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Country name: State of Qatar
Population: 907,229 (July 2007 estimate)
Land Area: 11,437km²
Languages: Arabic (official), English (commercial)
Currency: 1 Qatari Riyal (QR) = 100 dirhams
Main Cities: Doha (capital), Ras Laffan Industrial City, Al Khor, Dukhan, Al Wakrah, Mesaieed
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Qatar is one of the smallest Gulf states in terms of population and geography, but possesses the third largest gas resources in the world. It presents an increasingly attractive option for the foreign investor with its abundant natural resources, planned massive investment over the next few years, the recent adoption of liberal business reforms and an imaginative economic diversification drive. Gas is now the backbone of its economic success after it moved into developing its enormous gas potential well over a decade ago as an alternative to its diminishing oil resources. Nevertheless, it remains an exporter of around 900,000 barrels of oil per day. Qatar’s GDP per capita, currently estimated at $57,300, and puts it among the wealthiest nations in the world. An astute policy of economic diversification has led to a surge in investment in projects for the export of liquefied natural gas (LNG) and petrochemicals, where numerous investment opportunities exist. With its rapidly increasing economy, Qatar’s oil and gas fields are not its only tapped resource. Financial services, construction and tourism are all steadily gaining momentum. Higher education and training is another dynamic and expanding sector where investment partnerships are a priority. With a distinguished banking system, and no restrictions on the movement of capital, Qatar represents a free economic zone where investors can make considerable gains.
GDP reached $52.72 billion in 2006 allowing Qatar to achieve staggering growth of 20% per annum over the last 10 years. It is this record of success that has transformed Qatar into one of the wealthiest countries in the world and one of the most rewarding places to do business. On these solid foundations, over the next five years Qatar plans to invest more than $130 billion to develop and renovate its wide range of infrastructure. New projects include communications, transportation, road networks, a water network, an electrical power grid and the further development of oil and gas fields. Opportunities exist in exploration and production, refining and transportation and in addition Qatar is interested to learn the know-how and adopt the latest technologies to develop its economy, the country’s First Deputy Premier and Foreign Minister H E Sheikh Hamad bin Jassem bin Jabor Al Thani has stated.
Since the inception of LNG exports, Qatar has proven itself one of the leading, credible and dependable suppliers of LNG in the world. Today production capacity stands at 30 million tons per annum, and by 2010 Qatar will be reaching all the important markets around the globe with an export capacity of 77 million tons per annum, going to the US, Europe and Asia. By that date, it is expected that the share of Qatar in the world's LNG trade will be around 30%.
Qatar is to begin supplying gas to the UAE through undersea pipeline from the Dolphin project with a capacity of 20 billion standard cubic feet per day. The Oryx GTL project will produce 34,000 barrels per day of clean GTL products. The development of the Pearl GTL project with a capacity of 140,000 barrels per day of GTL products is progressing according to plan and will be ready for start up in 2010.
Qatar is committed to developing its projects on a sustainable basis to secure the needs of its future generations, ministers stress. Qatar’s domestic gas demand is expected to almost triple in the next three years, as industrial and consumer demand soars. "Qatar expects that by the end of the decade the total domestic (demand) will be almost 5 billion cubic feet (per day)," Second Deputy Premier and Minister of Energy and Industry H E Abdulla bin Hamad Al Attiyah stated.
In the oil sector, Qatar has entered into several production sharing agreements for exploration and development of crude oil which helped in doubling its oil production. As a result of successful exploration Qatar is pursuing a multibillion dollars development that will increase its oil production from 800,000 barrels per day to one million barrels per day in 2010.
In order the meet its ambitious targets, Qatar realises that it needs to overcome technical challenges and adopt the use of latest and most sophisticated technologies.
As a result of its unprecedented rate of growth, demand for electric power and desalinated water is rapidly increasing. To cope with these additional demands, new power generation and water desalination plants have been commissioned and will continue to be installed. Qatar’s first IPP (750 MW) came on stream in 2003, the second (1025 MW) in 2006 and other new plants and expansions are to be built and commissioned in the coming few years with major investments in the sector.
The Qatar Financial Centre (QFC) provides international institutions with a world class financial services platform in a stable social and economic environment. It has been created with a long term perspective to support the non-oil development of the country and the wider region, develop local and regional markets, and strengthen the links between the Gulf 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.
The Qatar Islamic Bank (QIB) is planning an ambitious expansion at both local and international levels. The bank, which achieved robust financial results in 2006, has identified retail banking as one of its priority areas for development in 2007 as part of its five-year development plan. It is to open more branches and to diversify its services and products to meet the objective. "We intend to adopt a work plan which will be aimed at consolidating growth and maximising profitability by pumping more capital into investment and financing activities," the Chairman of the Bank, Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani, told the bank’s annual general meeting in March 2007.
