Gold: What are the economic growth
forecasts of Qatar for the coming years?
A.R.A.A.: According to the SecretaryGeneral of the General Secretariat for
Development Planning, real GDP growth
in 2013 is expected to be spurred by construction activity and by continued vitality
in services, non-oil and gas activity. By
the end of the year, the services sector is
expected to contribute more than 60%
of the total growth in Qatar’s economy
and its share in total real GDP will have
risen to 32.5% from an expected 31.2%
in 2012.
Further expansion is anticipated in
financial services, telecommunications
and transport as well as other services segments.
Gold: Qatar has been engaged in the
exploitation of its hydrocarbon resources for a long time now. What are the
lessons from the Qatari experience that
could be of use to Cyprus which finds
itself at the beginning of this process?
A.R.A.A.: The main lesson concerns the
liquefaction on natural gas. The largest GTL (Gas To Liquid) fuel plant was
opened at Ras Laffan in Qatar in June
2011. Pearl GTL, operated by Shell, is
the result of a strategic investment made
by Qatar in the field of synthetic fuel and
is the world’s largest plant to turn natural
gas into cleaner-burning fuels. It produces
about 140,000 barrels of GTL a day. This
is enough to allow Qatar to diversify its
production and strengthen its status as a
major strategic resources supplier.
Gold: How attractive is Qatar for foreign investors in terms of ease of entry
in to the market, setting up a business,
access to financing?
A.R.A.A.: The government strongly
encourages international investment in
certain sectors such as energy and Qatar’s
investment liberalisation policies are proceeding on a gradual basis, based on a desire to protect local companies from rapid
competition. The main economic stimuli
are oil, gas and related industries. 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.
Gold: Can anyone invest and reside in
Qatar?
A.R.A.A.: 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
transport, electricity and water, steel, cement, and fuel distribution and marketing. Foreign investors and nationals from
the GCC countries may only own 25%
of the shares in all companies listed on
the Qatar Exchange (QE). Those rules of
foreign ownership percentage restrictions
can be waived with approval from the
Cabinet, however. Non-Qataris may 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.
The law provides for foreigners being issued residency permits without local sponsors if they own residential or business
property in Cabinet-designated “investment areas”. International law firms are
permitted to operate in Qatar but 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.
Gold: Like Cyprus until last month,
Qatar also has a 10% corporate tax rate.
A.R.A.A.: Yes. The new tax law came into
effect on 1 January 2010 and it imposes a
10% flat rate for all non-Qatari companies
Cyprus is the
ideal bridge
between
Doha and
the EU and
vice-versa
and foreign partners in Qatari companies,
except for the energy sector where the tax
is at least 35%, unless exempted. Moreover, the Ministry of Finance and Economy
may grant a tax holiday of up to 10 years
for new foreign investments in key sectors
while other exemptions may be granted
on a case-by-case basis for a period up to
6 years.
Gold: There are a few successful examples of Cypriot companies that have
undertaken projects in Qatar. Do you
think that these could be a model for
the future?
A.R.A.A.: Of course. Good examples of
projects undertaken by Cypriot companies
such as J&P in Qatar are the Al Wakra
Hospital for Hamad Medical Corporation
and the Pearl-Qatar Design and Construction of the Qanat Quartier.
Gold: How would you evaluate the
business opportunities for Cypriot investors and businessmen in Qatar?
A.R.A.A.: We believe that Cyprus is the
ideal bridge between Doha and the EU
and vice-versa. Cypriot investors have
great opportunities to explore the market
potential of Qatar and invest in it by capitalizing on their expertise and on the geographical factor that places their country
closer to Qatar than any other Euro