Qatar

Ministry of Economy & Commerce Investment Promotion Department

2

MINISTER’S MESSAGE PART ONE - ABOUT QATAR

4 6 8 16 20 24

Qatar - A State of Transformation A Great State of Living The State of Creative Energy The State of Attractions Social and Cultural Information The State of Government Reforms PART TWO - STATE OF ECONOMY

28

The Booming State PART THREE - INVESTMENT OPPORTUNITIES

36 46

The Investor Friendly State The State of Wealth and Well-being APPENDICES 1. Frequently Asked Questions 2. Procedures for Setting up Business 3. Reasons for Investing in Qatar

Part One About Qatar | 1

MINISTER’S MESSAGE

Ministry of Economy & Commerce Investment Promotion Department

Yousef Hussain Kamal Minister of Finance and Acting Minister of Economy and Commerce The State of Qatar is going through an unprecedented phase of comprehensive economic and social development under the guidance of His Highness the Emir Sheikh Hamad Bin Khalifa Al-Thani, and his trusted Heir Apparent, Sheikh Tamim Bin Hamad Al-Thani. The Government of Qatar has adopted major reform initiatives, which have successfully transformed Qatar into a modern state capable of playing a vital pioneering role in both the regional and international arenas. The on-going economic expansion is based on proper utilisation of our natural resources and the potentials of our human resources to sustain diversified and balanced economic structures.

Promotion Department to facilitate the process of setting up business in Qatar. All potential investors are welcome to participate in the on-going development process. I thank you for taking an interest in the State of Qatar and would also like to extend my sincere thanks and appreciation to all those responsible for promoting investment in Qatar.

These objectives have been pursued in conjunction with political and legislative forms. We have also adopted a policy of economic liberalisation to ensure effective participation of the private sectors which play an increasingly important role in the process of economic development. These efforts resulted in a significant rate of economic growth and have doubled Qatar’s GDP during the last five years. The Ministry of Economy and Commerce is committed to continue its role in improving the investment climate in Qatar and making the country an ideal oasis for investors and investment activities. In 2005, the Government introduced an Investment Minister’s Message | 3

Part One About Qatar

QATAR – A STATE OF TRANSFORMATION

Ministry of Economy & Commerce Investment Promotion Department

“For centuries the Indian Ocean, the Arabian Sea, the Gulf and the Mediterranean were considered lakes of peace and cooperation and open areas for trade and cultural exchange... In the history of this area, exchange was not a mere profession but an integrated culture which recognised the other, reflected self confidence and the desire of coexistence and acceptance of diversity and differences, which are fundamental human values in democratic societies.” - The Emir, His Highness Sheikh Hamad bin Khalifa Al-Thani

History Lessons

was one of the world’s most developed and dominant economies – being at the forefront of innovation and knowledge - particularly in mathematics, medicine and architecture. Before its fine cities of knowledge and development were demolished by invading mobs from the West, the Middle East had made invaluable contributions to the world of health and science. Today Qatar is creating opportunities for investors in the fields of finance, science, research, construction, real estate and other enterprises. Investors can move forward with business innovations that may include, but can also have a focus beyond, energy.

impressive internal remodeling. Qatar’s recent Government policies have been creating a strong internal infrastructure. Qatar’s diversification strategy is paying dividends as it grows a global niche market for investors. Qatar has applied lessons from the development successes and failures of other countries that have experienced economic fast-tracking. The Qatar leadership has been analysing and assessing this knowledge to develop a sustainable economy in an innovative society.

A Model State

Qatar is now the most open Arab economy and the “best regional model for its neighbors to emulate”. - The World Economic Forum

Qatar is reclaiming a history of enterprise and cooperation for which the region was once deservedly renowned. In the 5th Century BCE (Before Common Era), the Greek historian Herodotus referred to the seafaring Canaanites as the original people of Qatar. The Greek geographer Ptolemy, in his map of the Arab world, illustrated ‘gatara’, a likely reference to the Qatari town of Zubara, then one of the most important trading ports in the gulf region.

Nestled on a long peninsula halfway along the Arabian Gulf, Qatar is surrounded on three sides by water. It has a coastline of about 550 km and a general land mass covering 11,525 sq km including islands. Geographically, Qatar is in the middle of the Gulf Cooperation Council (GCC) surrounded by Bahrain, Kuwait, Saudi Arabia, the United Arab Emirates, and Oman.

From the 8th century to the 12th century CE (Common Era) the Middle East region

Qatar’s recent and impressive growth in constructing world-class lifestyle business and residential facilities is mirrored by the State’s Part One About Qatar | 5

A GREAT STATE OF LIVING

Ministry of Economy & Commerce Investment Promotion Department

“The Winds That Build The Dunes, Blow Dreams Into The Minds of Men.”

State is already demonstrably at the forefront of regional social and financial enterprise with many projects drawing international acclaim.

- Toni Briegel, Soul of Sand

State of Comfort for Families and Individuals

Qatar’s capital city and centre of Government, Doha, springs from the desert and borders the sea. Blue windows sparkle in tall buildings. The long Corniche edges a serene palm-lined harbor containing ships, luxury cruisers and the Arabian fishing boats known as dhows. The landscape is generally flat with dust flying up around construction sites where development abounds. Swimming pools glint in the sunlight. Buildings are circled by public parks and gardens, wide and green. The land sweeps around the sea into a sprinkling of towns and villages and beyond, into the mysteries of ancient dunes and old forts. A flourishing and evolving cultural and commercial centre, Doha offers living accommodation ranging from average to luxury within various gated communities known as compounds. Perfect for family life, these complexes may contain a clubhouse gymnasium, parks, shop and pools. Other accommodation includes apartment buildings and large stand-alone villas ranging from basic to palatial. Expatriates can also gain membership to hotels and sports clubs including a world-class golf course. State-of-Architecture Qatar reflects a desire by its leaders to be the most progressive country in the region. The

One of the most common sounds in expatriate communities is the sound of splashing in swimming pools where parents play with children at the end of the day or working week. Most couples comment that they get more family time than they would have in their home countries. It is common for housemaids to be hired to help with domestic chores and childcare. Because the country is small people easily form social groups and visit each other frequently. For those who value leisure time, Qatar offers one of the most attractive deckchair and lounge-bar lifestyles in the world. For those who prefer activity it offers a worldclass golf course, world-class sports centre and a variety of sports clubs. Shopping Qatar’s shopping malls include up-market boutiques and areas for family activities such as bowling, ice skating and amusement parks with video arcades and adventure rides. The latest films are screened at multi-cine complexes. Nights are spent enjoying musical and theatre entertainments or dining under a moonlit, star-filled sky.

uses boutique ‘streets’ to connect shopping and entertainment through to a meandering waterway with a Venetian gondola. One of the largest retail malls in the Gulf is the City Centre-Doha which features four levels including a family entertainment centre, Winter Wonderland and Cineplex. Royal Plaza is an up-market boutique mall with 105 outlets. Landmark, the Mall, the Al-Asmakh Mall, Lulu and Hyatt Plaza are some of the other fine malls in Doha. The popular supermarkets Carrefour and Giant have large branches in malls and MegaMart is another supermarket with a fine range of produce. Other smaller food cooperatives operate in most neighbourhoods. Safety Qatar is comparatively free of petty and serious crime. While it is advisable to be cautious in any country, parents often comment that Qatar is a safer place to bring up children that many other countries. Young children play in malls and parks without the level of associated risks that are prevalent in other countries. The country’s zero tolerance for drugs and the restrictions on purchase of alcohol have created a safer society for growing adults. The drug-induced social and psychological malaise impacting on teens in many Western countries is not evident in Qatar.

One of the latest malls to open is Villaggio with a design exterior reminiscent of an Italian hill town and a relaxing interior which Part One About Qatar | 7

THE STATE OF CREATIVE ENERGY

Ministry of Economy & Commerce Investment Promotion Department

“Thought and creativity prosper only in an environment that secures freedom of expression and does not restrict thinking.” - The Emir, His Highness Sheikh Hamad bin Khalifa Al-Thani

World-Class Education, Health, Sports and Enterprise High standards of low cost health care and world-class independent international schools make Qatar a highly popular residential destination for expatriates. Education Pre-School, Elementary and Secondary Schools Qatar hosts some of the most highly regarded international schools in the world. Expatriates are attracted to the high standard of private international schools providing pre-school, elementary and secondary schools. The main international schools are based on the English or American School systems. It is important to note that due to their popularity, applications to private schools should be made as early as possible so as to gain a place, particularly in international schools, which usually have waiting lists

and entry requirements. In some cases the fees are paid by employers as part of an employment contract. Most expatriate children attend one of the many international schools, the most popular include the American School – which is expanding and is expected to soon become one of the world’s five top international schools for learning facilities; the Doha English Speaking School which is focused on providing high standard education availability for children of residents on a British passport; Doha College; the Qatar Academy which offers a baccalaureate programme; Qatar International School, Japanese School, Middle East International School and Ideal Indian School. Some of the schools are listed on this website: www.qatarembassy.net/educenters.asp There are also a wide range of nurseries in Qatar such as Tot’s Corner and Starfish Lane with the latter proving popular for its eco-friendly creative and structured educational environment for children. Qatar’s State Education Qatar also has a progressive state school system which has been undergoing a massive transformation from state-driven to independent education. This direction is in-keeping with the guiding principle of developing a knowledge-based economy.

A RAND study released on April 17th 2007 states that: “In only a few years, The State of Qatar has successfully implemented a bold redesign of its K-12 education system, incorporating school autonomy, variety in curriculum, parental choice and accountability measures.” (RAND is a non-profit global-think tank working with governments and private, international and commercial organisations. It is known for rigorous, often-quantitative, and non-partisan analysis and policy recommendations). Higher Education Qatar has its own University, Qatar University, providing an intellectual and scholarly community characterized by open discussion, the free exchange of ideas, respectful debate, and a commitment to rigorous inquiry. All members of the University - faculty, staff, and students - are expected to advance the scholarly and social values embodied by the university. The mission of the University is to promote the cultural and scientific development of the Qatari society while preserving its Arabic characteristics and maintaining its Islamic cultural heritage.

