RISE WITH QATAR

RISE WITH QATARMINISTRY OF BUSINESS AND TRADEINVESTMENT PROMOTION DEPARTMENT

RISEWITHQATAR

RISEWITHQATARMINISTRYOF BUSINESSAND TRADEINVESTMENTPROMOTIONDEPARTMENT

INVESTMENT PROMOTION DEPARTMENTThe pages that follow will introduce Qatar’s open market that warmly welcomes foreign investors.A significant source of Qatar’s national income comes from exporting gas and oil, however the governmentencourages economical diversities to fortify Qatar’s long term economical prosperity. With thisbeing said, the economy of Qatar is thriving at a rapid rate, making Qatar the perfect place for foreigninvestment.An active member of the World Trade organization, the State of Qatar supports a liberal economy and iscommitted to free trade. To prepare for the 2022 world cup there will be many opportunities for foreigninvestors in Qatar.The Qatari riyal remains to be a secure and freely convertible currency. There are no restrictions on profittransfer or capital repatriation. Import duties on machinery and raw materials are non-existent; thus makingQatar the ultimate place for foreign investment.Although corporate taxes are 10%, labor costs are competitive and personal income taxes arezero. These factors combined with a strategic and accessible location, an excellent reliableinfrastructure with The Ministry of Business and Trade makes every effort to reduce the paperwork involvedin establishing a business in Qatar by activating legislation and simplifying procedures which providesappropriate incentives for businesses to develop their work at the local level.Through this booklet the Ministry of Business and Trade hopes to provide a simplified introduction andguide to the investment opportunities in the state of Qatar.HE Sheikh Jassim bin Abdul Aziz bin Jassim Al-ThaniMinister of Business and Trade

12 REASONSTO INVESTWITH CONFIDENCEIN QATAR

INVESTMENT PROMOTION DEPARTMENT1. Energy Powerhouse P. 12. Economic Miracle P. 53. Government Support P. 74. Highly Developed Infrastructure P. 95. Thriving Private Sector P. 116. Knowledge-Based Economy P. 137. Attractive Incentives P. 178. Skilled and Motivated Workforce P. 199. Exceptional Lifestyles P. 2110. Land of Endless Opportunities P. 2311. Healthy Financial Markets P. 2512. Long-term Vision P. 27

1ENERGYPOWERHOUSEPossessing more than 200 years of proven naturalgas reserves and substantial oil resources expectedto last 25 years, the State of Qatar’s crucial longtermposition in fuelling global growth is clear.In recent years Qatar has stepped up effortsto ensure its economic growth is sustained bymaintaining a competitive advantage achievedthrough 25.7 billion barrels of proven oil reservesand natural gas deposits in excess of 900 trillioncubic feet.Oil and gas exploration projects have beenexpanded with incentives offered to attractoverseas investors and laws aimed at simplifyinginvestment procedures having a positive impactas Qatar works hard to maintain its daily outputcapacity of 850,000 barrels of crude oil.Work on the North Gas Field developmentis scheduled to be completed in 2010 and isestimated to produce more than 18 billioncubic feet of liquefied natural gas (LNG) per day.The government also aims to increase the outputcapacity of LNG to more than 60 million tonsper year from the current level of approximately18 million tons per year.Qatar is presently committed to several majorenergy-related projects including the QR 11 billion(US$3 billion) Norsk Hydro aluminium plant anda further QR 11 billion being invested in thepetrochemicals sector.1

INVESTMENT PROMOTION DEPARTMENTQATAR PETROLEUMQatar Petroleum (QP) is the state-ownedcorporation responsible for all phases of theoil and gas industry in Qatar. Principal QPactivities cover exploration, drilling andproduction operations, transport, storage,marketing and sale of crude oil, as well asnatural gas liquids, liquefied natural gas, refinedproducts, petrochemicals and fertilizers.QP operations are conducted at variousonshore locations including Doha, Dukhan,Mesaieed and Ras Laffan Industrial Cities, aswell as offshore areas including productionstations, drilling platforms, Halul Island and theNorth Gas Field.QATARGASQatargas pioneered the LNG industry in Qatarand today the company is realizing its visionto deliver LNG to customers around the globefrom their world-class facilities in Qatar.Currently Qatargas is undergoing a period ofrapid expansion, exporting 77 million tons tomarkets in Europe, Asia and North Americafrom the company’s Ras Laffan Industrial Cityonshore plant.2

1ENERGYPOWERHOUSE3RAS LAFFANINDUSTRIAL CITYTransformed from empty desert into a thrivingglobal energy sector hub, Ras Laffan IndustrialCity is an ideal investment centre for internationalinvestors and already boasts many eliteenergy sector giants such as ExxonMobil, Shell,Dolphin Energy, QatarGas and RasGas LNGproduction facilities.Strategically located at the centre ofthe Arabian Gulf between the FarEast and Europe on the internationalmaritime shipping route, energy productsreach world markets quickly, safely and readyfor use.MESAIEED INDUSTRIAL CITYQatar’s main production facilities and industrialplants for Qatar Petroleum, QP Refinery, Qatar FertiliserCompany (QAFCO), Qatar PetrochemicalCompany (QAPCO), Qatar Steel, Qatar Fuel AdditivesCompany, Qatar Vinyl, Qatar Chemicals, QatarAluminium and Mesaieed Port Authority.DUKHANQatar’s main onshore oil productioncentre is situated halfway alongthe western coastline of the QatariPeninsula. It has been developedas the oil nerve centre since theexploitation of the country’s oilreserves commenced in 1949.

