2012 Investment Climate Statement - Qatar
OPENNESS TO FOREIGN INVESTMENT
Qatar has one of the fastest growing economies in the world and has the highest per capita income in the world, according to The Economist. Qatar’s real GDP growth is projected to be at least 18.7 percent in 2011, according to IMF estimates. The government is heavily involved in Qatar's economy, although it strongly encourages international investment in many sectors such as energy.
Qatar's investment liberalization policies are proceeding on a gradual basis, based on a desire to protect local companies from rapid competition.
The main economic stimuli in Qatar are oil, gas, and related industries, in particular the development of the North Field, the largest non-associated natural gas field in the world. Qatar's liquefied natural gas (LNG) industry has attracted tens of billions of dollars in foreign investment and made Qatar the world’s largest exporter of LNG. Qatar has imposed a moratorium on increasing natural gas production from the North Field that will take effect in 2012 and last until at least 2014. However, the Energy Ministry has indicated that it may increase its LNG production by 10 million tons if it can improve efficiency in its production units. Significant investment in the downstream sector is likely to continue.
Qatar was awarded the right to host the 2022 FIFA World Cup. This will have a lasting impact on Qatar’s real estate, construction, and finance markets as companies scramble to obtain a portion of the more than USD 150 billion in infrastructure investments needed before 2022. The government has allocated 40 percent of its budget between now and 2016 to infrastructure projects, including USD 11 billion on a new international airport, USD 5.5 billion on a deepwater seaport and USD 12.36 billion on improving and creating road networks. Qatar will also invest USD 20 billion to USD 25 billion in tourism infrastructure development over the next 11 years as it prepares to host the 2022 World Cup. The largest planned development is the USD 29 billion metro and rail project. It will be implemented in three phases with completion scheduled for 2022. Other focal areas include roads, industrial zones, and information and communication technology.
These developments will stimulate the domestic economy and create substantial export opportunities for foreign businesses. In addition to energy and infrastructure development, significant opportunities exist for foreign investment in medical, safety and security, education, and franchising.
Qatar gives preferential treatment to suppliers that use local content in bids for government procurement. When competing for government contracts, goods with Qatari content are discounted by 10 percent and goods from other GCC countries receive a 5 percent discount. As a rule, participation in tenders with a value of QR 1,000,000 or less is confined to local contractors, suppliers and merchants registered by the Qatar Chamber of Commerce, and tenders with a value of more than this amount do not require any local commercial registration to participate, but in practice certain exceptions exist. Tender and bid details are available at the Central Tender Committee website: http://www.ctc.gov.qa/tender-en-aspx
The Investment Law No. 13/2000 is the primary legislation governing foreign investment. Foreign investment is generally limited to 49 percent of the capital for most business activities, with a Qatari partner(s) holding at least 51 percent. However, the law allows, upon special government approval, up to 100 percent ownership by foreign investors in certain sectors, including: agriculture, industry, health, education, tourism, development and exploitation of natural resources, energy, or mining. Qatar amended the law in 2004 to allow foreign investment in the banking and insurance sectors upon approval of the Cabinet of Ministers. Moreover, foreign financial services firms are allowed 100 percent ownership at the Qatar Financial Center (QFC). On October 31, 2009, the Council of Ministers agreed on the amendments proposed by the Ministry of Business and Trade to allow foreign investors to hold 100 percent stakes in certain activities, including: business consultancy and technical services; information and communication services; cultural services; sports services; entertainment services; and distribution services.
International law firms with 15 years of continuous experience in their countries of origin are allowed to set up operations in Qatar, but the license will be granted only if authorities in Qatar are convinced that the field in which the applying firm specializes is of use to Qatar. On the recommendation of the Ministry of Justice, the Cabinet may reduce the number of required years’ experience or waive the condition fully. Cabinet Decision Number 57 of 2010 states that the Doha office of an international law firm would be permitted to carry out activities in Qatar only if the main office in the country of origin remains operative. These requirements do not apply to law firms registered in Qatar Financial Center (QFC).
Foreign firms are required to use a local agent for matters related to sponsorship and residence of employees. Certain sectors are not open for domestic or foreign competition, including public transportation, electricity and water, steel, cement, and fuel distribution and marketing. In these sectors, a single semi-public company has complete or predominant control.
Qatar has begun to liberalize its telecommunications sector to permit outside private investment, starting with the issuance in December 2007 of a second mobile license to a consortium including Vodafone and the Qatar Foundation. The same consortium was awarded the country's second fixed-line license in September 2008. However, there is a minimum requirement of QR 200,000 in initial capital for any telecommunication business, which creates a barrier to entry for small entrepreneurs.
When approving majority foreign ownership in a project, the law states that the project should fit into the country's development plans. It adds that preference should be given to projects that use raw materials available in the local market, manufacture products for export, produce a new product or use advanced technology, facilitate the transfer of technology and know-how in Qatar, and promote the development of national human resources.
Non-Qataris may also have the right of land use over real estate for a term of 99 years renewable upon government approval in Cabinet-designated "investment areas." Foreigners can own residential property in select projects, including the Pearl, the West Bay Lagoon, Lusail, and the Al-Khor resort project. Law No. 23/2006 provides for foreigners being issued residency permits without local sponsors if they own residential or business property in Cabinet-designated "investment areas".
Import licenses are issued only to individuals with Qatari nationality, or companies owned or controlled by Qataris. In practice, exceptions are sometimes made for foreign companies, such as those with government contracts.
Qatar remains the second easiest country in which to pay tax globally for the second year running, according to Paying Taxes 2011, an annual report issued by Price Waterhouse Coopers, the World Bank, and the International Finance Corporation. Qatari nationals are not subject to any kind of corporate or income tax, although nationals are required to pay Zakat, which usually amounts to around 2.5 percent of profits. Although there is no income tax on salaries in Qatar, foreign investors are subject to taxation on their investment income.
On January 1, 2010 a new tax law went into effect. This law imposes a 10 percent flat rate for all non-Qatari companies and foreign partners in Qatari companies, except for the energy sector where there is at least a 35 percent tax, unless exempted by Amiri Decree. Companies currently receiving tax holidays or those with government tax exemptions will not be taxed until the contractual end of these agreements. If these agreements were entered into by the Government, ministry, agency, body, or public institution prior to enforcement of the new law and no tax rate was specified, the 35 percent tax rate will be imposed, unless exempted by Amiri Decree. The tax rate and all other tax requirements set forth in agreements related to oil operations will continue to be defined by Law No. 3/2007 on the exploitation of natural wealth and resources.
The new tax law applies to revenues from business activities, contracts – which are partly or wholly implemented in Qatar – properties, including sales of stakes in the shareholding companies or privately-owned companies whose assets are mainly comprised of properties. Revenue from exploration and natural resource extraction in the state and loan interest received within the state are also taxable. Gifts, luxury items, and entertainment expenses are not deductible. Qatari-owned companies; small handicraft companies with a maximum of three workers and not exceeding 100,000 Qatari Riyals profit (USD 27,473); individual income from sources such as bank interest, stock dividends, salaries, wages and allowances; and foreign charitable and other non-profit organizations and associations and societies are all exempted from taxation.