Part One About Qatar | 9

Ministry of Economy & Commerce Investment Promotion Department

“We need to look inward to rediscover excellence and outward to realize it.” - H.H. Sheikha Mozah Bint Nasser Al-Missned

The Qatar Foundation Education is a major driver in Qatar’s economic success and the Qatar education success story is underpinned by the Qatar Foundation. This Education, Science and Community Development is a unique private, chartered, non-profit organization, founded in 1995 by His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Emir of Qatar. Guided by the principle that a nation’s greatest resource is the potential of its people, the Qatar Foundation is developing that potential through a network of centres devoted to progressive education, research and community welfare. It is a development that is fuelling knowledge and deservedly attracting international interest and investment. The fact that the creation of the Qatar Foundation was among the Emir’s early initiatives bears testament to its importance to the Emir and the Foundation’s Chair, Her Highness Sheikha Mozah Bint Nasser Al-Missned. Education City The Qatar Foundation’s headquarters are in the unique Education City, a 2,500-acre campus on the outskirts of Doha which hosts

branch campuses of some of the world’s leading universities, as well as numerous other educational and research institutions.

Japanese architect Arata Isozaki, is emerging as construction on several major facilities evolves.

Supported by abundant residential and recreational facilities, the Qatar Foundation’s flagship, Education City, is developing as a community of institutions that serve the whole citizen, from early childhood education to post-graduate study.

A 7000-seat convention centre is also being developed in Education City and all-digital Specialty Teaching Hospital are other developing projects.

Education City has attracted one Ivy League and other top-of-their-field, world-rated, universities to open their doors in Qatar such as Carnegie Mellon, Weil Cornell Medical College – Qatar, Georgetown, Texas A&M, the College of North Atlantic and Virginia Commonwealth which are housed in Education City. A major vocational training institute has been established with the Canadian College of North Atlantic-Qatar, (CAN-Q).

For information on the technology investment potential at the Qatar Science and Technology Park (QSTP) at Education City see the section on QSTP in the section: ‘Where To Invest’ in Part Three: ‘The Investor Friendly State’.

Most of the students are citizens or residents of Qatar, but many come from other countries in the Gulf and throughout the Middle East. Some come from as far afield as the United States, New Zealand, South Africa and Bosnia. The faculty and staff are equally diverse. Education City is a place where bridges are being built, between cultures and to a better future. A community of institutions, Education City serves as the hub for the generation of new knowledge. Researchers have the opportunity to work with a pool of well-trained graduates in world-class facilities, collaborating and transferring ideas into practical applications. The master plan, created by renowned

For more information see www.qf.edu.qa

Health The State of Qatar is in an excellent state of health and it is planning to stay that way. Health Services, including dental treatment, are available at a nominal charge to all residents and visitors through the public Hamad Hospital and many other health centres in Qatar. There are also private health practitioners in Doha. The private Al-Ahli hospital was established in 2005. Hamad Medical City The Hamad Medical City project is estimated to cost QR 1.5 billion and will include a 300-bed unit, a dialysis unit, medical staff accommodation and laboratories. The project is part of the QR 12.5 billion budget of the Ministry of Municipal Affairs and Agriculture. Two other new hospital projects worth QR 220 million and QR 100 million respectively are also planned. Part One About Qatar | 11

Ministry of Economy & Commerce Investment Promotion Department

A State of Sports

Sports City - Aspire Zone

Other Stadiums

Qatar is a major regional and international sports destination. The Doha Golf Club has two grass golf courses, an 18-hole championship course and a 9-hole executive course, available to both members and the general public. The Doha Golf Club is undergoing extensive renovations and expansions including a play area for children and swimming pool with a Jacuzzi, new academy building and television building. For more information see www.dohagolfclub.com

‘A Place for All to Enjoy’

Qatar also has a range of other sports stadiums, many of which were renovated to a high standard in preparation for the 15th Asian Games held in December 2006. Sports venues in Doha and its suburbs include: Al Ahli Stadium, Al Gharrafah Stadium, Al Itihad Sports Club, Jasem bin Hamad Stadiums (Al Sadd Stadium), the Khalifa Tennis Stadium, the Markhiya Sports Club and the Qatar Sports Club Stadium.

Qatar also has a number of soccer stadiums and clubs which hold international and local tournaments; a Doha Rugby Football Club which has international tours and tennis and squash at various complexes and clubs Diving clubs are popular with people wishing to discover the marine world in the Persian Gulf. Other water sports include sailing, boating, jet-skiing and windsurfing. Horse racing is held every Thursday at the Race & Equestrian Club in Al Rayyan from October to May. Qatar also holds camel races, an unusual and exciting spectacle for residents and visitors. The City Centre Doha has a bowling and ice skating rink where skates can be rented by the hour. Another bowling and ice skating complex on the third floor is for women and children only. The Qatar Bowling Centre has a ten-pin bowling in a 32-lane facility.

Qatar’s Aspire Zone is a world-class sporting complex containing several sporting venues. These include the Khalifa International Stadium – site of the 15th Asian Games, the Hamad Aquatic Center and the ASPIRE Academy. The Aspire Zone also contains Doha’s tallest structure, the Aspire Tower. The Academy for Sports Excellence, situated in the Aspire Zone, is an elite facility aimed at identifying, educating and training talented athletes to compete in professional sports at the highest levels. The Academy’s philosophy is aimed at developing the student fully in all aspects of life both academically and in sports, so that they have the widest possible range of opportunities in adult life. Aspire provides an outstanding learning environment, including full educational and recreational facilities, advanced dormitories, an amphitheater, lecture halls, seven outdoor football training fields, and state-of-the-art weight rooms and physiotherapy. Villagio Mall is also part of the Aspire Zone complex. As well as hosting the 15h Asian Games in 2006, Doha also hosted the 3rd West Asian Games in December 2005. The Aspire Zone is also expected to host the 2011 Asian Indoor Games and to make a bid for the 2016 Olympics. For more information on Aspire Zone and its vast range of facilities see www.aspirezone.qa

Part One About Qatar | 13

Ministry of Economy & Commerce Investment Promotion Department

State of Communications Transparency and Democracy As a means of ensuring democracy and greater transparency the State has engaged in various public consultations, meetings and symposiums where discussions can take place about the process of change. Other symposiums, conferences and public forums take place through private businesses and the Qatar Foundation and Education City Universities. Under the Qatar Foundation, the Doha Debates presented by the BBC’s Tim Sebastian and aired by the BBC have helped foster an exchange of ideas about issues of importance to the Middle East and global affairs. Six daily newspapers are published in Qatar with three presenting the news in English: The Gulf Times www.gulf-times.com; The Peninsula www.thepeninsulaqatar.com. The Qatar Tribune website is currently under construction. Many international newspapers are also available a day or two after publication. Several magazines are produced in Qatar. English television and US stations may be viewed on the cable TV network. Western programs, including movies, are subject to censorship. There is one English-speaking radio station in Doha, QBS (97.5 FM), catering to a range of musical tastes.

There are two local television channels – one in Arabic and the other in English. There is also a local English radio station. The Virgin bookstore stocking a wide range of literature and tapes has recently opened at the Villaggio Mall in Doha. The Jarir Bookstore on Salwa Road is another outlet selling newspapers, magazines, books and art supplies. Al Jazeera Channel Network Located in Qatar, and financed by the State of Qatar, Al Jazeera (which means “the peninsula”) has been broadcasting since 1996, and is uniquely positioned to broadcast the Arab world’s point of view to the Western public. In 2004 Al Jazeera became the fourth best recognized brand name in the world. It is considered to be the Arab world’s only independent, professional news and information television channel and has a number of specialty channels including Al Jazeera Sports, Al Jazeera Documentary, Al Jazeera children’s channel and most recently, Al Jazeera English which transmits news worldwide. In 2007, the Arabic Al Jazeera channel has been rivaling the BBC in worldwide audiences with an estimated 40 to 50 million viewers. Al Jazeera English channel has an estimated reach of around 80 million households.

Other English speaking stations from the United Arab Emirates are also available. Part One About Qatar | 15

THE STATE OF ATTRACTIONS

Ministry of Economy & Commerce Investment Promotion Department

A Unique Tourist Niche

see www.cnc.com.qa/english.asp

Doha Cultural Village

Qatar National Museum Expansion

The Cultural Village will offer a superb chance for visitors to experience traditional connections converging day and night routines. It will be a place to wander, listen, learn and dream while sampling local food. The visitor can for a short time at least, become a villager.

The expansion of the Qatar National Museum has been designed by the renowned French architect Jean Nouvel. The museum will adopt the most modern concepts in museology providing a lively experience, and will house six main themes - the land, the origins, historic settlements, sea, Nomadic life, and the wonders of nature. For more information see www.cnc.com.qa/english.asp

The Cultural Village is located in the West Bay area of Doha with a total area of 99 hectares. The project will reflect the heritage of Qatar through traditional architecture that accommodates a large number of cultural activities. In addition to the libraries, art galleries and museums the Cultural Village includes an amphitheater, heritage centres, and other academic facilities. It is due to be completed by the end of 2007. Museum of Islamic Arts The Museum of Islamic Arts, which is expected to be completed by end of 2007, will become one of the interesting and appealing landmarks in Doha. As well as displaying items of considerable cultural and artistic value in an impressive location, the museum will serve as an educational institution offering support to local schools and providing facilities for research scholars from Qatar and overseas. It will display the Qatar National Collection of Islamic Art – ceramics, metalwork, jewelry, woodwork, glass and other items collected from countries in the Islamic World from medieval Spain to Central Asia and India. For more information

Oryx Farm and Equestrian Club The national animal of Qatar, the Oryx, can be viewed in its natural surroundings at the Oryx Farm located in Shahaniya. Arabian horses are famed around the world for their mystique and beauty. The pure-bred Arab show and race horses at Al Shaqab Stud Farm create an opportunity for visitors to view the horses from close-range. Other facilities include the Qatar Race and Equestrian Club, where visitors may view the stables and the Rayyan Racing and Equestrian Club which holds races and show-jumping events. Contact local tour operators to arrange visits. Calm Cruises and Sea Adventures Scuba divers are able to experience the balmy wonderland of Qatar’s underwater world of marine life around two artificially formed reefs. Sailing is also a popular pastime and several private companies offer dinghies and windsurfers for rent, as well as sailing lessons for novice and experienced sailors.

