Qatar: potential and capacities

A supporting vision and favorable environment for investment

The national vision 2030 adopted by Qatar with a view to diversify the income sources and reduce reliance on oil and natural gas resources, has contributed in implementing a series of policies and programs aiming at strengthening the private sector contribution to the economic development process. Indeed, the state issued proper laws and legislations that facilitated engaging in commercial and economic business, and provided an attractive investment environment to different projects.

There are incentives for foreign investments in joint projects through providing technology, managing the market and subscribing to the capital. Companies are also supported to access regional and international markets, with existing first class air and sea linkages and excellent communication services. Moreover, the Qatar Science and Technology Park (QSTP) is considered a home to technology-based companies from all over the world.

 

Incentives for investment

Foreign investors are granted full ownership of companies at 100% in selected sectors including tourism, agriculture, manufacturing, health, education, development and exploitation of natural resources, consultancy services, IT, business services related to sport, culture, leisure and distribution.

Joint projects also benefit from many incentives with regards to partial ownership in joint stock companies in Qatar, ownership of some resorts and residential units, investment in the banking and insurance sectors, exemption of Customs fees on machinery, equipment and spare parts imports, abstention from limiting volumes of imports, exemption from exports fees and from taxes on companies’ profits for specific periods of time; exemption from tax revenue for 10 years. Moreover, laws for residency and work of foreign labor are simplified given that they facilitate labor importation and provide the required expertise to the projects[i].

 

Investing in infrastructure

Qatar places considerable investments to rehabilitate the infrastructure needed for hosting the World Cup in 2022, with costs expected to reach $US  8 to 10 billion. This event attracts many foreign investments in the sectors of real estate, hotels, tourism, business services, communication, financial services, renewable energy and construction material. Investments are also needed in traditional sectors like oil, gas and petrochemicals.

 

Evolution of investment projects according to the top 10 sectors between 2012- 2016 (US$m)

 

Source: FDI markets and dhaman.net

 

Major countries investing in Qatar, 2012-2016

 Ibid

 

Development needs

Qatar took early 2017 a number of procedures aiming at strengthening the business climate and the removal of hurdles encountered by the local and foreign private sector. They also contribute to enhancing economic growth, diversifying the economy and attracting national and foreign investments. The new procedures will include the issuing of a guide that will set clearly commercial activities and investment opportunities, as well as a swift settlement of permits applications for events to be organized by the hotels and the tourism sector through the one-stop shop, and the electronic connection between different competent authorities in charge of issuing authorizations in order to facilitate procedures, permits and commercial registrations. The National Tourism Sector Strategy for 2030 will be revised in partnership with the private sector, and a proper mechanism will be set up to price lands in industrial zones and logistics. Moreover, free zones will be established according to the most recent world standards, and cooperation between the private and the public sector will be enhanced in joint projects that contribute to the promoting economic growth.

 

Qatar’s ranking in the World Bank indicators for ease of doing business for 2017 among 190 countries

 

Source: World Bank Doing Business 2017