Qatar (pronounced kä'tər), officially the State of Qatar, is an emirate in the Middle East and Western Asia, occupying the small Qatar Peninsula on the northeasterly coast of the larger Arabian Peninsula. It is bordered by Saudi Arabia to the south; otherwise the Persian Gulf surrounds the state. Ruled by the al-Thani family since the mid-1800s, Qatar transformed itself from a poor British protectorate noted mainly for pearling into an independent state with significant oil and natural gas revenues. During the late 1980s and early 1990s, the Qatari economy was crippled by a continuous siphoning off of petroleum revenues by the amir, who had ruled the country since 1972. His son, the current Amir HAMAD bin Khalifa al-Thani, overthrew him in a bloodless coup in 1995. In 2001, Qatar resolved its longstanding border disputes with both Bahrain and Saudi Arabia. Oil and natural gas revenues enable Qatar to have one of the highest per capita incomes in the world.
Economy
Before the discovery of oil the economy of the Qatari region focused on fishing and pearling. After the introduction of the Japanese cultured pearl onto the world market in the 1920s and 1930s, Qatar's pearling industry faltered. However, the discovery of oil reserves, beginning in the 1940s, completely transformed the nation's economy. Now the country has a high standard of living, with many social services offered to its citizens and all the amenities of any modern nation.
Qatar's national income primarily derives from oil and natural gas exports. The country has oil estimated at 15 billion barrels (2.4 km³), while gas reserves in the giant north field (South Pars for Iran) which straddles the border with Iran and are almost as large as the peninsula itself are estimated to be between 800-900tcf (Trillion Cubic Feet - 1tcf is equal to around 80 million barrels of oil equivalent). Qataris' wealth and standard of living compare well with those of Western European nations; Qatar has the highest GDP per capita in the Middle East. With no income tax, Qatar is also one of the two least-taxed sovereign states in the world.
While oil and gas will probably remain the backbone of Qatar's economy for some time to come, the country seeks to stimulate the private sector and develop a "knowledge economy". In 2004, it established the Qatar Science & Technology Park to attract and serve technology-based companies and entrepreneurs, from overseas and within Qatar. Qatar also established "education city" which consists of international colleges. For the 15th Asian Games in Doha, it established a "sports city" consisting of Khalifa stadium, the Aspire Sports Academy, aquatic centres, exhibition centres and many other sports related buildings and centres. Qatar also plans to build an "entertainment city" in the future.
Qatar is aiming to become a role model for economic and social transformation in the region. Large scale investment in all social and economic sectors will also lead to the development of a strong financial market.
The Qatar Financial Centre (QFC) provides financial institutions with a world class financial services platform situated in an economy founded on the development of its hydrocarbons resources. It has been created with a long term perspective to support the development of Qatar and the wider region, develop local and regional markets, and strengthen the links between the energy based economies and global financial markets.
Apart from Qatar itself, which needs to raise the capacity of its financial services to support more than $130 billion worth of projects, the QFC also provides a conduit for financial services providers to access nearly $1 trillion of investment across the GCC as a whole over the next decade.
Market Overview
Qatar’s GDP growth is strong, averaging 19.9% over the past five years (2001-2005), with the oil and gas sector accounting for 60% of overall GDP in 2005.Qatar’s gross domestic product (GDP) rose to a record high of QR191.9bn in 2006, compared to QR154.5bn the previous year (24% increase), according to preliminary estimates released by the Statistics Department of the Planning Council’s General Secretariat.
According to GOQ statistics, Japan was Qatar’s leading trade partner in 2005, garnering 11.6 percent of Qatar imports, with a value of $1.17 billion. The United States claimed the second position, collecting 11.5 percent of Qatar imports, or $1.16 billion. Thereafter, Germany (9.8% and $923 million), Italy (6.45% and $649 million) and United Arab Emirates (6.43% and $647 million) rounded out the top-five.
In the next ten years, it is estimated that Qatar will invest over $120 billion dollars in the development of the energy and industrial sectors and $50 billion in roads, infrastructure development, housing and real estate, health/medical and sanitation projects.
Per capita income in Qatar is high, at $49,655 in 2005. There is no personal income tax in Qatar.
Qatar imports over 90 percent of its food.
In CY 2003, Qatar’s food and agricultural imports totaled $489 million, CIF basis.
In CY 2005, U.S. food and agricultural exports to Qatar totaled to $15 million, FOB basis.
Major food suppliers to the Qatar market include the EU, Australia and Saudi Arabia.
Most of Qatar’s food product imports transit through the United Arab Emirates.
Market Challenges
Qatar’s foreign investment law establishes limits on the amount that foreign investors are permitted to invest in all sectors of the economy (49%) provided they have a Qatari partner or partners whose share is not less than 51% of the capital.
