Oil and Gas Sector:

Oil and Gas constitute the backbone of Qatar’s Economy. The State of Qatar exerts efforts to diversify its sources to alleviate the country’s dependence on these natural resources.

The Qatari leadership endeavors to increase production capacity of the liquefied natural Gas (LNG) the majority of the GDP relies on Oil and Gas and the relevant industrial activities.

Established in 1974, the government-owned Qatar Petroleum is responsible for all oil and gas industry in Qatar. Oil is produced from onshore and offshore fields, the most important of which are:

Dukhan onshore field; Al Idd Al Sharqi; Maydan Mahzam, Bul Hanain, Al Bunduk, Al Shaheen, Al Rayan, Al Khalij, and offshore Tabakat (A).

The North Gas Field

Discovered in 1971, this field lies mainly offshore to the northeast of the Qatar peninsula under water depths ranging from 15 to 70 meters. It covers about 6000 square kilometers, almost half the area of mainland Qatar. NGF is the largest single concentration of non-associated natural gas in the world with total proven reserves of more than 900 trillion cubic feet, representing 20% of world total, and making Qatar the third country in the world with the largest reserves of natural gas after Russia and Iran.

The most important institutions and oil companies in Qatar:

Qatar Petroleum www.qp.com.qa

Qatar Gas: www.qatargas.com

Ras Gas: www.rasgas.com

Industry:

Within a short period of time, the State of Qatar has made great strides in all fields of economy especially the industrial ones. Oil revenues have been well utilized to establish a solid base for oil and gas related industries and other basic industries, and build an advanced infrastructure capable of serving national industries and responding to its future needs and challenges.

The Ministry of Industry and Energy works to build a strong industrial base, import industrial products, diversify national income sources and increase the contribution of the industrial sector in the gross domestic product (GDP) with a view to achieve a balanced economic growth aside from oil revenues.

The major shift in the path of industrial development came after the enactment of Law No. (1) for the year 1980 on the industrial organization which stipulated the provision of many incentives for the national investors in the industrial field.

The Ministry of Energy and Industry

www.mei.gov.qa

The Ministry works on building a strong industrial production base, importing industrial goods, diversifying sources of national income and increasing the industrial sector's contribution to the gross domestic product, to achieve balanced economic growth far from oil revenues as the sole source of income.

Qatar Development Bank (QDB)

www.qdb.qa

This bank aims at contributing to the development of the national economy and diversifying production structure through participation in and provision of funding on easy terms for new industrial projects, supporting existing industries and assisting them to get the necessary funding requirements from local and international sources, and obtaining technology on equitable terms.

Ras Laffan Industrial City

Ras Laffan is the latest industrial city in Qatar and it includes  liquefied natural gas plants, an industrial and commercial port and multiple industrial facilities. In addition to setting up  the infrastructure,  Ras Laffan offers a wide range of services for industrial and commercial companies. The two companies operating in the city are Ras Laffan Liquefied Natural Gas Company Limited "RasGas" and Qatargas. 

Mesaieed Industrial City

Mesaieed Industrial City has a diverse industrial base including crude oil refinery; hydrocarbon; petrochemicals; iron and steel and light and supporting industries; and a modern port that operates round the clock to meet the requirement for exporting and importing various products and materials.

Qatar Petroleum Gas complex and Qatar petroleum refinery are based in Mesaieed Industrial City. The daily output capacity of the refinery is 731 thousand barrel, which will cover domestic consumption requirements until 2020.

Doha Industrial Zone

This industrial zone has been established for light and medium projects. It includes all services (visible and non-visible) like roads, lighting, gas, sewage and an integrated service facility.

The zone accommodates hundreds of projects distributed among nine main sectors in such a way as to facilitate integration and coordination and provide a valuable addition to the national economy.

City of Halul

The city of Halul includes a number of factories including a Sweet Gas fuel plant, a Sour Gas fuel plant, a waste incineration plant, a sewage treatment plant and a nitrogen plant.

Dukhan Oil City

Dukhan is the first site in which oil exploration and production started. Nowadays a urban strategic plan is being implemented to improve QP concession area. This plan started in 2003 and it will continue until 2022. 193 projects have been selected to be implemented in four phases in the following 20 years. 

Trade:

www.mbt.gov.qa

Qatar possesses a competitive advantage based on its stable foundations represented in the form of globally efficient institutional frameworks, a stable economic environment and the possession of an active market for goods. Qatar's economy is characterized by its ability to maintain its rapid growth, as it becomes one of the world's fastest growing economies due to the economic policies adopted by the state.

Ministry of Economy and Commerce

www.mec.gov.qa

          The ministry represents the body responsible of the development of the programs necessary for carrying out the policies of promoting the business and trade sector, supervising commercial activity and lining it with the requirements of national  development, proposing and implementing the policies and programs that aim to attract investments, supporting export development, developing the methods and procedures of the provision of public services for the business and investment sector and overseeing the practices of the commercial professions.