A sunset cruise on a traditional dhow in Doha Bay is a unique and refreshing way to view the city at night or day, dhow trips to outer islands are also popular. Luxury yachts and boats can be rented for half and full day fishing trips. Jet-skiing and water-skiing, pedal boats, water cycle, and kayak rentals are also popular. Other adventurous pursuits include parasailing, surfing, or wind-surfing. The main hotels and local tour operators can assist in arranging such activities. Sand and Seafaring Safari trips to the inland sea or ‘dunebashing’ in 4x4 vehicles in the middle of the desert create exhilarating memories for families and outdoor trekkers. Tour operators provide safe and dramatic tours of the desert topped off by a lunch and siesta or an overnight stay. Longer tours are also available. Souks (Traditional Markets) The traditional souks offer a rich and enchanting world of tiny shops, malls, open and walled markets frequented by locals and tourists. Souk Waqif was recently restored and expanded. The beamed ceilings and old walls provide a cool tranquil place to wander through alleyways scented by food and perfume spices. The oldest of Doha’s traditional markets, the Souk was originally used by Bedouin traders as a trading centre to stock up on meat, wool and milk. The fine silks and cottons in the fabric souks usually sell for far less than their value in Europe or the US. Part One About Qatar | 17

Ministry of Economy & Commerce Investment Promotion Department

The gold souks provide an array and display of intricately crafted gold. Jewellers may create or repair jewelry on request. Bartering for the ‘best best’ price is usual in these shops. Corniche and Parks From early morning to late at night promenading along the Corniche is a popular past-time for locals and expatriate residents. The seven-kilometre stretch of coastline runs parallel to the warm waters of the Arabian Gulf and is used by walkers, runners, roller-bladers and children on cycles. The park at the corniche also offers a relaxing environment for a game of ball or family picnics.

For more information on sightseeing and tourism developments see www.qatartourism.gov.qa For information relating to hotel and real estate investments see ‘The Where to Invest’ section in Part Three: The Investor-Friendly State.

Many parks in Doha have play equipment or provide space for family ball games, quiet siestas can be enjoyed under shady trees. Some parks are also used as venues for nighttime entertainment. Children’s indoor activities and facilities including food courts are also provided in most large shopping malls. Clubs and Interest Groups From cultural and language groups to gardening, natural history, dancing or formal extra-mural education there is a wide range of interest and leisure groups. Information about these and upcoming events can be obtained in frequently produced brochures and guidebooks which are available at most bookstores or the magazine section of supermarkets. Part One About Qatar | 19

SOCIAL AND CULTURAL INFORMATION

Ministry of Economy & Commerce Investment Promotion Department

According to UN report of human development resources, Qatar was ranked NO. 1 in MENA (Middle East and Northern Africa) region. - UN Human Development

Facts and Tips for Businesspeople and Families Religion and Social Customs Islam is the official religion of the State of Qatar and mosques are found in abundance. The Sharia (Islamic Law) is the principal source of legislation in the country. Protestant, Roman Catholic and some other smaller faith communities offer weekly services, in English and other languages, in rented spaces in Doha. Dress Code Respectful dress code is generally required in Qatar, particularly in business situations and local markets and malls. Women should wear clothing that covers the knees and wear short or long sleeved shirts rather than sleeveless tops. Men are advised to cover their upper bodies and refrain from wearing shorts in business or most public situations. Dress is more relaxed in hotels, expatriate clubs and accommodation complexes. Languages While Arabic is the official language in

Qatar, many transactions are conducted in English. English is also now being taught at state schools and is increasingly the favored language for international communications and business. Translators can be requested for business situations where English is not understood. Urdu, the language of Pakistan, is also spoken frequently. Greetings Shaking hands - the common form of greeting between Westerners - is not always used by businesspeople in the Middle East particularly between men and women. If a Qatari person refrains from shaking hands this doesn’t mean they are not being friendly. When a Qatari person takes their hand and places it against their heart they are adopting a traditional expression of greeting or farewell. Literacy The adult illiteracy rate has been declining rapidly since 2000 due to endeavours by the State including policies which guarantee and promote education and community education programs for those who missed out on an education in earlier life. The rate of University graduates out of the total population is steadily rising in keeping with the Government’s emphasis on education. In 2000 28% of Qatari people had a university degree compared to 34% in 2005. The figure is expected to continue to rise significantly.

A Multi-Cultural Workforce Based on labour force data from the Government Planning Council, the Government sector and Government companies hire more than 90% of working Qatari nationals. Non-Qataris constitute approximately 90 % of the private sector workforce. A Warm Welcome The weather in Qatar is one of the appealing aspects of the lifestyle and contributes to the relaxing carefree atmosphere. The climate is generally pleasant most of the year with a mild winter from November to January and a hot summer from June to August. Temperatures generally range from 14c to 27c in winter and from 27c to 45c in summer. Some families choose to take their annual holidays during the summer period. Air conditioning is generally provided in homes and buildings. State Prohibitions As mentioned in the section on the state of living, Qatar prohibits the brewing and trafficking of alcohol. Drunken behaviour in public or driving under the influence of alcohol is an offence punishable by a period in prison, a fine or both and cancellation of the offender’s driving license. It is also illegal to transport liquor in a vehicle except from the point of sale directly to home. Alcohol should only be consumed at home or in a private residence or at authorized Part One About Qatar | 21

restaurants. Public displays of drunken behaviour may lead to arrest. Alcohol must never be consumed in public places such as parks. The import of pork is prohibited. Photography Visitors and residents should exercise sensitivity and caution when taking photographs. It is necessary to seek permission before taking photographs of people. Qatar is a security conscious country and photographs of certain government and public areas are not permitted. Qatar has a popular photography club and many photographic competitions and exhibitions. Time Zone Qatar time is three hours ahead of Greenwich Mean Time and 7/8 hours ahead of New York EST/DST. There is no daylight savings time in Qatar. Currency The Qatari Riyal (QR) is the currency of the country and $1 U.S. purchases QR3.65 (fixed rate). ATMs are widely available with NYCE and CIRRUS cash access networks. Most major establishments accept major credit cards; some will accept US Dollars. State of Growth - Population The total number of people living in Qatar was expected to be 910,000 at the beginning of 2007, with most living in Doha. Other people live mainly in Al Rayyan, Al Wakra, Umm Slal, Messaid, Al Khor and Al Shamal.

The last formal census was in 2004. About a quarter of the people are Qatari nationals; other ethnic groupings are Indian, Pakistani, Iranian, other Arabs, Asians and Western expatriates (Arab 40%, Pakistani 18%, Iranian 10%, other 14%).

Public Holidays

Work Permits

Eid Al-Adha: starts at the ninth of Zil-hijjha month (arriving two months after Shawal it has the Al-Adha Islamic feast) for five days.

Expatriate-Friendly Visas

Independence Day: September 3rd. Eid Al-Fitr: At the first Shawal month (a month within the Islamic calendar) for four days.

In February 2000, Qatar’s expatriate-friendly approach was evidenced with new ‘work visit visas’. Holders of these visas can bring their families to Qatar, get an official ID card from the Bureau of Immigration, obtain a health card and driving license and enrol their children in schools. The visa is valid for one year after which it is renewable. Two other new visas were also introduced – ‘the personal visit visa’ which applies to an expatriate’s spouse and children and the ‘commercial visit visa’.

Beyond Doha

More information on Visitors visas may be obtained at the Visiting Qatar section of the Ministry of Chamber and Commerce website: www.qcci.org. Other information on visas may be obtained on the website of the Ministry of Interior: www.moi.gov.qa.

Ras Laffan Industrial City

Business Hours These hours are a guideline as the work hours often vary between businesses. Government offices: 7am to 2pm Private Establishments: 8am to noon and 4pm-8pm. Shopping Centres: 10am to10pm.

Beyond the capital city of Doha, Qatar has many old settlements and new developments. From old pearling ports to the world’s most significant and accessible industrial location, Qatar offers history and modernity in cities and townships. In one area a small fishing fleet, sand-dusted playground and museum full of relics, in another, towers of a different sort to those in the city - pipelines and workers in helmets.

Ras Laffan is significant, being one of the world’s most important and accessible emergent industrial export locations. The State’s ambitious vision to exploit its large natural gas resource culminated in LNG projects Qatargas and Rasgas. As a result of rapid expansion the production capacity was expected to reach 26.2 million by the end of 2006. Other natural gas utilization plans led to the Dolphin project and various developing Gas to Liquids projects (GTL).

Ministry of Economy & Commerce Investment Promotion Department

Al Rayyan Lying 10 kilometres north of Doha Al Rayyan is the largest residential area outside of the capital. The Equestrian Federation is based in Al Rayyan where it runs many events including races and shows. Al Khor

Messaid is also acclaimed for its beaches and dunes which are popular with tourists. Restaurant and accommodation is available at the recently renovated Movenpick Sealine Beach Resort. Dukhan

Further to the north – about 58 km from Doha, Al Khor is a charming old port still harboring small ships and fishing fleets. It has wide white sandy beaches, an historic tower and interesting mosques.

Qatar’s main land-based oil production centre, Dukhan is halfway along the western coastline of the Qatar Peninsula. This is the site where the production of the country’s oil reserves first began in 1949, as a result Dukhan has been described as the ‘oil nerve centre’ of Qatar.

Al Wakra

Madinat Al-Shamal

The town of Al Wakra lies halfway between Doha and Umm Said. Once a small pearling and fishing village, it now has a population of about 30,000 people. A museum in the old fort displays local marine life, art and architectural exhibits and natural history.

A relatively new town on the northern tip of the peninsula about 107km north of Doha, Madinat Al-Shamal operates as the administrative centre for various coastal villages.

Messaid A major industrial city 45 km south of Doha, Messaid is home to basic industries and operates as a large sea port as well as the main terminal for oil exports. Major industrial projects such as QAFCO, QAPCO, QAFAC, QVC, QPR, Q-CHEM and others are located in the city along with developing projects including Q-Chem 11, Qatofin and LAB. Situated 37km south of Doha on the east coast it has refineries and other industrial sites producing steel, natural gas liquids, fertilizers and petrochemicals.

and a rectangular tower. The fort is now a museum. Like other former forts this isolated outpost which quietly ushers in the wind, the light and troughs of shade, is a place both for dreamers and photographers.

