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DOING BUSINESS AND INVESTMENT OPPORTUNITIESIN QATAR
QATAR HEART OF THE ARABIAN GULF
HOW IS QATAR DIFFERENT?
Qatar’s Economical Global Ranking
A supportive, modern Qatari Constitution
Qatar’s National Vision 2030
Offers diverse Business Opportunities
FDI Policies and Governmental
Facilities.
AND… One of the highest income-per capita countries.
Family-friendly lifestyle and an extremely safe
living environment.
World-leading education, medicine, leisure and
sports facilities.
Politically stable and economically secure.
Developing rapidly in all aspects.
GLOBAL COMPETITIVENESS INDEX
Qatar is one of the richest countries in the world.
Real GDP growth rate of 22% between 2006 and
2013.
Real GDP growth: 6.3% (2014)
GDP per capita: $101,513 (2013)
Highest average growth rate in the Gulf Cooperation
Council .
OUTSTANDING PROGRESS IN QATAR’S ECONOMICAL DEVELOPMENT AND GROWTH
16th Most Competitive Economy in
the World & 2nd Most Competitive in
the Middle East
Global Competitiveness 2014-15
World Economic Forum
Most Innovative in the Middle East
& 33rd in the World
Global Innovation Index 2012
Most Network-Ready in the Middle
East & 28th in the World
Global Information Technology Report 2013
Most Peaceful in the Middle East &
22th in the World
Global Peace Index 2014
QATAR’S SOVEREIGN RATINGS REMAIN STRONG ONTHE BACK OF ROBUST ECONOMIC FUNDAMENTALS
S&P Moody’s Fitch CI1 EIU
Foreign
Currency LT2 Outlook LT2 Foreign
Currency LT2
Foreign
Currency LT2
Overall
Country
Risk
Banking
Sector Rating
Qatar AA Stable Aa2 AA AA- A BBB
UAE - - Aa2 - AA- BBB BB
Bahrain BBB Stable Baa2 BBB BBB BB BB
Saudi
ArabiaAA- Stable Aa3 AA- A1+ BBB BBB
Kuwait AA Stable Aa2 AA AA- BBB BB
Oman A Stable A1 - A A BBB
Source: Bankscope, March 2015
Note: 1 – Capital Intelligence
Note: 2 – Long-termSTRICTLY CONFIDENTIAL
QATARI CONSTITUTION
Executive
Legislative
Judiciary
QATAR’S NATIONAL VISION 2030
Human development
Development of all its people to enable them to sustain a prosperous society.
Social development
Development of a just and caring society based on high moral standards.
Economic development
Development of a competitive and diversified economy.
Environmental development
Management of the environment in harmony with economic
growth and social development.
1
2
3
4
National Development Strategy (2011-2016)
QATAR’S GOALS AND OBJECTIVES TO ECONOMIC POLICY
Achieve sustainable economic growth.
Strengthen and broaden the country’s fast-growing economy.
Diversify the economy.
Help secure the future prosperity of its people by building a diversified asset base.
Promote economic growth.
Create the right investment climate.
SIGNIFICANT GROWTH IN ALL SECTORS AND INDUSTRIES IN QATAR
Cumulative number of incorporated companies (excluding deleted and liquidated companies) by sector since 1980, shows sustained growth.
All the sectors have contributed to national growth since the 1980s, though the rate of increase in the last decade has been the highest.
0
5
10
15
20
25
1980 1984 1988 1992 1996 2000 2004 2008 2012
Co
mp
an
ies
(00
0)
Figure 10 - Net cumulative growth of industries by number of net incorporated companies excluding distribution sector
Construction and industrial activities
Consulting and technical services
Education
Energy and utilities services
Finance
Food and beverage
Healthcare
Lifestyle services
Tourism and entertainment
DIVERSE BUSINESS OPPORTUNITIES IN QATAR
Construction and
contracting
12.84%
Manufacturing
3.72%
9.47%
59.42%
0.94%
0.65% 0.50%
3.27%7.76%
0.72%
0.65%
Construction industry
16.61%
Figure 7 - Percentage of net incorporated companies by sector
Construction and contracting
Other industrial activities
Consulting and technical services
Distribution (wholesale and retail)
Education
Energy and utilities services
Finance
Food and beverage
Lifestyle services
Healthcare
Tourism and entertainment
47.2%
36.0%
7.0%
2.8%2.1%
1.7%
1.4% 0.8%0.7%0.3%
Figure 8 - Employment in each sector
Construction and industrial activities
Distribution (wholesale and retail)
Energy and utilities services
Tourism and entertainment
Education
Healthcare
Food and beverage
Finance
Consulting and technical services
Lifestyle services
Percentage of incorporated companies by sector
Employment in each sector
INVESTMENT OPPORTUNITIES
▪ Investments directly
linked to World Cup
(e.g., stadia, hotels)
▪ Investments not directly linked
to World Cup but enabling
successful organization (e.g.,
rail network, roads)
Qatar’s investment
agenda includes …... generating different opportunities over time
Opportunities from
infrastructure
construction
Time
Siz
e o
f opport
unity
I
Opportunities from operations of
infrastructure and services
II
Opportunities for sectors benefitting from
development of infrastructure/operations
III
In addition,
significant
multiplier
effect for
general
economy
World Cup
Investments necessary
due to general
increase of economic
activity/ population
(e.g., utilities, public
infrastructure)130-14070-80
90-110
Bn USD1
VARIOUS INVESTMENT OPPORTUNITIES
Infrastructure
and real estate
Sports, culture &
tourism
Energy
investment
opportunities
Finance &
Insurance
Healthcare,
education &
environment
Real estate
development
Developers Drilling Hedge funds Hospitals
Infrastructure
projects
Consultants Exploration Investment
institutions
Medical centers
Consultants Travel agencies Transportation Banks Medical
research
Construction Airlines LNG/ GTL Leasing
companies
Schools
Real estate
investment
Tourism
authorities
Equipment
suppliers
Financial
consultants/
advisors
Colleges
Culture
authorities
Onshore &
offshore
Insurance Universities
QATAR’S MEGA PROJECTS
Target investments USD 45BnEstimated population 200,000
Target investments LRT:USD 14Bn; Long
Distance: USD : 34BnLusail LRT:38.5 kms of rail with 37 stations
Long Distance: 390 kms with 6 stations (phase1-4)
Target investments USD 3.5Bn25,000 people will work here
Target investments USD 7.4BnOne of the world’s largest port developments
Target investments USD 65.2Bn241km of rail with 106 stations across Doha
Target investments USD 23Bn550km of road across 221 projects
Lusail CityLusail Light Rail Transit & Long
Distance
Hamad Seaport Doha Metro Phase 1& 2 Roads and Highways
Qatar Media City
Source: MEED – Qatar Megaprojects 2013
QATAR’S MEGA PROJECTS (Cont.)
