Downloaded 69 times
Uploaded byRisman BizNet
How to do business in qatar v2 @risman biznet
The document outlines the business landscape in Qatar, detailing its transformation from a once impoverished nation to one of the world's richest countries, driven by significant oil and gas resources. Key economic indicators, such as nominal GDP growth and population demographics, are presented, alongside an analysis of strengths, weaknesses, opportunities, and threats (SWOT) in the business environment. Additionally, it highlights the procedures for starting a business and the sectors with potential for investment, emphasizing government support and infrastructure development.
More Related Content
Similar to How to do business in qatar v2 @risman biznet
How to do business in qatar v2 @risman biznet
- 1. HOW TO DO BUSINESSIN QATAR & WHAT SECTORS ARE WORTH TAPPING JANUARY 27, 2014 1
- 2. QATAR THE LAND OFENDLESS OPPORTUNITI ES 2
- 3. THE HISTORY OFQATAR Then: • • • • Before the discovery of oil, Qatar-a place of poverty, malnutrition, and disease Tiny impoverished population-loose association of tribal groups Main economic activities-Pearl harvesting & fishing 1935-the establishment of Qatar General Petroleum Corporation Now: • • • • • • An independent member of UHY International THE WORLD’S richest country per capita ($100,889 in 2012 as per IMF) World's third largest natural gas reserves One among the five largest global energy producers Member of the United Nations (UN), the Organization of Petroleum Exporting Countries (OPEC), the Arab League, the International Monetary Fund (IMF), the World Bank, and the Gulf Cooperation Council (GCC). 19th most peaceful country in the world. Held the 2006 Asian Games Host of the forthcoming FIFA world cup in 2022 – the first of the Arab countries to host such an event. Insert strapline 3
- 4. STATISTICS Qatar Economic Indicators Indicator Unit 2011 2012 2013f Nominal GDP US$ (Bn) 173 180 201 Nominal GDP QR (Bn) 624 700 733 % yoy 17.9 8.1 5.8 % of GDP 30 29 27 % yoy 4.5 4.2 4.0 Population Mn 1.7 1.9 2.0 Inflation % 1.8 2.5 3.6 QR/US$ 3.64 3.64 3.64 Real GDP Current Account Balance CPI Exchange rate An independent member of UHY International Insert strapline 4
- 5. GROSS DOMESTIC PRODUCT GrossDomestic Product at Current Prices (Billion QAR) 900 800 700 700 733 624 600 455 500 400 355 300 200 100 0 2009 2010 2011 GDP An independent member of UHY International Linear (GDP) 2012 2013f Source: QSA Insert strapline 5
- 6. COMPOSITION OF QATAR’SGDP 0.9% 0.6% 4.8% 5.9% 3.5% 0.4% 0.4% 0.1% -2.3% Year: 2013f 9.3% 9.5% 55.8% 11.1% Mining and Quarrying (Include Oil & Gas) Manufacturing Trade,Restaurants & Hotels Transport and Communications Imports Duties Household Services Imputed Bank Services Charges (FISIM) Finance, Insurance, Real Estate & Business Services Government Services Building and Construction Social Services Electricity and Water Agriculture and Fishing Source: QSA An independent member of UHY International Insert strapline 6
- 7.
- 8. POPULATION AND LABORFORCE • • • • • • Average life expectancy of 79 years as of 2011 About 80% of the total population fall under the working age group (20-60 years) Expatriate workers account for most employment positions ( managerial, skilled or menial) Qatari labor force in the private sector has been decreasing (now less than 7%) Qatarization-yet to have an impact Labor regulatory burden-light and currently no minimum wage regulation. All foreign laborers have to have a national sponsor. An independent member of UHY International Insert strapline 8
- 9. QATAR’S POSITIONING INTHE GCC • GCC (Qatar ,Saudi Arabia, Oman, Bahrain, UAE & Kuwait) • GCC -most performing economies bloc that recorded “an exceptional growth” of 6.4 per cent in the past two years • Qatar is expected to lead the GCC growth rate with a projected 6.8% in 2014 An independent member of UHY International Insert strapline 9
- 10. SWOT ANALYSIS Strengths •Stable governmentfiscal policy and market based monetary policy •Ranked 22nd in Transparency International's 2011 Corruption Perceptions Index •Corporate tax rate was cut to a flat 10% from January 2010 Weaknesses •Domestic economy almost completely reliant on oil market to maintain growth •In most sectors, foreign ownership is capped at 49% SWOT Analysis Opportunities •Long-term prospects for growth are very good. •Investment in education-will improve the skills base •Membership of the GCC facilitates trade with Gulf peers •100% foreign ownership permitted ( subject to government approval) in agriculture, industry, tourism, health and education as well as in natural resources. An independent member of UHY International Threats •Only Qataris are able to obtain import licenses •US observers say Qatar's copyright protection is inadequate. Insert strapline 10
- 11.
