State
may acquire assets for public benefit on a non-discriminatory basis, provided the full
economic value is paid for the asset).
(f) A non-Qatari company which is performing a specific contract in Qatar may
register a diminishing entity or division office (Branch) if the project facilitates the
performance of a public service or utility.
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(g) A non-Qatari company working in Qatar under a Qatari government concession
to extract, exploit or manage the State's natural resources is exempt from the
Foreign Investment Law. In exercise this shields all the major oil companies.
(h) A company formed between a non-Qatari entity and the Government or a
Governmental entity (an Article 68 Company) will be subject to special rules.
Company structures
The two forms of vehicle most estimated to be of attention to non-Qatari investors
are Limited Liability Companies (LLCs) and so-called Article 68 Companies. Other
potential legal entities under Qatari law are Limited Partnerships, Particular
Partnerships, Holding Companies, Single Owner Companies and Qatari
Shareholding Companies (QSC), but non-Qatari participation is regulated.
If the non-Qatari investor is allowed to own 100% of the company (by MBT as a
result of investing in certain specified sectors) the single shareholder company can
be used as the vehicle for such investment.
Article 68 Company
Characteristics include:
(a) formed among an investor, which may be non-Qatari, and the Government or a
company in which the Government holds shares in the share capital of a company;
(b) the non-Qatari investor's portion of the company is a matter for negotiation, but
can be greater than 51% subject to Council of Ministers' sanction;
(c) corporate structure is of a "Qatari Shareholding Company with Government
Participation"; and
(d) falls outside the Foreign Investment Law and, to a certain degree, the
Commercial Companies Law.
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Taxation
Registered Entities
The Tax Law (Law No. (21) Of 2009) presented a new tax system with effect from 01
January 2010. Profits attributable to non-Qatari receivers are now taxed at a flat rate
of 10%. The new tax law also presented withholding tax for the first time. Qatari
individuals and registered entities must now reserve either 5% or 7% of any payment
made to a non-Qatari service supplier (depending on the services delivered) where
that provider cannot show that he, she or it has a stable place of establishment in
Qatar.
Non-Qatari investors are advised to gain Qatar tax advice before arriving in the
Qatar market; the "Big 4" accounting firms have offices in Qatar.
Tax treaties
Certain countries, such as the United Kingdom, have double tax treaties with Qatar.
In the lack of such treaties, unilateral help may available where Qatari income tax
has been paid.
Tax exemptions
The Tax Law establishes the idea of tax exemption for specific projects where
definite conditions apply.
Request for tax exemption of projects is assessed by a Committee reporting to the
Ministry of Economy and Finance.
The exemption periods are 3 years on the sole sanction of the Minister of Economy
and Finance and 6 years on the agreement of the Council of Ministers
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'Qatarisation'
A Qatarisation initiative is in place which aims to surge the number of Qatari
residents in the public sector workforce. The Labour Law (Law No. (14) Of 2004)
presents Qatarisation initiatives for private sector entities. The employment of Qatari
nationals is one of the measures taken into account when tax exemptions are
decided.
Contract of employment
The popular of Qatari contracts of employment will be ruled by the Labour Law which
must be in Arabic and approved by the Labour Department. Employment contracts
for employees of Government entities and agencies along with some energy firms
will be governed by the Human resources Law (Law No.(8) of 2009).
Social and business customs
Qatar is a Muslim national, and the heritage of Islam is deeply embedded in the
Qatari character. Islamic customs govern the general way of life; care must be taken
to respect this, particularly in such matters as the dress code, the observation of the
times of prayer and the fasting month of Ramadan, when food and drink may only be
used up between sunset and sunrise. The importation and consumption of alcohol is
strictly regulated, however, liquor permits may be gained by non-Qatari employees in
certain circumstances and the major hotels are allowable to serve alcohol in
restaurants and selected bars. Qatar forbids the brewing and trafficking in alcohol.
Drunken activities in public or driving under the influence of alcohol is an offence
punishable by imprisonment, a fine or both, and the cancelation of the offender's
driving license in relation to the latter.
Qatar has prohibitions on all pork products.
Qatar forbids individuals from photographing airports, Government Ministry buildings
or defense installations and care should be taken to evade taking photographs that
might constitute an invasion of an individual's privacy.
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As with all Arab peoples, the ritual of hospitality and generosity is sturdy. It is vital to
display courtesy and patience in negotiations.
Procedure of starting up a business in Qatar
1. Apply online for approval of the planned name with the Ministry of Business
and trade.
2. Submit the Articles of Association for examination at the Commercial
Companies Inspection Department at the Ministry of Business and Trade.
3. Open bank account and deposit minimum capital.
4. Sign the Articles of Association before an agent at the Ministry of Justice
counter located at the OSS.
5. Gain commercial registration from the Ministry of Business and Trade and
register with the Chamber of Commerce and Industry at the single counter
located at the OSS.
6. Get trade license and signage license from the municipality counter located at
the OSS.
7. Register for taxes and get Tax Identification number.
8. Gain a company seal.
Required Documents
Mandatory Documents
Copy of passport
Non-Qatari Commercial Registration authentication by the Ministry of Foreign
Affairs
A copy of ID of the authorized signatory by partner
Foreign owner‘s official proxy ratified and authenticated by the Ministry of
Foreign Affairs
ID of the CR applicant and building license
Lease contract of a property
Deed contract of a property
Copy of property sitemap and drawings
Construction conclusion certificate of the company/establishment premises
Documents required on case by case basis
Franchise contract authorizing the use of the trademark
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Restaurant Business in Qatar
Company Ownership
The restaurant will start out as an LLC corporation, owned by its founders, Monank
Patel, Gaurang Tank, Digvijay Parmar, Pratik Sur, Nihar Nathvani and Balmukund
combinely holding 49% of stack with other 51% by a Qatari Friend.