Under Law No. 13 of 2000, the Ministry of Finance and Economy may grant a tax holiday of up to 10 years for new foreign investments in key sectors. Other exemptions may be granted under law 21/2009 on a case-by-case basis for a period up to 6 years.
According to Article 11-2 of law no. 21/2009, payments made to non-residents for activities not connected with a permanent establishment in the state (Qatar) shall be subject to a final withholding tax, as follows: 5 percent of gross royalties and technical fees; 7 percent of the gross interest, commissions, brokerage fees, director's fees, attendance fees and any other payments for services carried out wholly or partly in Qatar. However, the enforcement of this article is currently frozen while the government reviews a written petition submitted by the Qatari banks.
Companies established in the QFC have enjoyed a tax exemption since the start of operations in 2005 until 31/12/2009. The Qatar Financial Centre’s new tax regime, levying a flat 10 percent on profits, came into force in 2010, but captive insurance, reinsurance and asset management businesses are exempt.
There are two types of penalties for failing to pay taxes: penalties associated with delays in filling, and delays in payment. Companies that fail to file their tax return will be fined QR 100 per day up to a maximum of QR 36,000. Those convicted of making false statements on their taxes, or trying to evade taxes face up to three months’ imprisonment and a maximum fine of QR 15,000. A further fine of 20 percent of the tax due will be levied on companies shown to be in violation of the tax law. Penalties may be doubled for repeat offenders. Delayed payment may result in a financial penalty equal to the amount of unpaid tax, in addition to the payment of the tax due.
Judicial decisions in commercial disputes are primarily based on contractual agreements, provided these agreements are not in conflict with applicable Qatari laws. U.S. firms are strongly encouraged to consult a local attorney before concluding any commercial agreement with a local entity.
Foreign investors and GCC nationals may only own 25 percent of the shares in all companies listed on the Qatar Exchange (QE). Foreign investors are generally not allowed to participate in any initial public offering (IPO), though exceptions are occasionally made on a case-by-case basis (primarily for other GCC nationals). Those rules of foreign ownership percentage restrictions can be waived with approval from the Cabinet. In 2009, NYSE Euronext purchased a 20 percent stake in the QE for USD 200 million in cash. The Qatar Investment Authority (QIA) owns the remaining 80 percent of the QE.
QE has 42 listed companies and its market capitalization was valued at QR 445 billion at the end of June 2011. The foreign ownership of shares usually hovers around 11 percent, with most owned by other GCC citizens or local expatriates. The Mutual Fund Law (Law. No 25/2002) allows expatriates to invest indirectly in the stock market. No bonds have been traded on the Qatar Exchange so far.
There are 18 licensed banks in Qatar, 11 of which are Qatari institutions including four islamic banks (Qatar Islamic Bank “QIB”, Qatar International Islamic Bank “QIIB”, Masraf Al Rayan and Barwa Bank) and 7 commercial banks (Qatar National Bank “QNB”, Commercial Bank of Qatar, Doha Bank, Ahli Bank, International Bank of Qatar “IBQ”, Qatar Development Bank “QDB”, Al Khaliji Bank).
Qatari regulations for local and foreign banks are the same. New licenses for new banks are available through application to the Qatar Central Bank. License requirements can be found at the following link:
Qatar also has 20 exchange houses, three investment companies and three commercial finance companies.
In addition, Doha is home to the Qatar Financial Center (QFC) which allows major international financial institutions and corporations to set up offices with 100 percent foreign ownership, and all profits to be remitted outside of Qatar. Firms licensed by the QFC can locate anywhere in Doha, provided there is no objection from the Ministry of Business and Trade, and pay local market rents. As 2011, there were over 37 approved sites.
There are currently 129 licensed firms at the QFC, representing a spectrum of banks, investment companies, insurance houses, and related professional services. Sixty-four (nearly 50 percent of) QFC licensed firms are regulated by QFCRA, the QFC’s independent regulatory body. QFC firms are generally limited to providing services to wholesale clients. However, insurance companies can provide services to both wholesale and retail clients and retail asset management is allowed as of January 1 2011.
Qatar’s economic freedom score is 70.5, and ranks 27th in the 2011 Index of Economic Freedom. Its score is 1.5 points better than last year, reflecting notable improvements in five of the 10 economic freedoms. Qatar is ranked 2nd out of 17 countries in the Middle East/North Africa region, and its overall score is above the world and regional averages.
Index/Ranking - Year 2011
Transparency International Corruption Index
Heritage Economic Freedom
World Bank Doing Business:
Ease of Doing Business
Starting a Business
Dealing with Construction Permits
Trading Across Borders
Closing a Business
CONVERSION AND TRANSFER POLICIES
Due to minimal demand for the Qatari riyal outside Qatar and the national economy's dependence on oil and gas revenues, which are priced in dollars, the government has pegged the riyal to the U.S. currency. The official peg is QR 1.00 per USD 0.27 or USD 1.00 per QR 3.64, as set by the government in June 1980 and reaffirmed by an Amiri decree issued July 9, 2001.
Officially, the GCC states are harmonizing their monetary policies and intend to begin implementation of a common currency. In January 2010 the Qatar Central Bank stopped providing loans to the public sector in preparation for implementing the GCC unified currency plan. However, at the Gulf Cooperation Council (GCC) Summit held in Abu Dhabi in December 2010, participants indicated that there are still significant obstacles to achieving a single currency. Despite a number of recent private sector analyses suggesting Qatar may reassess its dollar peg policy, the government has maintained the exchange rate.
Law No. 15/1990 does not allow foreign investors to enter into a joint stock company with Qatari partners. However, foreign investors can hold up to a combined total of 25 percent of the shares of Qatari companies listed on the Qatari Exchange. In addition, at least three foreign companies have been allowed to exceed this 25 percent. Exceptions are based upon a ministerial decree and are decided on a case-by-case basis. Foreign investors may own up to 49 percent, and the Qatari partners no less than 51 percent, of a limited liability partnership. Foreign partners in ventures organized as limited liability partnerships must pay the full amount of their contribution to capital in cash, or in kind, prior to the start of operations. Usually, such firms are required to set aside 10 percent of profits each year in a statutory reserve until it equals 50 percent of the venture's authorized capital. The legal reserve shall not be distributed among the shareholders; however the excess of the half of the paid-in capital may be used in distributing the profits among the shareholders (up to 5 percent of profits). This requirement is the only legal restriction to a foreign company desiring to repatriate all of its annual profit after tax deduction.
Qatar neither delays remittance of foreign investment returns nor restricts transfer of funds associated with an investment, such as return on dividends, return of capital, interest and principal payments on private foreign debt, lease payments, royalties and management fees, amounts generated from sale or liquidation, amounts garnered from settlements and disputes, and compensation from expropriation to financial institutions outside Qatar without undue delay.
Qatar Central Bank authorized mobile phone service providers Qtel and Vodafone to add payment services and money transfers via mobile phones in direct collaboration with banks and licensed money exchangers in Qatar.