Al Ruwais This is a town well worth a visit for those interested in modern influences on the Bedouin lifestyle. About 110 km from Doha, on the northern tip of the peninsula, the town of Al Ruwais is a place where tents and camels, hand woven materials and slowpaced life are converging into the modern world of cars, buildings and communications. Al Zubara An important archeological site, Al Zubara, 113 km north-west of Doha, is famous for its old fort which has three circular towers Part One About Qatar | 23

THE STATE OF GOVERNMENT REFORMS “Our determination to increase popular participation in decisionmaking and bear its consequences is firm and irrevocable.” - The Emir, His Highness Sheikh Hamad bin Khalifa Al-Thani

A State of Opportunity A country engaging in a process of modernisation and transformation, Qatar is reaching beyond its borders to attract the imaginative initiatives of entrepreneurs. This is demonstrated by the fact that Qatari officials are expecting at least USD$65 billion to be invested in expansion projects in the next few years. Under the influence and driving desire of H.H the Emir of Qatar, Sheikh Hamad Bin Khalifa Al-Thani to establish a democracy, the State and its people have shown courage, demonstrating a willingness to turn old laws into new laws that grasp enterprise and encourage change. As a result, Qatar has been undergoing critical transformations within recent years making it one of the most genuinely modern states in the Middle East. Through the vision of the Emir, Qatar has been creating reforms that address the need for diversity in order to sustain a stable economy well beyond the 200 years of gas reserves. Qatar’s policies are directed at the development of a creative economy where

knowledge, innovation, and culture-based activities play a central role in the activities of all businesses. This is a state where oil and natural gas reserves have brought the sweet smell of riches; where the Government’s diversification policies offer a highly attractive investment location. Qatar offers financial incentives to investors as well as a superb location close to Europe and Asia. The State has an affordable and hard-working skilled and unskilled labour force and has a national education policy of targeting skills towards energy and other fields where innovation and technological skills are paramount. Since the 19th Century Qatar has been governed by the Al-Thani family. In 1916, following a treaty ratified with Britain, Qatar became a British Protectorate. In April 1970 Qatar moved to invoke full independent statehood by enacting a provisional constitution. The State became fully independent on September 3rd 1971. In 1993 HH Sheikh Hamad Bin Khalifa Al Thani acceded as Head of State, Emir to the Country. Ten years later H.H. Sheikh Tamim Bin Hamad Bin Khalifa Al Thani was declared the Heir Apparent. H.H. Sheikh Abdullah Bin Khalifa Al Thani held the post of Prime Minister until resigning in early 2007 when he was replaced by Qatar’s Foreign Minister Sheikh Hamad bin Jasem who still retains the foreign ministry portfolio. The Council of Ministers is responsible for proposing draft laws and decrees; it implements these laws and supervises the

financial and administrative affairs of the Government. The Advisory Council has 35 members who are chosen from all sectors of Qatari society. It reviews draft laws proposed by the Council of Ministers prior to their ratification by H.H. the Emir. This council also has five permanent committees. The first step towards democracy was taken in March 1999 with Qatar’s first civic polls, the elections for a Central Municipal Council (CMC). The second CMC elections were held in 2003 during which the first woman was elected to the council. The council acts as an advisory body for the Ministry of Municipal Affairs and Agriculture. The State’s National Constitution The creation of the National Constitution Committee marked a major step forward in the political reform programme of H.H. the Emir, Sheikh Hamad Bin Khalifa Al-Thani. This committee presented a draft of the permanent constitution in July 2002 calling for the creation of a 45-member national parliament with two-thirds of the members being directly by the people. It also calls for the national parliament to have legislative powers while the powers of the executive and judiciary would be defined for the first time. The draft also ensures equality and the right to vote and run for office for all citizens including women. The draft constitution provides for the freedom of press, expression, of association and of religion. It was met with an overwhelming positive response from the

Ministry of Economy & Commerce Investment Promotion Department

public in the referendum held in April of the following year which resulted in it the draft constitution becoming effective in June 2005. The State Legal System The judicial system was dramatically overhauled in October 2004 following the establishment of the new Judiciary Law issued in 2003. This allowed the previous two-court system to merge into one. A Higher Court called the Court of Cassation (The Supreme Court) was established and is considered to be the highest Court of Appeal in the country. State of Foreign Relations and Global Organisations Qatar is a member of the Gulf Cooperation Council (GCC) which includes Bahrain, Kuwait, Oman, Saudi Arabia and the United Arab Emirates; the Organisation of Petroleum Exporting Countries (OPEC) and other international and multilateral organisations such as the United Nations, the International Monetary Fund, the International Bank for Reconstruction and Development and the World Trade Organisation.

State Privatisation Program The first stage of the privatisation program, prepared in collaboration with The World Bank, occurred with the transformation of the Qatar Public Telecommunication company into a joint stock company called Qatar Telecom (Q-Tel). Forty-five per cent of the shares of Q-Tel were offered for sale for all investors without exception. The shift towards privatisation reflects the strong resolve of the Government to involve the private sector in development processes. The privatisation policy is an important aspect of the Government’s strategy of realising economic development, upgrading the performance of companies and improving the standard of services. It is a means of achieving a number of other goals: contributing to remedy the budget deficit; reducing administrative and financial burdens; increasing economic growth rates and reducing the prices of commodities and services while enlarging the ownership base in the country.

During the GCC summit in December 2001, the GCC Supreme Council approved the establishment of a GCC customs unit which is now in place. This sets unified customs tariffs at 5 % for all imported goods into the region. The GCC summit also approved proposals for a monetary union and the introduction of a single GCC currency by 2010. Part One About Qatar | 25

Ministry of Economy & Commerce Investment Promotion Department

State of New Technology Microsoft

opens in 2009 it sill be a world- class facility merging in terms of design and operational efficiency.

Microsoft, is one of the world’s biggest investors in research, technology development and training, will invest around $4 million in six pioneering technologyrelated projects at the science park over the next year The world’s largest IT Company will work closely with university and government partners in Qatar to deliver many of the programs, which will bolster computing skills and capabilities in the country.

At its ultimate development in 2015, the new airport will handle 50 million passengers, 2 million tonnes of cargo, and 320,000 aircraft landings and takeoffs each year. It will be three times the size of the existing airport in Doha, and have six times the capacity.

ICTQatar

By opening day, as many as 8,700 passengers will be able to go through the terminal complex in a single hour.

ICTQatar is the policy making and regulatory body for Information and Communication Technology (ICT) in Qatar. It promotes the development of an advanced ICT society through infrastructure and human capital development, the delivery of e-services and the establishment of a regulatory environment that is conducive to sustainable growth and offers benefits all users. ICTQatar also facilitates an environment in which e-health, e-government, e-finance and e-tourism services prosper with the protections of world-class cyber-security. For more information see www.ict.gov.qa A State of New Developments The New Doha International Airport (NDIA) When the New Doha International Airport

Its opening day capacity in 2009 will be 24 million passengers. It will also be able to handle 750,000 tonnes of cargo every year.

At opening day, the 350,000+ square meter passenger terminal facility will be the largest building in Doha, covering an area equivalent to 50 full size football pitches. It will be bigger than Doha’s City Centre Plaza which has an internal area of 290,000 square meters. Flights and passenger processing facilities will be organized in a way to minimize walking distances for travellers. Many of the new airport buildings have a water theme. The passenger terminal roof is shaped like a wave. Water is also featured along the way for arriving passengers. The Emiri terminal is externally shaped like sail boats. The 80 meter high control tower is shaped like a crescent providing a key night feature shining on the NDIA facilities.

development. Private development opportunities include free trade zone, office and business park, hotels and retail mall For more infomation: www.ndiaproject.com Friendship Bridge - New Causeway A proposed bridge, referred to as the ‘Friendship Bridge’ will link Qatar and Bahrain via a 45-kilometre causeway - the world’s longest fixed link. A Danish consortium headed by renowned engineering consultants Cowi, has recently completed a feasibility study. Qatar and Bahrain signed a Memorandum of Understanding (MOU) in February 2005 for the setting up of a causeway between the two countries. In June 2006, an agreement was signed to start the work on the construction of the $3 billion 40 kilometre causeway between the two countries. The project is expected to take four years to complete. In its September 2006 Qatar Economic Review, the Qatar National Bank estimated that the causeway would have a major impact in further enhancing bilateral ties between the two countries.

More than 100 hectares alongside the new airport have been reserved for commercial Part One About Qatar | 27

Part Two State of Economy

THE BOOMING STATE

Ministry of Economy & Commerce Investment Promotion Department

Doha is a boom-town and Qatar is a booming country with a leadership that is both insightful and far-sighted. Demonstrating their learning from other rich and less richlyresourced countries, Qatar’s leaders are constructing a strong platform from which to sustain and grow wealth in the long term. In recent years Qatar has witnessed massive economic improvement manifested by surplus in current account of expenditure scale, reduction of deficit in general budget and stability of inflation and exchange rates. According to the Qatar Economic Review compiled by the Qatar National Bank in September 2006, the contribution of LNG has increased significantly during the last few years. The QNB has estimated that the oil and gas sector would continue to hold a prominent share in the overall GDP and is expected to stay at 60% in 2007. The State of a Growing GDP Now one of the wealthiest countries in the world, Qatar’s GDP more than trebled from 1999, when it was at a level of QR45.1 billion, to QR 154.6 billion in 2005. Qatar’s nominal GDP growth has averaged 25% for the five years from 2002 to 2006 with the oil and gas sector accounting for the main component. In relation to 2006, Planning Council preliminary estimates show Qatar’s nominal GDP rising by 24.2% to reach QR 191.9 billon. (US 52.6 billion). In 2006, the oil and gas sector showed a significant growth of 28.9%. The non-oil and gas sector grew by

17.1% in 2006 and has in the past five years - from 2002 to 2006 - witnissed a substansial growth of 22.8%.

educational and tourism-related projects. Qatar’s diversification policy is contributing to the telling results.

State of a Healthy Budget

State of Exports

In April 2007 Qatar’s 2007 to 2008 State Budget was released. The largest and one of the most revealing budgets in Qatar’s history, it forecasts a surplus of QR 6.7 billion (US 1.8 billion), reflecting the massive strength in the oil, gas and petrochemical sectors.

