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Qatar
Country and Foreign Investment
Qatar
Geography
Qatar
is a Middle Eastern peninsula jutting north into
the Persian Gulf. The country shares a border
with Saudi Arabia, and is located between Bahrain
to the northwest and the United Arab Emirates
to the southeast; Iran lies north across the water.
The
climate is mild in winter (October-April), but
intensely hot and at times humid in the summer
months, with temperatures reaching in excess of
55°C. Rain averages 100mm per year, falling
mostly in the winter months. The peninsula is
prone to occasional violent dust storms. Qatar’s
water supply comes mainly from desalinated seawater.
The
terrain is largely flat, rocky desert with shifting
sands, and with salt flats around the coast. The
limestone hills in the north and west of the country
reach a an altitude of 130 feet, while huge sand
dunes are a characteristic of the southeast and
continue to move southward in the prevailing winds.
Agriculture is concentrated in the north and central
areas of Qatar, where rainwater-draining basins
are located.
The
capital city is Doha; the city is one of five
ports, the others being Umm Said, Al Khor, Al
Wakrah, and Ras Laffan.
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Qatar History, Population,
Language and Culture
History
Greek
historian Herodotus, in the 5th century BC, recorded
the original inhabitants of the peninsular as
being the Canaanites, who were renowned for their
seafaring and trading skills. Ptolemy also made
reference to “Qatara” on his map,
indicating the peninsular as an important trade
link connecting the Indus Valley and Mesopotamia.
However,
the country remained largely uninhabited until
the mid-1700s, when the Al-Thani family of fishers
and pearl divers are thought to have arrived from
what is now Saudi Arabia. Their arrival was followed
in 1766 by the Al-Khalifa family from Kuwait who,
despite being driven from Qatar by the Persians
in 1783, continued to hold influence over Qatar
until the mid-1800s. By then, Qatar’s main
trade was in pearls, and pearl extraction was
controlled by the Al-Khalifa family, although
tensions between them and the Al-Thani family
were rife. What is now Doha was established as
the capital of the region, and Sheikh Mohammed
bin Al-Thani positioned himself as emir, later
signing a treaty with the British in 1867 to protect
him from the Al-Khalifa family.
In
1872, under the rule of Sheikh Qassim bin Mohammed
Al-Thani, Qatar came under the control of the
Ottoman Empire, under a treaty signed with the
Turks. Despite an at times tense relationship,
Ottoman control remained until 1915, after which
a treaty was signed with Britain in 1916, making
Qatar a British protectorate.
Around
1930, the pearl market collapsed under the weight
Japan’s dominant cultured pearl industry
and the Great Depression; however, oil was discovered
in 1939, although oil production did not begin
until 1949, delayed by World War II. Britain left
the region in 1971, in which year, on September
1, Qatar declared independence.
On
June 27, 1995, the then ruler, Khalifa bin Hamad
Al-Thani – who himself had deposed the previous
emir in a palace coup – was dethroned by
his son, Sheikh Hamad bin Khalifa Al-Thani (who
continues to rule), in a bloodless coup.
The
Emir revised the Constitution to include provisions
for the establishment of an elected parliament.
The first elections were held in May 1998, and
notably women were allowed to run for office and
to vote. A new Constitution has since been approved,
under which a 45-member parliament was established,
of whom 30 members are elected.
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Population
and language
Qatar
has a population of 1.6m (as at August 2009, including
expatriates). It is estimated that 40% are Arab,
20% Indian, 13% Nepali, 10% Filipino, 7% Pakistani,
and 5% Sri Lankan, with 5% making up other ethnic
groups. Men far outnumber women by around 3:1,
explained by the number of foreigners who take
up temporary residence there (estimated at 85%
of the population and 90% of the workforce –
around 8,000 of whom are US citizens). Arabic
is the official language of Qatar, although English
is widely spoken.
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Culture
The
principal religion is Islam, which was introduced
to Qatar in the mid-7th century AD.