Foreign Trade

The European Union group is the most important trade partner of Qatar as the relative share ratio of the Qatari imports from this group holds the first position among the county's export from all other economic blocs. Qatari exports from north American countries, most of which come from the United States of America, take the fourth place in terms of their relative ratio.

Exports

The States’ exports have shown positive growth due to high oil prices. Commodities necessary to industrial infrastructure, food products and personal belongings are exempt from customs duties. Only 4% import tax is imposed on most of the other commodities. In addition, protection fees are imposed on products that compete with locally manufactured commodities; and these include 20% on imported iron and steel and 30% on urea. Customs duties on tobacco are 50%, and on CDs and musical instruments are 15%; and commodities imported from the GCC country are exempted from customs duties.

QATAR CHAMBER OF COMMERCE AND INDUSTRY (QCCI)

www.qatarchamber.com

Qatar chamber of commerce and industry was established in 1963. The members of the board of directors were appointed by an Emiri decree until the law No 11 for 1966 was issued to stipulate that these members be chosen by free direct ballot.

The chamber is concerned with the collection of information and statistics of interest to those working in the field of trade, industry and agriculture, and with providing government authorities with the required data and information on trade, industry and agriculture. Moreover it provides consultations about the establishment of stock markets and the organization of trade, industrial and agricultural exhibitions and markets.

As a committed member of the World Trade Organization and international financing organizations, Qatar has completed its integration in the international free trade and economy order. It does not levy personal income taxes or export fees. Customs duties are as low as 4%. With a distinguished banking system and no restrictions on the movement of capitals from the country, the whole of Qatar represents a free economic zone in which investors can make considerable gains.

Qatar fully integrates into the international free trade and economy system, and represents a committed member to the World Trade Organization, in addition to being a member of the international financing bodies. Qatar is distinguished by having a good banking sector, as there are no restrictions on the transfer of capital abroad; making it a free trade zone that investors can make significant financial profits from. 

Investment:

Qatar utilizes the revenues of its vast wealth of oil and gas in other sectors with a view to expand the economic base and develop a strong private sector; and through its full and active membership the World Trade Organization and flexible business regulations it works to attract foreign investors to engage in other economic sectors besides oil and gas in the country.

Qatar provides many investment incentives including low electricity, water and gas rates; nominal lease rate of only (5) Qatari Riyals per square meter per year for industrial land sites for the first three years from site assignment and project operation, after which lease rate will increase to (10) Qatari Riyals; exemption from import taxes on heavy duty machinery and their spare parts and raw materials; exemption from import taxes; unlimited quantities of imported materials; no restrictions on money exchange and transfer of profits abroad; and flexible regulations and procedures to import skilled and unskilled workforce.

Investment Sectors

 Based on law No 13 for 2000 on the organization of non-Qatari capital investment, non-Qatari investors can invest in all fields with a shareholding of 49% and 100% in the following sectors: Agriculture, Industry, Health, Education, Tourism, Development and utilization of natural resources, mining, Consultation services, Art work services, Information technology, Cultural services, Art work services, Sports services and Entertainment services. As for banking sector, it is possible to establish a bank by a decision from the council of ministers. Foreigners have the right to own real estate at certain locations in the country.  Law No. (2) of the year 2000 was issued to regulate the possession of real estate by GCC citizens. This law limits their activity to three estates for residential purposes at an area of not more than three thousand square meters. The law also requires five years to pass before naturalized citizens can own real estate in the country. Within the State's framework to encourage foreign investment in Qatar's real estate market Law No. (17) for the year 2004 regarding organization of ownership and use of real estate and residential units by non-Qataris was issued. This law authorized the usufruct of real estate in the Pearl of the Gulf Island, the West Bay Lagoon Project, and Al Khor Resort Project. The law also authorized the usufruct over real estate for a term of ninety nine (99) years renewable for similar terms in the Investment Areas decided by the Council of Ministers' Decision. Law No. (6) for the year 2006 issued by the Council of Ministers, identified eighteen (18) areas of the state real estate may be usufruct by non-Qataris.

General Exemptions

The foreign investor has the right to import for his investment project what is necessary for the establishment, operation or expansion.

The invested foreign capital is exempted from tax income for no more than ten years from the day the project was operated.

Customs exemption on industrial project on its imports of raw materials or half manufactured goods necessary for production and not available in the local market.

Incentives Offered to Investors

Allow investment opportunity and prepare primary studies for industrial projects.

Assist licensed industrial projects to obtain loans from bank of industrial development and other financial organizations.

Provide the project with power, petroleum, water and natural gas at competitive prices.