Figures released by the Qatar Planning Council show that exports have grown exponentially. Exports averaged a growth rate of 22.3% during the last five years from 2002 to 2006, reaching QR 104.1 billion (US $28.6 billion) in 2006.

Total revenues are forecast to increase by 27.3% reaching QR 72.5 billion (US 19.9 billion), with total expenditures expected to increase by 20.4% reaching QR 65.7 billion (US 18 billion). The oil price assumption for the budget period is US $40 p/b compared to US $36 p/b in the 2006 to 2007 budget estimates.

State of Imports

Allocations for major projects have been increased by 14.4% in the 2007 to 2008 budget to reach QR 22.9 billion (US 6.2 billion) compared to QR 20.0 billion (US 5.5 billion) in the previous annual budget. This is in-keeping with the State’s commitment to maintain substantial allocations for major public projects. The State has also established a stabilisation fund to this purpose. State of Foreign Trade A Diversification Success Story The reason for the rapid increase in Qatar’s exports and imports during the last five years from 2002 to 2006 is due to the increased and increasing development in the oil, gas, industrial sectors and infrastructure,

Qatar’s imports have been averaging a growth rate during the last five years from 2002 to 2006 of 35.6%. Qatar’s imports have increased by 59.3 % in 2006 to reach QR 52.6 billion (US 14.43 billion) from QR 33.0 billion (US 9 billion) in 2005. Preliminary information from the Qatar Planning Council reveal that the main imports in 2006 were machinery and mechanical appliances, base metals, vehicles and transport equipment, and food products. The import emphasis on machinery and mechanical appliances reflects consistent development in the various energy sector, infrastructure and industrial projects. Qatar consistently imports base metals such as iron and steel to meet the related demand in the construction field. Economic Sectors Oil and Gas Sector Qatar is ensuring that growth is sustained. With proven oil reserves of 15 billion barrels and natural gas deposits in excess Part Two State of Economy | 29

of 900 trillion cubic feet Qatar has a clear competitive advantage in hydrocarbon activities. The Government’s heavy investment in LNG over the last decade has been the main conductor for the country’s present meteoric growth. The development of GasTo-Liquid (GTL) technologies is also a good indicator for the future. Qatar recently unveiled several large projects in other energy intensive industries. These include a USD 3 billion joint venture with Norsk Hydro for an aluminum plant and a further USD 3billion investment into the petrochemical industry. These developments highlight the Government view that competition is healthy and its strategy for obtaining the greatest possible revenue from its natural resources. In recent years the State has stepped up its efforts to provide the best possible use of its hydrocarbon wealth, taking different approaches to maximise this objective. Government exploration projects in the oil and gas fields have been expanded and the Government has offered incentives to attract foreign investors to carry out similar projects. Laws aimed at simplifying investment procedures are having a positive impact. The economy is being liberated and new techniques of marketing gas from giant plants have been developed. As a parallel measure, the Government implemented an economic policy in public expenditure and diversified sources of national income to include non-oil sources.

Energy Developments The Qatar Shell Research and Technology Centre at the Qatar Science and Technology Park will be a hub for developing such environmental solutions. On a wider scale the company is working with SCENR and UNESCO on the concept of establishing a biosphere in Qatar. Qatar Petroleum Qatar conducts its principal oil operations through State-owned Qatar Petroleum (QP) which manages Qatar’s oil, gas, fertilizer, petrochemicals and refining enterprises in Qatar and abroad. The Government’s two-pronged oil policy has the aim of replenishing proven reserves within currently producing fields and identifying additional new reserves. In July 2006 Shell and Qatar Petroleum launched the Pearl GTL project which is the largest integrated GTL complex in the world and also the largest energy project ever launched with in the borders of Qatar. Shell is also a partner in the large-scale Qatargas 4 LNG project. In regards to environmentallyfriendly enterprise, Shell designed the offshore plant using the most modern technology so that it will not discharge any process effluent water to the sea, all process water will be recovered, cleaned and re-used - the largest industrial full process water recovery and zero-liquid discharge system in the world. By 2010 Qatar is likely to be the world’s

single largest producer of liquefied natural gas (LNG), with a projected production capacity of 77 million tons per year, some 3 times current production. The output of associated condensates - light oil extracted during gas production - is growing and other gas-based industrial projects, such as the Oryx Gas to Liquid facility, are reaching completion, further increasing Qatar’s capacity in the energy sector. In the oilfields, intensified development programmes are increasing and oil production will exceed 1 million barrels per day (bpd) by 2011, which combined with LNG and GTL output will total some 6 million bpd equivalent. Two gas super-trains are planned, each capable of producing 7.8m tonnes per year. These super-trains are expected to supply 15.6m tonnes per year to the US market from 2008. A similar amount is planned for the UK, also from 2008, and the world’s largest liquefied natural gas import facility is currently being built at Milford Haven, a project which will bring 16 million tonnes of gas annually from Qatar into the UK gas transmission network. In September 2005 RasGas II signed a 25-year sale-and-purchase agreement with Chinese Petroleum Corporation of Taiwan to supply 3 million tones a year of liquefied natural gas. Qatar’s energy sector is flourishing and is set to enjoy long-term stability with Japan, South Korea, India and Taiwan already being

Ministry of Economy & Commerce Investment Promotion Department

long term buyers and Italy and Belgium committing to buy gas from Qatar. To enable it to supply gas to its global customer base, Qatar will expand its fleet of 20 vessels by around another 60 vessels, at a cost of some $15 billion, by 2009. On November 28, 2005, HE Yousef Kamal, Minister of Finance, announced a $3 billion deal with Samsung, Daewoo and Hyundai for 12 of the largest LNG carriers, as part of Qatar’s strategy to optimise the total LNG value chain to its energy sector customers around the world. Qatar launched the world’s largest liquefied natural gas refinery project in November 2005, with most production being exported to the U.S. In the $14-billion strategic alliance between the two countries, Qatar Petroleum has a 70% stake and ExxonMobil Ras Laffan III Limited, a subsidiary of the US oil major ExxonMobil, the remaining 30%. On the manufacturing front, Qatar’s first helium plant came on stream in August 2005. Around the same time Qatar Vinyl Company announced a plan to triple its ethylene dichloride production capacity. Qatar aims to be a major producer of condensate, naphtha and lube oil by the end of the decade. Qatar Steel Company has embarked on a programme to increase its iron and molten steel capacity by a half and Qatar Petroleum has developed a joint venture with Norsk Hydro to set up an aluminum smelter plant. A State of Natural Gas Qatar’s Natural Gas Sector was discovered

in 1971 and is the largest non-associated gas field in the world with proven reserves currently estimated at more than 910 trillion cubic feet which is the equivalent of about 164 billion barrels of oil. These reserves translate into 14.4% of the world’s total and will be sufficient to support planned production of the natural gas for more than 200 years. Qatar Petroleum has initiated and developed two major LNG projects with foreign shareholders for the purpose of utilising the North Field gas for exports in the form of LNG. These projects are Qatargas and RasGas. Expansion of LNG facilities through Rasgas 2, Qatar Gas 2, Rasgas 3, Qatargas 3 and Qatargas 4 is being pursued to meet additional export opportunities. Qatar Liquefied Natural Gas Company (Qatargas) Established in 1984, the main activities of Qatargas are divided into two main projects with separate shareholder groups: the upstream joint venture (offshore production and the onshore receiving facilities) and the downstream joint venture (onshore LNG Plant). In 2005 Qatargas exported a total 9.9 metric tonnes of LNG, with contracted exports expected to reach 41.5 metric tonnes by 2011. Non-Oil and Gas Sector The Non-Oil and Gas sector contributed 38.1% of total GDP in 2006, recording

a growth of 17.1% over 2005. The main components of this sector are the following: Other Services In 2006, the Other Services sector, which includes government services, social services, household services, imputed bank service charges and import tariffs, made the largest contribution to GDP of the non-oil and gas sectors. This sector grew by 49.1% in 2006, contributing USD 4,710 million which represented 8.9% of total GDP. Finance, Insurance and Real Estate The Finance, Insurance and Real Estate sector is comprised of five sub-sectors: banking, insurance, financial intermediation services, real estate and business services. In terms of relative contribution to GDP, this sector contributed USD 4,323 million, the second highest among the non-oil and gas sectors and grew by 6.6% at current prices in 2006. This sector represented 8.2% of Qatar’s GDP in 2006. Manufacturing Industry In 2006, the Manufacturing sector made the third largest contribution to GDP among nonoil and gas sectors. This sector grew by 8.1% at current prices, contributing USD 3,867 million which represented 7.3% of total GDP. This sector is strongly supported by the Government as a part of a general policy to diversify income sources and to maximise the utilisation of Qatar’s natural resources. The major sub-sectors of the Manufacturing Part Two State of Economy | 31

Ministry of Economy & Commerce Investment Promotion Department

sector are petroleum refining, industrial, chemicals, fertilisers and steel, which utilise natural gas as feed-stock and/or fuel. Other important activities include the production of flour, cement, concrete, plastics, textiles and footwear, household articles and paint. Building and Construction The rapid pace of developments in the Building and Construction sector is quite evident around Doha in recent years, and as such this sector continues to be a major contributor to the GDP and employment of labour force. This sector witnessed a growth of 17.7% in 2006, contributing USD 2,823 million to overall GDP. Public expenditure is a very important factor affecting the prospects for the building and constructions sector, and the realisation of budgetary surpluses in the last seven fiscal years has increased the level of public spending. Allocation for major public projects in the 2007/08 Budget increased by 14.4% to reach USD 6.28 billion, which covers the areas of public services, infrastructure, social and health services, and education and youth welfare. Trade, Restaurants and Hotels The Trade, Restaurants and Hotels sector contributed USD 2,089 million to Qatar’s overall GDP in 2006, representing 4.0% of total GDP. This sector grew by 10.9% in 2006 and will be one of the most promising in the coming years, as business, cultural, sports, education and tourism events aimed at promoting Qatar, gathers even more

momentum. Qatar’s hotel room capacity in the luxury sector is expected to increase by an additional 8,468 rooms in the coming years as result of up-coming projects such as the Pearl -Qatar and hotels including the Bavaria Suites, the Hilton Doha, the ShangriLa, La Cigale, the Marriott Courtyard and the Rotana. The Qatar Tourism Authority which was established in the year 2000, is actively promoting Qatar as a tourist destination. Transport and Communication This sector contributed USD 1,539 million to the overall GDP in 2006, and witnessed a growth of 9.7%. Qatar Airways is the principal airline operating from Qatar, designated as the “National Carrier”, and is a joint public and private sector enterprise (being 50% owned by the Government). Qatar Airways currently flies to over 80 destinations in the Middle East, North Africa, Europe, the Indian sub-continent and the Far East. Qatar Airways operates an all-Airbus fleet of 57 aircraft and will triple its fleet to 110 by 2015.

of Qatar’s electricity generation capacity comprises of gas turbines, which are fuelled by natural gas. Water desalination is achieved in tandem with electricity generation. A number of industrial companies, such as QAPCO and QAFCO, have their own electricity generating facilities. Qatar’s first independent water and power project (IWPP) located at Ras Laffan has a capacity of 750 MW of power and 40 million gallons of water a day. The Ras Laffan B IWPP was completed in June 2006 and will start full commercial operations in 2008. Agriculture and Fisheries The Agriculture and Fishing sector has traditionally played only a minor role in the modern Qatari economy because of unsuitable weather and environmental conditions. Cultivable land accounts for only approximately 0.7% of Qatar’s total surface area. This sector grew by 7.9% in 2006, contributing USD 63 million to Qatar’s GDP.

