how to do business in qatar v2 @risman biznet
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How to do Business in Qatar &What Sectors Are Worth Tapping Presentation to Indonesian Businessman in Qatar by UHY Ammo & Co Qatar. Event Organized by Indonesian Embassy Doha QatarTRANSCRIPT
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HOW TO DO BUSINESS IN QATAR & WHAT SECTORS ARE WORTH
TAPPING
JANUARY 27, 2014
QATAR THE LAND OF ENDLESS
OPPORTUNITI
ES
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strapline
Then:
• Before the discovery of oil, Qatar-a place of
poverty, malnutrition, and disease
• Tiny impoverished population-loose
association of tribal groups
• Main economic activities-Pearl harvesting &
fishing
• 1935-the establishment of Qatar General
Petroleum Corporation
Now:
• THE WORLD’S richest country per capita
($100,889 in 2012 as per IMF) World's third
largest natural gas reserves
• One among the five largest global energy
producers
• Member of the United Nations (UN), the
Organization of Petroleum Exporting
Countries (OPEC), the Arab League, the
International Monetary Fund (IMF), the World
Bank, and the Gulf Cooperation Council
(GCC).
• 19th most peaceful country in the world.
• Held the 2006 Asian Games
• Host of the forthcoming FIFA world cup in
2022 – the first of the Arab countries to host
such an event.
THE HISTORY OF QATAR
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STATISTICS
Qatar Economic Indicators
Indicator Unit 2011 2012 2013 f
Nominal GDP US$ (Bn) 173 180 201
Nominal GDP QR (Bn) 624 700 733
Real GDP % yoy 17.9 8.1 5.8
Current Account Balance % of GDP 30 29 27
CPI % yoy 4.5 4.2 4.0
Population Mn 1.7 1.9 2.0
Inflation % 1.8 2.5 3.6
Exchange rate QR/US$ 3.64 3.64 3.64
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GROSS DOMESTIC PRODUCT
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355
455
624
700 733
0
100
200
300
400
500
600
700
800
900
2009 2010 2011 2012 2013f
Gross Domestic Product at Current Prices (Billion QAR)
GDP Linear (GDP)Source: QSA
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COMPOSITION OF QATAR’S GDP
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Source: QSA
55.8%
11.1%
9.5%
9.3%
5.9%
4.8% 3.5%
0.9% 0.6% 0.4% 0.4%
0.1% -2.3%
Year: 2013f
Mining and Quarrying (Include Oil & Gas) Finance, Insurance, Real Estate & Business ServicesManufacturing Government ServicesTrade,Restaurants & Hotels Building and ConstructionTransport and Communications Social ServicesImports Duties Electricity and WaterHousehold Services Agriculture and FishingImputed Bank Services Charges (FISIM)
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POPULATION
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Source: QSA
1.70 1.73 1.83 2.00 2.10
2.25 2.40
2.57 2.75
2.95 3.15
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2010 2011 2012 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F
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POPULATION AND LABOR FORCE
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• Average life expectancy of 79 years as of 2011
• About 80% of the total population fall under the working age group (20-60 years)
• Expatriate workers account for most employment positions ( managerial, skilled or
menial)
• Qatari labor force in the private sector has been decreasing (now less than 7%)
• Qatarization-yet to have an impact
• Labor regulatory burden-light and currently no minimum wage regulation. All foreign
laborers have to have a national sponsor.
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QATAR’S POSITIONING IN THE GCC
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• GCC (Qatar ,Saudi Arabia, Oman, Bahrain,
UAE & Kuwait)
• GCC -most performing economies bloc
that recorded “an exceptional growth” of
6.4 per cent in the past two years
• Qatar is expected to lead the GCC growth
rate with a projected 6.8% in 2014
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SWOT ANALYSIS
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Strengths
•Stable government fiscal policy and market based monetary policy
•Ranked 22nd in Transparency International's 2011 Corruption Perceptions Index
•Corporate tax rate was cut to a flat 10% from January 2010
Weaknesses
•Domestic economy almost completely reliant on oil market to maintain growth
• In most sectors, foreign ownership is capped at 49%
Opportunities
•Long-term prospects for growth are very good.
• Investment in education-will improve the skills base
•Membership of the GCC facilitates trade with Gulf peers
•100% foreign ownership permitted ( subject to government approval) in agriculture, industry, tourism, health and education as well as in natural resources.
Threats
•Only Qataris are able to obtain import licenses
•US observers say Qatar's copyright protection is inadequate.
SWOT
Analysis
HOW TO DO
BUSINESS IN
QATAR
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The presentation you are about to see serves as a guide only and is not intended to govern nor to impose neither supersedes any laws of the State of Qatar. This does not contain any definitive and specific legal advice anything for such should be obtained accordingly.