Start-up Summary
The restaurant will require 3000 sq. feet space. Our start-up costs are mostly
expensed equipment, furniture, painting, reconstruction, rent, start-up labor, and
legal and consulting costs associated with opening our restaurant.
We will require minimally QAR 100,000 just to open a bank account (After One
month of the establishment we can use this money)
We will then need to cover the fees of all commercial registrations, computer ID's
etc. (maybe around QAR 50,000)
We will purchase the following current assets during start-up:
Fixtures and Lights: QAR 118,000
Sound and Televisions: QAR 30,000
Office Equipment (2 Computers, Fax, Printer, Safe): QAR 24,000
Long-term Assets in the amount of QAR 237,000 include all kitchen equipment.
Restaurant Design
Single-Level Design Concept: The total space requisite is 3,000 square feet. The
restaurant will feature a comfy and open concept design. The central dining area will
allocate 76 seats, the lounge 22 seats, and the dining bar with 12 seats. In total, the
eatery will offer seating for 110 patrons.
Restaurant Location:
Midtown of Doha, Qatar.
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‗Al Jalsa‘
It‘s love that we serve
Objectives
At Al Jalsa we will always believe in trying to build the best gastronomy. In the past
many years we have found that people of Qatar are being attracted towards dishes
of different countries. As economy of Qatar is growing rapidly, people from different
countries are being attracted to try their fortunes in Qatar. So our objective is to
satisfy the choices of people from every country possible.
Serving best possible cuisine to customers and specializing in Indian curry.
Our objective also includes being famous not only for the infrastructure but also
for the quality product. But primarily we want to be known for top notch hospitality
and customer satisfaction.
Mission
Providing different type of cuisines with top quality. To achieve such standards our
main mission is to provide nutritious food in fair price. Our efforts would be directed
towards delivering modern service with traditional taste. We will set up an excellent
team of chefs and cooks from the respected countries with different type of dishes.
The ingredients used will be of superior quality.
Vision
Though we are beginning as three star restaurants but our ultimate goal will be
achieving a seven star standard and being known for our hearty hospitality.
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Also we wanted to establish one of the biggest and most respected restaurant
chains in the world and bringing up name of Qatar in the world map. Our aim is to
win ―Best Arabic Restaurant‖, ―Best Lebanese Restaurant‖ and Qatar Today Award‖.
Marketing
Marketing is pivotal in keeping a restaurant running. It is important to retain our
existing customer base while growing the restaurant by attracting new diners.
An example of a marketing goal might be to attract new diners from a particular
neighborhood. Objectives might include using social media to engage potential
diners in conversations about food, to join the neighborhood summer activities
planning committee and to send a direct mailer inviting people from the
neighborhood to try a free appetizer.
Doha‘s population is 1.76 million. Average spending by a person on food in Doha is
$17. Main marketing strategies to be adopted will be word of mouth and in store
marketing.
Revenue
Revenue goals are important, since money is the driving force of the business. To
achieve goals, consider figuring how much revenue we would need each month to
achieve this goal. Also consider if there are months or weeks busier than others.
Perhaps our business increases during the holiday season when people are busy
shopping and have less time for cooking.
Next, break down by how many meals/units need to be sold each week and each
day.
Consider our dining crowd. If we're more likely to have a full house on weekends, the
revenue goals for these days will be higher than weekdays.
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Service
Excellent service paired with quality food is a base plan to keep diners returning.
An example of a restaurant service goal might be to provide the best front-of-house
service of any area restaurants.
We would then define what this experience would look like. Perhaps diners would
be greeted within two minutes of entry and seated within 10 minutes. It could also
include an edict that diners receive water and bread at their tables no later than five
minutes after seating.
SWOT ANALYSIS
Strength
One of very few sea-facing restaurant of Qatar.
Party yachts for making special occasions more special.
It also possesses vast area with top quality infrastructure.
Dedicated chefs for different varieties of cuisines.
Top quality food with excellent hospitality by warm welcoming staff.
The only restaurant of Qatar providing cuisines from more than ten countries.
The only restaurant in Qatar providing pick up facility.
Discount on every visit and dedicated members‘ card with extra benefits.
Play area for children and extra care for pets.
Although we run a company we‘re responsible for our employees and their
families, so it is a lot of stress and mental preoccupation to deal with, but from
that we find the satisfaction and the motivation to go on, when we look back at
our career and realize what we have achieved.
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That is what makes it all worthwhile, and it is what drives us to go on; knowing
that we have worked hard and have accomplished something
Weaknesses
New in market
Limited fund availability
Huge competition
Cultural differences
Extreme climate
Cultural diversity among staff
Might not be affordable by a particular segment of people
Setting up the infrastructure would be time consuming and difficult process.
Legal implications
Operating cash flow would be low due to promotional events.
Opportunity
Doha‘s 30% urban population is Indian
Development of tourism industry will fetch more number of customers.
People from various countries reside in Doha which will provide opportunity to
go global.
Special government aids given by government tourism department will
provide us with more favorable benefits.
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Joint ventures with various restaurant giants in world are possible after
establishing status in Doha.
Growing economy provides higher standard of living which will bring more
customers.
Beautiful sea facing infrastructure will give pleasant experience to customers
and hence will increase the number of customers at the end of their hectic
schedule.
Perfect building and pleasant interior will be done by hiring best architects and
professional interior decorator.