The Government of Qatar signed a new Anti-Money Laundering/Counter-Terrorism Finance (AML/CFT) law into force on April 30, 2010. The law addresses many of the deficiencies identified by FATF and makes money laundering and terrorist financing offences in line with international standards. It also introduces a suspicious transaction reporting regime and requirements for consumer due diligence and record-keeping. Consistent revised regulations have been issued by all three of the main financial regulators in Qatar: the Qatar Central Bank (QCB), the Qatar Financial Markets Authority (QFMA), and the Qatar Financial Center Regulatory Authority (QFCRA). All three regulators have begun to do on-site inspections to check compliance with the new law and regulations. However, significant work remains to implement the new financial regulations and there remain some deficiencies with regards to terrorism financing.
In accordance with the QCB instructions on AML/CFT, the financial institutions must apply due diligence prior to establishing business relationships. Certain originator information should be secured in case the wire transfer exceeds QR 4,000. Similarly, due diligence should be made when a customer is carrying out occasional transactions in a single or several linked operations of an amount exceeding QR 55,000 or equivalent in foreign currencies at the relevant time as per the provisions of Article 23 of Law 4 of 2010.
EXPROPRIATION AND COMPENSATION
Law No. 13/2000, Article 8 states: 1) Foreign investment shall neither directly nor indirectly be subject to expropriation unless such measures are for the public welfare and implemented in a non-discriminatory way, against a prompt and reasonable compensation; 2) Compensation shall be equal to the market value of the investment at the time of expropriation, and shall be paid without undue delay. There have been no cases of expropriation or sequestration of foreign investment in Qatar since the nationalization in the mid-1970s of Shell and Dukhan Services (the latter was a combination of six international oil companies handling Qatar's onshore operations on the country's west coast). The foreign interests were compensated promptly.
In March 2003, Qatar became a signatory to the New York Convention of 1958 and in November 2010, Qatar ratified its membership to the International Center for the Settlement of Investment Disputes (ICSID). If investment disputes occur, Qatar accepts binding international arbitration between the government and foreign investors. However, Qatari courts do not enforce judgments of other courts in disputes emanating from investment agreements made under the jurisdiction of other nations.
In December 2010, the civil and commercial court, and the regulatory tribunal, for Qatar Financial Centre (QFC) were officially launched. Together they form the QFC Judiciary and the legal infrastructure behind the QFC. In addition, the court also features an Alternative Dispute Resolution (ADR) center. Although primarily concerned with hearing commercial matters arising from within the QFC itself, the QFC intends to expand courts’ jurisdiction to enable it to accept other disputes at their discretion.
In Qatar there are two concurrent bankruptcy regimes. The first is the local regime, the provisions of which are set out in the Commercial Law No 27 of 2006. However, the bankruptcy law is largely untested. The bankruptcy of a Qatari citizen or a Qatari-owned company is rarely announced and the Government sometimes plays the role of guarantor to keep bankrupt business running and safeguard creditors' rights.
The second bankruptcy regime is found in the QFC Insolvency Regulations 2005 and applies to bodies corporate and branches registered in the QFC. There are currently two firms in the U.K. offering full dissolution bankruptcy services to QFC-registered companies.
In order to protect their interests, U.S. firms are advised to consult with a Qatari or foreign-based law firm when executing contracts with local parties.
PERFORMANCE REQUIREMENTS AND INCENTIVES
Performance requirements for foreign investment in Qatar, including a counter-trade offset program, do not exist. While screening investment proposals, the government may indicate preferences for locating facilities, capital investments and other matters. Disclosure of financial and employment data is required, but proprietary information is not.
The government offers a variety of incentives to foreign investors which may include tax exemptions, property grants, energy subsidies, and low-cost financing. The following is a list of incentives sometimes offered to foreign investors:
- Natural gas priced at 60-75 U.S. cents per MBTU (Million British Thermal Units)
- Electricity offered at less than two U.S. cents per KWH (Kilowatt Hour)
- Industrial land offered at 27 U.S. cents per square meter per year for a period of 50 years, including options for renewing the lease
- Exemption from customs duties on imports of machinery, equipment and spare parts;
- Exemption on export duties
- Exemption from corporate taxes for up to ten years
- Exemption from income taxes
- Absence of quotas on imports
- Low cost financing through Qatar Development Bank
- Flexible immigration and employment rules to enable the import of foreign labor
The same incentives are offered to Qatari investors.
Qatar does not maintain measures inconsistent with the Agreement on Trade-Related Investment Measures (TRIMs), though in practice they provide preferential treatment for those who use local content in investments or government procurements.
The Ministry of Energy and Industry determines the amount of foreign equity and the extent of incentives for industrial projects. Industrial projects can be established only in designated industrial zones. Necessary investment approvals may be required from the Ministry of Health, Qatar Tourism Authority, Ministry of Municipal Affairs & Agriculture, Ministry of Business and Trade, Supreme Education Council, and Ministry of Environment.
Qatar Science & Technology Park (QSTP) is the national agency charged with executing applied research and delivering commercialized technologies in four themed areas. They have developed centers for each of the following areas: Energy, Environment, Health Sciences and Information & Communication Technologies. QSTP is located in Qatar Foundation's Education City and has access to the resources of its cluster of universities. In addition to QSTP’s four centers, members include small companies, international corporations, and research institutions. QSTP seeks to attract U.S. and other foreign investors to start up research and development facilities in the Park, and provide opportunities for companies to engage in commercializing the technology they develop. Participating companies are allowed 100 percent foreign ownership, and exemption from payment of income tax. Microsoft, ExxonMobil, GE, Shell, Tata, Total, and ConocoPhillips are among QSTP member companies.
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
The Commercial Companies Law, Law No. 5/2002, controls the establishment of all private business concerns in Qatar. The law provides for corporate mergers, corporate bonds, and the conversion of corporate partnerships into joint stock companies.
Joint ventures involving foreign partners usually take the form of limited liability partnerships. Law No. 15/1990 does not allow foreign investors to enter into a joint stock company with Qatari partners. However there are exceptions as mentioned in the “CONVERSION AND TRANSFER POLICIES” section above.
Foreigners are generally not allowed to own property. However, a law enacted in 2004 allows foreigners to own residential property in select projects including the Pearl, Lusail, the West Bay Lagoon, and the Al-Khor resort project.
Non-Qataris may also have the right of usufruct over real estate for a term of 99 years in Cabinet-designated "investment areas." Non-Qataris can be issued residency permits without a local sponsor if they own residential or business property in the designated districts. Citizens of members of the Gulf Co-operation Council (Bahrain, Kuwait, Qatar, Oman, Kingdom of Saudi Arabia and the United Arab Emirates) also have some exemptions from the application of the foreign investment laws of Qatar, including the ability to own 50 percent of businesses, as opposed to 49 percent for other foreigners, and the ability to own freehold land in three designated zones – Lusail, Al Khuraj, and Thayleeb Mountain.
