Opportunities for Investments in Qatar
Qatar embarked on gigantic strides in creating a political atmosphere that sustains foreign investments as well as the state’s different industries. The government encourages investment opportunities in various sectors. These include financial, industrial, real estate, and petrochemical corporations. Qatar adopted a free-market policy that can help potential investors to gain higher profits. Traders are given unlimited travel and unhampered movement of finances.
Foreigners are allowed to invest in different economic endeavors with no more than 49 percent. This percentage can even reach 100 percent in the following businesses:
Ì Health and Medical
Ì Tourism Development
Ì Natural Resources
Ì Sports and Culture
Ì Leisure and Entertainment
However, there are pending approvals and authorizations that should be granted by the Qatari government. For the financial industry, a bank can be approved through a cabinet order. Expatriate business proprietors can purchase real estate in specific places identified by the State. These free-market guidelines plus low tariffs attract investors and even workers from different countries worldwide.
Qatar maintains firm economic progress and is considered among the richest countries in the world. From 2000 until 2013, it had an average Gross Domestic Product (GDP) per capita of US$ 56087.42 with an all-time peak of US$61232.27 in 2011 according to statistics provided by the World Bank. The country enjoys a very low jobless rate of below one percent.
The goal of Qatar is to achieve leadership in business environment and overseas investments which were the result of political steadiness along with high-quality infrastructure during the last two years. Moreover, it has one of the lowest corporate tax rates worldwide. In 2010, an investment law was ratified permitting foreigners to own the entirety of a company in particular industries like information technology, sports and distribution.
The only drawback right now is the limited expansion of Foreign Development Investments (FDI) into Qatar. This is brought about by private sector policies particularly the time required to come up with a privatization program. Aside from this aspect, the domestic market is fairly small. Inadequacy of a skilled labor force and prohibitive cost of living also hinders FDI flow.
As a matter of fact, the Middle East nation gave up five spots in the categorization - Doing Business 2015 released by the World Bank which ranked it # 50 out of 189 countries. In 2012, FDI flows into Qatar reached over USD 30 billion. The major sectors enticing foreign investments are financial service; crude oil and gas; construction; public works, and, financial services. The main investing countries are the United States, Japan, South Korea and Singapore. Holding the 2022 World Cup in Qatar will without doubt catch the attention of numerous foreign investors in the next few years.
Revenues and Incentives
Qatar exploits revenues from its enormous wealth of oil and gas in other industries with the objective of expanding its economic foundation and build up a potent private sector. One way of attaining this target is by means of active membership at the World Trade Organization. Another is through the implementation of adaptable business policies to draw more overseas investors who will put in more money in other undertakings.
Qatar offers several investment incentives which include the following:
Ì Lower electricity, water and gas rates
Ì Minimal lease rates for industrial land sites at least for the first three years after which affordable prices will be given to tenants
Ì Exemption from import duties on heavy-duty equipment, spare parts and unprocessed materials
Ì Exclusion from importation taxes
Ì Unrestrained quantities of imported merchandise
Ì No ceiling on foreign exchange and transfer of profits out of the country
Ì Variable rules and procedures to bring in skilled and unskilled workers.
Qatar has forecasted the economy will grow more than seven percent in 2016. It is currently the leading exporter of liquefied natural gas in the whole world. This growth rate for the year will be the fastest development of the country since 2011. On the other hand, the aggregate value of construction projects in Qatar has been estimated at US$280, 204 billion divide among the following: building structures (US$136,484 billion), infrastructure (US$ 103,426 billion) and energy activities (US$ 40,294 billion) development. This was based on the Middle East and North African (MENA) Construction Projects Tracking System.
Qatar will be the very first Arab nation to host the prestigious 2022 FIFA (Federation Internationale de Football Association) World Cup. It is also the first time that the football tourney will be staged in the Middle East. This is one of the reasons why the government needs to beef up its revenues to make it a worthy host of this international sporting event. Opportunities abound for corporations as well as medium and small entrepreneurs in Qatar.