Threats
Licensing and other legal implication will be hectic.
Already set and established competitors
More number of partners will make it difficult to achieve effective profit sharing
Operating cost will be higher for first couple of years.
Language and cultural differences might cause clashes between staff.
Threat of formation of groups in staff.
Training employees will be difficult and cost will be higher due to language
differences.
CONCLUSION
Qatar is a dynamic market with excellent growth potential. By transferring reliance on
oil profits to modern health facilities, tourism infrastructure, and western style
education institutions, the Qatari government aims to establish a forward-looking and
highly skilled population. However, with the fast-paced growing markets the Qatari
government is not always able to establish necessary laws and procedures which
business requires. Sometimes regulations are not widely published and are at times
enforced with little or no consultation with the private sector.
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6. Sports Sector
Investors who are looking for a reliable and steady return in capital they should
invest in infrastructure projects focus their attention in Middle East region, according
to ―Infrastructure Investment Index‖ report published by global built assets
consultancy EC Harris.
In the Middle East rankings, Qatar and the UAE were both placed in the top five in
the final rankings, finishing in second and fourth position respectively.
This report also shows the scale and volume of opportunities that is present across
the Middle East particularly in Qatar where a major capital investment program is
already underway to enhance the Qatar‘s infrastructure before the 2022 FIFA world
cup. Qatar estimates $100 billion is to be allocated to infrastructure projects including
sport infrastructure.
Why Sports Infrastructure Industry In
Qatar
Qatar is planning to develop itself as a global sporting destination. So sport
infrastructure development has enjoyed unfettered supports of Qatar‘s government.
Since 2004, Qatar hosted various prominent international competitions like marine
sports football, cycling, golf, tennis.
Qatar is now setting its sights on FIFA 2022world cup and 2020 Olympic Games.
Hosting such high-profile events would evaluate Qatar‘s profile on the world stage as
well as accelerating infrastructure development and this would help to diversify the
economy of Qatar away from hydrocarbons.
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Qatar sees sport as a key way in which to diversify its economy away from its high
dependence on oil and gas, particularly hosting the World Cup and other
international sporting events.
Sports Infrastructure Opportunities in
Qatar
Opportunities can be broken down into the following general list:
Infrastructure: planning, construction, maintenance and equipment
Specialist Expertise: project management, consultancy, financing and
insurance
Current Sports Market
Qatar currently holds around 28 sporting events each year.
The largest event held in Doha up to 2012 was the 15th Asian Games in
2006.Other major sporting events in Qatar have included the Qatar ExxonMobil
Open tennis tournament, the annual Commercial bank Qatar Masters golf
tournament, and the World Indoor Athletic Championships.
Qatar’s Sporting Plans
Qatar certainly has huge the funds drawn from its large proven oil and gas
reserves to spend on new sports infrastructure and facilities.
The bid committee have said that the Al-Wakrah and Al-Khor stadiums will be
built regardless of whether Qatar‘s bid to host the 2020 Olympic is successful. There
are also proposals to expand two existing stadiums, Al-Rayyan Stadium and Al-
Gharaf Stadium
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Infrastructure
Qatar is undertaking a number of large scale infrastructure projects. Major part
of Qatar budgets is now bookmarked for infrastructure improvements, including the
sports infrastructure. Qatar has forecast to spend of $3bn on the Qatar rail network
to support major events like FIFA 2022.
Accommodation
Qatar currently has less than 10,000 hotel rooms. So Qatar is planning to build
a large number of hotels to support the event – FIFA 2020.it requires a host country
to have 60,000 hotel rooms, So Qatar has promised that it will provide more than this
figure. The intention of Qatar‘s government is to build accommodation projects that
can be re-used after the games as office developments such as a media city district
or rather it can be redeveloped for residential use.
INDUSTRY TO OPERATE
Societies have always emphasised on sports and physical activities for recreation or
competition henceforth it plays a vital role in the society. Sports is the medium by
which individuals, communities, families and countries come together in a fun and
participatory way which helps connecting cultures and improves communication. It
promotes core principles such as tolerance, cooperation and respect, inculcates
discipline, confidence and leadership. Certain sports, such as falconry and camel
racing in Qatar and the other Gulf Cooperation Council (GCC) countries, are also
closely related to cultural identity.
Sports and physical activities have an affirmative impact on reducing the likelihood of
diseases and also impacts positively on people‘s physical and mental health.
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A development in sports can improve economic productivity and can also increase
economic outputs. Activities such as sports events, sports-related services, sports
tourism and the media can also be a significant economic force in itself.
Hosting of the FIFA 2022 World Cup in Qatar is considered as an enabler that will
support accomplishment of some of the goals of other sectoral strategies. For
example, by using an eco-friendly green technology, diversifying sources of income
by engaging the private sector, and through the development of sports tourism.
Qatar‘s profile regionally and internationally will also be raised, it would also create
job opportunities, build the capability of young people and produce efficient and
productive workforce. It is also expected to have a major impact on national sports
through youth, providing high standards sport facilities by increasing the level of
participation in sport and physical activity.
Sports sector is playing an increasingly prominent role in Qatar in shaping the
national identity and progress. Sports events such as successful staging of the 15th
Asian Games in 2006 have helped change Qatar‘s image in the world. Success in
sports has become an encouragement for the whole society which contributes to an
energized, confident and modernizing nation.
Sports development is one of the four pillars of the Qatar National Vision 2030 (QNV
2030). Through increasing sports participation Qatar is planning to achieve an active
lifestyle practices among its population to improve health and sport outcomes, Qatar
is also using sports to build friendships and improve relations between nations
globally. It is also building itself to become a global sports hub with an array of first
class sports facilities and a host of regional and international sporting events.