PROTECTION OF PROPERTY RIGHTS
Within Qatar, owners of trademarks, copyrights and patents depend on Qatari laws and regulations for protection. Intellectual property rights in Qatar are protected by Law No. 7/2002 (Copyright and Neighboring Rights Law), Law No.30 of 2006 (Patent's Law), Law No. 9/2002 (Trademarks and Geographical Indicators Law), Law No.5/2005 (Protection of Trade Secrets), and Law No. 6/2005 (Protection of Layout Design of Integrated Circuits).
Qatar adopted the GCC Patent Law and has assigned the Industrial Property Office in the Ministry of Business and Trade Authority to handle issues related to trademarks, commercial indications, trade names, geographical indications and industrial design. An Intellectual Property Centre was also established by Amiri decision No. 53 of 2009 and is affiliated with the Ministry of Justice. This center oversees implementation of Qatari law on patents, copyright protection, and protection of trade secrets.
According to Law No. 30 of 2006, patents are valid for twenty years from the date of submission. The Ministry of Health requires registration of all pharmaceutical products imported into the country and will not register unauthorized copies of products patented in other countries.
The 2002 copyright law does not explicitly provide for national treatment or coverage of unpublished works and does not criminalize end-user piracy. However Qatar is party to the Berne and Paris Conventions and abides by their mandates concerning unpublished works.
As for end-users, some Qatari companies have already complied with the law and others are making provisions to do so. The Copyright Office works with law enforcement authorities to prosecute resellers of unlicensed video and software. In 2011, the IP center carried out 55 raids.
Qatar uses the GCC patent law with derogations as needed to comply with its obligations under the TRIPS Agreement. A joint committee between the Ministry of Business and Trade and Ministry of Health has yet to be established to coordinate their efforts and ensure that only patented products or authorized copies of pharmaceutical products are registered for sale.
In 2006, an Amiri Decree on patents was issued stipulating that: (1) only inventions of industrial use can be registered as a patent; (2) an industrial product or means or process of production must have something innovative about it to merit patent registration; (3) inventions in health, agriculture, plants and software development are not eligible for patent; (4) only Qatari citizens or foreigners of WTO signatory countries will be allowed to register a patent; (5) the Ministry of Business and Trade will frame and implement executive regulations to help enforce the law; and (6) the Ministry of Business and Trade will set up a patent registration office. This office has been established and named the Patents Unit and is a part of the Intellectual Property centre.
As part of the GCC Customs Union, the six Member States are working toward unifying their intellectual property regimes. In this respect, the GCC has recently approved a common trademark law. All six Member States are expected to adopt this law as national legislation in order to implement it. However, the new law raises questions about consistency with GCC Member State obligations under the TRIPS Agreement and U.S. free trade agreements with Bahrain and Oman.
Qatar is a member of the World Trade Organization (WTO) and the World Intellectual Property Organization (WIPO), and is a signatory to the following WIPO Treaties:
- WIPO Convention, since September 1976
- Paris Convention (Industrial Property), since July 2000
- Berne Convention (Literary and Artistic Works), since July 2000
- Nairobi Treaty (Olympic Symbol), since July 1983
- WCT (WIPO Copyright Treaty), since October 2005
- WPPT (WIPO Performances and Phonograms Treaty), since October 2005
- Qatar has also been a member and signatory to the TRIPS Agreement since January 1996
TRANSPARENCY OF THE REGULATORY SYSTEM
There are four regulatory bodies in Qatar, though plans are underway to create a unified regulatory authority for the country. It remains unclear when the necessary legislation and oversight board will be in place. Current regulatory entities include:
- The Qatar Financial Market Authority regulates the Qatar Exchange (formerly known as the Doha Securities Markets)
- The Central Bank regulates locally registered banks
- The QFC Regulatory Authority has a separate, independent regulatory authority for QFC-registered firms
- The Ministry of Business and Trade regulates the local insurance sector
In Qatar, the government is the major buyer and end-user of a wide range of products and services. Government procurement regulations provide a ten-percent preference for Qatari products and five-percent for GCC products.
The Central Tenders Committee (CTC) of the Ministry of Finance and Economy is responsible for processing the majority of public sector tenders. The CTC applies standard tendering procedures and adheres to established performance norms. It also sets the standards for rules and regulations for bidding procedures.
In tenders valued in excess of QR 100 million (USD 27 million), the CTC may invite and pre-qualify international firms to bid for a specific product or service. Technical bids submitted to the CTC are referred to the appropriate government end-user for short-listing. The CTC then opens the commercial bids and recommends the lowest priced, technically qualified bidder to the entity concerned, which will make the final award decision. Inquiries about specific award decisions should be directed to the CTC.
Some governmental entities have established internal tender committees. The Ministry of Energy and Industry, Qatar Petroleum, Urban Planning and Development Authority, and Public Works Authority process all tenders independently. Qatar Armed Forces and the Ministry of Interior are responsible for issuing tenders for classified materials and services.
Foreign firms wishing to participate in government procurement programs may be required to have a local agent and provide bid and performance bonds. International bidders should contact end-users directly for information on local agent requirements.
Other regulatory policies do not significantly affect foreign investment decisions. Some U.S. companies have expressed concerns about the lack of transparency in government procurement.
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT
In Qatar, there are no restrictions on the flow of capital. The Qatar Central Bank (QCB) adheres to conservative policies aimed at maintaining steady economic growth and a stable banking sector. Loans are allocated on market terms, and foreign companies are essentially treated the same as local companies.
Qatar National Bank (QNB), 50 percent state-owned, is the largest bank in the country, with total assets equal to 45 percent of the total assets of all Qatari Banks (local) and 37 percent of total equity of eleven Qatari Banks (local) as of September 2011. The total assets grew since September 2010 to QR 280.1 billion, representing an increase of QR 85.4 billion or 43.9 percent.
The following represents Qatar banking sector assets, based on QCB data:
Total Assets of Banking Sector (Qatari and foreign Banks):
December 2010 QR 567,482 million - increase by 17.55 percent over December 2009
October 2011 QR 653,617million
Total Assets of Local Qatari Banks:
October 2011 QR 620,980 million
Total Assets of Local Commercial Banks:
October 2011 QR 469,068 million - 72 percent of total banking sector assets
Total Assets of Branches of Foreign Banks:
October 2011 QR 32,637 million - 4.99 percent of total banking sector assets.
Almost all import transactions are controlled by standard letters of credit processed by local banks and their correspondent banks in the exporting countries. Credit facilities are provided to local and foreign investors within the framework of standard international banking practices. Foreign investors are usually required to have a guarantee from their local sponsor/local equity partner.
However, in accordance with QCB guidelines, banks operating in Qatar give priority to Qataris and to public development projects in their financing operations. Additionally, single customers may not be extended credit facilities by a bank exceeding 20 percent of the bank's capital and reserves. In addition, the Qatar Central Bank does not allow cross-sharing and stable shareholder arrangements among banks and other business concerns that result in fewer shares of some corporations actually trading freely in the market. QCB requires banks to maintain a maximum credit ratio of 90 percent.
