how to do business in qatar v2 @risman biznet

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HOW TO DO BUSINESS IN QATAR & WHAT SECTORS ARE WORTH

TAPPING

JANUARY 27, 2014

QATAR THE LAND OF ENDLESS

OPPORTUNITI

ES

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An independent member of UHY International

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strapline

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:

• 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.

THE HISTORY OF QATAR

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http://en.wikipedia.org/wiki/List_of_countries_by_natural_gas_proven_reserves

http://en.wikipedia.org/wiki/2006_Asian_Games


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STATISTICS

Qatar Economic Indicators

Indicator Unit 2011 2012 2013 f

Nominal GDP US$ (Bn) 173 180 201

Nominal GDP QR (Bn) 624 700 733

Real GDP % yoy 17.9 8.1 5.8

Current Account Balance % of GDP 30 29 27

CPI % yoy 4.5 4.2 4.0

Population Mn 1.7 1.9 2.0

Inflation % 1.8 2.5 3.6

Exchange rate QR/US$ 3.64 3.64 3.64

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GROSS DOMESTIC PRODUCT

5

355

455

624

700 733

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 2013f

Gross Domestic Product at Current Prices (Billion QAR)

GDP Linear (GDP)Source: QSA


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COMPOSITION OF QATAR’S GDP

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Source: QSA

55.8%

11.1%

9.5%

9.3%

5.9%

4.8% 3.5%

0.9% 0.6% 0.4% 0.4%

0.1% -2.3%

Year: 2013f

Mining and Quarrying (Include Oil & Gas) Finance, Insurance, Real Estate & Business ServicesManufacturing Government ServicesTrade,Restaurants & Hotels Building and ConstructionTransport and Communications Social ServicesImports Duties Electricity and WaterHousehold Services Agriculture and FishingImputed Bank Services Charges (FISIM)


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POPULATION

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Source: QSA

1.70 1.73 1.83 2.00 2.10

2.25 2.40

2.57 2.75

2.95 3.15

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2010 2011 2012 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F


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POPULATION AND LABOR FORCE

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• 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.


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QATAR’S POSITIONING IN THE GCC

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• 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


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SWOT ANALYSIS

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Strengths

•Stable government fiscal 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%

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.

Threats

•Only Qataris are able to obtain import licenses

•US observers say Qatar's copyright protection is inadequate.

SWOT

Analysis

HOW TO DO

BUSINESS IN

QATAR

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The presentation you are 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.

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Law #13 of 2000

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


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THE CATEGORIES OF BUSINESS ORGANIZATION DEFINED BY THE LAW

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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


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PROCEDURES AND STEPS FOR REGISTERING A COMPANY

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Procedure 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

Sign the Articles of Association before an agent at the

Ministry of Justice counter located at the OSS 1 day

QAR 24 for first

2 shareholders

+ QAR 9 for

each additional

shareholder


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PROCEDURES AND STEPS FOR REGISTERING A COMPANY

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Procedure 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 50-

150 (signage

license)

Register for taxes and obtain Tax Identification number 1 day no charge

Obtain a company seal 2 days QAR 150

WHY INVEST IN

QATAR

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WHY INVEST IN QATAR

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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


WHY INVEST IN QATAR

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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

WHY INVEST IN QATAR

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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


WHY INVEST IN QATAR

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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


WHY INVEST IN QATAR

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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)


WHY INVEST IN QATAR

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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


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Network of independent accounting 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


REFERENCE

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• 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

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Terima kasih

how to do business in qatar v2 @risman biznet

Business

international

uhy international

natural resources

signage license

oss 1 day

independent

previous procedure

trade