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Essentials For An Investor
Main incentives for FDI in Qatar.
· Ownership of up to 49% foreign investment in all Qatari economic activities
- Up to 25% ownership of Shareholding Companies listed on the Doha Securities
Market
· Allotment of land to set up an investment project for a period not exceeding 50
years
· No import duties are payable on machinery, equipment and spare parts brought
into Qatar
·No export duties
· No corporate taxation for predetermined periods, and income tax exemption for 10
years
· Expatriates‘ salaries are exempt from income tax
· Loans can be secured from the Qatar Development Bank
· There are no quantitative quotas on imports.
Taxonomy of entry modes
In infrastructure sector, in present Qatar allowed 49% FDI but now Qatar
government think of 100% FDI. Main reason after this strategy is in next few years
Qatar will organised World Championship of Handball in 2015 & Football in 2022.
Also Qatar hopeful to win bid of men‘s Volleyball World Championship, 2018 &
Olympic, 2020. Also Qatar Vision 2030 is also one reason for this strategy.
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Modes of Entry
1. Equity International Joint Ventures
Equity International Joint Ventures (EIJV) is defined as ―a separate legal
organizational entity representing partial holdings of two or more parent firms,
in which the headquarter of at least one is located outside the country of
operations of the joint venture‖ (Zeira and Newburry, 1999).
Equity International Joint Ventures (JV‘s) are a very popular entry mode,
especially in the Middle East & Asia/Pacific area.
The main idea after an EIJV is that transaction costs of entering in any foreign
market are much lower than establishing a wholly owned subsidiary.
The entering firm is able to benefit from the local partners knowledge of the
host Country‘s competitive conditions, culture, language, political and
business systems.
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The local partners see a joint venture as an attractive mode to profit from the
EIJV partner‘s specific competitive advantages. It is this complementarily of
interest that makes the EIJV appealing especially in markets that are
determined by high industry specific market barriers. Another important
advantage of EIJV is the possible sharing of costs that may be needed for
research and development.
Despite these advantages, EIJV‘s do have some serious drawbacks. A firm
entering a foreign market, through an EIJV, risks giving control of its
technology to his partner. This technology and know-how could be a former
competitive advantage, and may arise the risk of opportunistic behavior by a
joint venture partner, who does not share this knowledge within the JV and
only want to benefit from the others technology as a free-rider.
One more disadvantage of EIJV is objectives of the EIJV partners are
different. It is difficult to reach agreements on how to operate, fund, and
benefit from the venture.
2. Greenfield Entry
In the hierarchical model of market entry modes, the Greenfield entry can be
considered into the high equity based entry modes, because it requires a
major resource assurance in the overseas location (Pan and Tse, 2000). That
recourse promise usually refers to the set up of a new plant, requiring
involvement of capital, human resources and a transfer of the firm‘s know-how
and/or technology. Greenfield entries can be categorized under the term of
wholly owned subsidiaries, where the firm owns 100 percent of the stock.
A wholly owned subsidiary is main two types.
By acquisition (to acquire an established firm), or
By Greenfield entry (the setting up of a new venture).
The common goal behind acquisitions and Greenfield investments is
combination of firm‘s specific advantages with other assets available in the
foreign country. The difference is that a Greenfield entry uses resources of the
investor and combines them with assets acquired locally, whereas an
acquisition uses primarily assets of local firms and combine them with the
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investors resources e.g. management capabilities (the level and nature of the
firm specific advantages).
What investors want to exploit abroad will determine whether the entry will be
Greenfield or acquisition. Location specific advantages don‘t play a significant
role, as it is equally important for either an acquisition or Greenfield entry to
be in the most preferable location.
One advantage of a Greenfield investment is the transferring of firm-specific
advantages to a foreign market, without the risk of losing control over that
competence, as is described in the case of Equity International Joint
Ventures.
This is especially the case when a firm‘s competitive advantage is based on
technological know-how which is one of the core competencies of a firm.
Other inherent advantage of Greenfield investments is that they give a firm
tight control over operations in different countries, which is necessary in a
global strategy.
Establishing a wholly owned Greenfield subsidiary is a very costly way of
entering a foreign market. Companies must bear the full costs of setting up a
new plant, finding suitable employees, costs of learning different government
restriction and different law systems.
One additional disadvantage of Greenfield investment compared with
acquisition is that Greenfield investment adds capacity to the entering market.
This argument against Greenfield investments could be very important in
markets with high competition or fed up markets.
Overall Greenfield investment can be a very risky market entry mode, as the
investors may have to carry the risk of sunk cost alone in a new and uncertain
marketplace.
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HOW TO ENTER IN QATAR?
From the above features of joint venture and green field investments, we would like
to go for a joint venture. As government of Qatar is allowing for 49% of FDI and in
the future they are planning to increase the same to 100%. It would be beneficial to
go via joint venture.
We will venture with a firm who is established well in infrastructure in Qatar but not
so much in sports infrastructure so that we can keep our competitive advantage over
the company along with getting the required resources, manpower, goodwill and
expertise of the company.