Hamad International Airport extension
$2 bn
Education sector: $7.2 bnTarget investments US$ 5.5Bn
31 Hectare development in the heart of Doha
Msheireb Downtown Doha
2022 FIFA WORLD CUP PROJECTS™
Al Wakrah
Stadium
Al Bayt Stadium
Al Khor City
Qatar Foundation
Stadium
Al-Rayyan Stadium
(Expansion)
HOW CAN FOREIGN INVESTORS BENEFIT FROM THE FDI POLICIES?
100% foreign ownership is possible through authorization by the
Ministry of Economy and Commerce in most sectors , if necessary.
• A foreign Investor can have up to 100% ownership in the following
business sectors:
• Up to 49% of foreign ownership in all other sectors.
• New draft law has been approved to exempt foreign investors from
corporate profits and units in investment funds which are listed for
trading from income tax.
• Tax exemption for Belgian companies.
Agriculture Industry Health Education
Tourism Energy ITBusiness
Counsultancies
Sport &Culture Enviromintal ServicesTechnical
Counsultancies
FDI
Sectors
Tax
1
2
3
FURTHER MEASURES TO IMPROVE
QATAR’S BUSINESS ENVIRONMENT
Onshore business and financial centre offering its own
world-class legal, regulatory and tax environment.
•Allows 100% foreign ownership
•Allows 100% repatriation of profits
•Transparent environment
•Independent judiciary and dispute resolution services (QICDRC)
Source: www.qfc.qa
Suitable for a wide range of businesses:
• Financial Services
• Professional Services
• Business Support Services
• Company Headquarters
• Management Offices
• Trusts
• Holding Companies
1. Qatar Financial Centre (QFC)
Qatar’s primary incubator for
technology development, fostering the
environment required for accelerating
commercialisation of research
•Allows 100% foreign ownership
•No taxes
•Duty-free import of goods, equipment
and services
•Unrestricted repatriation of capital
and profits
•No restriction on hiring expatriate
employees
Source: www.qstp.org.qa
2. Qatar Science and Technology Park (QSTP)
Suitable for technology businesses
related to the following sectors:
•Energy
•Environment
•Health Sciences
•Information & Communication
3. Manateq
* EZ = Economic Zone
Source: Manateq, November 2014
The State of Qatar is investing in
building three economic zones in
primary locations.
•Zone 1 “Ras BuFontas” focusing on the
logistics, information & communications,
healthcare, and high tech industries.
•Zone 2 “AlKaraana” focusing on the
building materials, machinery &
fabrications, energy and environment, and
safety and maintenance industries.
•Zone 3 “Um AlHoul” focusing on the
petrochemicals, building materials, maritime,
logistics, metals, and food processing
industries.
Manateq Special Economic Zone Location Map
**
*
START YOUR INVESTMENT PROCEDURES
Apply to the Investment Promotion Department under the Ministry of
Economy and Commerce.
Submit an investment feasibility study.
2
3
1
Complete the application for the commercial registration to obtain the
commercial registration from the Ministry of Economy and Commerce.4
Apply for the approval from the specific government authority
depending on which sector you are willing to invest in.
FURTHERMORE ENCOURAGING INCENTIVES ON WHY TO INVEST IN QATAR!
Tax breaks
Transparency
Access to finance
Highly skilled labor
No income tax on salaries
Freedom of money transfers
abroad
1. Single window registration – Ministry of
Economy and Commerce.
2. Qatar International Court and Dispute
Resolution Centre
GOVERNMENTAL FACILITIES TO INVESTORS
• Agreement of Encouragement and protection
of mutual investments in 06/11/2007.
• Agreement for avoid double taxation.
• Qatar Invest 1.06 billion Euro in European
Private Bank( KBL).
• Total Trade volume : 6.87 Billion Qatari
Riyals.
QATARI- BELGIAN RELATIONS
Thank You
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