INVESTMENT ATMOSPHERE IN THE STATE OF QATAR

As a committed member of the World Trade Organization and international financing organizations, Qatar has completed its integration in the international free trade and economy order. It does not levy personal income taxes or export fees. Due to the fact that the customs duties are as low as 4%, and heavy equipment and spare parts are customs duty free, Qatar has seen a wide market for its Dollar 3.8 billion worth of imported goods. With a distinguished banking system, and no restrictions on the movement of capitals from the country, the whole of Qatar represents a free economic zone in which investors can make considerable gains. Legislation permits non-Qatari’s to invest in trade, industry and services sectors in joint ventures where the other partners are Qatari’s holding at least 51% of the capital. The non-Qatari investor who holds 100% share in a venture should designate a Qatari sponsor. It is worth mentioning that the GCC national investors are treated as Qatari’s in the current law.

INCENTIVES DESIGNATED FOR FOREIGN INVESTORS

The Government welcomes foreign investors and is keen to promote projects involving the transfer of foreign expertise and technology to the Qatari economy. The enactment of the new Foreign Investment Law confirms the Government’s commitment to attracting new investors to participate in the future development of business in the State.

The Government grants the following incentives to industrial projects, which contribute, to the further expansion of the industrial base.

• Availability of data and information required by the investor.

• Investment laws are stable and distinct.  They contain all required guarantees.

• Stability of exchange rates, freedom to deal in foreign currencies and flexibility of interest rates.

• Exemptions from customs duty charges on equipment, machinery, spare parts and raw materials.

• Renewable 5 years exemption from income tax.

• Freedom to remit capital and revenues outside the country.

• Freedom to remit staff remuneration outside the country.

• Protecting national industrial products by means of levying protective tariffs on, restricting the quantities of or barring competing commodities.

• Exemptions from export fees on products.

• A prerogative for national products to have a price margin increase of 5% and 10% against the GCC and international products consecutively, when competing for government purchases.

• Electricity and subsidized rates equivalent to 106 US cents per Watt/hour for industries and 2.74 US. Cents for hotels.

• Sites and nominal lease rates equivalent to 27 US. Cents per meter/year with one year period of grace, alongside with all other necessary services.

• Water services at the equivalent of 1.3 US Dollars per cubic meters.

• Easy visa services for low-coasting foreign workforce.

• Easy loan terms from Qatar Industrial Development Bank.

Government:

Country Name:

Conventional Long Form: State of Qatar
Conventional Short Form: Qatar
Local Long Form: Dawlat Qatar
Local Short Form: Qatar
Note: closest approximation of the native pronunciation falls between cutter and gutter, but not like guitar

Data Code: QA

Government Type: traditional monarchy

Capital: Doha

Administrative Divisions: 9 municipalities (baladiyat, singular–baladiyah); Ad Dawhah, Al Ghuwayriyah, Al Jumayliyah, Al Khawr, Al Wakrah, Ar Rayyan, Jarayan al Batinah, Madinat ash Shamal, Umm Salal

Independence: 3 September 1971 (from UK)

National Holiday: Independence Day, 3 September (1971)

Constitution: provisional constitution enacted 19 April 1972

Legal System: discretionary system of law controlled by the amir, although civil codes are being implemented; Islamic law is significant in personal matters

Suffrage: none

Executive Branch:
chief of state: Amir HAMAD bin Khalifa Al Thani (since 27 June 1995 when, as crown prince, he ousted his father, Amir KHALIFA bin Hamad Al Thani, in a bloodless coup); Crown Prince JASSIM bin Hamad bin Khalifa Al Thani, third son of the monarch (selected crown prince by the monarch 22 October 1996); note–Amir HAMAD also holds the positions of minister of defense and commander-in-chief of the armed forces
head of government: Prime Minister ABDALLAH bin Khalifa Al Thani, brother of the monarch (since 30 October 1996); Deputy Prime Minister MUHAMMAD bin Khalifa Al Thani, brother of the monarch (since 20 January 1998)
cabinet: Council of Ministers appointed by the monarch
elections: none; the monarch is hereditary

Diplomatic Representation In The US:
chief of mission: Ambassador Saad Muhammad al-KUBAYSI
chancery: Suite 200, 4200 Wisconsin Avenue NW, Washington, DC 20016
telephone: [1] (202) 274-1600
consulate(s) general: Houston

Diplomatic Representation From The US:
chief of mission: Ambassador Elizabeth MCKUNE
embassy: 149 Ahmed Bin Ali St., Fariq Bin Omran (opposite the television station), Doha
mailing address: P. O. Box 2399, Doha
telephone: [974] 864701 through 864703
FAX: [974] 861669
note: work week is Saturday-Wednesday

Flag Description: maroon with a broad white serrated band (nine white points) on the hoist side

Society:

Population: 723,542 (July 1999 est.)

Age Structure:
0-14 years: 27% (male 99,232; female 95,421)
15-64 years: 71% (male 367,213; female 145,925)
65 years and over: 2% (male 11,047; female 4,704) (1999 est.)

Population Growth Rate: 3.62% (1999 est.)