INVESTMENT PROMOTION DEPARTMENTENERGY CITYThe Middle East’s first energy businesscentre, Energy City caters to the commercial,technical and human resource needs of theoil and gas industry giants operating in theMiddle East.The QR 9.5 billion (US$2.6 billion) development,located alongside Qatar Petroleum’s newglobal headquarters, is destined to be thefirst fully serviced e-city offering world classoffices for 20,000 workers and luxuryresidences for 10,000 tenants.QAPCOLocated in Mesaieed Industrial City,Qatar Petrochemical Company(QAPCO) is a joint multinationalventure to utilise the associated andnon-associated ethane gas frompetroleum to produce fertilizers, steel,refined petroleum products andnatural gas liquids.QAPCO manufacturing facilitiesconsist of an ethylene plant withannual capacity of 720,000 MT,two LDPE plants with a total annualcapacity of 360,000 MT and a sulphur plantwith an annual rated capacity of 70,000 MT.QATALUMA joint venture by Qatar Petroleum andNorsk Hydro, Qatalum will be one of thelargest aluminium plants ever built with a firstphase capacity of 585,000 tons of primaryaluminium.4

2ECONOMICMIRACLEWith surging global energy requirementscausing record growth rates and no signof demand slackening, Qatar holdsa central role in the world economy.Opening up the economy has resulted in theentry of a large number of foreign companies,while continued commitment to liberalizationand the introduction of new economic policieshave created a sea of new opportunities fordomestic and foreign investors particularly in theinfrastructure and knowledge economy sectors.Qatar’s successful economic diversificationprogram continues its rapid expansion withfurther development of investment projects inpetrochemicals, finance, real estate, manufacturing,industrial and various other sectors.While economic diversification strategiesemphasise the use of Qatar’s vast naturalgas reserves to attract further investmentin non-energy sectors, oil maintains itsprominence as the largest contributor towardsgovernment revenue (over 70%), overallGDP (53.8% in 2009) and export earnings(approximately 85%).Qatar’s diversification efforts, coupledwith a buoyant oil sector, continue tounderpin rapid economic growth and theemergence of Qatar as one of the richestcountries in the world, achieving the world’shighest per capita GDP of QR319,333(US$87,717) in 2009. Forecasts predictQatar’s Nominal GDP to grow by 28.1% in2010 and by 25.5% in 2011.5

INVESTMENT PROMOTION DEPARTMENTGross Domestic Product By Economic Sector (QR billions at Current Prices)2005 2006 2007 2008 2009Oil & Gas Sector 92.09 130.20 166.64 215.05 165.33Non-Oil Sector 64.57 90.01 127.29 187.88 192.53Agriculture & Fishing 0.22 0.23 0.27 0.30 0.31Manufacturing 16.56 23.23 26.00 37.95 28.26Electricity & Water 1.80 2.43 3.18 4.35 3.91Building & Construction 7.16 7.67 21.63 32.51 25.78Trade, Restaurants, Hotels 7.57 9.61 15.48 20.67 23.95Transport & Communications 5.90 8.95 13.54 21.20 22.70Finance, Insurance, Real Estate 13.90 19.48 27.31 38.11 43.37Other Services 11.46 18.41 19.88 32.79 44.25Total GDP (QR billions) 156.66 220.21 293.93 402.93 357.86% Change 34.8% 40.6% 33.5% 37.1% -11.2%Total GDP ($ billions) 43.01 60.50 80.75 110.70 98.31GDP Per Capita ($) 47,794 54,496 57,936 67,426 87,717Source: Qatar Statistics Authority6

3GovernmentSupport7The State of Qatar is a rapidly growing nationand those who want to invest in businessopportunities here will be pleased to knowthe Qatari government is taking everyopportunity within its considerable power toencourage foreign direct investment.Over recent years the state’s blossomingeconomy and exciting investmentopportunities have placed Qatar firmly underthe international investment spotlight. As thecountry attracts increasing numbers of overseasinvestors, the government continues to increaseexpenditure and expand opportunities byopening up more and more public sectorinfrastructure projects to overseas private sectorinvestment and partnership.In its desire to increase the rate ofdevelopment through foreign investment,the government has removed restrictionson import quotas and export duties. Law13 of 2000 allows non-Qatari companies,subject to ministerial approval, toinvest up to 100% in agriculture, industry,healthcare, education, tourism, exploitationand development of natural resources,energy or mining, business consultancyand technical services, informationt e c h n o l o g y, c u l t u r a l , s p o r t s a n dentertainment services and distribution servicesprojects.A perfect example of solid governmentsupport was evident during Qatar’sreaction to the global financial crisis ofthe past few years. Strong economicfundamentals – aided by proactivestate support - helped Qatari banks towithstand the economic downturn. As the localbanking environment became tougher in 2009,Qatari banks were able to resist the negativeglobal trend and emerge from this crisis moresecure and competitive than ever.Qatar’s efforts to attract foreigninvestment have led to the issuing of new lawsdirected at creating a favourable businessenvironment. Since 2004 new legislationhas included Labour Law (No. 14 of 2004),Property Law: Non-Qatari’s (No. 17 of 2004),Qatar Science and Technology Park Law (No.