QATAR SPORTS SECTOR STRATEGY
The sports sector strategy, which is formed by the Qatar Olympic Committee in
consideration with Olympic 2030 and FIFA World Cup 2020, focuses on six sectors
which namely as follows:-
1. Sports Management
2. Hosting International Events
3. Sports awareness, education and cultural change
4. Promotion and Publicity
5. Sports Leisure facilities
6. Athlete pathway development
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Sports leisure facilities:-
Improving existing venue access and usage
Construct new facilities
Construction of purpose built venues
Promotion and Publicity:-
Marketing and Sponsorship
Marketing Qatar as a sports tourism hub
Athlete pathway development:-
Establish additional leagues
Supporting athletes reaching the top level
Developing original talent
Sports Management:-
Management support to clubs, committees and federations
Developing HR with financial accountability
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Sports awareness, education and cultural change:-
Increasing participation of women and special needs athletes
Spreading awareness of all sports and the benefits related to it
For sports infrastructure development, our main objectives from 2011 to 2016 are as
follows:-
1. To educate and engage the people in sports activity for healthy lifestyle.
2. To increase the opportunity for people of all ages and abilities to participate in
physical activities.
3. Ensuring appropriate, adequate and accessible facilities for competitive
sports.
4. To identify new sports talent and sponsoring them.
The outcomes of the actions would be:-
1. Increased participation of community due to high technology infrastructure.
2. Public health programmers which would lead to healthy and active lifestyles.
3. Improved sports talent management and performance.
4. Management plan for coaches and technical officials for identifying and
developing professional needs.
Infrastructure statistics
Gross domestic product at current prices (Million Qatari Riyal)-Major Infrastructure
Industries
Economic Activity 2006 2007 2008 2009 2010 2011
Electricity and Water 1,569 1,820 2,063 1,794 2,070 2,564
Percentage to GDP 0.7 0.6 0.5 0.5 0.4 0.4
Percentage change 16 13.4 -13 15.4 23.9
Building and Construction 10,846 15,925 27,199 25,522 24,144 23,325
Percentage to GDP 4.9 5.5 6.5 7.2 5.2 3.7
Percentage change 46.8 70.8 -6.2 -5.4 -3.4
Trade, Restaurants & Hotels 14,789 20,848 23,429 29,839 32,309 34,920
Percentage to GDP 6.7 7.2 5.6 8.4 7 5.5
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Percentage change 41 12.4 27.4 8.3 8.1
Transport
and 6,885 8,697 14,775 16,212 18,275 21,593
Communications
Percentage to GDP 3.1 3 3.5 4.6 3.9 3.4
Percentage change 26.3 69.9 9.7 12.7 18.2
Finance, Insurance, Real 29,371 41,982 51,580 58,099 62,119 73,427
Estate & Business Services
Percentage to GDP 13.3 14.5 12.3 16.3 13.4 11.6
Percentage change 42.9 22.9 12.6 6.9 18.2
Social Services 1,727 3,004 3,461 4,149 4,347 4,883
Percentage to GDP 1.2 1.4 0.8 0.9 0.9 0.6
Percentage change 46 -10.3 -12 29.1 0
Total 2,21,61
1
2,90,1
51
4,19,5
82
3,55,9
86
6,31,6
09
6,31,6
09
Contribution of Infrastructure sectors in the Qatar Economy
(Million Qatari Riyal)
Years 2006 2007 2008 2009 2010 2011
Infrastructure 39,378 50,694 58,369 71,026 76,818 87,156
sectors
GDP at 2006 156,662 184,838 217,486 243,492 284,226 324,356
prices
% of GDP 25.1 27.4 26.8 29.2 27.0 26.9
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SWOT Analysis of Infrastructure industry
Strength & Opportunities
The construction industry now a day move away from residential and
commercial construction towards infrastructure projects as a result of the
global financial crisis.
In the 2011-12 Qatar budget, infrastructure is the lead sector with 34 per
cent of total investments allocated to infrastructure upgrades. In five year
development plans Qatar also points to high amount of spending for
infrastructure in medium term. The recent announcement stats that Qatar is to
host FIFA 2022 World Cup has stimulated private and public infrastructure
and industrial projects to the value of more than US $140 billion.
Qatar is one of the rich countries in the world and fastest growing economies
in the Middle East. The growth in the economy is because of its large
production of oil, liquefied natural gas and condensates, supported by
increases in hydrocarbon prices.
Possible weakness and threat
Qatar‘s Government revenue is largely depended on oil and gas leaves
growth.so, export and revenue of government vulnerable to shift in world
price.
That may cause the cut down volume of government budget and possible
allocation to infrastructure sector.
Qatar is currently depends on immigrant labour that cause outflow of
remittances are high.
Though Qatar‘s dependence on immigrant labour and outflow of remittances
are high, Qatar‘s current account remains firmly in surplus.
Oil-fuelled asset price booms may cause an upside risk to inflation.
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Tight credit markets could make financing for large-scale projects hard or
prohibitively expensive.
Some major sporting events cannot be held when the temperature is too high.
So infrastructure has to be built with keep in mind this point or event must
organize in other seasons during January.
Like, When Asian Football Confederation selected Qatar as the host of the
2011 AFC Asian Cup they opted to run the event in the January window
rather than July or August because they considered it to be "too hot‖ in the
Gulf region.
Estimated Capital Requirement
• The basic capital requirement to start a business in Qatar is estimated to be
200000 QR.
• Since our company is going in a joint venture, it would not require a huge start
up, but due to the company being into sports infrastructure industry it would
require 1000000 QR as its start up cost.
HOSTING FIFA WORLD CUP 2022
According Middle East Economic Digest ( MEED ), Qatar‘s successful bid to host the
FIFA world cup in 2022 is said to launch a US $ 60 billion construction boom in the
gulf state. MEED estimates that infrastructure projects for sports worth approximately
US $ 55-60 billion that had been planned and will now go ahead.