COMPETITION FROM STATE-OWNED ENTERPRISES (SOEs)
Several state-owned companies still operate under monopoly, or exclusive rights in some economic sectors. The following are Qatar’s major state-owned enterprises:
o Qatar Public Telecommunications Corporation (Qtel) is a dominant player in the Qatari telecoms market and is 76 percent owned by Qataris. Its revenues from outside Qatar currently constitute more than 75 percent of its revenues. In 2007, the mobile products and services sector was opened to competition. In 2008, the fixed line telecoms market was also liberalized. Vodafone was selected to compete in both mobile and fixed line against Qtel, and is 96 percent-owned by Qataris. Both companies are listed in the Qatar Exchange (QE). Prior to 2007, both the mobile and fixed line telecoms markets in Qatar were dominated by Qtel.
o Qatar General Electricity and Water Corporation (Kahramaa) operates all water and electricity activities and is 90 percent owned by Qataris. The government owns 43 percent of the capital. The government has indicated that it may privatize segments of the water and electricity sectors. A first step in this direction occurred when the Ras Laffan Power Company, which is 55 percent owned by a U.S. company, was established in 2001.
o Qatar Petroleum (QP) operates all oil and gas activities and is wholly owned by the government. QP’s oil and gas fields fall into three categories - the North Gas Field, onshore oil, and offshore oil. In addition, QP carries out activities through the following subsidiaries, joint ventures and other investments:
- Al-Koot Insurance & Reinsurance
- Al-Shaheen Energy Services (ASES)
- Amwaj Catering Services
- Gulf Drilling International (GDI)
- Gulf Helicopters
- Industries Qatar
- Laffan Refinery
- Oryx GTL
- Qatar Aluminium (Qatalum)
- Qatar Chemical Company (Q-Chem)
- Qatar Fertiliser Company (QAFCO)
- Qatar Fuel Additives Company (QAFAC)
- Qatar Liquefied Gas Company Ltd. (Qatargas)
- Qatar Melamine Company
- Qatar Petrochemical Company (QAPCO)
- Qatar Petroleum International (QPI)
- Qatar Steel Company (QASCO)
- Qatar Vinyl Company (QVC)
- Q-Chem 2
- Ras Laffan Olefins Company (RLOC)
- Ras Laffan Power Company (RLPC)
o Tasweeq has the exclusive right to deliver Qatar’s energy products abroad.
o Qatar Airways is the country’s designated National Carrier and is 50 percent owned by the government.
o The subsidiaries of Qatar Investment Authority (QIA), the State of Qatar’s sovereign wealth fund, also play a prominent role in the local economy:
- Qatari Diar, a property investment vehicle;
- Qatar Holding, the direct strategic investment arm of QIA
- Hassad Food, a vehicle for investment in agriculture and livestock
In June 7, 2010 Qatar notified the WTO that it does not maintain any state trading enterprises (STEs), under the working definition that STEs are governmental and non-governmental enterprises, including marketing boards, which have been granted exclusive or special rights or privileges, including statutory or constitutional powers, in the exercise of which they influence through their purchases or sales the level or direction of imports or exports.
The government’s economic strategy, as expressed in its 2030 Qatar Vision, is to reduce the dependence of the country’s budget on oil and gas.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
There is a general awareness of corporate social responsibility principles. Those firms that pursue CSR are viewed favorably. The Ministry of Business and Trade announced last year that it has plans to introduce a corporate social responsibility index for companies listed on Qatar Exchange in order to measure their “social commitment”. Many companies in Qatar are now considering publishing sustainability reports, including their CSR initiatives, in conjunction with their annual reports.
Qatar is politically stable. The crime rate is low. There are no political parties, labor unions or trade associations. There is no known organized domestic political opposition. The U.S. government believes the potential exists for acts of transnational terrorism to occur in Qatar. Potential investors and U.S. citizens are encouraged to stay in close contact with the Embassy for up-to-date threat information.
Bribery is a crime in Qatar and the law imposes penalties for public officials convicted of taking action in return for monetary or personal gain, or for other parties who take actions to influence or attempt to influence a public official through monetary or personal gain. The current Penal Code (Law No. 11/2004) governs corruption law and stipulates that individuals convicted of bribery may receive up to ten years imprisonment and a fine not greater than the amount of the bribes but not less than 5,000 Qatari Riyals (USD 1,374).
Those convicted of embezzlement and damage to the public treasury is subject to terms of imprisonment of no less than 5 and no more than 10 years. The penalty is enhanced to a minimum term of 7 and a maximum term of 15 years if the perpetrator is a public official in charge of collecting taxes or exercising fiduciary responsibilities over public monies. Investigations into allegations of corruption are handled by the Qatar State Security Bureau (QSS) and Public Prosecution. Final judgments are made by the criminal court Qatari officials are working to establish a more open and transparent system in government procurement.
By Amiri Decree No. 17/2007, Qatar ratified the UN Convention for Combating Corruption, and Amiri Decree No. 84/2007 established a National Committee for Integrity and Transparency. The permanent committee is headed by the chairman of the Audit Bureau and is tasked with combating corruption in Qatar and reports directly to him. Qatar is not a party to the Organization for Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials. Qatar launched the Anti-Corruption and Rule of Law Center on December 11, 2011 in Doha in partnership with the United Nations.
Qatar has retained its position as the least corrupt country in the Middle East and North Africa (MENA) in the 2011 Corruption Perceptions Index (CPI). Qatar was ranked 22nd globally with a score of 7.2, while last year global ranking was 22 with a score of 7.7.
On November 29, 2011 an Amiri Decree No 75/2011 was issued ordering the establishment of a Administrative Control and Transparency Authority. Deputy Prime Minister and Chief of the Amiri Diwan H.E. Hamad bin Abdullah al-Attiya has been appointed as its Chairman. The Authority will have within its jurisdiction private sector companies that provide public services. The objectives of the Authority are to help prevent official corruption and ensure that the various ministries, state agencies and their arms as well as their officials operate with transparency. The Authority is to be autonomous and accountable only to the Emir, who will be approving an annual budget for the body prepared by its chairman. The authority is charged with investigating alleged crimes against public property or finances perpetrated by public officials.
U.S. investors and Qatari nationals, if they are agents of U.S. firms, are subject to the provisions of the U.S. Foreign Corrupt Practices Act.