Birth Rate: 16.75 births/1,000 population (1999 est.)

Death Rate: 3.57 deaths/1,000 population (1999 est.)

Net Migration Rate: 23.03 migrant(s)/1,000 population (1999 est.)

Sex Ratio:
at birth: 1.05 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 2.52 male(s)/female
65 years and over: 2.35 male(s)/female
total population: 1.94 male(s)/female (1999 est.)

Infant Mortality Rate: 17.25 deaths/1,000 live births (1999 est.)

Life Expectancy At Birth:
total population: 74.23 years
male: 71.7 years
female: 76.89 years (1999 est.)

Total Fertility Rate: 3.42 children born/woman (1999 est.)

Nationality:
noun: Qatari(s)
adjective: Qatari

Ethnic Groups: Arab 40%, Pakistani 18%, Indian 18%, Iranian 10%, other 14%

Religions: Muslim 95%

Languages: Arabic (official), English commonly used as a second language

Literacy:
definition: age 15 and over can read and write
total population: 79.4%
male: 79.2%
female: 79.9% (1995 est.)

Geography:
Location: Middle East, peninsula bordering the Persian Gulf and Saudi Arabia

Geographic Coordinates: 25 30 N, 51 15 E

Map References: Middle East

Area:
total: 11,437 sq km
land: 11,437 sq km
water: 0 sq km

Area–Comparative: slightly smaller than Connecticut

Land Boundaries:
total: 60 km
border countries: Saudi Arabia 60 km

Coastline: 563 km

Maritime claims:
contiguous zone: 24 nm
exclusive economic zone: 200 nm
territorial sea: 12 nm

Climate: desert; hot, dry; humid and sultry in summer

Terrain: mostly flat and barren desert covered with loose sand and gravel

Elevation Extremes:
lowest point: Persian Gulf 0 m
highest point: Qurayn Abu al Bawl 103 m

Natural Resources: petroleum, natural gas, fish

Land Use:
arable land: 1%
permanent crops: NA%
permanent pastures: 5%
forests and woodland: NA%
other: 94% (1993 est.)

Irrigated Land: 80 sq km (1993 est.)

Natural Hazards: haze, dust storms, sandstorms common

Environment–Current Issues: limited natural fresh water resources are increasing dependence on large-scale desalination facilities

Environment–International Agreements:
party to: Biodiversity, Climate Change, Hazardous Wastes, Ozone Layer Protection
signed, but not ratified: Law of the Sea

Geography–Note: strategic location in central Persian Gulf near major petroleum deposits

Economy:
Economy–Overview: Oil is the backbone of the economy and accounts for more than 30% of GDP, roughly 70% of export earnings, and 66% of government revenues. Proved oil reserves of 3.7 billion barrels should ensure continued output at current levels for 23 years. Oil has given Qatar a per capita GDP comparable to the leading West European industrial countries. Qatar's proved reserves of natural gas exceed 7 trillion cubic meters, more than 5% of the world total, third largest in the world. Production and export of natural gas are becoming increasingly important. Long-term goals feature the development of off-shore petroleum and the diversification of the economy. Lower world oil prices brought GDP down in 1998.

GDP: purchasing power parity–$12 billion (1998 est.)

GDP–Real Growth Rate: -3% (1998 est.)

GDP–Per Capita: purchasing power parity–$17,100 (1998 est.)

GDP–Composition By Sector:
agriculture: 1%
industry: 49%
services: 50% (1996 est.)

Population Below Poverty Line: NA%

Household Income or Consumption by Percentage Share:
lowest 10%: NA%
highest 10%: NA%

Inflation Rate (Consumer Prices): 7.4% (1996)

Labor Force: 233,000 (1993 est.)

Unemployment Rate: NA%

Budget:
revenues: $3.4 billion
expenditures: $4.3 billion, including capital expenditures of $700 million (FY98/99 budget est.)

Industries: crude oil production and refining, fertilizers, petrochemicals, steel reinforcing bars, cement

Industrial Production Growth Rate: -4% (1995)

Electricity–Production: 5.2 billion kWh (1996)

Electricity–Production by Source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1996)

Electricity–Consumption: 5.2 billion kWh (1996)

Electricity–Exports: 0 kWh (1996)

Electricity–Imports: 0 kWh (1996)

Agriculture–Products: fruits, vegetables; poultry, dairy products, beef; fish

Exports: $5.6 billion (f.o.b., 1997 est.)

Exports–Commodities: petroleum products 80%, fertilizers, steel

Exports–Partners: Japan 49%, Singapore 12%, South Korea 12%, Thailand 4%, US 3% (1997)

Imports: $4.4 billion (f.o.b., 1997 est.)

Imports–Commodities: machinery and equipment, consumer goods, food, chemicals

Imports–Partners: UK 25%, France 13%, Japan 10%, US 9%, Italy 6% (1997)

Debt–External: $11 billion (1997 est.)

Economic Aid–Recipient: $NA

Currency: 1 Qatari riyal (QR) = 100 dirhams

Exchange Rates: Qatari riyals (QR) per US$1–3.6400 riyals (fixed rate)

Fiscal Year: 1 April–31 March