Qatar telecom (Q-Tel) under license has been the sole owner and operator of all national and international services. With the opening up of the telecom sector in early 2007, a new mobile operating license is currently under bidding with a new operator to be announced by the last quarter of 2007. Electricity and Water The Electricity and water sector witnessed a growth of 9.7% in 2006, contributing USD 665 million to Qatar’s overall GDP. Most Part Two State of Economy | 33

Finance - Surging Forward

The State of Banking

Qatar’s banking and finance sectors are among the best in the world in terms of governance, products, service quality, technology and regulatory framework.

Local, Regional and International

Qatar’s rapidly accelerating economy - with a GDP the International Monetary Fund expects to grow by over 13 per cent next year (2008), is luring top tier firms and attracting specialist providers with the experience and skills to strengthen Qatar’s investment strategy. Qatar has made adjustments to become a veritable powerhouse for financial investors and many of the world’s leading financial firms have set up bases in Qatar. The rules and regulations covering for instance, insurance or collective investment schemes specially tailored for these firms are worldclass. The world’s attention is now on the financial opportunities being manifested in Qatar. Equally the changing attitudes and approaches of the regional regulators and governments are arousing international interest. For information on the Qatar Financial Centre (QFC) which helps financial service companies and specialist support service providers gain licenses to operate in Qatar see the section on the QFC in ‘Where To Invest’ under Part Three: Investor Friendly Services.

and medium-sized projects in key economic sectors. The authorised captial of the bank is QR 5 Billion.

Qatar has a growing number of banks. Presently nine are Qatari-owned institutions including five commercial banks: Al Ahli Bank; Commercial Bank; Doha Bank; International Bank of Qatar and the Qatar National Bank. Three of the Qatari-owned banks are Islamic: Qatar Islamic Bank; International Islamic Bank and Al-Rayyan Bank. The specialised Qatar Industrial Development Bank is also Qatari-owned. The Al Khaliji Bank was founded in Doha, Qatar in January 2007 with the support of nearly 200 major shareholders from Qatar, Oman, UAE, Kuwait, and Bahrain.

Banking Results

The Qatar National Bank is the largest Qatari bank and the first national bank. It has an equity base split equally between the Government and private shareholders.

The monetary management in Qatar is called the Qatar Monetary Agency (QMA). Established by Law no. 15 in 1993, it is implemented by Qatar Central Bank (QCB). The Qatar Central Bank (QCB) regulates the monetary, credit and banking policies in accordance with the general plans of the State in order to support the national economy and the stability of the currency. The QCB has full powers over the monetary policies of the State, and supervises and controls banks and financial institutions.

Significantly in 2005 QNB was the first bank in Qatar to establish mutual funds with a mutual fund for locals and the Al Watani Fund 11 mutual fund for expatriates. The local branches of seven foreign banks operate in Qatar including: Arab Bank; Bank Saderat Iran; HSBC; Mashreq Bank; BNP Paribas; Standard Chartered and United Bank. Qatar Development Bank Qatar Development Bank’s objective is to play an active role in the economic and industrial development of the State of Qatar by helping to diversify its industrial base through the promotion and financing of small

The latest available results for the Qatari banking sector - including Qatari and foreign banks - showed that the figures keep rising with net profits increasing by 101.8% reaching QR 4,726 1 million. Total assets increased by 38.1% to QR128.4 billion, customer deposits rose by 34.2% to QR 91.2 billion, loans and balances rose by 37.0% to QR 72.7 billion. Shareholder’s Equity also rose, growing by 50.9% to QR 23.7 billion. The State of Qatar’s Monetary Policy

Interest Rate Policy – Free of Policy Restrictions Qatar removed its ceiling on interest rates for local currency deposits in 2001, freeing the banking system from all interest rate policy restrictions.

Ministry of Economy & Commerce Investment Promotion Department

The State’s short-term interest rates closely follow those prevailing in the United States, with a slight positive differential. Public Finance Being oil and gas related, the Government’s primary source of budget revenues, are mainly generated by Qatar Petroleum’s activities. In addition to such export receipts, the Government obtains revenues mainly from the dividend income of other industrial enterprises. Other sources of Government revenues are tax, custom duties and charges. Balance of Payments The balance of payments have shown a trend as impressive as the exports and imports. (The rapid rise in exports/imports is outlined in the State of Foreign Trade – A Diversification success story in Part Two State of Economy). Surpluses in the Balance of Payments have been consecutively recorded since 1999. The State of Qatar’s Chamber of Commerce and Industry The Chamber of Commerce has been performing efficiently since it was founded in 1990. It has been effective at encouraging national industries and introducing national products to the world markets. Significantly, it also works to support the private sector, advocate its causes and procure modern technology as a means of assisting Qatar businesses to participate in joint ventures.

Qatar has joined the international conventions dealing with international commercial arbitration. In 1996 the Chamber also inaugurated the symposium titled ‘Methods of Stimulating Foreign Private Investments in the GCC Countries.’ More information may be obtained at: www.qcci.org The State of Business Entities

year 2002 articles (61)-(205). Limited Share Partnership Company: This type of company has at least one or more joint partners and at least four trustee shareholding partners. The minimum share capital of the company is 1,000,000 QR. (Read Law (5) of the year 2002 articles (206)(224).

These are various types of business entities in Qatar:

Limited Liability Company: Is the most commonly used business entity in Qatar. (Read Law (5) of the year 2002 articles (225)(260).

Partnership Company: This is the most basic form of commercial arrangement for two or more individuals to combine together for the purpose of commercial activity in Qatar. The partners have unlimited liability and the trade name of the partnership company will reflect the names of the partners. (Read Law (5) of the year 2002 articles (19)-(43).

Holding Companies: A holding company must be a shareholding company or limited liability company which has financial and management control on the companies by owning at least 51% of that company. The minimum capital should be 10 million QR. (Law (5) of the year 2002 articles (261)-(266). For more information please view: www.qcb.gov.qa

Joint Venture Company: An entity comprised of two or more persons that combine to carry out a project. The joint venture company provided for in the law is an unincorporated entity without legal personality. (Read Law (5) of the year 2002 articles (52)-(60). Public Shareholding Company: Also known as a joint stock company or Qatari shareholding company. The law recognises different variants of the public shareholding company including: 1- Public shareholding company-open. 2- Private or closed public shareholding company. (Read Law (5) of the Part Two State of Economy | 35

Part Three Investment Opportuniities

THE INVESTOR-FRIENDLY STATE

Ministry of Economy & Commerce Investment Promotion Department

“Qatar is the fastest growing economy within the GCC and is one of the desirable investment destinations in the world.” - The Director for Middle East Affairs at the office of the US Trade Representative, Mr. Edmund R. Saums.

Attractions for Investors Investors to Qatar are attracted by factors such as industrial land at a token rent, electricity and natural gas at nominal rates, waiver of duties or taxes for 10 years, stable exchange rates, foreign ownership and the freedom to repatriate the capital or profit. • The aforementioned excellent Medical and Educational facilities. • Stability and clarity of laws and rules which contain the required guarantees. • Stability and flexibility of foreign exchange and its rate. • Aforementioned world class telecommunications. • Investor help and information • Industrial land has a nominal and minimal rent of US$0.27 per square metre per year annually. (The Qatar Riyal is fixed to the US dollar - US$1 = QR3.64). • The cost of electricity is extremely low at approximately US $0.0178 per KWH with a lowered price of approximately US$0.016 for industrial plants and approximately US $0.0274 cents for hotels.

• Another low cost item, natural gas, is priced at approximately US$0.60-0.75 per million BTU. • Water is provided for industrial plants at a lowered price of approximately US$0.12 cents per cubic metre. • Petrol costs are extremely low. • There is an absence of export duties and a policy of no taxes being paid on corporate profits for pre-determined periods. There is also an exemption from taxes on exported products of the enterprise. • There are no custom duties on the import of machinery, equipment and spare parts. • There is an exemption from income tax for companies for ten years. • There are no export duties and no taxes on corporate profits for pre-determined periods. The Government also offers an attractive business climate to investors with the following: • 10-year tax holidays provided the Government grants approval. • No income tax on salaries of expatriates. • No exchange control regulations. • Excellent medical and educational facilities. • Easy access to world market with first class air and sea connections. Important economic liberalisation policies have resulted in increased inward investment with the private sector playing a significant part in the development of the economy.