INVESTMENT PROMOTION DEPARTMENT36 of 2004), Qatar Financial Centre Law (No.7 of 2005), Qatar Financial Markets AuthorityLaw (No. 33 of 2005), TelecommunicationsLaw (No. 34 of 2006) and ForeignInvestment Law (No. 1 of 2010).PUBLIC FINANCEThe state budget plays a vital role in the Qatarieconomy and is the main factor in achieving thegovernment’s economic development goals.Qatar’s prudent fiscal policies continueto receive acclaim from sovereign ratingsagencies, with the most recent upgradegiven by Capital Intelligence in January2008, wherein it raised the long-termratings of Qatar to AA - from A+. Qatar hasachieved a budget surplus in each of the pasteight fiscal years, totaling QR102.7 billion(US$28.2 billion).The 2010/11 State Budget is the largest inQatar’s history and forecasts revenues to increaseby 35.4% to reach QR127.9 billion (US$32.4billion), based on an oil price assumption ofUS$55 per barrel. Meanwhile total governmentexpenditure is projected to increase by 45.9%to reach QR117.9 billion (US$32.4 billion),resulting in a budget surplus of QR10billion (US$2.75 billion).2010/11 Budget -MAJOR ALLOCATIONSFOR DEVELOPMENT• Infrastructure - QR35.5 billion(includes completion of the New DohaInternational Airport, New Doha Port, roads,drainage, land reclamation, andexpansion of the electricity and waternetwork).• Education and Youth Welfare - QR17.3billion (includes establishment of academic andschool buildings and educational facilities).• Healthcare - QR8.6 billion (includescompletion of new hospitals and new healthfacilities).8

4Highly DevelopedInfrastructureQatar benefits from a modern transportnetwork of roads, ports and internationalairports that guarantees swift connections to allareas of the country.The Port of Doha is one of largestcontainer shipment centres in the Gulf, whileDoha International Airport offers directconnections to more than 100 worldwidedestinations and 1, 270 km highwaynetwork seamlessly connects the industrial citiesof Ras Laffan, Dukhan and Mesaieed with thecapital city, Doha.Qatar’s expansion of information andcommunication technologies (ICT) hascreated an exceptionally well-developedcommunications infrastructure under theguidance of the Supreme Council forCommunication and InformationTechnology (ictQATAR).Making a world of difference andconnecting Qatar to the world are thecountry’s two mobile telecommunicationsoperators, Qatar Telecom and VodafoneQatar. Internet availability continues to growexponentially, having increased from just 3.6%of the population in 2000 up to an impressive51.8% in 2010, buoyed by the building of anew US$3.8 billion underwater subsea cableset to link Qatar and the Gulf countries toEurope and India by 2012.QATAR-BAHRAIN CAUSEWAYAttracting investment in the region of QR13.8 toQR18.2 billion (US$ 3.8 to US$5 billion), theQatar-Bahrain Causeway is a 40 km (25 mile)structure of linked bridges connecting Qatarwith the neighboring Kingdom of Bahrain.The dual-lane highway – redesigned toaccommodate future railway traffic – will bethe longest fixed link bridge in the world and anatural extension of the King Fahd Causewaythat connects Bahrain with Saudi Arabia, andthus linking the entire GCC region.9

INVESTMENT PROMOTION DEPARTMENTTHE NEW DOHAINTERNATIONAL AIRPORTSetting new standards for airline andairport efficiency, passenger convenienceand quality service, the New DohaInternational Airport (NDIA) is expectedto be the first airport in the world to fullyhandle the Airbus A380, the world’sbiggest commercial aircraft.As passenger and cargo levels in Qatar growdramatically, the NDIA will become the region’snew international air travel gateway and hubfor the world’s fastest growing premium airline,Qatar Airways.Three times the size of the existing airport,at its ultimate development the NDIA willhandle 50 million passengers, 2 milliontons of cargo, and 320,000 aircraftmovements each year.VIBRANT SEA PORTSStrategically located as an integral partof the new Economic Zone 3, the QR 25billion (US$6.84 billion) New Doha Port willbe a catalyst for regional economic growthupon completion in 2015.Connected to the major transportation routesplanned as part of the Qatar Master Plan,initial capacity will be two million teus (twentyfootequivalent units) - seven times the capacityof the existing port – with ultimate capacity inthe region of six million teus.Meanwhile Ras Laffan Port, located 80km northof Doha and Qatar’s global gateway for theworld’s leading oil and gas energy companies,is undergoing a US$1.7 billion expansionproject to upgrade all quay walls to liquefiednatural gas (LNG) berths, container berths andcoast guard jetty, administrative buildings andelectricity substations.Mesaieed Port has advanced steadily overthe years to service the needs of Qatar’sindustries and has grown from a relativelysmall crude oil export terminal into aworld-class port handling commoditiesaccounting for 60% of national GDP anda wide range of petroleum products.DOHA SUBSEA TUNNELPlans for a 12km subsea tunnel linking NewDoha International Airport with Lusail andDoha’s West Bay central business district areproceeding. A feasibility study and conceptdesign for the estimate US$1 billion projecthave been submitted to the Urban PlanningDepartment for approval.DOHA METROThe US$ 2 billion Doha Metro will be one ofthe most advanced rail transit systems in theworld when it becomes operational in 2016.Qatar Railways Development Company(QRDC), a joint venture between QatariDiar (51%) and Deutsche Bahn (49%),is managing the concept design and earlyphase plans include four lines linkingsuburban areas including Education City, WestBay, Lusail and Doha Airport plus east coastand high-speed links.10

