How to do Business in Qatar &What Sectors Are Worth Tapping Presentation to Indonesian Businessman in Qatar by UHY Ammo & Co Qatar. Event Organized by Indonesian Embassy Doha Qatar
3. THE HISTORY OF QATAR
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
($100,889 in 2012 as per IMF) World's third
largest natural gas reserves
One among the five largest global energy
producers
Member of the United Nations (UN), the
Organization of Petroleum Exporting
Countries (OPEC), the Arab League, the
International Monetary Fund (IMF), the World
Bank, and the Gulf Cooperation Council
(GCC).
19th most peaceful country in the world.
Held the 2006 Asian Games
Host of the forthcoming FIFA world cup in
2022 – the first of the Arab countries to host
such an event.
Insert
strapline
3
4. STATISTICS
Qatar Economic Indicators
Indicator
Unit
2011
2012
2013 f
Nominal GDP
US$ (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
Gross Domestic 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’S GDP
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
8. POPULATION AND LABOR FORCE
•
•
•
•
•
•
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 IN THE 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 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%
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
12. 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.
12
13. 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
13
14. THE CATEGORIES OF BUSINESS
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 STEPS FOR
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 STEPS FOR
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
18. WHY INVEST IN QATAR
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 IN QATAR
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 IN QATAR
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 IN QATAR
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 IN QATAR
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 IN QATAR
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
25.
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
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