According to the 2000 Foreign Investment Law: Subject to provisions of item “3” of this article Foreign Investors may invest in all sectors of national economy provided that they shall have Qatari partner(s) whose share in the capital shall not be less than 51% and the company is legally established in accordance with provisions of law. Nevertheless, Foreign investors may, upon Minister’s decision, increase their share in project capital from 49% up to 100% in the fields of agriculture, industry, health, education, tourism, development and exploitation of natural resources, energy or mining provided that such projects match with the Development plan of the State (Qatar) and due preference shall be given to projects that would achieve the optimal utilization of domestic raw materials, export industries, or project that would present a new product or in which modern technology is used, in addition to projects that seek to locate worldwide leading industry or develop a qualify national cadre. It is prohibited for Foreign investment mention in items (1) and (2) above, to invest in banks and insurance companies as well as commercial agency rights and trading in real estate. For more information see ‘Laws and Regulations’ in www.investinqatar.com.qa

Part Three Investment Opportunities | 37

Ministry of Economy & Commerce Investment Promotion Department

Eyes on the Prize Investors turning from the West to the East recognise that the State of Qatar is a safe stable country, that it is governed well and foresightedly by an investor-friendly leadership. Investors realize that Qatar is both financially and politically secure, providing a safer environment than many cities and countries. Such investors have been moving rapidly to gain a position in what is proving to be the strongest most creative and exciting niche market in the Middle East. Investors coming to Qatar are seeking a warm, secure, dynamic place to flourish. They are staking their claim in a success story that merges the best of traditional life with the latest global advancements in business and lifestyle. For those with a vested interest in profitmaking Qatar represents an ideal base for investment - from small entrepreneurs to corporate giants wanting to branch into the region, and for those in-between who wish to take a medium-sized company and grow it successfully. Where to Invest - Investment Fields, Locations and Opportunities Ideas grow from the experience that comes with competition and when competition comes into a local market the experience and innovations resulting from that competition produce a domino effect on the rest of the market. Opportunities for Industrial Investment After extensive study, Qatar opened the doors

of the gas sector for foreign investments and sought the best possible partnership offers in exploration and production. This has been conducted in accordance with a large-scale program aimed to develop and use gas resources to the best advantage.

commercial liberalisation policies to stimulate, expand and involve foreign investments and develop the national private sector.

The State is exerting an outstanding effort to create opportunities for industrial development and prepare feasibility studies. The North Gas Field development agreements were in line with the State’s policy to develop industry and diversify fields of investment.

The Qatar National Bank’s Economic Review (September 2006) predicted that the trade, restaurant and hotel sector would be one of the most promising in coming years as business, cultural, sports education and tourism events gather increasing momentum.

Major Projects and Companies in the Energy-Related Sector Facilitated by Qatar:

The domino effect on the market is clearly visible. Qatar has a revolving profitability cycle with strong activity and substantial investments in energy leading to an influx of workers increasing the demand for real estate and other services. This in turn leads to strong activity in real estate, construction and servicing. The Government’s policy of diversification is also contributing to the emergence of new developments attracting investment.

• Liquefied Natural Gas Company (Qatargas) • Ras Laffan Liquefied Natural Gas Company (RasGas) • The Dolphin Project • Enhanced Gas Utilization (EGU) Project • Natural Gas Liquids (NGL) • Gas to Liquids Projects (GTL) • Arab C Gas Recycling • Qatar Fertilizer Company (QAFCO) • Qatar Fuel Additives Company (QAFAC) • Qatar Petrochemical Company (QAPCO) • Qatar Vinyl Company (QVC) • Qatar Chemical Company (Q-Chem) • Qatofin • Ras Laffan Ethylene Cracker (RLEC) Encouraging Foreign Investment Boosting the Private Sector The way the gas sector has developed for investment provides a clear example of the way Qatar is creating new economic and

Investment Potential in Residential, Tourism and Related Developments

Qatar’s hotel capacity in the luxury sector is expected to increase by an additional 9.318 rooms. For more information view the Qatar Tourism Authority’s website: www.qatartourism.gov.qa The Pearl A development that is already receiving international acclaim, The Pearl-Qatar is a US multi billion man-made island covering 985 acres (400 hectares) of reclaimed land offshore the Arabian Peninsula state of Qatar. The Pearl-Qatar is the country’s first Part Three Investment Opportunities | 39

international real estate venture, its largest real estate development and the first to offer international investors freehold. A four-phase mixed-use development, it will comprise 10 distinct, themed districts to be developed over five years with beachfront villas, elegant town homes, luxury apartments, exclusive penthouses, 5 star hotels, marinas, schools as well as upscale retail and restaurant offerings. A destination in its own right, The Pearl-Qatar is a lavish, secure and exclusive island retreat with a Riviera-style community. A secure, family-oriented environment modeled on the best of the Mediterranean, The Pearl-Qatar will be the Arabian Riviera, offering a lifestyle reminiscent of France and Italy in the heart of the Arabian Gulf. With 40 kilometres of reclaimed coastline it will be a superb tourist and lifestyle destination with world-class shops, community facilities, schools and marinas. Porto Arabia, the largest of the Pearl-Qatar’s marinas will capture the vibrant sophistication of the Riviera. Colorful, refined and conducive to the highest standards of living, Porto Arabia will be a continental marina with a heart, which beats to the rhythm of Arabia. Apartments, penthouses and elegant town homes will embrace a promenade akin to those found in the South of France. Distinct districts within Porto Arabia will offer investors a choice of locations - from a lively piazza, a festive peninsula or a unique, secluded ‘island-within-an-island’ getaway. A fivestar hotel will operate from the central island.

Specialised individual and corporate investors will find prime investment opportunities within the hotel and leisure facilities. More information is available at the investor information section of: www.thepearlqatar.com Visa relating to Property Ownership Under Article 3 of Decree No: 17 issued on June 6, 2004 by the Emir of Qatar, his highness Sheikh Hamad Bin Khalifa AlThani property owners are entitled to apply for a residency visa upon the purchase of a property. This visa includes dependent children and is valid until the resale of the property. Al Waab City Al Waab City, founded on the principle that at the heart of every vibrant community is a public gathering space, will be a community that is integrated into the existing fabric of the city. It is a development on an area of more than 1.4 million square meters that integrates a variety of housing types, small and large scale retail, offices, health facilities, a culture center and a world class hotel. Al Waab City, located 10 km from the Corniche, is composed of over 2,100 residential units, commercial space and a world class 300 room hotel. Although Al Waab will provide housing for over 10,000 people, it boasts the lowest density ratio in any new major development in the country with statistics proving it has half the density ratio of other development areas.

The heart of Al Waab City is ‘Barahat Al Waab’; an urban piazza hosting an array of facilities. This will be Doha’s first urban square or piazza, filled with shade structures, water features, formal landscaping and a spectacular sunken garden. ‘Barahat Al Waab’ is accessible to all residents by foot and without crossing any vehicular streets. Animated with outdoor cafes, restaurants, street vendors and a world class hotel, ‘Barahat Al Waab’ will be the center of activity in Al Waab city, a place for public events, concerts and exhibitions. City of Lusail The ‘city’ of Lusail which houses ECQ (the Energy City Qatar) is a meticulously planned extension of Qatar’s capital city. A development on an unprecedented scale, Lusail will be home to 200,000 people in distinct residential areas. ECQ will be nestled beside Lusail’s corporate, waterfront, marina and entertainment districts. The Lusail Real Estate Development is a 35 sq km mixed-use development along an 8.5 km shoreline. This is the second major resort project planned in the West Bay area, after The Pearl-Qatar project. The development of this progressive world-class city is expected to attract up to 200,000 people who will live, work, raise their families and enjoys their lives. During the next 10 to 15 years, Lusail will be released in a series of controlled developments. Lusail will have 10 districts including: the Lusail Marina, Fox Hills, Energy City,

Ministry of Economy & Commerce Investment Promotion Department

Entertainment District and the Marina District. Each district will have its own distinctive features that celebrate traditional Qatari and Islamic architecture in a striking, contemporary way. Strict developments and architectural guidelines are laid down to ensure the quality and design standards, intent and aesthetic principles of the overall design. It will also include approximately 10 hotels, 3,000 houses, 12,000 apartments and over 300,000 square metres of real estate space. Entertainment City There has been strong investor interest in the Entertainment City being set up at Lusail. Abu Dhabi Investment House (ADIH) is setting up a $ 500 million ‘Entertainment City’. Entertainment City will cover 1 million square metres of land, running alongside a 1 kilometre stretch of beachfront at Lusail. It is set to become the “anchor development” for the entire Lusail project with the Doha Golf Course and Energy City Qatar located nearby. Designed to be a mix of hospitality, leisure and recreational facilities with complementary commercial and residential components, there is already strong interest in this development. The destination will offer spectacular themed parks and hotels, specialty shopping, fine dining restaurants, cinemas, a theatre and alternative entertainment components offering a fusion of traditional Arabic hospitality and contemporary leisure lifestyles. Sub-themes will revive legends surrounding

the area’s famous traders and seafarers, ancient Arabic castles, forts, cities and forgotten kingdoms. Various attractions within the Entertainment City ‘communities’ will include a family entertainment centre, water theme park, family natural attractions, Cineplex, theatre and bowling alley. All segments of Entertainment City are open to investors. In accordance with local legislation, GCC citizens can own property outright, with 99-year leases available for foreigners. Energy City

form the necessary IT infrastructure. Catering to commercial, technical and human resource needs, the ECQ will have cutting-edge facilities and services. ECQ is intended to be an innovative, intelligent, vibrant energy centre filled with customers, suppliers and related service providers freely interacting, co-operating and competing for the advancement of energy business. It will also be the base for a dedicated energy trading platform the International Mercantile Exchange (IMEX) which will be regulated by the Qatar Financial Centre Regulatory Authority. For more information see www.energycity.com

The Middle East’s first Energy Business Centre is intent on becoming the ‘Houston’ or ‘Calgary’ of the Middle East. Officially launched at the end of March, 2006 and located within the impressive Lusail development in Doha, Energy City Qatar (ECQ) is the region’s first integrated energy business centre. Consolidating a range of industry and marketing services under one roof, it has been successful in attracting industry leaders in oil and gas production, international and national oil companies, support services, infrastructure and downstream activities, shipping and trading, market and resource data, intellectual property and energy trading. Gulf Energy - the consortium of international energy experts behind ECQ – has signed a MOU with Microsoft providing the development and implementation of the next generation of enterprise-level solutions to Part Three Investment Opportunities | 41

Investment in Financial Services and Financial Support Services Facilitation Services at the Qatar Financial Centre (QFC): The QFC is at the heart of Qatar’s dynamic growth and investment strategy and Investment in Financial Services and Financial Support Services

Ministry of Economy & Commerce Investment Promotion Department

Credited for its progressive approach to business and the economy, Qatar was recently named the most competitive economy in the Middle East and North Africa by the World Economic Forum - World Economic Forum

environment. which provides them with clarity, dependability and familiarity. The QFC consists of the QFC Authority and the QFC Regulatory Authority, which are independent of each other. It also has its own judiciary in the form of the QFC Civil and Commercial Court, and the QFC Regulatory Tribunal, an appeals body.