5ThrivingPrivate Sector11 18Recognizing that a thriving privatesector and well-functioning markets are keyfactors for economic growth andsustainable development, Qatar’sprivate sector will be the main driver ofeconomic diversification throughdevelopment projects in petrochemicals,finance, real estate, manufacturing,industrial and other sectors.Qatar initiated its privatisation programmein 1998 with the first major developmentbeing the transfer of responsibility ofthe state-owned electricity and watercorporation to an independent authority.In subsequent moves, controlling stakes ofmajor state companies such as IndustriesQatar were successfully listed on the DohaSecurities Market.In 2009, foreign direct investment (FDI)reached QR31.67 bn (US$8.7 bn)compared to the annual average of QR615 mn(US$169 mn) between 1990 and 2000, animpressive QR7.28 bn (US$2 bn) increase fromthe previous record figure in 2008. It helpedQatar to develop a vibrant private sector,creating more opportunities and generatingincreased investor returns. Today theprivate sector plays an increasinglyimportant role in Qatar’s economicdevelopment.

INVESTMENT PROMOTION DEPARTMENTPUBLIC PRIVATEPARTNERSHIPSQatar is experiencing high growth socioeconomicdevelopment and the government’sUS$120 billion diversification andmodernisation strategy involves publicand private partnerships investments toupgrade the country’s electricity and waterinfrastructure. The Ras Laffan IndependentWater and Power Project (IWPP) is Qatar’sfirst power project developed on thebuild-own-operate-transfer (BOOT ) basisand will meet the rising domestic andindustrial demand for power and water with acapacity of 750 MW of power and 40 milliongallons of water a day.Recognizing that the future Qatarieconomy hinges upon the growth of theprivate sector to boost productivity andexpand the labour market by creatingreal opportunities for entrepreneurshipand innovation, Qatar has launchedEnterprise Qatar, a QR2 billion initiative fordeveloping SMEs.Qatar National Research Fund aims toadvance knowledge and education byproviding support to researchers fororiginal, competitively selected research andfosters collaborations within academia throughpublic/private partnership.“the public-private partnership will be thegrowth engine of Qatar’s future economy,taking business to new heightsand creating new industries, markets andopportunities” HE Sheikh Hamad binJassim bin Jaber Al-Thani Prime Minister andMinister of Foreign Affairs12

6Knowledge-Based Economy13Qatar supports the application of knowledge asa key source of long-term economic growth bydedicating 2.5% of national GDP to Research &Development projects , reflecting the increasinglyimportant contribution of Qatariorganizations who acquire, create,disseminate, and use knowledge moreeffectively for greater economic and socialdevelopment.Our mission is to create an advancedinformation and communicationtechnologies (ICT) community where thecommunity at large can use ICT to improvethe quality of their lives and activelycontribute to the social and economicdevelopment of Qatar.—The Heir Apparent His Highness SheikhTamim BinHamad Al-Thani, Chairman,ictQATAR, Inaugural Launch SpeechEDUCATIONQatar is regarded as the foremosteducation investment market in the MiddleEast region. With more than 60,000students, approximately 47% of whom areenrolled in primary education and 9%enrolled for undergraduate andpostgraduate level education, the Qatarigovernment’s educational policy focuseson increasing the quality of educationprovided to students.Historically the education system in Qatarwas divided between public and privateschools. However, due to the government’sdesire to increase educational choice andquality, independent schools run by non-profitorganizations continue to set up around Doha,Qatar’s capital city. Statistics released in 2008by the Supreme Council for Education revealedthe country had 87 independent schools run bythe private and non-profit sectors.

INVESTMENT PROMOTION DEPARTMENTIn order to attract foreign direct investment in theeducational sector, the government provides taxbenefits, protection of foreign capital investmentand has formulated favorable FDI policies.CHART:FOREIGN SCHOOLSTUDENTSYearTotal2005 44,4432006 49,9022007 55,4482008 62,9042009 77,32014