The
Qatari people are made up of tribes of related
families, each with its own distinctive dress,
customs and speech. Traditionally, marriage occurred
within the tribe, usually as a matter of family
and business, although arranged marriages have
generally fallen out of favor. Further, the emphasis
now is for girls to pursue an education rather
than marry young, as used to be the case.
The
Emir has initiated programs to promote Qatar’s
cultural heritage, including museums and libraries,
institutes for the performing and creative arts,
and support for local handicrafts and boat building.
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Qatar Government and
Judiciary
The
government of Qatar is based on a traditional
monarchy, whereby the Emir (presently Sheikh Hamad
bin Khalifa Al-Thani) is both head of state and
head of government. His cousin, Sheikh Hamad bin
Jassim Al-Thani, is deputy leader and prime minister.
The
Emir is assisted by the Council of Ministers,
which is responsible for proposing draft laws
and regulations; carrying out State policies;
and monitoring execution of the law and legal
judgments, and of State expenditure.
The
Advisory Council (Majlis al-Shura) consists of
45 members, 30 of whom are elected. The Advisory
Council members debate public-interest matters
submitted to them by the Council of Ministers;
the Advisory Council’s views and recommendations
are usually taken into account by the Emir before
making a final decision on policy.
Qatar
is divided into nine municipalities: Ad Dawhah,
Al Ghuwayriyah, Al Jumayliyah, Al Khawr, Al Wakrah,
Ar Rayyan, Jarayan al Batinah, Madinat ash Shamal,
and Umm Salal. In addition, Mesaieed is managed
separately by the Mesaieed Industrial City, a
subsidiary of Qatar Petroleum.
Until
October 2004, Qatari laws operated on a two-tier
system: Sharia law was administered at the local
level, while the civil courts operated on the
English model. A new unifying law has since come
into force, under which the Court of Cassation
was established to hear appeals. Islamic Sharia
is the principal source of legislation.
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Qatar
Economy and Currency
The
economy is largely centered on Qatar’s gas
and oil reserves, with oil production accounting
for around two-thirds of total government revenues;
Qatar’s proven gas reserves are the world’s
third largest. Liquefied natural gas (LNG) exports
exceed 31m tonnes per year.
Non-oil
and gas sectors include finance, insurance, real
estate, building and construction, tourism, and
transport and communications. The Qatar Investment
Promotion Department states that these sectors
contributed 43.5% of total GDP in 2007.
Per
capita GDP is among the world’s highest,
at USD67,000 in 2007 (US Department of State figures).
The
currency is the Qatari Riyal (QAR), which is made
up of 100 Dirham and is pegged with the US Dollar
at USD1 = QAR3.64.
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Qatar Entry and Residence
Generally, it is necessary to obtain a business
or tourist visa to enter Qatar; however, nationals
of Bahrain, Kuwait, Oman, Saudi Arabia and the
United Arab Emirates, and transit passengers whose
tickets show that they intend to continue their
journey from the airport within eight hours, are
exempt from this requirement.
Nationals
of the following countries can obtain a visa upon
arrival in Qatar: Andorra, Australia, Brunei,
Canada, the EU, Hong Kong SAR, Japan, South Korea,
Liechtenstein, Malaysia, New Zealand, San Marino,
Singapore, Switzerland, and the USA.
Nationals
of other countries must apply to the Immigration
Department in Doha. The application must include
a letter of invitation from someone who is legally
living in Qatar, or have their visa request authorized
by a tour agency.
Further
details are available from the Qatar Government website.
Visas
are generally granted for two weeks, although
certain countries can extend their stay to up
to three months.
Work
and residence permits must be obtained for those
seeking to reside in Qatar; it is also essential
for permanent residents to obtain an identity
card.
Those
working in Qatar who wish to leave the country
(e.g. for a vacation) must obtain an exit visa
to do so.
Foreigners
– and especially non-Muslims – are
generally not granted citizenship in Qatar. Children
of foreigners born in Qatar automatically assume
the parents’ nationality; however, if one
parent is a Qatari national, the child is usually
granted local nationality.