The QFC is at the heart of Qatar’s dynamic growth and investment strategy and exemplifies the Qatar leadership’s commitment to the development of a dynamic and sustainable economy.

The QFC Authority is responsible for commercial strategy and for developing relationships with the global financial community, financial institutions and other key bodies and organisations both within and outside Qatar. The Regulatory Authority supervises, regulates and if necessary disciplines financial services firms and financial institutions which operate in or from the Qatar Financial Centre.

Established in 2005, the QFC facilitates the establishment of financial institutions in a ‘best-in-class’ international environment. It provides support for such businesses to create new revenue streams and participate in a long-term and mutually beneficial partnership with Qatar.

Though firms licensed by the QFC are permitted to operate from their own premises - declared QFC sites – the majority are choosing to set up in the impressive landmark, the QFC tower, where they can operate in close proximity to the services offered by the QFC.

The QFC issues licenses to financial service companies and to specialist support service providers. Companies doing business from the QFC include those engaged in investment banking, project finance, private equity, corporate finance, private banking, asset management; Islamic finance and fund management. Specialised support firms include legal firms, accountants and management consultancies. Companies licensed by the QFC benefit from its world-class business, legal and regulatory

For more information contact the QFC or view the QFC website: www.qfc.com.qa

Investment in Financial Services and Financial Support Facilitation Services at the Qatar Financial Centre (QFC):

Market Investments The Doha Securities Market (DSM) First opened in1997, the DSM now has thirty six companies listed on the exchange. These include banking and financial insurance, and the service and industrial sectors. The DSM aims to expand investments

in Qatari shareholding companies and make them available to various people in the community while advocating a range of investment methods to promote the economy. It is also aimed at developing a healthy investment climate by providing a highly remarkable monitoring institution to supervise investors’ capitals and assets. For more information please visit: www.dsm.com.qa/dsmsite Qatar Science & Technology Park Qatar’s rapid growth is attracting technologybased companies from around the world. Qatar Science & Technology Park, a free-trade zone within Education City - a campus of universities and research institutes - has been established to attract companies to develop and commercialise their technology in Qatar. (For more information on Education City see page 11 of this brochure.) QSTP forms part of the Qatar government’s drive to build a knowledge economy. QSTP aims to bring industry and academia together, spurring innovation and technology-based business. QSTP has operated from temporary facilities since July 2004 and its new $300 million complex opens in late 2007. It comprises a set of three research-friendly buildings in which tenant companies can lease office and laboratory space from three to 15 years. Spaces range from 45 square meters for small star-ups to 6000 square meters for large corporations. Companies may also commission and lease-back their own dedicated buildings. Part Three Investment Opportunities | 43

QSTP also provides services and amenities which cater for many business needs, and support programs that accelerate technology commercialisation such as venture-capital funding and entrepreneur training.

in Qatar. This is because, by operating as a “free zone”, it can allow our tenants to independently own and operate a local entity. That entity is not subject to tax, duty or capital controls.

Since its free-zone status was legislated in September 2005, QSTP has been allowing the registration of branches and incorporation of companies that can be 100% foreign-owned. Those businesses are free from tax and duties and can trade without a local agent or sponsor. Repatriation of capital and profits is enshrined in QSTP’s free zone law.

A unique environment is offered at the QSTP’s location in Education City, impressive buildings containing large-scale laboratory space, and world-class offices for support services, programs and Research and Development (R&D). Technology-based companies around the world and those just starting-up will benefit from these resources which stimulate development and accelerate commercialisation. The location at Education City also provides access to the faculty, graduates and facilities of leading international universities based in Qatar. For more information visit: www.qstp.org.qa

In return for these benefits, and to achieve its purpose, QSTP requires that tenants’ main activities relate to technology development. This can be applied research development and testing of new products and services, or technology-related training. QSTP especially encourages collaboration between its tenants and Qatar’s universities. QSTP’s current tenants include EADS, ExxonMobil, GE, Microsoft, Shell and Total, as well as small-to-medium and local companies. Some have existing operations in Qatar to locate their technology activities at QSTP, while others are coming to Qatar for the first time to base their entire operations at the science park. QSTP is the Middle East’s premier location for technology-based companies, especially those seeking to develop technology for the local marketplace. QSTP provides an attractive and easy way for foreign technology companies to set up

Developing Economic Zones The State of Qatar issued Law (34) of the year 2005 related to the establishment of economic zones (QEZ) aimed at the enhancement of the investment environment and identifying the suitable industries that will sustain the country’s current impressive economic growth. This will be achieved through local and foreign investments. The Law provides for the creation of a regulatory and facilitating body which sets the rules and standards that the Economic Zones will operate under. The current plan consists of establishing three economic zones: Zone 1: adjacent to the contemplated new port inside Doha city

Zone 2: adjacent to Doha Industrial Area Zone 3: situated south of Wakra and north to Mesaieed Industrial City

The next step is to select a strategic partner among potential international investors to develop the infrastructure plan, prior to inviting anchor investors to the Zones. Small Business Opportunities Qatar has many small businesses formed as the result of an expatriate forming a partnership with a Qatari. These range from child-care nurseries to schools, health and dental clinics, veterinary clinics to travel centres and shops. For information relating to setting up a business in Qatar or other aspects of investment please refer to further information on the back cover or visit the website: www.investinqatar.com.qa

Ministry of Economy & Commerce Investment Promotion Department

Investment in a Global Creative Niche By providing centres of excellence and innovation as part of Qatar’s diversification strategy the country is targeting trends that benefit the increasingly globalised economies. Creative industries provide jobs that appeal to younger Qataris while drawing on global indigenous talent. The Doha Asian Games for instance, showcased the power of diversity and inclusion of over 40 nationalities. Both the renowned television brand Al Jazeera and the 15th Asian Games placed Qatar on the global stage. Qatar is developing a global creative niche in the fields of entertainment, education, communications and technology. Knowledge-Based Economy (KBE)

Significant progress is being made on all fronts in its efforts to grow a KnowledgeBased Economy. An example is the announcement that the Government would dedicate 2.8% of GDP annually to fostering research and development projects. The State has also offered incentives for firms involved in research work, including tax breaks and increased funding for schools and universities to improve education in sciences. The opening up of the financial sector is an example of building institutional frameworks which allow companies to take up business opportunities quickly and effectively. However, as Qatar grows its KBE, it is also mindful of maintaining the cultural values that makes Qatar unique. This is why the Society pillar will be a critical component of Qatar’s Knowedge-Based Economy development.

Qatar is boosting efforts to position itself at the heart of the Middle East’s technology, research and information industries, both as a means of attracting foreign investment and to expand the base of its economy. In its efforts to diversify the economy, the Government is developing a National Vision that will have the pillars of a Knowledge-Based Economy at its heart. Qatar’s KBE is being built on five pillars: Education; Innovation Systems; Institutional Frameworks; Information, Communications & Technology; Society Part Three Investment Opportunities | 45

THE STATE OF WEALTH AND WELL-BEING

Ministry of Economy & Commerce Investment Promotion Department

“It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.” - Charles Darwin

Summary Statement Well-placed on the world stage, Qatar is the place for people who want to reap what they sow in a field that is already strong and rich. In today’s world as always, survival of the fittest means that the people most adept at finding favourable conditions where they can adapt and re-generate don’t merely survive, they flourish. A country using wealth to build wealth, Qatar is creating a global niche that is different to any other country in the Middle East; converting the best of modernity and traditions into a State of Wealth and Well-Being. Qatar’s economy is booming in wave after wave, producing a multitude of opportunities. By joining this enduring economy investors and their families can reap the benefits in financial returns and lifestyle.

Qatar Investment Promotion Department (IPD) This brochure has been produced by the Qatar Investment Promotion Department. The IPD operates under the supervision of the Ministry of Economy and Commerce. IPD provides extensive information and support to businesses, investors and entrepreneurs setting-up business in Qatar. Acknowlegements: Grateful acknowledgement is made to the following organisations for providing helpful assistance towards producing this brochure: The Qatar Financial Centre; The Qatar Science and Technology Park and the Qatar Tourism Authority. Part Three Investment Opportunities | 47

APPENDICES Frequently Asked Questions The Investment and Promotion Department of the Ministry of Economy and Commerce provides answers some common questions posed by businesses considering investing in Qatar. Q: What is the function of Qatar Investment Promotion Department? A: Qatar Investment Promotion Department (IPD) operates under the supervision of the Ministry of Economy and Commerce. IPD provides extensive information and support to businesses, investors, and entrepreneurs’ settingup businesses in Qatar. Q: Can I register a business in Qatar without a local partner? A: In accordance to Qatar Investment Law No. 13 of 2000, any natural or juristic non-Qatari persons are allowed to directly invest in the sectors of agriculture, industry, healthcare, education, tourism, exploitation and

development of natural resources, energy or mining provided that these projects are compatible with the development scheme of the State. In addition, foreign investors can have up to a 49 % stake in all other sectors of the national economy provided that they have one or more Qatari partners whose share is not less than 51 %, and provided that company is properly incorporated in agreement with the provisions of the Law (except Real Estate). (Read More: Business Policy) Q: Who should I contact if I want to set-up a business in Qatar? A: The Investment Promotion Department at the Ministry of Economy and Commerce acts as primary contact of information to foreign investors. Proper commissioning of business may refer to the respective government agencies.

Q: What is the size of the economy? A: Qatar GDP purchasing power parity and per capita purchasing power parity is one of the highest in the world. The GDP growth rate is also among the highest in the world. Q: What is the business environment in Qatar? A: Its key business potential majority relies on oil and gas sectors which include production of natural gas and crude oil, petroleum refinery, petrochemicals, steel, cement manufacturing and fertilizers making a very high earning percentage on Qatar GDP. On the other hand the non-oil sectors are building and construction, realestate, communications, agriculture, fishing, water and electricity, business tourism, and banking.