6Knowledge-Based EconomyEDUCATION CITYQatar Foundation’s flagship projectis Education City, an 8,000,000 square metercluster of learning and research facilities thatare home to branch campuses of six worldrenowned universities:Virginia Commonwealth Universityin Qatar (fashion, graphic & interiordesign) Weill Cornell Medical Collegein Qatar Texas A&M University at Qatar(chemical, electrical, mechanical andpetroleum engineering) Carnegie MellonUniversity in Qatar (computer scienceand business administration) NorthwesternUniversity in Qatar (communication andjournalism) Georgetown University School ofForeign Service in Qatar.Each campus is a fully-fledged branch of theparent institution. Inspiring young learnersto strive for higher academic achievement,Education City campuses combine to form acollegiate environment where students, faculty,staff, and community members come together,in an innovatively built campus, in the jointpursuit of learning.QATAR SCIENCE &TECHNOLOGY PARK (QSTP)Qatar Science & Technology Park is a ‘freezone’ for technology-based companies fromaround the world and an incubator for start-upenterprises.At the forefront of industry-universitycollaboration, QSTP is located inEducation City, alongside campuses of severalleading universities. Its objective: to accelerateQatar’s knowledge economy by attractingcompanies and entrepreneurs from all countriesto develop andcommercialise their technology in Qatar.Among its prestigious residents are EADS,Microsoft, ExxonMobil, GE, Vodafone,Shell and Total; bringing research andbusiness together, while spurring thedevelopment of Qatar’s knowledgeeconomy.15

INVESTMENT PROMOTION DEPARTMENTHEALTH: CARING FOR ALLAs Qatar evolves so does the country’s healthcaresystem as an increasingly sophisticatedpopulation receive the finest medical andhealthcare treatment in the Gulf region. Boostedby record economic growth and governmentsupport, Qatar’s healthcare expenditure isscheduled to grow by 14% annually between2009 and 2015, from QR10.2 billion (US$2.8billion) to QR20.19 billion (US$5.55 billion).Per capita healthcare expenditure isapproximately US$1,200, one of thehighest in the region, and investmentopportunities are underpinned bya favorable political situation, positiveregulatory environment, increasing privatesector participation, demand for developmentsin technology and a compulsory healthinsurance system currently under development.Qatar is committed to improving itshealthcare infrastructure as plans for anew wave of private and public hospitaldevelopments gain momentum.The recruitment of high caliber healthcareprofessionals continues as Qatar ensurescitizens receive free healthcare andexpatriate residents enjoy heavilysubsidized treatment.Year Public Private Total2004 1,421 133 1,5542005 1,567 383 1,9502006 1,694 383 2,0772007 2,596 383 2,9792008 2,851 383 3,23416

7AttractiveIncentives17A full and active member of the WorldTrade Organization since 1996, Qataris one of six neighboring states who formthe Gulf Cooperation Council (GCC),a powerful Customs Union offering freetrade between members, unified 5% importtariff for non-members and exemptinga wide range of goods such as foodstuff,medicine, books, industrial raw materials andother goods from all tariffs.As Qatar bids to expand its infrastructure,the country welcomes overseasparticipation in joint ventures and offersa series of attractive incentives such as:Natural gas priced at a nominal andsubsidised rate.Electricity at a nominal rate.A developed infrastructure.Industrial land ata nominal rent starting at QR2 (US$0.55)per square meter per year. No custom dutieson imports of machinery, equipment andspare parts for industrial projects. No exportduties. No taxes on corporate profits forpre-determined periods (Law 13 of 2000).In addition Qatar offers the following benefitsfor expatriate workers and investors:No income tax on salaries.Excellent medical and educationalfacilities. Easy access to globaldestinations with first class air and seaconnections.State of the art telecommunicationsfacilities. Liberal immigration andemployment rules to enable import of skilledand unskilled labor.Economic liberalisation measures have beenintroduced to encourage inward investment. Inthe pursuit of developing a strong private sectorwith an enhanced industrial base, the QatarDevelopment Bank (QDB) provides loans atcompetitive rates of interest.VISAS AND WORK PERMITSQatar’s expatriate-friendly approachmeans holders of work visit visas canbring their families to Qatar, register for aResident ID Card, enroll children in schooland obtain a health card and drivinglicence. Work visit visas are valid for one yearand are renewable.

INVESTMENT PROMOTION DEPARTMENTA 14-day business visa - extendable for up to 3months - is issued to visitors who come to Qatarfor business or investment purposes.For detailed visa information visit Qatar’seGovernment website, www.gov.qaTAX-EXEMPT FREE ZONESEstablishing a business entity in one ofQatar’s Free Zones can be an attractiveoption for overseas investors. To datethe free zones have been successful inattracting a large number of companiesand foreign direct investment, as well asexpanding non-oil exports. The majoradvantage in setting up in a free zone is thatyou are entitled to:Incorporate a local company, or operate as abranch of a foreign company100 percent foreign ownershipTrade without local agent or sponsorSponsor expatriate employeesNo taxesDuty-free import of goods and servicesUnrestricted repatriation of capital and profits.QATAR FREE ZONELaw 6 of 2006 established the first free zonein Qatar; a 10 square kilometre region inclose proximity to Doha International Airportauthorised for the following activities:Small and medium clean industries,medical industries, maritime industries and highendindustries, Electricity and desalination plants,telecommunication and datatechnical industries Service providers,accounting, auditing, tax, legal andconsulting, Financial and investmentconsulting, Company head officesand business management offices,Media, entertainment and tourismbusinesses; and Cargo, transit and storagebusinesses.18

