Qatar III: A new regional hub

Aired October 2008

Located in the hub of the Arabian Gulf, Qatar is almost completely surrounded by the sea. It borders Saudi Arabia and the United Arab Emirates to the south, and Bahrain to the north-west.
The nation claimed its independence from the British in 1971. In the same year it joined the Arab league and the United Nations. The move towards a modern society was officially under way.

Since 1995, Sheikh Hamad bin Khalifa al-Thani has been the ruler of Qatar. He has implemented several changes in policy, including a limited political liberalisation creating an elected council and giving women the right to vote. A referendum in 2003, which saw almost universal public support for the establishment of the country’s first permanent constitution, has set in motion a period of gradual political change in the country.

Qatar is the latest business hotspot to emerge in the region, and today, has one of the strongest and fastest growing economies in the world. It has achieved within decades what other countries have taken centuries to accomplish.

The country’s economy is very strong, largely due to its abundance of oil and natural gas reserves.
It has a free and market-oriented economy, and national policies are developed with this in mind. The state continually enacts and updates legislation to bolster the trend of economic openness.

The long-term goal of the country is to attract foreign investments and help increase and diversify the sources of national income.

An October 2000 investment law allows for full shareholding of foreign investments in a multitude of sectors. This has greatly attracted foreign investors who are no longer restricted to ownership of just 49 percent of shares.

Qatar is a strong supporter of the Gulf Cooperation Council, and the excellent relations with its neighbours has led to Qatar becoming the major hub for business flowing through the region.

Relations between the US and Qatar flourished after the 1991 Gulf War. Trade between the two countries has increased since then.

With the upward revision to the oil price forecast, the outlook for Qatar’s external position has strengthened from an already extremely robust one.

HEALTH

The Gulf countries are undergoing a major economic boom and that has reflected itself in many different sectors such as oil and gas, industry, and banking. But also in the health sector we see exceptional increase in health services.

In the east there is huge evolution of health services and many of the Gulf countries want to become a hub for health services. But do the standards live up to western expectations?

Established in 2005, the National Health Authority aims to provide medical preventive and treatment services, as well as supervision over the provision of public health services. It also regulates the marketing and manufacturing of drugs in accordance with international quality standards.

The authority also acts in coordination with the Health Insurance System to upgrade the level of health service, as well as disseminate health education and awareness. In addition, it undertakes the organisation of the medical private sector.

Today, the sector boasts the most advanced medical equipment as well as qualified professionals. Health services are also available all over the country through a wide network of hospitals and health centres.

In the coming years, there are further plans to continue and expand the cutting-edge medical services already available in this nation.

FINANCE & CONSULTING

Qatar’s thriving financial sector has been experiencing promising growth over the last decade. The government has been opening up the banking sector to increased participation by foreign players, leading to a tremendous expansion of the sector in 2006. Today, the country is a hub for banking and financial activities.

Qatar already boasts an active market, and is one of the best-performing in the region in terms of assets and profitability.

The remarkable economic activity in Qatar has boosted the 2 main drivers of the sector, namely customer deposits and credit facilities extended by operating banks. Such developed banking activity over the past few years has led to enhanced financial soundness indicators at large.

In addition, the opening of the Qatar Financial Centre offers the world’s international financial services community an exciting new window.

Opened in May 2005, the centre has already attracted many international leading names in the industry, such as Citibank, Goldman Sachs and Standard Chartered. The direct costs of the Qatar Financial Centre are designed to match and support the growth of the companies within.

Qatar is quite rapidly building a reputation of being a modern regional banking and financial centre, which should contribute to further enhancing the sector, and by extension, to bolstering economic activity at large. Low political risk, coupled with excellent country and financing risk evaluations, mean that Qatar is unparalleled in terms of opportunities for generating revenue.

With unprecedented levels of economic growth and a significant volume of committed investment in the immediate pipeline, the prospects for financial service companies to get involved range across the entire spectrum of financial service activities are excellent.

ENERGY

60% of Qatar’s GDP comes from the oil and gas sector.

Discovery of the precious resource has transformed Qatar, leading it into a new era of wealth and better living conditions.

Today, the country has proven recoverable oil reserves of around 15 billion barrels. In 2005, Qatar's average output of crude oil was estimated at about 800,000 barrels per day.

Today, having 15% of the world’s total reserves, the country’s proven gas reserves are the third-largest in the world. The nation is expected to become the world’s top exporter of liquid natural gas by 2010, thanks to the help of significant foreign investments over the past decade.

The Middle East accounts for over 60% of the world’s proven oil reserves and over 40% of the world’s natural gas reserves. But, the region did not have a dedicated energy business center, until the launch in March 2006 of Energy City Qatqr. It is the Middle East’s first energy business center.

Energy City Qatar will be the Middle East’s first full-service energy business centre catering to the commercial, technical and human resource needs of the oil and gas industry operating in the region, with cutting-edge facilities and services.

With oil and LNG export levels secured for years to come, Qatar’s energy sector is exploring its options to the fullest.

BUSINESS & LEISURE

Qatar is situated in the heart of Arabian Gulf , which not only describes its geographical location but also the importance given to the country’s Arabian culture, heritage and warm hospitality.
Holiday makers, business travellers and residents alike can enjoy Qatar’s year round sunshine.

Diversity of activities friendly people and a relaxing atmosphere whatever your interests there is something for everyone in Qatar.

Tourism is afforded the same importance as other sectors, and thus the state provides facilities and incentives so that the industry can keep pace with other developments in the country.

The Qatar Tourism Authority was established with the aim to promote the country locally, regionally and internationally, as well as to support activities relating to the general trends of the nation’s policies.

The surface of Qatar is structured by a number of geographical features, which are distinctive to the west coast of the Arabian Gulf.

Sand dunes in the country can reach an altitude of 131 feet above sea level, and traveling over them offers an unequalled view of the desert.

Surrounded by the Arabian Gulf on three sides of the peninsula, Qatar offers plenty of opportunities for water sports and cruising. Two artificial reefs have been built for scuba-diving and create a welcoming environment for marine life. A sunset-cruise on a traditional dhow in Doha Bay provides a stunning view of Doha at night.

From tiny stalls of the souks, to the large shopping complexes, eager shoppers will find everything they need and more.

Qatar already hosts a number of world-class hotel brands, which provide safe and comfortable restaurant and spa facilities for the whole family. By 2016, the hospitality industry is expecting a capacity of at least 80,000 hotel rooms within the city.

Also the country has its sights on building a new airport of which the construction began in 2004. The first two phases are scheduled to open in 2009 while the third and final phase is scheduled for 2015. The airport will be built over 13 square miles, of which half is on reclaimed land. The expected capacity would be up to 93 million passengers, making it the second largest capacity holder in the region after Dubai.

With the right planning, the tourism industry, like everything else in the country, looks set to develop at a measured and sustainable pace.