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Law #13 of 2000
Agriculture
Industry
Healthcare
Education
Tourism
Exploitation and development of natural resources, energy or mining provided these projects are
compatible with the development plans in the state and taking into account preference of
projects that achieve:
- Optimal exploitation of the available domestic raw materials,
- Export industries or industries that provide new products or use modern technology
- Projects that settle globally well known industries and
- Projects that take interest in national cadres and their rehabilitation
Amended Law#1 of 2010
Consultancy services
Information technology services
Other services related to:
- Sports
- Culture
- Entertainment
- Distribution
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THE CATEGORIES OF BUSINESS ORGANIZATION DEFINED BY THE LAW
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Establishing a business
option
Company
Partnership Company
Limited Partnership Company
Particular Partnership Company
Shareholding Company
Limited Share Partnership
Limited Liability Company
Single Person Company
Holding Company
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PROCEDURES AND STEPS FOR REGISTERING A COMPANY
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Procedure Est. Time for
Completion
Associated
Cost
Apply online for approval of the proposed name with the
Ministry of Business and Trade 1 day QAR 500
Submit the Articles of Association for review at the
Commercial Companies Inspection Department at the
Ministry of Business and Trade 1 day QAR 1500
Open bank account and deposit minimum capital 1 day no charge
Sign the Articles of Association before an agent at the
Ministry of Justice counter located at the OSS 1 day
QAR 24 for first
2 shareholders
+ QAR 9 for
each additional
shareholder
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PROCEDURES AND STEPS FOR REGISTERING A COMPANY
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Procedure Est. Time for
Completion Associated Cost
Obtain commercial registration from the Ministry of Business
and Trade and register with the Chamber of Commerce and
Industry at the single counter located at the OSS
1 day
(simultaneous
with previous
procedure)
QAR 2,200
(Chamber of
Commerce) + QAR
500-5,000
(Commercial
Registration)
Obtain trade license and signage license from the municipality
counter located at the OSS
1 day
(simultaneous
with previous
procedure)
QAR 10,020 (Trade
license) +QAR 50-
150 (signage
license)
Register for taxes and obtain Tax Identification number 1 day no charge
Obtain a company seal 2 days QAR 150
WHY INVEST IN
QATAR
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WHY INVEST IN QATAR
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1. Energy Powerhouse:
200 years of proven natural gas reserves
25.7 billion barrels of proven oil reserves
Natural gas deposits in excess of 900 trillion cubic feet
Daily output capacity of 850,000 barrels of crude oil
Annual output capacity of more than 18 million tons of liquefied natural gas
(LNG) per year
2. Economic Miracle:
One of the richest countries in the world
70% of government revenue from exporting oil and gas
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WHY INVEST IN QATAR
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3. Government Support:
Liberal economy
Free trade
No restrictions on profit transfer or capital repatriation
No import duties for machinery or raw materials
Competitive labor costs
No personal income taxes
Ministry of Business and Trade support
Tax exemptions for projects with Ministry of Defense or Ministry of Interior
Budget - Major Allocations for Development (2010/2011)
Infrastructure – QAR 35.5 billion
Education and Youth Welfare – QAR 17.3 billion
Healthcare – QAR 8.6 billion An independent member of UHY International
WHY INVEST IN QATAR
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4. Highly Developed Infrastructure
Hamad International Airport: first airport in the world to fully handle the Airbus
A380 (world’s biggest commercial aircraft. | 3x size of current airports
New Doha Port: 2 million teus – 7x capacity of current ports | ultimate capacity
of 6 million teus
Doha Metro – Qatar Rail
Qatar-Bahrain Causeway: a 40 Km (25 mile) structure of linked bridges
connecting Qatar with the neighboring Kingdom of Bahrain
Doha Subsea Tunnel: early phase plans: 4 lines linking Education City, West Bay,
Doha International Airport, and Lusail
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WHY INVEST IN QATAR
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5. Thriving Private Sector
Public Private Partnership (PPP)
Free Zone in Qatar Science and Technology Park (QSTP) for technology-based
business companies:
• Incorporate a local company or operate as a branch of a foreign
company
• 100% foreign ownership
• Trade without local agent or sponsor
• Sponsor expatriate employees
• No taxes
• Duty-free import of goods and services
• Unrestricted repatriation of capital and profits
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WHY INVEST IN QATAR
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6. Knowledge Based Economy
Expat-friendly policy:
• Bring family
• Register for resident ID
• Enroll children in school
• Obtain health card & driving license
2.5% nominal GDP for R&D
More than 7,000 well-educated graduates per year
Education City (8 million Sq. M. flagship project)
Qatar Cultural Village ($82 million project)
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WHY INVEST IN QATAR
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7. (QNV) Qatar National Vision
2030
The four pillars of QNV 2030:
Economic Development: Development
of a competitive and diversified
economy capable of meeting the
needs of, and securing a high
standard of living for all its people for
both, the present and the future
Social Development: Development of
a just and caring society based on
high moral standards capable of
playing a significant role in global
partnerships for development
Human Development: Development of
all its people to enable them to
sustain a prosperous society
Environmental Development:
Management of the environment such
that there is harmony between
economic growth, social development
and environmental protection
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Network of independent accounting and consulting firms
World leader in audit, accounting, tax, and business advisory services
Consistent values wherever in the world you do business
Global skills; one vision
Your business understood
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REFERENCE
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• Business Monitor International (BMI)
• International Monetary Fund (IMF)
• Qatar Statistics Authority (QSA), www.qsa.gov.qa
• Hukoomi Portal, www.gov.qa
• Ministry of Business and Trade, www.mbt.gov.qa
• Qatar Development Bank, www.qdb.qa
• World Economic Forum, www.weforum.org
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