8Skilledand MotivatedWorkforce19

INVESTMENT PROMOTION DEPARTMENTIn keeping with its commitment to establish the Gulf’sfirst knowledge-based economy, Qatar offers anexceptionally well-qualified workforce to meetinvestor demands.The demand for professionals is increasinglybeing met by world-class higher and furthereducation institutions who turn out more than 7,000well-educated graduates each year whose skillsare closely aligned with the needs of Qatar’s majoreconomic sectors.Qatar has undertaken a vigorous investmentdrive by local and international companieswho have invested heavily in the developmentof large-scale infrastructure projects, industrialzones and an advanced transport network.All these factors place Qatar in a leading positionto attract investors by offering a diverse workforceincluding 1.25 million skilled and unskilledworkers who remain motivated to further boostQatar’s productivity.20

9ExceptionalLifestyles21

INVESTMENT PROMOTION DEPARTMENTPositioned at the heart of a rapidlydeveloping region with the highest percapita income in the world, Qatar isa wealthy country where ambitiouscorporations and entrepreneurs enjoyan exceptional lifestyle.Doha – the pearl of the Arabian Gulf -offers year-round sunshine and five-star luxuryalong with the adventure of a unique Arabianexperience in one of the fastest growing citiesin the world.Qatar’s shopping malls offer highendboutiques, cinemas, local andinternational brand restaurants, and familyactivities including ice-skating, bowling andamusement parks.Relatively free of crime compared to mostother countries, visitors and residentsgenerally comment that Qatar is anextremely safe place. Qatar’s zerotolerance for drugs and firm alcoholcontrols have created a society free from theproblems these substances cause in many othercountries around the world.Today Qatar is developing a just andcaring society based on high moral standardsand capable of playing a significant role in theglobal partnership for development.PRIVATE AND PUBLICEDUCATIONDoha is home to a growing number ofindependent schools including French andEnglish speaking schools who accept primaryschool children aged 4-11.As part of its commitment to becoming aworld-renowned education provider, Qatar’sgovernment has in recent years encouragedthe establishment of branch campuses ofseveral world-class primary and secondaryschools including Sherborne School, ParkHouse School, American School of Doha andthe Al Jazeera Academy.Doha College, for children aged 11-16, isa registered examination centre for the UKGeneral Certificate of Secondary Education(GCSE) and sets an entrance examination.Qatar Academy is part of Qatar Foundationfor Education and provides internationallyaccepted, comprehensive, English mediumprograms plus Arabic and Islamic studies frompre-school through to secondary graduation.The Shafallah Center provides comprehensiveeducational, instructional, rehabilitation,social, vocational and recreational services forchildren with special needs.22

10Land of EndlessOpportunitiesAmong the countries in the Middle East,Qatar offers one of the most promisingbusiness opportunities in the foreseeablefuture for multinational corporations.The state has embarked on billions ofdollars’ worth of investment projects andhas developed a world-class infrastructure.In the last 20 years, political and economicstability have been achieved throughserious and pragmatic measures andreforms that are aimed at facilitatingeconomic growth and foreign investment andinvolvement. Qatar, with its numerouscompetitive advantages, becomes anobvious choice for investors. Qatar’s wealthof natural resources, its strategic locationand its well developed industrial, financialand telecommunication sectors have allthe ingredients for a successful businessventure.23

INVESTMENT PROMOTION DEPARTMENTEXPANDING EXPORTSFigures released by the Qatar StatisticsAuthority show exports expandedexponentially, averaging a growth rate of 36%between 2004 and 2009. In financial terms,exports reached QR200.4 billion (US$55billion) in 2009, rising from QR44.7 billion(US$12.3 billion) in 2004.INCREASING IMPORTSAt an average of 41.6% Qatar’s imports grewfaster than exports between 2003 and 2008,reaching QR101.5 billion (US$27.9 billion) in2008, rising from QR15.9 billion in 2003.Main imports include industrial machinery,base metals to supply infrastructure and realestate projects, vehicles & transport equipmentand food products to feed Qatar’s boomingpopulation.24

11FINANCE,INSURANCE& BANKINGQatari-owned, including six commercial, threeIslamic and the specialised Qatar DevelopmentBank. In addition, two Arab and five foreignbanks are represented in Qatar.Qatar National Bank, with an equity base splitequally between the government and privatesector shareholders, is the largest Qatari bankand the first national bank to be established.Preliminary estimates for 2009 indicatethat the Finance, Insurance andBusiness Services remained the largestsector within the Non-Oil and Gas GDP,recording 13.8% growth to QR43.37billion (US$11.9 billion) from QR38.1billion (US$10.46 billion) in 2008.Sector (QR billions) 2006 2007 2008 2007-2008 Growth PercentageOil and Gas 118.1 146.5 222.1 +51.6%Finance, Insurance,Real Estate & Business 21.4 31.9 37.0 +16.2Other non-Oil and Gas 67.1 81.0 106.3 +31.2%25 32