The Asian Finance Bank, in which QIB has a major stake, started its activities in January 2007. The European Finance House promoted by QIB is expected to start its operations in the third quarter of the year and Q-invest bank, which is the first investment bank of its kind in Qatar, is to be licensed by the Qatar Financial Centre.
The diversity of the new Qatari economy is a source of strength and as it builds an economy for the future the "knowledge economy" is to be a key aspect. In this regard in 2004, Qatar established the Qatar Science & Technology Park to attract and serve technology-based companies and entrepreneurs, from overseas and within the country. The QSTP is supported by oil majors like Shell and Exxon Mobile which have skills centres on the site.
A sports city was established in 2006 for the 15th Asian Games held in Doha. The Aspire Tower, built for the Games, is now visible across Doha. In addition, future plans of Qatar include the building of an "entertainment city".
In recent years Qatar has placed great emphasis on education. Along with the country’s free healthcare to every citizen, every child has free education from kindergarten through to university. The country has one university, the University of Qatar, and a number of higher educational institutions. Additionally, with the support of the Qatar Foundation, some major universities have opened branch campuses in Education City. These include Carnegie Mellon University, Georgetown University, Texas A&M University, Virginia Commonwealth University and Cornell University's Weill Medical College.
In 2004, Qatar established the Qatar Science & Technology Park at Education City to link those universities with industry. Education City is also home to a fully accredited International Baccalaureate school, Qatar Academy. In November 2002, the Emir Hamad bin Khalifa al-Thani created the Supreme Education Council. The Council directs and controls education for all ages from the pre-school level through the university level, including the "Education for a New Era" reform initiative. Sheikha Mozah Bint Nasser Al-Missned, has been instrumental in new education initiatives in Qatar. She chairs the Qatar Foundation and is on the board of Qatar's Supreme Education Council.
The construction sector represents 7.5% of total GDP, making the third largest contribution to the total GDP among non-oil and gas sector. Due to budget surpluses recorded over the last four years, the level of public spending has also increased. Public projects in sectors such as health, education, housing and infrastructure have been allocated a staggering $3.7 billion in the 2004-2005 budget. The demand for residential units and hotel rooms has far exceeded the supply.
Real estate development creates unmatched demand for construction materials. Projects include the $2.5 billion Pearl of the Gulf Island, which will be built 350 meters offshore close to the West Bay lagoon area of Doha. Other major developments in the real estate sector include the $5 billion New Doha International Airport, Hamad Medical City, Qatar Education City, the General Library, the Islamic Museum, Science and Technology Park, modern shopping malls and more.
Qatar has allocated $15 billion to develop projects that are unique in the region including the $5 billion new airport in addition to more than 25 new hotels and resorts in and around Doha. Leading hospitality decision-makers in the world confirm that Qatar is currently one of the most important hotel markets in the region. The new airport will handle 50 million passengers a year by 2015. The airport is due to open in 2008. Qatar Airways now serves more than 70 international destinations.
Since 2000, Qatar has consistently posted trade surpluses. Export revenues are the main source of public spending and development financing, while imports are the only means of obtaining various required commodities. Qatar has seen a wide market for imported goods because it does not levy personal income taxes or export fees. Customs duties are as low as 4%, and heavy equipment and spare parts are customs duty free.
More than 70,000 heavy and light vehicles were imported into the country in the first 10 months of 2006 representing an incredible 82% increase over the corresponding period in 2005.
The number of automobile imported between January and October of 2005 was only 38,686, according to the Director of Port Customs, Mohamed Ahmed Al Mohannadi.
The number of containers Doha Port handled in the first 10 months of 2006 was 245,500, showing more than 50% increase over the corresponding period in 2005. The port handled 163,336 containers between January and October of 2005, Al Mohannadi said in an interview published in an in-house magazine of the Customs and Ports General Authority. The total cargo the port handled between January and October of last year was 3.7 million tons, showing a 48% rise over the figure (2.5 million tons) in the corresponding period in 2005. However, in terms of ships the port received in the first 10 months of last year the growth was low at barely 4%. The port received 4,075 ships during the period under review. The figure was 3,907 in the first 10 months of 2005. Al Mohannadi said that the process of cargo clearance is being streamlined.
There are more than 300 small to medium sized private firms registered in Qatar, based on the upstream and downstream needs of the construction and the heavy industries. More recently, the private sector has ventured into areas of manufacturing not previously available in Qatar mostly consumable products.
Qatar also announced in 2007 that it was to open up its telecommunications sector, which is presently a monopoly of state company Qtel, to competition from independent operators. The Supreme Council for Information and Communications Technology said it was consulting potential operators and was set to publish licensing details in the second quarter of 2007.
Quelle: Ghorfa, Arab-German Chamber of Commerce and Industry e.V.
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