- 12. The presentation youare about to see serves as a guide only and is not intended to govern nor to impose neither supersedes any laws of the State of Qatar. This does not contain any definitive and specific legal advice anything for such should be obtained accordingly. 12
- 13. Law #13 of2000 Agriculture Industry Healthcare Education Tourism Exploitation and development of natural resources, energy or mining provided these projects are compatible with the development plans in the state and taking into account preference of projects that achieve: - Optimal exploitation of the available domestic raw materials, - Export industries or industries that provide new products or use modern technology - Projects that settle globally well known industries and - Projects that take interest in national cadres and their rehabilitation Amended Law#1 of 2010 Consultancy services Information technology services Other services related to: - Sports - Culture - Entertainment - Distribution 13
- 14. THE CATEGORIES OFBUSINESS ORGANIZATION DEFINED BY THE LAW Establishing a business option Company Partnership Company Limited Partnership Company Particular Partnership Company Shareholding Company Limited Share Partnership Limited Liability Company Single Person Company Holding Company An independent member of UHY International Insert strapline 14
- 15. PROCEDURES AND STEPSFOR REGISTERING A COMPANY Est. Time for Completion Associated Cost Apply online for approval of the proposed name with the Ministry of Business and Trade 1 day QAR 500 Submit the Articles of Association for review at the Commercial Companies Inspection Department at the Ministry of Business and Trade 1 day QAR 1500 Open bank account and deposit minimum capital 1 day no charge 1 day QAR 24 for first 2 shareholders + QAR 9 for each additional shareholder Procedure Sign the Articles of Association before an agent at the Ministry of Justice counter located at the OSS An independent member of UHY International Insert strapline 15
- 16. PROCEDURES AND STEPSFOR REGISTERING A COMPANY Est. Time for Completion Associated Cost Obtain commercial registration from the Ministry of Business and Trade and register with the Chamber of Commerce and Industry at the single counter located at the OSS 1 day (simultaneous with previous procedure) QAR 2,200 (Chamber of Commerce) + QAR 500-5,000 (Commercial Registration) Obtain trade license and signage license from the municipality counter located at the OSS 1 day (simultaneous with previous procedure) QAR 10,020 (Trade license) +QAR 50150 (signage license) Register for taxes and obtain Tax Identification number 1 day no charge Obtain a company seal 2 days QAR 150 Procedure An independent member of UHY International Insert strapline 16
- 17.
- 18. WHY INVEST INQATAR 1. Energy Powerhouse: 200 years of proven natural gas reserves 25.7 billion barrels of proven oil reserves Natural gas deposits in excess of 900 trillion cubic feet Daily output capacity of 850,000 barrels of crude oil Annual output capacity of more than 18 million tons of liquefied natural gas (LNG) per year 2. Economic Miracle: One of the richest countries in the world 70% of government revenue from exporting oil and gas An independent member of UHY International 18
- 19. WHY INVEST INQATAR 3. Government Support: Liberal economy Free trade No restrictions on profit transfer or capital repatriation No import duties for machinery or raw materials Competitive labor costs No personal income taxes Ministry of Business and Trade support Tax exemptions for projects with Ministry of Defense or Ministry of Interior Budget - Major Allocations for Development (2010/2011) Infrastructure – QAR 35.5 billion Education and Youth Welfare – QAR 17.3 billion Healthcare – QAR 8.6 billion An independent member of UHY International 19
- 20. WHY INVEST INQATAR 4. Highly Developed Infrastructure Hamad International Airport: first airport in the world to fully handle the Airbus A380 (world’s biggest commercial aircraft. | 3x size of current airports New Doha Port: 2 million teus – 7x capacity of current ports | ultimate capacity of 6 million teus Doha Metro – Qatar Rail Qatar-Bahrain Causeway: a 40 Km (25 mile) structure of linked bridges connecting Qatar with the neighboring Kingdom of Bahrain Doha Subsea Tunnel: early phase plans: 4 lines linking Education City, West Bay, Doha International Airport, and Lusail An independent member of UHY International 20
- 21. WHY INVEST INQATAR 5. Thriving Private Sector Public Private Partnership (PPP) Free Zone in Qatar Science and Technology Park (QSTP) for technology-based business companies: • Incorporate a local company or operate as a branch of a foreign company • 100% foreign ownership • Trade without local agent or sponsor • Sponsor expatriate employees • No taxes • Duty-free import of goods and services • Unrestricted repatriation of capital and profits An independent member of UHY International 21
- 22. WHY INVEST INQATAR 6. Knowledge Based Economy Expat-friendly policy: • Bring family • Register for resident ID • Enroll children in school • Obtain health card & driving license 2.5% nominal GDP for R&D More than 7,000 well-educated graduates per year Education City (8 million Sq. M. flagship project) Qatar Cultural Village ($82 million project) An independent member of UHY International 22
- 23. WHY INVEST INQATAR 7. (QNV) Qatar National Vision 2030 The four pillars of QNV 2030: Economic Development: Development of a competitive and diversified economy capable of meeting the needs of, and securing a high standard of living for all its people for both, the present and the future Social Development: Development of a just and caring society based on high moral standards capable of playing a significant role in global partnerships for development Human Development: Development of all its people to enable them to sustain a prosperous society Environmental Development: Management of the environment such that there is harmony between economic growth, social development and environmental protection An independent member of UHY International 23
- 24.
- 25. Network of independentaccounting and consulting firms World leader in audit, accounting, tax, and business advisory services Consistent values wherever in the world you do business Global skills; one vision Your business understood An independent member of UHY International 25
- 26. REFERENCE • • • • • • • Business Monitor International(BMI) International Monetary Fund (IMF) Qatar Statistics Authority (QSA), www.qsa.gov.qa Hukoomi Portal, www.gov.qa Ministry of Business and Trade, www.mbt.gov.qa Qatar Development Bank, www.qdb.qa World Economic Forum, www.weforum.org 26
- 27.