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Doha Skyline with Speed boat in foreground | ||||||||||||||||||||
Listen to Robert Peaslee, Senior Commercial Officer speak about Qatar |
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Leading sectors for U.S. exports and investment:
Economy: GDP (at current market prices): $26.37 billion (2006 est.) Currency: Qatari rial (QAR) Population: 907,229 (July 2007 est.) Government type: Emirate Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process and more. | |||||||||||||||||||||
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Qatar may look small, but in commercial terms it is a rising giant. This Persian Gulf Emirate is just larger than Connecticut and its total population is around 1 million. But this country has the world’s third largest reserves of natural gas and one of the highest levels of per capita GDP on earth. Its reform-minded government is carrying out an ambitious plan to transform this small peninsula into a leading international hub for tourism, finance, and education. The Qatari Government is carefully planning multi-billion dollar development projects, funded by the country’s burgeoning hydrocarbon wealth, to be implemented in numerous sectors in the coming years. In the next ten years alone, it is estimated that Qatar will invest over $120 billion dollars in the development of the energy and industrial sectors and $50 billion in roads, infrastructure development, housing and real estate, health/medical and sanitation projects. U.S. companies interested in export opportunities in this region should strongly consider current trends and upcoming projects in Qatar. | |||||||||||||||||||||
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Qatar is a small country about the size of Connecticut. Its principle language is Arabic, but English is widely spoken in business and serves as the main language of communication among the expatriate community. The country is a hereditary monarchy ruled by the Al-Thani family, and there is a high degree of political stability in Qatar. Although Qatar is a conservative society, the country has embarked on a path towards economic modernization and political liberalization. The Amir, Sheikh Hamad bin Khalifa Al-Thani, took power in 1995 and has been the driving force behind Qatar’s openness to global markets. The Amir is a supporter of strong relations with the United States based on regional peace and stability, trade and investment, and educational and cultural exchange. U.S.-Qatari military relations are strong, as Qatar is host to coalition forces at the Al Udeid Air Force base and hosts the U.S. military’s Central Command (CENTCOM) operations in the region. Qatar is a member of OPEC and the Gulf Cooperation Council (GCC), whose other members are Bahrain, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates. Only one-fifth of Qatar’s population is actually Qatari citizens (around 200,000); foreign workers - mostly from South Asia, Egypt, Palestine, Jordan, and Iran - make up the other four-fifths of the population. The country’s economic growth potential is stunning. Qatar’s nominal GDP averaged 24.9% from 2002-2006, and growth will likely keep pace at around 17% in 2007. The estimated per capita GDP is around USD $64,000 (for Qatari citizens), which is one of the highest in the world. Even more important is the Qatari Government’s strategy to utilize its wealth to generate more wealth, by diversifying the economic base of the country beyond hydrocarbons. Revenues from natural gas and oil resources drive Qatar’s economy. Qatar possesses the third largest natural gas reserves in the world as well as the world’s largest single non-associated field, the North Field. Qatar’s proven reserves are estimated to be more than 900,000 billion cubic feet (6% of the world’s total), enough to last 200 years at current production levels. Qatar currently exports 14 million metric tons of natural gas, and it expects to triple its exports by 2012, thus becoming the largest natural gas exporter in the world. In five years, Qatar could very likely supply one-third of the world’s LNG needs, and once a receiving terminal is completed in the US, Qatar will be the US’ largest foreign supplier of LNG. | |||||||||||||||||||||
Though Qatar’s growing revenue from LNG is impressive, it is important to recognize that Qatar today still earns more revenue from oil production. The country has a current oil production capacity of around 900,000 barrels per day (bpd), which may increase to 1 million bpd by 2008. Similar to its business-friendly neighbor, the United Arab Emirates, Qatar is striving to make the country attractive for trade and investment through economic reform, transparency, and business-friendly policies. Qatar may find itself in a complex neighborhood politically, but its economic fundamentals are sound and U.S. companies would be wise to investigate opportunities here in more depth. It is also important to note another very successful example of US-Qatari ties: Education City. Education City is part of the Qatar Foundation, which is chaired by the Amir’s wife Sheikha Moeza. Education City has succeeded in attracting full branch campuses of leading US education institutions, where students study in English and receive an education and credentials identical to what is provided by the parent institution. US schools currently represented include: Georgetown School of Foreign Service; Weil-Cornell Medical School; Northwestern School of Communications; Virginia Commonwealth University School of Design; Carnegie Mellon University; and Texas A&M School of Petroleum Engineering. | |||||||||||||||||||||