For the world cup 2022, Qatar government is expecting to have 12 football stadiums
which will host the matches. Out of 12, 3 stadiums already exist and which will be
expanded in terms of increasing their seating capacity and facilities to the players
and the fans.
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The other 9 stadiums will be state of the art eco-friendly and cutting edge football
stadiums and Qatar has estimated a budget of US $ 4 billion for it. The name and
location of the stadiums are as follows:-
Lusail- Lusail iconic stadium
Doha- Khalifa international stadium
Doha- sports city stadium
Doha- education city stadium
Al khor- Al Khor stadium
Madinat ast Shamal- Al Shamal stadium
Al Wakrah- Al Wakrah stadium
Umm Salal- Umm Salal stadium
Doha- Doha port stadium
Doha- Thani Bin Jassim stadium
Al Rayyan- Ahmed Bin Ali stadium
Doha- Qatar university stadium
Out of 12, the first 5 stadiums will employ cooling technology capable of reducing the
temperature of the stadium to 20 °C (68 °F), and the upper tiers of the stadiums will be
disassembled after the World Cup and donated to countries with less developed sports
infrastructure.
The Lusail iconic stadium will have a capacity of 86,000 seats and the tournament‘s
opening and closing ceremony along with final matches will be held there.
Al Khor, which is located 50 kms north of Doha, will have the stadium named Al khor
stadium. It will have a capacity of 45K to 46K and out of it, 20K would be temporary
seats in upper tier which will be disassembled after the FIFA.
The Al Wakrah stadium to be located in Al wakrah. It is in the southern part of Qatar.
It will have the same capacity as Al Khor stadium with same temporary seats. The
stadium will be decorated with Islamic art and will also be surrounded by large solar
panels which will assist in generating electricity.
All these infrastructure projects are part of Qatar‘s ambitious National Vision 2030
which is for modernizing the country and making it a role model for the whole world.
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Due to FIFA world cup 2022, these projects will start in full swing and expected to
complete by 2020.
As a part of these projects Qatar will spend US$ 45 billion and remaining of budget
will be spend on others high profile mega projects largely in transportation, tourism,
health, education, and housing sector. Plan also includes US$ 25 billion metro and
rail project.
As FIFA is world‘s largest fan following tournament, Qatar require to build new
international airport. Doha is hosting most of the matches of tournament; Airport
would be in Doha, capital of Qatar. First 2 phases would be ready by 2018 and
others will be by 2027. It will replace the old airport which has capacity of handling
16 million passengers per year with 24 million passengers per year. This Capacity of
handling passengers can be expanded to 50 million.
Officials in Qatar have already announced the launch of a staggering 200 projects in
different areas by the first quarter of 2011. Qatar will receive an unexpected boost
primarily in two areas, sports facilities and hotel/leisure facilities. So there is an
opportunity of expanding our sports infrastructure business.
Constructing 12 stadiums will overkill a country like Qatar but authorities have
already planned that they will dismantle the stadiums once the mega event is over
and gift to other countries. Qatar is also planning to build around 90,000 hotel rooms
for the FIFA world cup nearby the stadiums. Actually requirement is for 65,000 to
70,000 hotel rooms but the government does not want to take any chances
considering the number of football fans over the world.
US$20 billion will be spent on road improvements and expansion programs. It
includes US$687 million Lusail Express way, Doha Expressway, Dukhan Freeway
and Doha Bay crossing. Rail Network will cover the construction of metropolitan
railway in Doha, a high speed rail link between new Doha international airport and
city centre. Approximated budget for this construction is US$25 billion. In addition to
this, freight line will be added to link up with GCC Rail network. Qatar Bahrain
causeway which had US$4 billion budget was put on hold in last June but due to
FIFA world cup this scheme will now be given renewed impetus. It is a 45 km long
fixed link between Qatar and Bahrain.
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MEED construction analyst Andrew Roscoe said that, ― building towards the world
cup will inject a new dynamism into the drive by Qatar and the region to diversify its
economy away from its dependence on oil and gas.‖ It was being criticized by many
of the other countries that Qatar has lack of football supporters than how can it
organize FIFA. It was fantastically answered that countries around Qatar like Saudi
Arabia, Iraq, Iran and Egypt has large football mad populations.
Qatar didn‘t bid for the FIFA world cup to host it but also for developing its own
physical infrastructure and social, economic and legislative environment to lay the
bed rock of a sustainable diversified economy that can be a model for the rest of the
region.
RAW MATERIALS REQUIRED
For the construction of the stadium, the basic raw material which are required are
Concrete
Iron
Steel
Cement
Sand
Grass
Wood
Soil
Underground heating device
These raw materials are available at cheaper rates. The leading firms which supply
these raw materials are as follows:-
Concrete Companies:-
1. Qatar Concrete Company
2. Beton W.L.L
3. Hamad Bin Khalid ( HBK ) Ready mix
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Iron Companies:-
1. Hammam Iron
2. Hoddadco Iron Ltd.
3. Ductile Iron Co
Steel companies:-
1. Qatar steel Company
2. Nafal Qatar
3. Steelco trading and contracting company
Cement companies:-
1. Qatar National Cement Company
2. Gulf Cement Company
3. Khalid Cement
Sand companies:-
1. Qatar Primary Materials Co.
2. INMA Company
3. Red Flint sands
Grass Companies:-
1. ASCON engineering co.
2. Salam Enterprises
3. Assiyana Services
Underground Heating Devices Companies:-
1. NicroPads
2. Danish Heating and Cooling
3. Custom Heating Elements
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OVERALL COMPARISON WITH INDIA
Every country has its National Sports Policies which highlights the need for creation
of sports infrastructure at the grass-root level and its necessity of implementation of
schemes to promote excellence in sports infrastructure.
