Monday, 11 Jul 2011
Doha skyline
Overseas Business Risk - Qatar
Political and Economic
General Overview
The State of Qatar is located on the east coast of the Arabian Peninsula, bordered by Saudi Arabia to the south. It has an area of 11,435 sq km (roughly half the size of Wales). Its capital city is Doha – other major towns are Ras Laffan, Al Khor, Mesaieed, Dukhan and Al Rayyan. Qatar’s population is 1.7 million according to the national census in 2010 (an increase of 128% since the last official census in 2004, when the population stood at 74,000). 76% of the population is male and 24% is female. Unofficial estimates are that round 80% of the population is comprised of expatriates (mostly other Arab, South and East Asian, European and American), with only the remaining 20% being Qatari nationals.
The main source of Qatar’s wealth is its vast reserves of oil and natural gas (it has the world’s 3rd largest natural gas reserves) which have made it one of the richest countries in the world. Prudent management of these reserves has produced substantial fiscal surpluses (estimated at $16bn, or 3.4% of GDP, for 2010-11) that are being used to fund a diversification and development programme of investment in energy related industries, health, education and infrastructure in particular.
British exports to Qatar have more than doubled in the last few years. Qatar is a significant investor in the UK and has a growing portfolio of UK property. The UK imports more by value from Qatar than any other country in the region.
With one of the highest rates of GDP per capita in the world and a stable government and economy (with a high rate of economic growth forecast for 2011) there is a huge amount of potential for foreign companies to bring their products and services to Qatar. Additionally, with government policies geared towards diversification and investing in the future, as well as UK goods and services enjoying a strong reputation, opportunities for British business will only continue to grow.
Despite rapid economic and social change, Qatar continues to attach great importance to traditional Arab and Islamic values that consider the family to be a central pillar of society.
Under the leadership of HH the Emir, Sheikh Hamad bin Khalifa Al-Thani, Qatar plays an active role on the international stage.
Political Overview
Qatar is an Arab nation with Islam as the official religion. Arabic is the official language but English is also widely used. Qatar’s Emir, His Highness Sheikh Hamad bin Khalifa Al-Thani, has ruled since 1995 when he took over power from his father. His son, His Highness Sheikh Tamim bin Hamad Al-Thani, was appointed the Heir Apparent in 2003. His Excellency Sheikh Hamad bin Jassim bin Jabor Al-Thani was appointed Prime Minister in 2007, as well as continuing in his existing role as Minister of Foreign Affairs. The Emir’s consort, Skeikha Mozah bint Nasser Al-Missned, is a leading figure in the country and is the head of the Qatar Foundation.
The Emir has begun a programme of reform aimed at increasing modernisation, openness and freedom. Qatar’s first elections to the Central Municipal Council took place in 1999, with subsequent elections in 2003 and 2007. In 2003, some 97% of Qataris supported a new constitution in a national referendum. The new constitution came into force in June 2005 and provides for elections to a 45 member Legislative Council (Majils al-Shura). Two thirds of the council will be elected, with the Emir appointing the remainder. The constitution also contains provisions for the establishment of an independent judiciary, equal rights for men and women and freedom of expression for the press, freedom of assembly and freedom of worship. Some elements of the constitution have yet to be fully implemented.
Qatar is a member of several international organisations, including the League of Arab States, the Gulf Cooperation Council (GCC), the Organisation of the Islamic Conference (OIC), the Organisation of the Petroleum Exporting Countries (OPEC) and the United Nations (where it was a member of the Security Council from 2005 to 2007).
The Qatari government owns Al Jazeera, the satellite television station, which broadcasts in both Arabic and English from Qatar. In 2006 Al Jazeera launched an English language TV channel with one of its four broadcast centres in London.
Economic Overview
A Souk in Qatar
The Qatar National Vision 2030, published in 2008 sets out Qatar’s strategy and priorities in terms of change and development. This can be viewed at: http://www.gsdp.gov.qa/portal/page/portal/GSDP_Vision_Root/GSDP_EN/What%20We%20Do/QNV_2030
In addition, the National Development Strategy 2011-2016 (launched in March 2011) sets out the route for the next 5 years. This can be viewed at: http://www.gsdp.gov.qa/portal/page/portal/GSDP_Vision_Root/GSDP_EN/NDS
The exploitation of significant gas reserves has made Qatar a key strategic energy supplier to the world’s major economies. Oil and gas (which account for around 50% of Qatar’s GDP) are the major driving forces of Qatar’s economy – one of the world’s fastest-growing. Safeguarding and maximizing oil and gas revenue therefore remains central to Qatar’s economic development and to its desire to diversify its economy.