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U.S. exports to Qatar in 2007 will likely exceed 2 billion. Within the span of five years, U.S. exports to Qatar have increased by over 300%. All indicators – the growing strength of the U.S.-Qatar geopolitical relationship, growth in the world demand for natural gas, and Qatar’s successful economic reform and diversification strategy – strongly suggest significant growth in future U.S. exports to this market. The Commercial Service believes that particularly strong opportunities for U.S. exporters are in: Architectural/Construction/Engineering Services; Air- Conditioning and Refrigeration Equipment; Construction Equipment and Tools; Oil & Gas Field Machinery and Equipment; Telecommunications Equipment, Computer and Peripherals; Medical Equipment and Services; Franchising; Safety and Security; and Power Transmission Equipment/Electrical Power Systems. For further information on Best Prospects for American companies in Qatar, please visit the Best Prospects section of our Country Commercial Guide for Qatar: http://www.buyusa.gov/qatar/en/73.html | |||||||||||||||||||||
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There is great optimism and excitement among the business community in Qatar. By transforming hydrocarbon wealth into modern health facilities, tourism infrastructure, and western-style education institutions, the Qatari Government aims to engender a forward-looking and highly skilled population. The Qatari Government has established credibility among the population and the business community. When plans and projects are announced, they are usually realized, and contracts are awarded in a generally efficient and transparent manner. Qatar is very amenable to western visitors, and security experts consider Qatar one of the lowest crime countries on earth. |
U.S. Commercial Service Director General Israel Hernandez at U.S. Commercial Service Doha Opening Ceremony | ||||||||||||||||||||
In the last five years, Qatar has liberalized its trade and investment climate in line with its WTO obligations by reducing tariffs, removing unnecessary restrictions and barriers to trade, and providing foreign investors more opportunities. There are many positive aspects to Qatar’s business framework. U.S. companies report that the customs clearing process is generally problem-free. Qatari companies and customers are highly interested in working with Americans and buying U.S. products and services. Doing business with Qatar Petroleum and the public sector is in general transparent and efficient. When disputes do arise, it is possible to resolve commercial disputes in Qatari courts, though the process is more time-consuming than in the United States. U.S. firms also report that industrial standards that are applied in Qatar are favorable to U.S. exports. Qatar has a stable currency and the country imposes no foreign exchange controls. There are well-capitalized financial institutions in Qatar. Furthermore, the government permits up to 100% of foreign ownership in agriculture, manufacturing, health, education, tourism, power, and projects involved in Qatar’s natural resources. However, with all of this tremendous growth and development comes some expected growing pains. In some cases, the country’s economy is growing faster than the evolution of necessary laws and procedures affecting business to keep up. Sometimes regulations are not widely published and are at times enforced with little or no consultation with the private sector. Shortages in materials and labor are common in this red-hot economic environment. In addition, rent is increasing rapidly given the growth of the economy and the influx of foreign workers into Qatar, and high overall inflation continues to be a concern throughout the region. | |||||||||||||||||||||
The US Commercial Service has recently opened an office in Qatar, and stands ready to assist US firms in their market development efforts in this dynamic country. Business dealings in Qatar, and throughout the Middle East rely on personal interaction and business relationships take time to cultivate. American firms considering Qatar as a market are encouraged to visit and avail themselves of the counseling and customized services available from the Commercial Section of the American Embassy in Doha. More information about the specific services offered by this office can be seen at: www.buyusa.gov/qatar. | |||||||||||||||||||||
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The Commercial Section of the American Embassy in Doha, Qatar will be organizing several trade missions of Qatari companies to US events this spring. Please contact us for further details, and if you would like to meet the Qatari companies at these events: Consumer Electronics Show (CES) – The premier Consumer Electronics industry event (www.cesweb.org), January 7-10 in Las Vegas, NV. ASHRAE – The most important event in the AC/Refrigeration industry (www.ashrae.org/events/page/1334), January 19-23 in New York, NY. Con-Expo – The world’s foremost construction show (www.conexpoconagg.com), March 11-15 in Las Vegas, NV. OTC – The leading oil and gas trade event (www.otcnet.org/2008), May 5-8 in Houston, TX. |
Regional Senior Commercial Officer, Director General Israel Hernandez and Charge' D'Affaires Michael Ratney cutting the ribbon inaugurating U.S. Commercial Service Doha | ||||||||||||||||||||
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Please contact the Commercial Section at the American Embassy in Doha for further information; | |||||||||||||||||||||