INVESTMENT PROMOTION DEPARTMENTQATAR FINANCIAL CENTERThe Qatar Financial Centre (QFC) isa financial and business centre establishedby the Government of Qatar in 2005 andlocated in Doha to establish Qatar as anattractive environment for a wide rangeof financial services in the Gulf region.By October 2008 a total of 96 regionaland international financial servicesinstitutions and major multi-nationalcorporations held QFC licences toparticipate in the growing market forfinancial services in Qatar and elsewhere inthe region.The QFC operates a streamlinedapplication process for those seeking alicence to begin operations, with a singleapplication to the QFC Regulatory Authorityinitiating the process for QFC CompaniesRegistration Office, QFC Authority and(in the case of financial services businesses)authorisation from the QFC RegulatoryAuthority.QATAR EXCHANGEEstablished in 1995, the Doha SecuritiesMarket (DSM) officially commencedoperations with 6 listed companies inMay 1997. Since then the exchange hasgrown to become one of the leading stockmarkets in the GCC region.In June 2009, Qatar Holding and NYSEEuronext signed an agreement to forma major strategic partnership to establish theDSM as a world class international exchange,and provide NYSE Euronext with a valuablepresence in the Middle East. The DSM wasrenamed the Qatar Exchange on the conclusionof the deal.Regulated by the Qatar Financial MarketsAuthority, at the end of Q3 2009 marketcapitalization of Qatar Exchange’s 43 listedcompanies had reached QR 335.9 billion(US$ 92.2 billion).26 33

12Long-termVision27Qatar National Vision 2030 defines thelong-term outcomes for a country unitedin its commitment to strive for progress andprosperity. Below is a selected extract to giveyou an understanding of its aims and beliefs.Charting economic and social progressin modern societies depends on a clearvision and a strategy about how to get there.Wise political leaders know the direction inwhich they would like their societies to develop,balancing the interests of present and futuregenerations.Qatar National Vision 2030 buildsa bridge between the present andthe future. It envisages a vibrant andprosperous country in which there is economicand social justice for all, and in whichnature and man are in harmony. We needto galvanize our collective energies anddirect them toward these aspirations. StrongIslamic and family values will provide ourmoral and ethical compass.The welfare of our children, and of ourchildren yet to be born, demands that we use ourresource-wealth wisely. Qatar must continue toinvest in its people so that all can participate fullyin economic, social and political life. Qatar mustinvest too in world class infrastructure to createa dynamic and more diversified economy inwhich the private sector plays a prominent role.This requires continuous improvements in theefficiency, transparency and accountabilityof government agencies.Tamim bin Hamad Al-ThaniHeir Apparent

INVESTMENT PROMOTION DEPARTMENTECONOMIC INDICATORS: QATAR IN COMPARISONQatar U.A.E. Saudi Arabia Bahrain Kuwait Oman U.S.A. U.K. SingaporeL logistics Performance Index 20092.95 3.63 3.22 3.37 3.28 2.84 3.86 3.95 4.09Ease of Doing Business 2010 (World Bank Group)39 33 13 20 61 65 4 5 1Index of Economic Freedom 2009 (Wall Street Journal and The Heritage Foundation)48 54 59 16 50 43 6 10 2C corruption Perceptions Index 2009 (Transparency International)22 30 63 46 66 39 19 17 3global Competitiveness Index 2009/10 (World Economic Forum)22 23 28 38 39 41 2 13 3Global Peace Index 201015 44 107 70 39 23 85 31 30Inward FDI Performance Index (2005-2007)110 34 51 12 134 48 115 29 7Inward FDI Potential Index (2004-2006)7 11 28 30 29 51 1 3 2Human Development Index 200933 35 59 39 31 56 13 21 23Quality of Life Index 2010 (Maximum score =100)52 50 45 54 5545 78 73 6128

29QATARAT A GLANCE

INVESTMENT PROMOTION DEPARTMENTQatar is a peninsula projecting into the Arabian Gulf. It lies east of Bahrain, northwestof the United Arab Emirates, and north of Saudi Arabia. It is developing at a rapid pace,with an economic boom driven by the world’s largest non-associated gas field yetdiscovered.With economic prosperity came the development of a modern infrastructure:transport and telecommunication links, schools, hospitals and public health clinics. Oncethe Emir, Sheikh Hamad Bin Khalifa Al-Thani assumed power in 1995, the pace of changeaccelerated as:QATAR AT A GLANCEIndustrial complexes expanded, and there was a boom in the construction of housing, hotels,shopping complexes and sports facilities. Qatar’s first elections were held in 1999 for membersof the Central Municipal Council. Educational reform became a priority and Qatar is rapidlycreating an “information society”, with a target of 39% computer literacy by 2010.Language: Arabic (official), English (widely spoken).Currency: Qatari Riyal (QR) fixed at US $ = 3.65 QRPopulation: 1,678,568 (as of 31 May 2010)Climate: Qatar has a moderate desert climate with long hot summers and shortpleasant winters with little rain. The strong northwest wind, which brings seasonal dust storms(shamal).Time Zone: GMT + 3 hoursBusiness Hours: Government offices open from 7 am to 2 pm from Sunday to Thursday. Banksare open from 7:30 am to 1:30 pm Sunday to Thursday with many branches opening during theevening and on Saturday morning. Commercial offices normally open from 9 am to 6 pm.CHART: QATAR’S POPULATIONIS BOOMINGYearTotal1999 586,2752003 717,7672006 1,041,7342009 1,638,829CONSTITUTION and LEGAL SYSTEMQatar’s National Constitution Committee, established by an Emiri decree in 1999 to draft a newpermanent constitution, received an overwhelming majority vote in thereferendum held in 2003.The Judiciary in Qatar, previously separate court systems to administer civil, commercial& criminal cases and a Sharia Court system to administer Islamic laws, mergedinto a single court system in 2004 and a new Supreme Court was introduced,now considered the highest court of appeal in the country.30