During the last few years Qatar has experienced the highest average growth rate in the Gulf Cooperation Council (GCC) and in 2010 had the highest growth rate in the world. The 2011-12 budget is based on an average oil price of $55 per barrel and expects to achieve a surplus of QR22.5bn (£3.8bn). Qatar currently has the lowest rate of unemployment in the world and the second highest per-capita income (behind Liechtenstein).
Qatar is pressing ahead with ambitious social, economic and infrastructure development plans (together with the expansion of LNG production).
Qatar will invest tens of billions of pounds to develop its infrastructure over the next 10 years or so and its successful bid to host the World Cup 2022 will provide added impetus for large-scale infrastructure projects such as the metro system and the New Doha Port. Rapid population growth is driving demand for accommodation (both residential and commercial) and medical and education services. More than 50 new hotels are currently under construction or in the planning stages.
Trade between the UK and Qatar
The UK is one of Qatar’s key trading partners. The UK exported goods worth £990m to Qatar in 2010 (up 27% on 2009 figures). Exports included industrial machinery & equipment, electrical machinery, vehicles and power generation equipment. The value of the UK’s invisible exports including legal, financial and consultancy services was £484m in 2009.
Last year Qatar’s exports to the UK increased by 205% (from £737m in 2009 to £2,247m in 2010) due to the flows of Liquefied Natural Gas (LNG) that come into the UK, including through the South Hook terminal in Milford Haven in Wales which was opened in April 2009.
The UK and Qatar signed a Double Taxation Agreement in June 2009. The UK and Qatar also signed an Investment Promotion & Protection Agreement in October 2009, though this has yet to be ratified.
HH The Emir of the State of Qatar, Sheikh Hamad bin Khalifa Al-Thani, accompanied by his Consort HH Sheikha Mozah bint Nasser Al-Missned paid a State Visit to the UK in October 2010. During the visit, a Qatar-UK Memorandum of Understanding on Business, Trade & Technical Cooperation was signed.
Qatar’s other main trading partners include the US, Italy, Japan, Germany, France, South Korea and India.
More information on political risk, including political demonstrations is available in FCO Travel Advice.
Bribery and Corruption
Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.
In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.
According to the NGO Transparency International’s corruption perception index (CPI), Qatar ranked 19 out of 178 countries in 2010 (22 of 180 in 2009). Qatar had the lowest perceived level of corruption in the Middle East and North Africa Region.
Visit the Business Anti-Corruption portal page providing advice and guidance about corruption in Qatar and some basic effective procedures you can establish to protect your company from them.
Read the information provided on our Bribery and corruption page.
Terrorism Threat
Read the information provided on our Terrorism threat page
Protective Security Advice
The Centre for the Protection of National Infrastructure also provides protective security advice to businesses
Read the information provided on our Protective security advice page
Intellectual Property
IP rights are territorial, that is they only give protection in the countries where they are granted or registered. If you are thinking about trading internationally, they you should consider registering your IP rights in your export markets.
Trade marks can be registered at the Qatar Trade Mark Office. Inventive designs or industrial models can also be registered under the Trade Mark Law.
Qatar copyright law protects original literary and artistic works including computer programmes and databases which are creative in the selection and arrangement of their subject matter - materials must be registered at the Qatar Copyright Office to be protected.
Inventions and foreign patents can be registered at the Qatar Patent Office. However, a GCC Patent can be obtained by filing an application at the Patent Office in Saudi Arabia. Certificates of Patents granted by the GCC Patent Office secure legal protection of the inventor’s rights in all member states (UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait).
Supervisory Ministry
Ministry of Business and Trade
PO Box 1968, Doha, Qatar
T: (+974) 4494 5001;
F: (+974) 4494 5555
www.investinqatar.com.qa/English
Trademarks Office
Ministry of Business and Trade
PO Box 1968, Doha, Qatar
T: (+974) 4494 5001;
F: (+974) 4494 5555
Copyright Office
Intellectual Property Center
Ministry of Justice
PO Box 917, Doha, Qatar
T: (+974) 4494 5263
F: (+974) 4493 1464
Industrial Property Office
Intellectual Property Center
Ministry of Justice
PO Box 917, Doha, Qatar
T: (+974) 4494 5263
F: (+974) 4493 1464
Patents
GCC Patent Office
PO Box 340227
Riyadh 11333
Kingdom of Saudi Arabia
T: (+9661) 482 9378
F: (+9661) 482 9600
Refer also to the website of the World Intellectual Property Organisation (WIPO): www.wipo.int/portal/index.html.en .
Read the information provided on our Intellectual Property page.
Organised Crime
Read the information provided on our Organised crime page.
More information is available on overseas business risk in a range of markets.