QATAR COUNTRY PROFILE
Key Facts
Location: Qatar is a Middle East peninsula bordering the Persian Gulf and Saudi Arabia. It has a strategic location in central near major petroleum deposits
Capital city: Doha
Total Area: 11,586 sq km
Population: 833,285 (July 2009 est.)
Currency: Qatari Rial
GDP: $85.35bn (2008 est.)
GDP Growth rate: 11.2 per cent (2008 est.)
Languages: Arabic (official), English commonly used as a second language
Ethnic make-up: Arab 40 per cent, Indian 18 per cent, Pakistani 18 per cent, Iranian 10 per cent, other 14 per cent
Religions: Muslim 77.5 per cent, Christian 8.5 per cent, other 14 per cent
Introduction
Qatar gained its independence from Britain in 1971 and became a constitutional monarchy, ruled by the Al Thani family. Qatar is a member of the United Nations and the League of Arab States. The Qatari economy has grown strongly in recent years, and current GDP is estimated at some $52bn, up from $8bn as recently as 1995. Growth forecasts for the economy vary, but most estimates put growth at 10 per cent per annum at least for the next five years, with further growth of at least 7 per cent per annum beyond that.
This growth is due in part to the rising energy prices and higher exports of liquefied natural gas (LNG). Qatar has huge gas reserves as much as one third of the world's total gas reserves lies within its territory. The Qatar government is using this resource and the funds flowing from it to develop the country's infrastructure, including education and health facilities, and modern hydrocarbon operations.
However, the government is keen to diversify away from depending on natural resources, and has established a number of organisations and bodies to ensure the security of future generations by diversifying income streams, as well as seeking to stimulate the private sector.
To diversify the economy measures have been put in place to grow the non-hydrocarbon economy. These measures include the development of small and medium-size enterprises (SMEs); promotional activities such as the Asian Games (Qatar was host to the games in 2006); the creation of the Qatar Financial Centre; property and project development by Qatari Diar Real Estate Investment Company; creation of international brands such as Qatar Airways; investments in energy-intensive industries and research and development facilities and the establishment of world-class educational institutions.
Investment climate and opportunities
The Government of Qatar announced its intention to allocate total expenditure of $25bn for the fiscal year 2009/10. Of this, 40 per cent will be allocated to non-oil and gas sectors, reflecting a commitment to invest in economic diversification through public spending on transportation, health care, education and housing projects. This will ultimately lead to increased consumption and demand for better quality housing, office and retail facilities.
The success of Qatar's economic strategy is widely acknowledged, reflected in the country's Standard & Poor's credit rating of AA-, which means it has a risk profile equivalent to some of the world's biggest and most advanced industrially developed nations.
In terms of the energy sector, Qatar has attracted an estimated $100bn in investment and it is forecast that Qatar will invest over $120bn in the energy sector in the next ten years.
Key Sectors
Education and training services
ICT
Architecture
Construction
Engineering services
Security services
Medical Equipment and services
Sectors up-close
Construction
It is estimated more than $60bn will be invested in infrastructure development over the next decade. Qatar relies heavily on international expertise in the area of architectural, construction and engineering services and there are definite opportunities for UK exporters. Construction developments are taking place in oil, gas, power, chemicals, transportation, environmental and communication projects, industrial, commercial and residential buildings.
There is also evidence that the construction sector in Qatar is proving more resilient than that of other neighbouring nations in the world downturn. Of all the countries in the Gulf region, only the cement companies in Qatar and Oman increased their earnings in the second quarter of 2009, according to a report issued by Kuwait’s Global Investment House (GIH). The report also said it expected Qatar, along with Saudi Arabia, to top any growth trend as construction recovered in the region.
ICT
IT is at the centre of Qatar government plans to create a knowledge-based economy. A current priority of Government IT promotion agency “ict QATAR” is to increase ICT use by SMEs, which is seen as essential to the country’s diversification efforts. In 2008, ict QATAR launched new programs targeted at SMEs, including the e-Business Pilot project, a program to help a selected group of SMEs maximize ICT use. Qatar’s Supreme Council for Information and Communication Technology (SCICT) was set up in 2005 to develop ICT in Qatar. At the launch of the new policy making and regulatory body Chairman Sheikh Tamim said the aim was to implement more than 100 programmes and initiatives during the coming five years.
Key objectives include skills development, the delivery of e-services and the establishment of a regulatory environment that promotes growth and benefits citizens, businesses and the government.
The projected IT market value to be spent from 2008-2012 is $550m. Computers sales: In 2008 – 2012, it is estimated that computer sales will increase rapidly. The computer market should have a ten per cent increase according to industry experts 2007-2012.
Software sales: With the evolution of Qatar’s IT market, a stronger focus on software spending is underway. Software spending’s average growth is estimated at 13 per cent for the period of 2007- 2012.
IT Services: With IT services spending estimated to grow to $94m in 2008 there are significant export opportunities in sectors such as government, financial services and communications. Industry experts estimate the average growth rate will be around 13 per cent from 2007-2012.
Health care products and services
Health care is a priority for the Qatari leadership. The Qatari Government is upgrading the quality health services using technology, international expertise and knowledge. In Qatar, healthcare services are either free or subsidised. The industry suggests the market for medical equipment will grow over the next five years. The market relies heavily on imports. Qatar’s interest in importing medical equipment, health care technology and supplies the rise of new construction projects for hospitals and health care centres and Qatar’s lack of local production capacity in this area.