FREQUENTLY ASKEDQUESTIONS31Can I register a business in Qatarwithout a local partner?In accordance with Qatar InvestmentLaw No. 13 of 2000 and its 2010 amendments,a non-Qatari may invest up to 49% in all sectorsexcept commercial agencies and real estate.In addition, subject to ministerial approval,a non-Qatari may invest up to 100% inthe following sectors: agriculture, industry,healthcare, education, tourism, exploitationand development of natural resources, energyor mining, business consultancy and technicalservices, information technology, cultural, sportsand entertainment services and distributionservices.What is the size of the economy?Qatar GDP purchasing power parity andper capita purchasing power parity isone of the highest in the world, with IMFestimates ballooning to US$94.25 billionand US$87,717 (the world’s highest)respectively in 2009. In addition, Qatar’sGDP growth rate is also remarkable at 9.2%(2009 est.).Oil and gas contributed 62% of 2008Qatar GDP with the government re-investinga record infrastructure budget to support thecountry’s long-term economic diversificationaway from energy.What is the business environmentin Qatar?Oil and gas sectors including the production ofnatural gas and crude oil, petroleum refinery,petrochemicals, steel, cement manufacturingand fertilizers contribute a high percentage ofQatar GDP.However Qatar’s key business potentialis moving from energy and the major non-oilgrowth sectors are construction, real-estate,communications, agriculture, fishing, water andelectricity, tourism, and banking.What are the different business formsin Qatar?The existing business forms in Qatar arePartnership Company, Joint PartnershipCompany, Limited Liability Company, JointStock Company, Closed Stock Company andJoint Venture Company. In addition foreigncompanies can establish a Qatar branch officein the Qatar Financial Center and Qatar Science& Technology Park.Does the Government of Qatarprovide any incentivesfor investors?The State of Qatar provides smartincentives to foreign investors, whichinclude securing loans from Qatar IndustrialBank, no quantitative quotas on imports, noincome tax on salaries of expatriates, no exportduties, and no taxes on corporate profits for predeterminedperiods.What are the regulations on importsand exports in Qatar?As per Qatar Investment Law No. 13 of 2000,foreign investor may import whatever is neededto establish, operate, or expand their project(s)in accordance with laws and procedures inforce in the State.Qatar’s government provides no customduties on imports of equipment, machineries,spare parts and intermediary goods. Also itprovides no custom duties on exports.

INVESTMENT PROMOTION DEPARTMENTFINDING INVESTMENTOPPORTUNITIESThe Qatar Investment PromotionDepartment (IPD) is a Government Authorityoperating under the supervision of theMinistry of Business and Trade and entrustedwith encouraging the growth of ForeignDirect Investment in Qatar.IPD provides investors with extensiveinformation related to the local businessenvironment, including current investmentprojects, suitable business partners andgovernment incentives. IPD also linksinvestors with the local government agenciesand informs them on how to set upa business in Qatar.Ministry of Business and TradeInvestment Promotion DepartmentTelephone: + (974) 4494 5522Fax: + (974) 4493 3054P.O. Box 22355, DOHA QATARE-mail: ipd@mbt.gov.qaWeb: www.mbt.gov.qaGovernment WebsitesMinistry of Business and Tradewww.mbt.gov.qaHH The Emir of Qatarwww.diwan.gov.qaFIFA World Cup Bid 2022www.qatar2022bid.comGeneral Secretariat for Development Planningwww.gsdp.gov.qaHamad Medical Corporationwww.hmc.org.qaHukoomi eGovernmentwww.gov.qaQatar Financial Centrewww.qfc.com.qaQFC Regulatory Authoritywww.qfcra.comQatar Museums Authoritywww.qma.org.qaQatar Public Works Authoritywww.ashghal.gov.qaQatar Statistics Authoritywww.qsa.gov.qaQatar Tourism Authoritywww.qatartourism.gov.qaOther WebsitesAl Waab Citywww.alwaabcity.comCity of Lusailwww.lusail.comDoha Exhibition Center and Towerwww.barwa.com.qaEnergy City Qatarwww.energycity.comMesaieed Industrial Citywww.mic.com.qaNew Doha International Airportwww.ndiaproject.comQatar Exchange/NYSEwww.qatarexchange.qaQatar Foundationwww.qf.org.qaQatargaswww.qatargas.comQatalumwww.qatalum.comQatar Petroleumwww.qp.com.qaQatar Science and Technology Parkwww.qstp.com.qaRas Laffan Industrial Citywww.raslaffan.com.qaSidra Medical and Research Centerwww.sidra.orgThe Pearl-Qatarwww.udcqatar.com32

Ministry of Business and TradeInvestment Promotion DepartmentTelephone: + (974) 4494 5522Fax: + (974) 4493 3054P.O. Box 22355, DOHA QATARE-mail: ipd@mbt.gov.qaWeb: www.mbt.gov.qa