Foreign investors may own 100% of a project’s capital in sectors like agriculture, industry, health care, education, tourism and the exploitation and development of natural resources pending approval by the GOQ.
Foreign investors must receive permission from the government to invest the banking and insurance sectors. Foreign investment is not allowed in commercial agencies, telecommunications and real estate, although there are limited opportunities for foreigners to purchase property in select real estate projects in the West Bay Lagoon area, Al-Khor district and Pearl of the Gulf Development project.
Most foreign investors are required to have a local agent and/or sponsor to engage in commercial activity except when authorized 100% foreign ownership. The commercial agencies law requires all agent agreements to be exclusive arrangements.
Foreign companies may pay corporate income taxes between 5 and 35% while Qataris are exempted from this tax.
There are concerns about transparency in government procurement, particularly regarding the following: a lack of clarity in the conditions/ criteria of the tender, improper notification or explanation to non-qualifying companies, the awards process, and the inability to challenge awards.
Qatar has no import quotas. However, non-tariff barriers arise occasionally. Most recently, Qatar has maintained a ban on imports of U.S. beef.
Local food production is limited to dates, seafood, vegetables, poultry and some dairy products.
The import duty for most processed food products is a flat 5 percent ad valorem.
There is no import duty for live animals, fresh fruits and vegetables, seafood, grains, flours, tea, sugar, spices and seeds for planting.
Imports of pork products are prohibited in Qatar for cultural reasons.
The import duty on cigarettes and other tobacco product is 100 percent.
Arabic or bilingual English/Arabic language labels or stickers are required for all food products.
Production and expiry dates are required to be on all “original” food labels.
The food retail sector is developing rapidly with the arrival of hypermarkets from the United Arab Emirates, France, and Saudi Arabia. Traditional consumer cooperative societies now account for less than 10 percent of retail foods sales.
Market Opportunities
Energy Sector: Qatar has attracted an estimated $100 billion in investment, with approximately $60-70 billion coming from the U.S. It is estimated that Qatar will invest over $120 billion in the energy sector in the next ten years.
Construction: It is estimated that Qatar will invest $50 billion in roads, infrastructure development, housing and real estate, health/medical and sanitation projects. The GOQ and private sector are actively seeking project designers, engineers and managers, in addition to needed production inputs like cement and heavy machinery and equipment.
Other sectors with significant opportunities include: ICT, ACE, HVAC, Safety and Security, Franchising, Medical Equipment and Services, Power Transmission Equipment, Consumer Electronics, and other sectors.
DOHA, Qatar (AP) -- Results from the first stage of the Tour of Qatar on Sunday, a 141.5-kilometer (88-mile) ride from Barzan Towers to University of the North Atlantic: 1. Tom Boonen, Belgium, Omega Pharma-QuickStep, 3 hours, 11 minutes, 32 seconds 2. Adam Blythe, Great Britain, BMC Racing Team, same time 3. Peter Sagan, Slovakia, Liquigas-Cannondale, same time 4. Tyler Farrar, United States ...
Tom Boonen of Belgium won the opening stage of the Tour of Qatar on Sunday, finishing four seconds ahead of Adam Blythe of Britain. The former world road racing champion, riding for the Omega Pharma Quick-Step team, completed the 88.5-mile first stage in 3 hours, 11 minutes, 22 seconds. BMC Racing Team's Blythe was followed by Peter Sagan of Liquigas-Cannondale, six seconds back in third.
Paul Lawrie stroked a fluent 65 to win the Qatar Masters for the second time with a four-shot win over Jason Day and Peter Hanson at the Doha Golf Club on Sunday.
Cycling teams at the Tour of Qatar welcomed the end of a U.S. federal investigation into Lance Armstrong, saying Sunday they were hopeful the seven-time Tour de France champion could finally move on with his life.
DOHA, Qatar (AP) -- Cycling teams at the Tour of Qatar welcomed the end of a U.S. federal investigation into Lance Armstrong, saying Sunday they were hopeful the seven-time Tour de France champion could finally move on with his life.
Pakistan's prime minister will travel to Qatar next week to talk with leaders there about the prospect of a peace deal to end the war in Afghanistan, a government official said Saturday, a trip that suggests some progress in a process long stymied by mistrust.
DOHA, Qatar, Feb. 4 (UPI) -- Art experts say Qatar's $250 million acquisition of Paul Cezanne's painting "The Card Players" could be a game-changer in the masterpiece market.
Former British Open champion Paul Lawrie chipped in for an eagle and a birdie on his way to winning the wind-shortened Qatar Open on Sunday, shooting a 7-under 65 to hold off Jason Day and Peter Hanson.
Faulty planning may be to blame for HCC Qatar campus's problems Houston Chronicle Copyright 2012 Houston Chronicle. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Updated 09:01 p.m., Saturday, February 4, 2012 The struggles raise questions about whether HCC was prepared for the ambitious foreign undertaking.