BILATERAL INVESTMENT AGREEMENTS
Qatar has more than 40 international investment cooperation agreements, listed below. Fourteen have been enabled including those signed with Belarus, Bosnia & Herzegovina, China, Finland, France, Germany, India, Italy, Republic of Korea, Morocco, Romania, Switzerland and Turkey:
- 1996 (Algeria, France, Germany, Romania and Tunisia)
- 1998 (Bosnia & Herzegovina, Senegal and Sudan)
- 1999 (Chad, China, Egypt, India, Iran, Morocco, Pakistan and South Korea)
- 2000 (Eritrea, Indonesia, Italy and Yemen)
- 2001 (Belarus, Croatia, Cuba, Finland, Switzerland and Turkey)
- 2002 (Armenia, Gambia, and Mali)
- 2003 (Mauritania, South Africa and Syria)
- 2004 (Libya)
- 2007 (Azerbaijan, Belgium & Luxembourg, Mongolia, Russian Federation and Tajikistan)
- 2008 (Cyprus and Kazakhstan)
- 2009 (Jordon, Montenegro, and Portugal)
- 2010 (Lebanon and Panama)
On the trade and economic side Qatar signed several Technical, Trade and Economic Cooperation Agreement with the following countries:
- 2000 (Cuba, Lebanon, Yemen, and Eretria)
- 2001 (Belarus)
- 2002 (Finland, Ukraine, Mali, South Africa, Gambia, Armenia, Ivory Coast, Guinea, and Niger)
- 2003 (Mauritania)
- 2004 (Libya, and Azerbaijan)
- 2005 (Germany and Nepal)
- 2007 (Mongolia, Greece, Vietnam, Singapore, and Tajikistan)
- 2008 (Cyprus and Philippine)
- 2009 (Albania (ratified), Croatia, Bulgaria, Montenegro, and Belarus)
- 2010 (Congo, Costa Rica, Venezuela, Brazil, Argentina, and Slovenia)
- 2011 (Chad)
On November 5, 2005, Qatar and Singapore signed a free trade agreement. Both countries continue to work to finalize the text of the agreement.
Qatar has 33 Agreements for the Avoidance of Double Taxation.
Qatar has not entered into a bilateral investment, trade, or taxation treaty with the U.S. However, Qatar and the U.S. did sign a Trade and Investment Framework Agreement (TIFA) in April 2004.
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS
Due to concerns about labor practices in Qatar, OPIC suspended its operations in Qatar in 1995. However, Qatar is working to improve its labor standards in order to reinstate OPIC coverage.
Qatar has no plans to become a member of the Multilateral Investment Guarantee Agency (MIGA).
According to the World Bank Migration & Remittances Fact Book 2011, Qatar has the world’s highest level of immigrants, relative to population, with expats making up 87 percent of the country's population. Qatar's labor force consists primarily of expatriate workers.
Qatar's current population is estimated at around 1.7 million, doubling in the last four years. Qatari citizens are estimated to number less than 250,000 - less than one-sixth of the total population. The largest group of foreign workers comes from the Indian sub-continent. The Ministry of Interior and the Ministry of Labor regulate recruitment of expatriate labor, but Qatar's plan to develop its own manpower resources continues to receive attention at all government levels.
The 2004 labor law and subsequent regulations provide for the right of Qatari citizens to form workers' committees in private enterprises with more than 100 Qatari citizen workers. Non-citizens are not eligible to form worker committees. Those working in the government sector, Qatari and non-Qatari, are prohibited from joining unions. Further, the law and regulations permit only a single national trade union structure and forbid affiliation with groups outside the country.
These restrictions mean that, in practice, no labor unions currently exist. Under the labor law, workers are granted the right to bargain collectively and to sign joint agreements, i.e., agreements reached between employer and worker regarding a work-related issue.
The right is circumscribed by the government's control over the rules and procedures of the bargaining and agreement processes. Collective bargaining is not freely practiced, and there are no workers employed under collective bargaining contracts. The law also grants workers the right to strike, but the restrictive conditions imposed by the statute make the likelihood of an approved strike extremely remote.
Unapproved and spontaneous strikes are an occasional occurrence, though they are typically confined to the industrial areas, and resolved with intervention by the embassies or communities of the involved workers and/or shows of force by Qatari security forces. Leaders of such disturbances are routinely deported.
Employers set wages unilaterally without government involvement. Local courts handle disputes between workers and employers; however, the majority of foreign workers avoid drawing attention to problems with their employers for fear of repatriation. According to source country embassies and some migrant workers, the Labor Department was widely perceived to be objective within its narrow mandate when dealing with the nonpayment of wages. The Labor Department claimed that it resolves the vast majority of worker complaints amicably, with a very small percentage referred to the labor courts for judgment.
A secretariat for labor relations is charged with overseeing collective bargaining and labor relations. The Labor Inspection Section has been restructured and staffed with sufficient numbers of trained inspectors who are provided with the power of law enforcement. Some labor camps have been closed and forced to comply with minimum standards by the labor inspectors. All expatriate labor must have a Qatari sponsor. Therefore, foreign investors are urged to negotiate labor visa issues with their sponsors/local agents/partners in the early stages of contract negotiation.
In order to bring an expatriate employee into the country, sponsors must submit a request to the Ministry of Labor specifying the employee's nationality and the job he will perform in Qatar. The Ministry of Labor maintains a quota system that restricts the number of workers that may come to Qatar from any particular country.
The Ministry of Interior and the current sponsor must approve all transfers of sponsorship of an expatriate from one individual or firm to another. With the approval of the Ministry of Interior, sponsorship of employees who filed valid complaints of abuse by employers can be transferred without the current employer's agreement, which is very rare.
If the residence permit is canceled, the expatriate is not allowed to return to Qatar on a work visa for a period of two years unless he obtains a letter of no objection from his previous employer. If an employee has been terminated under article 61 of the law, he is barred from reentering the country for four years from the date of his exit.
It is common practice in Qatar for expatriate workers to be provided accommodation, end of service benefits and homeward passage allowance, in addition to salaries. Qatar does not have a minimum wage regulation, though Qatar's labor agreements with some countries stipulate a minimum wage for certain types of work. The Labor Law does not apply to domestic workers or drivers.
Qatar is a member of the International Labor Organization (ILO). Generally, labor experts believe that Qatar's labor law does not meet ILO minimum requirements. On December 7, 2011 Qatar approved a draft cabinet resolution for establishment of a Constituent Labors Committee. According to the government, the committee will work to make expat laborers aware of their rights and obligations and help protect labor rights in accordance with ILO and International Human Rights Laws.
FOREIGN-TRADE ZONES/FREE PORTS
Companies operating at the Qatar Science and Technology Park (QSTP) can import goods and services duty free. Foreign entities wishing to invest in the QSTP apply for a license with the Park's managing board. No other licensing rules prevalent in the country will apply to the above businesses, although individuals, contracts and agreements are subject to the criminal and civil laws of the state. Licensed foreign companies can enjoy 100 percent ownership and full capital and income repatriation benefits.
Businesses in the QSTP are exempt from all taxes, including income tax. The property of such a business is not to be seized under any circumstance, but capital and other cash can be seized on the orders of a local court. Equipment, machinery, or any other goods being imported for use by an entity doing business in QSTP are exempt from customs duty, and goods produced in the Park are not subject to export tax.
Goods being sold within Qatar, but outside the QSTP, are subject to the normal customs duty applicable to imported products. Flammable and radioactive materials, drugs, weapons, and explosives are banned from import by any of the licensed entities, unless the licensed entity obtains the necessary permit from the competent governmental authority and a written approval from the QSTP Board.
In addition to the QSTP, Qatar plans to establish three free-trade zones; the first free zone was established in 2006, near the New Doha International Airport, to house light industries, financial services, and legal, trade and engineering consultancies. Development of this zone is still proceeding.
A second zone for the industrial area of Doha will cater to manufacturing and transport companies. The third zone, near Mesaieed Industrial City, will house petrochemical and other downstream-related businesses in the energy sector.
