IBDE

QATAR is a small Middle Eastern Arab country surrounded by Persian Gulf - bordered by Saudi Arabia and United Arab Emirates. Qatar is well known for its oil and gas reserves, with gas reserves being 3rd highest in the world. Oil and gas are the backbone of the economy. Qatar used to be a British protectorate until 1971.

In terms of population, Qatar has around 1.7million inhabitants which is growing at a a very fast rate - many of them being expatriates. Oil and gas industry and higher wages have attracted many people from India, Pakistan, various Arab states and from other places around the world. The main religion is Islam. In terms of climate, Qatar is relatively hot and dry year round. There is a complete world coverage of all events and there are modern channels such as Al Jazeera in English.  

Political situation

Qatar is an absolute monarchy ruled by al-Thani family. Amir Hamad bin Khalifa al-Thani is the current ruler. The current ruler overthrew his father in 1995 and since then has woerked towards modernizing the country. Qatar has resolved the border disputes it has had with Bahrain and Saudi Aarabia being a modern and stable country with low political and economic risk. However the recent events in the Arab world could change this perception if the cuntry dos not move faster with its political reforms. According to the World Bank report Qatar is the leading country in Arab world in prevalence of law and political stability. Qatar has also been praised for fighting corruption and government efficiency. In recent years, there has been some liberalization in Qatar, as the new ruler is aiming to modernize the country, writing a new constiution and implementing many other measures. The government is of emirate type and legal system in general combines Islamic and Ciliv Law. For resolving personal relations, Shari'a law is used.

Economic situation and investment

In economic terms Qatar has engoined a steady growth over the years leading to a strong economy. Qatar has one of the highest GDP per capita figures in the world, IMF data indicate that total GDP is around 110 billion USD and per capita GDP is around $81,000. The national currency is Riyal. Qatar has virtually no government debt and large export surplus ensures that current account surplus is around 20% of GDP (IMF). In the past, one of the main branches of economy was selling sea pearls. The discovery of oil has thoroughly changed the country. Qatar's oil reserves account to around 15 billion barrels. Qatar is one of the countries with lowest taxes in the world, since there are virtually no income taxes in the country. Oil and gas sectors are large, at around 50% of GDP and generate more than 80% of export earnings and more than 70% of government financial revenue. Qataris have a high class health and social system and they don't have to pay for water or electricity.

To develop a modern diversified economy, large funds have been invested into developing hich-tech economy and attract entrepreneurs and technological companies.

Qatar has a large Science and Technology park used for this purpose. The government of the country is continuesly looking to attract technology and knowledge transfer to the country.

There has been massive construction in the country. From roads, towers, to whole new cities. One of the worlds famous building is the Aspire tower, built in 2006. A whole new town, Lusail, is under construction and is the largest project ever in Qatar. There is also a Sports City in Qatar. The country is changing from day to day, and many hotels and tourist attractions bring in many visitors. The airport served around 15 million passengers in 2007, and a new one is being built to meet the  increased demand. Since Qatar will host the FIFA year 2022 cup, new stadiums and infrastructure will surely be built. Opportunities to invest in Qatar are abundant. With plenty of money around, there is high demand for goods and services. There have been investments into Telecom infrastructure (Vodafone being an investor), shopping centres, modern technology and even new universities, some as branches of world famous universities like UCL. There are no rail services within the country, as gas is extremely cheap and people drive cars. However, Deutsche Bahn has won the tender to build a railroads and therefore make the transportation network in the country denser. Financial markets in the country are underpinned by Qatar Financial Centre which provides financial and investment services, loans and other services in the country. Qatar is one of centres for Islamic Finance, which is a growing financial market in the world.

There are some special schemes for foreign investors. Investors in agriculture, manufacturing, health, education, tourism, power and some projects which use and develop Qatar's natural resources can have 100% foreign ownership, otherwise this ownership can be at most 49% for other sectors. The capital invested can be free of tax for up to 10 years and investors can import certain machinery and materials relevant to the project duty free. Qatar Industrial Bank can support some projects with loans. Qatar guarantees free repatriation of profits and protection of private property. Central Bank of Qatar is responsible for managing monetary policy and maintaining stable inflation and currency.

Qatar Science and Technology Park has already attracted Shell, Rolls Royce, Microsoft, EADS and others, so it is a good place for investment. It is a free trade zone. Some major projects in Qatar worth mentionong are: Qatar Enetrtainment City, Education City, Sports Museum, New Internaitonal Airport in Doha to name but few.

International cooperation

Qatar is a member of WTO, OPEC, ILO, IMF and many other organisations. Qatar is a member of Arab League and it is also a founing member of Gulf Cooperation Council.  As a member of RCC Qatar is is looking to enhance this cooperation and expand economic and security cooperation to other Arab states with common security concerns. It's no doubt that should the region, including Qatar, further reform their political an economic systems the country will continue to remain an attractive place for invetors