The National Sports Policy of India emphasized primarily on:
(a) The development of basic sports infrastructure especially in the rural areas
and preservation of the existing playgrounds, and
(b) The integration of sports and physical education as an integral part of the
students‘ curriculum.
The main objectives of this policy were to ensure mass contribution in sports and to
promote excellence in sports through ―institutional support, international exposure
and incentives to sportspersons‖. To achieve this objective, the set up was made to
oversee all matters related to sports promotion and management. Initially In 1992,
Plan of Action was formulated by the Government to revive the objectives of National
Sports Policy. However, by the year 2000, there was no visible improvement in the
infrastructure facilities and the rate of participation remained low (especially at the
grassroots level). For example out of a population of 77 crore, only 5 crore people
below the age of 35 years had access to organized games and sports facilities. This
necessitated a new policy, and in 2001, a National Sports Policy was formulated,
which was followed by a National Comprehensive Sports Policy in 2010.
Despite many attempts by the government, none of the departments, policies or
schemes has been able to achieve the desired result. India still lacks a strong
sporting culture and this is primarily because of policy lacunae and sparse and
sporadic budgetary support from Union Government and State Government. The
laid-back attitude of the government and sports administrators has further enlarged
the loopholes present in sports management system. It has also been observed that
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there is often replication of work done by the Union government and the state
governments. This arises due to the synchronization failure between them.
Every report of the government cited three important reasons for the current
despicable state of sports affairs. These are:
a) Lack of sports consciousness and culture in the country,
b) No network of basic sports infrastructure,
c) Absence of effective system for talent identification,
d) Training and fair selection of teams.
Although there is awareness at the government level, limited actions have
been taken to actually devote in sports infrastructure. Funds granted are very
sparse and even if funds are allocated to the states, it lies unutilized in many states.
For example, In West Bengal out of INR 1.3 crore (USD 275,102) (approximately)
disbursed by the Union Government to the State for sports infrastructure
development (in certain districts), only few lakhs have been utilized. Not only the
States, but also the Union Government does not fully use the funds available to it. In
Tenth Sports Development Plan, INR 1360.41 crore (USD 287 million) was utilized
by the Central Government against an allocation of 1463.69 crore (USD 310 million).
Playing fields in many parts of the country are now grazing grounds for cows and
cattle. Also existing stadia are in a dilapidated state. Indira Gandhi Indoor Stadium
(IGI), second largest indoor stadium in the Asia, lay covered in heaps of dirt. The
main stadium of Asian Games 1982 and CWG 2010 (which has been renovated in
2010 at a cost of INR 240 crore i.e. USD 52 million) has lost its glamour and no
longer boasts of its glorious past. Its lavatories are leaky, wall paints and plasters are
peeling off, wirings of the galleries are on the floor and wrestling platform is falling
apart.
Lack of proper management has further aggravated the difficulty of the stadiums.
Even though many sportspersons have been speaking about this issue, government
has done little to relieve their throbbing. Absence of proper management results in
misuse of the sports complexes. Dumurjala Indoor Stadium in (Howrah) Kolkata
(West Bengal, India) is currently being used to shoot reality shows for Bengali
channels.
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Official Apathy has also harmfully affected cricket – the most popular and beneficial
sports in India. BCCI, one of the richest sports associations in the world, still lacks a
proper monitoring system to ensure utilization of funds for creation of infrastructure in
towns and villages. As a result, several state cricket associations do not own their
own cricket stadium in spite of having a bank balance of more than INR 100 crore
(USD 21.9 million).
Irregular funding and absent of energetic, approachable and result-oriented
governance has resulted in unacceptable condition of sports and sports
infrastructure in India.
While on the other hand, Qatar has become one of the most exciting sporting
destinations in the world. Infrastructure developments at home and sporting
investments overseas have fired up the thoughts, including the purchase of the
leading French football club Paris Saint- Germain and a UAE-Qatar joint partnership
working on the world‘s first-ever extreme sports park.
The results of a $2.8 billion infrastructure investment include the; iconic Aspire
Dome, the Qatar MotoGP track and the five-floor ultra-modern Hamad Aquatic
Centre; from which the Emir launched the Aspire Academy‘s Football Dreams
Project.
For the past seven years the Project has scouted more than two million youth
footballers from across the world which is one of the many factors that helped secure
Qatar‘s proposal to host the 2022 World Cup. The World Cup will be staged in 12
future-inspired venues, such as the futuristic Al-Wakrah Sports Complex and dhowshaped
Al-Shamal, which would just be 30 minutes far from Bahrain by water taxi.
Investment in infrastructure on this level will provide firm foundations for future
generations in Qatar and further away to enjoy the advantages of sport for decades
to come. The country is expected to spend $130 billion on infrastructure projects
ahead of hosting the FIFA World Cup tournament in 2022, the immoveable deadline
of which is proving a key catalyst for activity as Qatar prepares to present itself on
the world sporting stage. The government wants Qatari firms to be involved in all
World Cup related projects; further boosting the event‘s diversifying effect on the
economy.
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The FIFA World Cup is the largest single event sports tournament in the world by a
considerable margin and will put Qatar on the world map. Qatar‘s hospitality sector
and tourism sector expects it to help boost the Gulf state into becoming a preferred
destination for international tourism while reinforcing its reputation as a mass nation
for major sports events. Qatar National Vision 2030 includes the government‘s first
national sports sector strategy, a plan determining the importance of sport, not only
to the country‘s business, leisure interests, and tourism, but also in support of the
population‘s health. The future use of the event‘s facilities should also provide good
inheritance opportunities to other industries like education, health, real estate etc.