Priority in employment at the zones will be given to Qatari nationals. Resident expatriates will be allowed to join a licensed company if there is no objection from the Ministry of Interior. Conditions governing sponsorship change, including nationality quotas, will not apply to expatriates being recruited by a licensed company provided there is no objection from the Ministry of Interior.
FOREIGN DIRECT INVESTMENT STATISTICS
The Government of Qatar does not publish detailed statistics for foreign direct investment (FDI) in Qatar or the government's direct investments overseas. However, Qatar National Bank (QNB) reported the FDI inflows into Qatar in 2009 totaled USD 8.7 billion - the second highest foreign direct investment (FDI) inflows in the MENA region, while, FDI outflows totaled USD 3.7 billion in 2009.
The stock of U.S. foreign direct investment (FDI) in Qatar was USD 9.2 billion in 2008, up from USD 7.7 billion in 2007. Qatar FDI inward stock was USD 28 billion in 2009 and the FDI outward stock was USD 16 billion in 2009. Qatar liberalized foreign investment in a number of sectors, including consultancy services, information technology, services related to sports, culture and entertainment, and distribution services.
In recent years, Qatar has attracted sizeable investments in the areas of enhanced oil recovery and production, as well as the development of Qatar's gas industry. During the past ten years, QP and its partners have invested an estimated USD 100 billion in upstream and downstream operations. Qatar’s North Field, discovered in 1971, is the largest non-associated gas field in the world, with proven reserves estimated at more than 902tn cu ft (tcf), the equivalent of about USD 162 billion barrels of oil. Qatar holds the world’s third largest gas reserves after Russia and Iran.
Qatar's 14 LNG trains are based in Ras Laffan Industrial City (RLIC), including six mega trains which produce 7.8 million tonnes each annually, and operated by two companies: Qatargas and RasGas Company Limited. Together, these companies provide Qatar’s 77 Mta production capacity. Qatari LNG is now delivered to over 23 markets across four continents. Qatar has a fleet of 54 LNG vessels representing some 20 percent of the world's total LNG fleet. Qatar's gas industry has attracted investors/creditors from the around the world. The following is a list of foreign equity participation investors, U.S. firms included, in some major state-owned industrial/petroleum-related industries:
Exxon-Mobil investment in Qatar is around USD 15 billion and the company currently holds around 10-30 percent stakes in 12 liquefied natural gas production units in Qatar as well as a condensate refinery.
Industries Qatar (IQ) 75 percent, Yara Nederland BV 15 percent and Fertilizer Holdings AS 10 percent - Industries Qatar was incorporated in 2003 - Commencement of commercial production: 1974 - Total shareholder equity as end of 2004 was USD 791.5 million - The IQ group companies are:
Qatar Steel Company (QASCO) - incorporated in 1974 as a joint venture between the Qatar government 70 percent and two Japanese companies, Kobe Steel 20 percent and Tokyo Boeki 10 percent), to establish an integrated steel plant.
Qatar Fertilizer Company (QAFCO) - established in 1969 and incorporated in 1975 in a joint venture agreement between the Qatar government and two foreign shareholders. In the same year, the Government transferred its shares to Qatar Petroleum. It is jointly owned by Industries Qatar (IQ) 75 percent, Yara International 25 percent shareholders.
Qatar Petrochemical Company (QAPCO) - established in 1974 - Commencement of commercial production: 1981 - as a joint venture between Qatar Petroleum 80 percent and Total Petrochemicals 20 percent. Qatar Petroleum’s shares in QAPCO were taken over by Industries Qatar in 2003 - Equity share capital: QR 360 million (USD 99 million) - Total shareholder equity: USD 777.5 million.
Qatar Fuel Additives Company Ltd. (QAFAC) - incorporated in 1991 - Commencement of commercial production: 2001 - as a joint venture for the construction and operation of a methanol and MTBE production facility - is jointly owned by Industries Qatar (IQ) 50 percent, Chinese Petroleum Corporation (CPC) 20 percent, Lee Chang Yung.
Chemical Industry Corporation (LCYCIC) 15 percent and International Octane Limited 15 percent - Total capital QR 2.5 billion (USD 687 million) - Year established: 1992 - End users: Far East, India, Europe and Arabian Gulf - Total shareholder equity: Unknown.
Qatar Vinyl Company (QVC) is jointly owned by Qatar Petroleum 25.5 percent, QAPCO 31.9 percent and Arkema (a global chemical company and France’s leading chemicals producer) 12.9 percent - Year established: 1997 - End-users: Asian countries - Commencement of commercial production: Mid-2001 - Total shareholder equity: Unknown.
Qatar Chemical Company (Q-ChemI): Equity Share Capital: Unknown - Shareholders: Qatar Petroleum (QP) 51 percent; Chevron-Phillips Chemical Company (USA) 49 percent – (ConocoPhillips has collaborated with Qatar Petroleum since 1997 with the establishment of the Q Chem I joint venture) - Year established: 1997 - End-users: Asia, Europe, Middle East and Africa - Commencement of commercial production: 2003 - Current value of foreign equity: Unknown.
Qatar Chemical Company II (Q-Chem II): Equity Share Capital: Unknown - Shareholders: Qatar Petroleum 51 percent and ChevronPhillips 49 percent (ConocoPhillips participated with Qatar in the Q Chem II and RLOC petrochemical ventures through its 50 percent ownership in ChevronPhillips Chemicals) - Year Established: 2002 - End-users: Local and international - Commencement of commercial production: 2007 - Current value of foreign equity: Unknown.
Qatofin: Equity Share Capital: Unknown - Shareholders: QAPCO 63 percent, Total Petrochemicals (formally Atofina) 36 percent and QP 1 percent - Year Established: 2002 - End-users: Asia and Europe - Commencement of commercial production: 2007 - Current value of foreign equity: Unknown.
Ras Laffan Ethylene Cracker: Equity Share Capital: Unknown - Shareholders: Q-Chem II 53.31 percent, Qatofin 45.69 percent and QP 1 percent - Year Established: 2002 - End-users: Domestic - Commencement of commercial production: 2007 - Current value of foreign equity: Unknown.
Qatar Petroleum (QP) and ExxonMobil Chemical Qatar Limited joint venture to develop one of the world's biggest petrochemical complexes in Ras Laffan Industrial City worth USD 6 billion. The production is destined mainly for the Asia-Pacific region and Europe. The complex would include about a 1.6 million tons per annum steam cracker, 650,000 tons per annum gas phase polyethylene plants, and a 700,000 tons per annum ethylene glycol plant.
The Qatar Industrial Manufacturing Company (QIMC), with a capital base of more than QR 360 million, has equity interests in industries such as chemicals, petrochemicals, construction, aluminum, paper and food processing. The subsidiaries of QIMC are Qatar Metal Coating Company, National Paper Industries Company, Qatar Sand Treatment Plant, Qatar Nitrogen Company, Qatar Paving Stones, National Food Company and Qatar Acids Company. Its business associates are Qatar Jet Fuel Company, Qatar Saudi Gypsum Industries Company, Qatar Clay Bricks Company, Qatar Plastic Production Company, Gulf Formaldehyde Company, Gasal, and Amiantit Qatar Pipes and Qatar Tunisian Food Company.