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Qatar Business Environment
As
with most oil states in the Middle East, Qatar
is looking to reform and liberalize its economy
to avoid an over-reliance on oil and gas, most
particularly in light of falling oil prices as
a result of the credit crunch. Investment rules
for non-Qataris are increasingly becoming more
relaxed in order to enhance economic growth. The
state initiated a privatization program in 1998,
and trading on the Qatar stock exchange was extended
to foreign investors in 2005.
On
June 16, 2009, Standard & Poor’s awarded
Qatar an ‘AA-/A-1+’ rating, affirmed
on resilience amid global turmoil, and declared
the economic outlook for the state as stable.
Qatar
has been a member of the WTO since January 1996,
and has signed a number of trade and double taxation
treaties.
There
are 15 banks operating in Qatar, including seven
national banks, two of which operate in accordance
with Islamic principals. The Qatar Industrial
Development Bank specializes in providing finance
to small and medium-sized enterprises.
The
country benefits from excellent telecommunications.
All local landline calls are free; international
calls are expensive, and are charged at 15-second
intervals. The mobile network is widespread and
is considered to be of good quality.
Qatari-owned
businesses are not subject to tax; part or wholly
foreign-owned businesses are liable to tax on
income arising from activities in Qatar. There
is no personal taxation as such, although foreign
individuals carrying on a trade are liable to
tax where that income arises from activities carried
out in Qatar.
Foreign
trading organizations are not permitted to operate
on their own behalf – they must sell their
goods to Qatari concerns that will then market
them locally. Individual importers must have Qatari
nationality; most businesses that import goods
must be wholly owned by Qataris.
There
are import duties on most goods brought into Qatar
for onward sale. Importers must be registered
with and approved by the Qatar Chamber of Commerce.
Non-Qataris
are not permitted to participate in banking, insurance,
commercial agency, or real estate trading activities,
although they are free to invest in real estate.
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Qatar
Investment Incentives
Investment
incentives open to foreign participation are by
way of joint ventures through technology supply,
market administration and equity participation.
The main incentives are as follows:
·
Ownership of up to 25% foreign investment in Qatar
Shareholding Companies listed on the Doha Securities
Market
· Allotment of land to set up an investment
project for a period not exceeding 50 years
· No import duties are payable on machinery,
equipment and spare parts brought into Qatar
· No export duties
· No corporate taxation for predetermined
periods, and income tax exemption for 10 years
· Expatriates’ salaries are exempt
from income tax
· Loans can be secured from the Qatar Development
Bank
· There are no quantitative quotas on imports.
More
details are available from the Investment Promotion
Department of the State of Qatar Ministry of Economy
& Commerce: click
here.
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Qatar Financial Centre
Authority
The
Qatar Financial Centre (QFC) was established by
the Qatari government in 2005. Its aim is to attract
international financial services and multinational
corporations in order to develop financial services
in Qatar and in the Gulf Cooperation Council generally.
The QFC consists of the Qatar Financial Centre
Authority, which is the commercial arm of the
QFC, and the QFC Regulatory Authority, which is
an independent regulatory body that reports directly
to the Council of Ministers and regulates all
financial services activities in Qatar.
The
QFC Authority is responsible for developing and
promoting the QFC as a leading international finance
and business center and to attract banks, insurance
firms, financial services, providers of professional
services, and corporate head office functions
to the region. The Authority has four principal
objectives:
·
To develop and promote the QFC as a leading location
for international finance, financial services
and business;
· To promote and act in accordance with
international best practice and eliminate bureaucracy
to the maximum extent;
· To ensure the financial stability of
the QFC; and
· To participate in consultation with the
QFC Regulatory Authority and the QFC Tribunal
in the establishment and maintenance of the QFC
legal and regulatory environment
The
QFC Authority also approves and issues licenses
to those wishing to incorporate or establish in
the QFC; authorization from the QFC Regulatory
Authority is also required.
Further
details can be found on the QFC website: click
here.
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Further information
on Qatar:
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