Vodafone Qatar

Global Research - QatarVodafone QatarQatar Telecom SectorQatar – an appealing growth storyQatar’s economic growth model is based on liberal economic and financial policies and is well integrated into the globaleconomy. Qatar, the world largest exporter of natural gas and the third largest natural gas producer is one of the fastest growingeconomies in the world. A robust growth in oil prices in the past five years, coupled with a tight fiscal regime, led to a substantialwindfall gains for the government revenues. Qatar’s nominal GDP grew at an astounding CAGR of 17.6% during 2006-09, whilereal GDP grew at a CAGR of 20% during the same period. The country maintained its growth momentum despite the financialcrisis and posted an impressive real GDP growth of 25.4% in 2008 and 8.6% in 2009 as compared to a negative or pausedgrowth in neighboring countries. As per latest available data, Qatar registered a nominal GDP of QAR312.1bn in the first 9-months of 2010. In 3Q10 GDP grew 21.1% YoY and 13.1% QoQ, reaching QAR111.3bn. Qatar also enjoys high GDP per capitaof around USD70,000.Qatar Real GDP growth3953653353052752452151851551252006 2007 2008 2009 2010e 2011e30.0%25.0%20.0%15.0%10.0%5.0%Real GDP (QAR bn) - LHSReal GDP growth - RHSSource: Qatar Central Bank & IMFQatar's sound and balanced economic policy aims at achievement of sustainable economic development; diversifying nationalincome resources; increasing private sector contribution in economic development; encouraging inflows of direct foreigninvestments. Over the years the Government has taken many proactive steps to facilitate private as well as foreign participation inmany business ventures. All round economic developments are underway in Qatar right from core projects of hydrocarbon sectorto infrastructure, real estate and financial sectors. Qatar’s biggest strength is continuous expansion in its liquefied natural gas(LNG) capacity. The country has significant expansion plans to increase the production of LNG over the coming years. Apart fromthis, the main successes are increasing infrastructure support in terms of airport expansion and upcoming new internationalairport, increasing power capacity, setting up of Energy City Qatar, health and education projects, setting up of Qatar FinancialCentre, etc.Qatar won the bid to host FIFA World CupIn December 2010, Qatar won the bid to host FIFA World Cup 2022 and will be the first country in the Middle East to ever host it.Qatar has promised to spend USD50bn on infrastructure and USD4bn on new stadiums for the event. The Qatari economy willbenefit through various avenues. Construction activity will witness a significant increase as projects activity witness an increasedactivity, hospitality and real estate sector will boom as Qatar plans to increase hotel and apartment capacity to 84,000 roomsmore than 60,000 minimum requirement of the FIFA.Qatar Telecom Profile000s 2006 2007 2008 2009 2010*Cellular Subscribers (000) 920 1,264 1,683 2,472 2,811Cellular Penetration 88% 103% 116% 152% 166%Prepaid subscribers % 80% 83% 80% 87% 88%Postpaid subscribers % 20% 17% 20% 13% 12%Fixed Line Subscribers (000) 228 237 263 285 292Fixed Line Penetration % 22% 19% 18% 18% 17%Internet Users (000) 290 421 500 564 725User Penetration % 28% 34% 34% 35% 43%* Prepaid & postpaid mobile data and Internet users for 2010 are our estimatesSource: ITU, Industry sources and Global ResearchMarch - 2011 5