Qatar Petroleum, via its subsidiary Qatar Intermediate Industries Holding Co (Qatar Holding) is expanding its production capability for petrochemicals with the construction of a new plant in Mesaieed Industrial City (MIC). The new Qatar Petrochemicals Complex (QPCC) will be a multi-billion-dollar (USD 2.6 billion) project developed in a 70:30 partnership between Qatar Holding and Honam Petrochemical Corporation of South Korea. The new petrochemicals complex is scheduled to begin production in 2012.
LIQUEFIED NATURAL GAS PROJECTS
Qatar Liquefied Gas Company (Qatargas I): Equity share capital: QR 500 million (USD 137 million). Shareholders: Upstream: Qatar Petroleum (QP) 65 percent, Total (France) 10 percent, Marubeni Corporation (Japan) and Mitsui and Company Ltd. (Japan) 7.5 percent each and ExxonMobil Oil (USA) 10 percent. Shareholders: Downstream: Qatar Petroleum 65.0 percent, Total 20.0 percent, ExxonMobil 10.0 percent, Mitsui 2.5 percent, Marubeni 2.5 percent. Year established: 1984. End-users of LNG: main Markets are Japan and Spain. Commencement of commercial production: December 1996. Current value of foreign equity: Unknown. The production capacity of Qatargas I was 6Mta and increased to 10 million tons after the process of de-bottlenecking.
Qatar Liquefied Gas Company (Qatargas II): Equity share capital: Unknown. Shareholders: Train 4 (capacity of 7.8 mtpa): Qatar Petroleum 70 percent and ExxonMobil 30 percent. Train 5 (capacity of 7.8 mtpa): Qatar Petroleum 65 percent and ExxonMobil 18.3 percent and Total 16.7 percent. Year Established: 2002. End-users: United Kingdom’s gas market Current value of foreign equity: Unknown.
Qatar Liquefied Gas Company (Qatargas III) - (Train 6 - capacity of 7.8 mtpa): Equity Share Capital: USD 5 billion; Shareholders: Qatar Petroleum (QP) 68.5 percent and ConocoPhillips 30 percent (ConocoPhillips’ upstream collaboration (with Qatar) has been since 2003 through the development of Qatargas 3, a large- scale LNG project at Ras Laffan with a capacity of 7.8 million tons per year (tpy) and Mitsui & Co. Ltd 1.5 percent. Year Established: 2003. End-users: Europe, Asia and the United States. Current value of foreign equity: Unknown.
Qatar Liquefied Gas Company (Qatargas IV) - (Train 7 - capacity of 7.8 mtpa) is the last of the 7.8 million tpy mega trains constructed by Qatargas in Ras Laffan. Shareholders: Qatar Petroleum 70 percent and Royal Dutch Shell plc (30 percent). Qatargas 3 and Qatargas 4 supply LNG to Europe, Asia and the United States. Established: 2005
Ras Laffan Liquefied Natural Gas Co. (RasGas I) – owns Trains 1 and 2: Equity share capital: QR 7.28 billion (USD 2 billion). Shareholders: Qatar Petroleum (QP) 63 percent, Mobil QM Gas Inc. 25 percent, Itochu Corporation 4 percent, Nissho Iwai Corporation 3 percent and KOGAS 5 percent. Year established: 1993. End-users of LNG: South Korea Gas Corporation (KOGAS 91 percent, Spain 6 percent and the U.S. 3 percent. Commencement of commercial production: 1999. Current value of foreign equity: Unknown.
Ras Laffan Liquefied Natural Gas Co. (RasGas II) - owns Trains 3, 4 and 5: Equity Share Capital: USD 550 million. Shareholders: QP 70 percent and ExxonMobil 30 percent. Year Established: 2001. End-users: India, Edison Gas of Italy, Distrigas of Belgium and Endesa of Spain. Current value of foreign equity: Unknown.
Ras Laffan Liquefied Natural Gas Co. (RasGas III - owns Trains 6 and 7): The investment in Ras Laffan Industrial City, the hub of Qatar's upstream industry, reached USD 70.0 billion in 2009. Equity Share: Unknown. Capital: USD 12-14 million. Shareholders: QP 70 percent stake and ExxonMobil 30 percent. Year Established: 2005. End-users: United States and Asian market. Current value of foreign equity: Unknown
Oryx GTL Project: Equity Share Capital: Unknown. Shareholders: Qatar Petroleum 51 percent and Sasol 49 percent. Year Established: 2003. End-users: Singapore, Japan and Europe. Commencement of commercial production: 2007. Current value of foreign equity: Unknown.
Pearl GTL Project: Equity Share Capital: Unknown. Shareholders: Qatar Petroleum 51 percent and Royal Dutch Shell Group 49 percent. Year Established: 2004. Commencement of commercial production: 2011. Current value of foreign equity: Unknown.
OTHER GAS PROJECTS
Dolphin Gas Project: Equity Share Capital: Unknown. Shareholders: Mubadala Development Company (Abu Dhabi) 51 percent, Occidental Petroleum of the U.S. 24.5 percent, Total of France 24.5 percent, End-users: UAE and Oman. Commencement of commercial production: 2007. Current value of foreign equity: Unknown.
Al-Khaleej Gas Project: Equity Share Capital: Unknown. Shareholders: Qatar Petroleum, ExxonMobil. Year Established: 2000. End-users: Qatar, Kuwait, Bahrain. Commencement of commercial production: Unknown. Current value of foreign equity: Unknown.
Barzan Gas Project: Qatar Petroleum (QP) completed a USD 10.4 billion financing of its Barzan gas project mid December 2011. The Barzan gas project will be completed in two phases. Train 1 is expected to be operational in 2014 and Train 2 in 2015. Rasgas will develop and operate the project on behalf of its Qatar Petroleum and ExxonMobil, which have a 93 percent and 7 percent stake in the project respectively. The project aims to satisfy local demand for natural gas. The project will supply natural gas to power generation and water desalination plants as well as small- and medium-sized industries in Qatar.
OTHER OIL AND GAS-BASED INDUSTRIES
Gulf International Drilling: Equity Share Capital: USD 258 million. Shareholders: Qatar Petroleum 60 percent and JDC 40 percent. Year Established: 2004. End-users: TBD. Commencement of commercial operations: 2004. Current value of foreign equity: Unknown.
POWER AND UTILITIES
Ras Laffan Independent Water and Power Project: Equity Share Capital: USD572 million. Shareholders: AES Corporation 55 percent, Qatar Electricity and Water Company 25 percent, Qatar Petroleum 10 percent and Gulf Investment Corporation 10 percent. Year Established: 2001. End-users: Local. Commencement of commercial production: 2004. Current value of foreign equity: Unknown.
Q Power Company: Equity Share Capital: Unknown. Shareholders: Qatar Electricity & Water Co. - 55 percent, International Power Plc (UK) - 40 percent Chubu Electric Power Company (Japan) 5 percent.
 Zakat is an obligation in Islam for Islamic individuals and corporations to donate a certain portion of their wealth to charitable causes