In Qatar, a determined infrastructure building programmed has been in place since
2004 to build more competition fields, neighborhood playgrounds and cultural
centres. Before deciding on whether to build new facilities, the option to use, coshare
and co-locate with existing sports facilities should first be considered as a
matter of due diligence.
By maximizing usage and increasing access to existing venues, the quantity and mix
of sports facilities that are available to the public can be increased without the need
for heavy capital expenditure. Public policy needs to consider both access and use
of sports venues and public parks, to ensure the best possible environment is made
available for people to be physically active.
In order to better inform policy, the Qatar government proposes the development of a
National Sports and Recreation Facilities Master Plan to systematically collect and
analyze data related to sports and recreation facilities. An inventory of national
sports facilities will help Qatar:
a. Develop a network of accessible, high quality open spaces and sport and
recreation facilities, which meet public needs, are fit for purpose and are
economically and environmentally sustainable;
b. Determine an appropriate balance between new facilities and the
enhancement of existing facilities; and
c. Promote these facilities locally and internationally for future revenues.
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A sporting culture cannot take root overnight. The recommendations contained in
this Strategy will generate some momentum and sow the seeds for a future whereby
people will grow to embrace sports physical activity as a way of life. The five projects
identified within the Sports Development Plan represent a comprehensive range of
first steps towards achieving Qatar‘s goal of developing an active and healthy nation,
with a strong sense of identity and social cohesion. Through the delivery of this
strategy, by 2016, it is expected that:
a. There is a growing conviction of the value of sport & physical activity and the
contribution it can make to national outcomes, resulting in better coordinated
planning and delivery of sports
b. Children across Qatar are introduced to sport from an early age and more
children, irrespective of their gender and ability, progress into higher level
sporting opportunities
c. Qatar benefits from new and improved access to quality sports facilities and
public facilities
d. More potential athletes are recognized and supported, including top athletes
who are fully prepared to represent Qatar on the world stage; and
e. More coaches and other technical human resources have developed their
skills and qualifications, in turn improving the experience of a wide range of
participants.
Sports infrastructure sector has a very good scope in India as well as in Qatar but
Qatar does have its competitive advantage over India. This is in terms of the cost of
raw materials plus labour. That can be seen in the following table ( in INR ):-
Unit India Qatar Comparison
Cement Per 50 kg 290 195 +
River sand Per tonne 650 522 +
Manufacturing sand Per tonne 500 373 +
Concrete Per Cubic meter 2,900 4,500 -
Steel Per metric Tonne 12,650 44,715 -
Grass Per Sq. Meter 5,500 560 +
Iron Per Metric Tonne 24,100 34,770 -
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Wood Per Tonne 7,700 42,200 -
Soil Per Tonne 1,100 3,500 -
Land Per Sq. Meter 30,000 6,000 +
Basic requirement for building a stadium is land, and as we can see in the
above table, it is very cheap in Qatar than in India. Rate of the Land in suburban
Qatar is Rs. 6000 per sq. meter which 1/5 th of the rate prevailing in
India. It is around Rs. 30,000 per sq. meter in sub-urban part of Delhi. This
also shows that building a total of 9 stadiums would be cost effective for Qatar
considering the fact that the stadiums will be built in sub-urban areas.
Constructing football grounds in Qatar is also beneficial because the artificial
grass that will be used on the football pitch is 10 times cheaper than India.
Current price of grass in Qatar is INR 560 per sq. meter.
The main raw materials required for the construction of the stadium, i.e Sand
and Cement are also cheaper than India. Cement and manufacturing sand
are 33% cheaper than India and river sand is 20% cheaper.
Wood per tonne in India is at INR 7,700 but in Qatar it is very expensive which
is 5 times higher than India. But it‘s not an issue to worry because we can
utilize less wood while constructing the stadium. Instead of using wood for
seating arrangement, we can go for fiber/ plastic which is cheaper. Rate of
making plastic/ fibre chairs will cost around INR 150 in Qatar per seat in
comparison to INR 500 in India.
The rate of Iron and Soil is more in Qatar but the other advantages we are
getting are over shadowing this disadvantage.
The only loss we can get is in steel, which is very costly. The rate prevailing in
Qatar is INR 44,715 per m.t. which is 3 times costlier than the steel available
in India.
Cement prices dropped to 72% last year in Qatar whereas in India it rose by
10%
Ready mix concrete declined to 25% in Qatar but in India it showed the same
rise as cement.
Iron and steel price rose to 16.78% and 10% respectively.
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Direct labor conditions:-
The other important aspect for constructing the sports facilities is labor, which
is available at cheaper rate in Qatar. The prices/ wages that should be given
to laborers are governed by Emir of Qatar. The working conditions and safety
concerns are better than India due to which labor can be found easily.
In Qatar, the average working hours are 40-48 hours a week and during
Ramzan schedule are flexible and workers have to work for only 6 hours a
day.
While in India, the working hours are not fixed because of which the workers
are made to work 12-14 hours a day and also do not get overtime wages. In
addition to that many organizations face problems from labor unions.
Both these factors cause high labor turnover rate in India
Direct Expenses:-
For constructing the facilities other direct expenses require are
Transportation, Loading-Unloading, freight charges and warehousing.
Transportation cost is 5 times lower than India due to cheap oil prices.
Loading unloading cost is very low in Qatar due to mechanized process
Freight charges are low.
Warehouses are highly organized with adequate space and technology
Technologies are more advanced in Qatar which helps in bringing a more
safe environment for all the factors.
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