QATAR : BUSINESS OPPORTUNITIES

CONTENTS
INTRODUCTION ECONOMIC STATUS DOING BUSINESS INDICATORS POLITICAL RISKS OF MIDDLE EAST COUNTRIES INVESTMENT AVENUES

INTRODUCTION
ECONOMIC PROSPECTS
THIRD LARGEST PROVEN RESERVES OF GAS WORLDS LARGEST PRODUCER OF LIQUIFIED NATURAL GAS HUGE INFRASTRUCTURE INVESMENT PROGRAM FOR ROADS, PORTS, AIRPORTS AND METRO : 100 BILLION GDP GROWTH EXPECTED TO ACCELERATE FROM 17 % TO 19% IN 2011 NON HYDROCARBON SECTOR EXPECTED TO GROW AT 9%

GDP TREND

HIGH GROWTH LARGE EXTERNAL CURRENT ACCOUNT LARGE FISCAL SURPLUSES GOVERNMENT INTERVENTION IN BANKING SYSTEM : FINANCIAL STABILITY GDP GROWTH FROM 17 % IN 2010 TO 19 % IN 2011 CPI INFLATION EXPECTED TO BE 2% BANKING SECTOR : PROFITABLE WITH CAPITAL ADEQUACY RATIO OF 22.3 % AVERAGE ROA : 2.7 % UNEMPLOYMENT RATE : 0.4 %

RISKS
POTENTIAL RISK IN TRANSPORTATION OF LNG DUE TO INCREASED GEO POLITICAL TENSION

 OPEN TO FOREIGN INVESTMENT IN OIL AND GAS SECTORS A VERY LARGE NO OF ENERGY SECTOR PROJECTS ALREADY APPROVED AND UNDERWAY DIVERSIFICATION OF EXPORTS OF ENERGY AND ENERGY INTENSIVE PRODUCTS AS PART OF AN INDUSTRIAL STRATEGY AIMED AT MAXIMIZING THE DOMESTIC VALUE ADD OF EXPORTS WHILE ALSO DIVERSIFYING THE RANGE OF EXPORT PRODUCTS DEVELOPMENT OF VERTICALLY INTEGRATED ENERGY INDUSTRY AND CREATING WORLD CLASS INDUSTRY GIANTS Eg QP AS WELL AS HORIZONTAL INTEGRATION THROUGH DEVELOPING SYNERGIES NEW SMALL AND MEDIUM SIZED PRIVATE SECTOR PROJECTS ARE BEING ENCOURAGED TO TAKE ADVANTAGE OF DOWNSTREAM OPPORTUNITIES

AREA OF INVESTMENT
CONSIDERING COMING UP OPPORTUNITIES IN INFRASTRUCTURE, THE GROUP PROPOSES FOR INVESTMENT IN ROADS, PORTS AND METRO.

ECONOMY FAVORS NON HYDROC ARBON SECTOR GROWT H 9%

POLITICAL RISKS

INFLATIO 2 % N BANKIN G SYSTEM ABILITY TO WITHSTA ND CREDIT AND MARKET RISK FINANCI ALLY VIABLE WELL CUSHIO NED

FUNDIN G SYSTEM INTERES T RATES AND INCOME SHOCKS

ECONOMIC CONDITIONS IN FAVOUR FOR DOING BUSINESS:

NON HYDROCARBON SECTOR GROWTH 9% INFLATION 2% BANKING SYSTEM- ABILITY TO WITHSTAND CREDIT AND MARKET RISK LIQUIDITY MANAGEMENT- MONEY AND BOND MARKETS FINANACE OPTIONS- QCB

 Qatar has prospered in the last several years with continued high real GDP growth in 2011. Qatari authorities throughout the financial crisis sought to protect the local banking sector with direct investments into domestic banks.

GDP rebounded in 2010 largely due to the increase in oil prices and 2011's growth was supported by Qatar's investment in expanding its gas sector.
Economic policy is focused on developing Qatar's nonassociated natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues. Oil and gas likely have made Qatar the second highest per-capita income country - behind Liechtenstein - and the country with the lowest unemployment. Proved oil reserves in excess of 25 billion barrels should enable continued output at current levels for 57 years. Qatar'sSource : reserves proved www.CIA.org of natural gas exceed 25 trillion cubic meters, more than 13% of the world total and third largest in the world.

Household income
Investment (gross fixed) Budget : Revenues Budget : Expenditures Taxes and other revenues Budget surplus(+) or deficit(-) Public debt Inflation rate (consumer prices)

lowest 10% : 1.3% Highest 10% : 35.9%(2007) 28.6% of GDP (2011 est) $ 60.47 billion $ 45.54 billion(2011 est.) 35.4% of GDP (2011 est.) 8.7% of GDP (2011 est.) 34% of GDP (2011 est.) 1.9% (2011 est.)

Qatar GDP growth seen sharply down in 2012-2013 (ref : www. Emirates247.com)

Expect Amazing, was the tag-line of the Qatar Bid committee for FIFA 2022 and this became a reality when FIFA awarded the right to host the 2022 World Cup to Qatar, the first country in the Middle East to get this honour. The FIFA World Cup is expected to draw around half a million visitors, almost a third of Qatars current population. The FIFA event at Qatar is expected to have a significant impact on the economy. Government on track with large spending program Prior to FIFAs announcement, Qatar had already outlined a plan to spend around $100 billion, being 87% of GDP (2010 GDP in current prices is estimated at $115 billion) on infrastructure projects as a part of the countrys ambitious National Vision 2030, to modernize the country. The FIFA event has only accelerated the infrastructure spending programme and can expect the completion by 2022.
As part of the plan, the government will spend more than $40 billion on projects, while the remaining share will be from government entities such as Qatar Petroleum. The plan includes, among others, a number of high profile mega projects, largely in the transportation, tourism, health, education and housing sectors. The plan also includes a $25 billion metro and rail network. The construction of the first phase of the new $10 billion airport, dubbed the New Doha International Airport is already in full swing, which will eventually replace the current airport. The first phase of the project is scheduled to open in late 2011 or early 2012, with later phases being rolled out between 2012 and 2027. Once completed, the new airport would have the capacity to cater to 24 million passengers per year initially which could be expanded to handle 50 million passengers. Other prominent projects include a $7 billion deep water seaport and a $1 billion crossing to link the new airport with projects in the northern part of Doha. An additional $20 billion will also be spent to build and expand roads. This does not include the Qatar-Bahrain Friendship Bridge project at a cost of $4 Billion.

Source : http://www.morisonmenon.com/fifa-world-cup-2022.php

Risks of Business: Political Scenario Prevailing Rules Labor Problem Cost Of Living Unpredicted Condition after source of oil run out

Qatar has third largest natural gas reserves in the world. This abundance of natural resources coupled with recent legal liberalization and economic diversification mans many opportunities for investments in Qatar

Ministry of business and trade may permit foreign investors to own more than 49% And up to 100% of a company in a specified sector called the priority sectors, namely technical services, information technology, Manufacturing, Development and exploration of natural resources, energy and mining These opportunities are have been greatly enhanced by Qatar being chosen to host the Football World Cup in 2022