||Economy and Investments
The Qatari economy underwent many adjustments
to bring it in harmony with the changing world economy. These adjustments
were also meant to consolidate and diversify the economic base to obviate
the risk of depending on a single source, viz, oil and gas.
Thus the Qatari economy is now one of the strongest
in the region and has recorded genuine growth over the last 5 years.
Qatar`s economy recorded noticeable real growth over the last five years.
This growth has also led to an improvement in keeping inflation under
control and ensuring stability of the exchange rate.
Qatar friendly relations with other countries have helped to a great extent
its foreign trade exchanges especially in the Asian markets.
Oil and fuel account more than 93% of Qatar`s exports, followed by petrochemicals
and manufactured goods. Japan is the biggest single importer of crude
oil from Qatar while Chine and India are the biggest importers of fertilizers
Qatar enjoys unique investment environment thanks to its attractive investment
Legislations and Investment
Incentives, its social and political stability, strong and balanced
ties with all states in the region and its strategic geographical location.
Qatar has one of the highest capita in the world which is 63,000 USD according
t a report by Qatar National Bank in June 2007. In order to keep the momentum
of economic development, Qatar adopts flexible economic policies designed
to encourage local and foreign investment. This includes a well-developed
infrastructure, nominal land –lease prices in the industrial areas
and exemption from duties on imported machinery.
Qatari legislation relevant to business was designed to create an attractive
environment attractive to foreign capital, conducive to economic integration
with neighboring countries and ultimately capable of safeguarding the
national economy against any harmful impact.
A Qatari Law issued in 2000 organizes foreign capital investment in various
economic sectors. The law determines investments by foreigners in cash
or kind or equities have financial value.
It also determines the scope of assets imported for investment purposes,
profits, yields, and reserves accrued from foreign investment in a certain
field and other non-corporeal rights such as licenses, patents and trademarks
registered in the country.
The Law allows foreigners to invest in all sectors of the national economy
provided they have Qatari partners holding a share of not less than 51%
of the capital.
However the Law authorizes the Minister of Economy and Commerce to allow
foreign investors to own 100% of projects in the fields of agriculture,
industry, health, education, tourism, energy, mining and development of
natural resources as long as all these activities are compatible with
the country`s development plans. The law prohibits foreign investment
in the national banks, insurance companies, commercial agencies and real
estate. As an incentive it also allows foreigners to lease land for investment
purposes for a renewable period of 50 years.
The Law exempts invested foreign capital from income tax for a period
not exceeding 10 years from the date of commissioning the project.
It also grants custom duty exemptions on imported basic machinery and
equipment. Industrial projects are granted similar treatment on primary
or semi-manufactured materials necessary for production and not available
in the market.
Qatar organizes a large number of international exhibitions and business
conferences with the aim of boosting its commercial ties with other states.
The Qatar Central Bank was established in 1993 to replace the Qatari Monetary
Authority, which was formed in 1973. Among the Bank`s main tasks is to
organize, control and ensure stability of the financial market. Since
1995 QCB has liberalized interest rates, thus giving commercial banks
the freedom to determine their interest rate ceilings.
There are more than 37 Banks in Qatar, some owned by Qataris others are
commercial, two are Islamic, and many Arab and foreign banks.
Ministry of Economy and Commerce