Qatar

Qatar is a sovereign and independent state in the Middle East, occupying a peninsula in the Persian Gulf and has become one of the world's most important oil and gas producers.

General information

The official name of the country — The State of Qatar and it covers an area of 11,586 km² (158th in the world). The population is about 3,373,586 people (as of the beginning of 2023).

Ethnically, 11.6% of the population are Qataris, 88.4% are immigrants. People from Pakistan (18%), India (18%), Iran (10%) and other countries (14%) live in Qatar.

Arabic is the official language of the country. English is widely spoken as a second language.

State religion — Sunni Islam, Iranians — Shiites. As of 2023: Muslims — 67.7%, Hindu — 13.8%, Christian — 13.8%, Buddhist — 3.1%, others — 0.7%, atheists — 0.9%.

The official currency of the country is the Qatari rial.

Doha — the capital and largest city of the state of Qatar, located off the coast of the Persian Gulf. The administrative center of the municipality of Ad-Doha. More than half of the country's population lives there. The city is the center of the oil and fishing industries. It is the economic center of the country. Doha is home to the headquarters of the largest companies in Qatar, such as Qatar Petroleum, Qatargas and RasGas. Currently, the government of Qatar is pursuing a policy of moving away from an economy focused on oil and gas production. In particular, Doha is positioned as a major aviation hub, as well as a tourist attraction.

Administratively, Qatar is divided into 8 municipalities.

History, geography, culture, mentality

People on the territory of modern Qatar lived, according to archaeologists, as early as 7.5 thousand years ago. Around 178 BC. the inhabitants of Qatar traded with the ancient Greeks and Romans, and also acted as intermediaries in the trade of these states with India.

In the 7th century AD. Islam begins to spread on the territory of modern Qatar, and the country is part of the Arab Caliphate.

At the beginning of the 16th century, Portugal had a great influence in the Persian Gulf, including Qatar. Portuguese merchants buy gold, silver, silk, pearls and horses in the Gulf countries.

In 1783, the state fell under the rule of Bahrain, and this continued until 1868. In 1871, Qatar became part of the Ottoman Empire. In 1916, the country withdrew from the Ottoman Empire, but fell under the protectorate of Great Britain.

Only in 1971 did Qatar gain independence from Great Britain.

In 2004, an international competition was announced for a development project for one of the central quarters of Doha — capital of Qatar. The first place was taken by the Spaniards.

In 2022, the country hosted the 22nd FIFA World Cup. This is the first World Cup ever held in the Arab world, the first in an absolute monarchy, and the first in a Muslim-majority country.

Qatar — a state (emirate) in the Middle East, located on the Qatari Peninsula in the eastern part of the Arabian Peninsula. Its territory consists of a number of islands; including Halul, Shrauch, Al-Asshat and others. The country borders on Saudi Arabia in the south, on all other sides it is washed by the Persian Gulf. In the northwest it has a maritime border with the islands of Bahrain, in the southeast — maritime border with the UAE.

Almost the entire territory of the country is a desert. In the north — low sandy plain with occasional oases, covered with shifting (eolian) sands; in the middle part of the peninsula — rocky desert with patches of salt marshes; in the south — high sand hills. The peninsula is poor in water. There are no permanent rivers, most of the water has to be obtained by desalination of the sea. Underground sources of fresh water and oases are located mainly in the north of the country.

Culture and traditions in Qatar were formed under the influence of Islam, and everyday life in this country complies with Sharia norms.

Power

Qatar — constitutional monarchy, in which the Emir of Qatar is the head of state and head of government.

The Al Thani dynasty has been in power in Qatar since the country's independence in 1971. The head of state is the emir, the right to rule the country is inherited within the Al Thani family. Politically, Qatar is evolving from a traditional society to a modern welfare state. Government departments were created in accordance with the requirements of socio-economic progress. Qatar's 1970 Basic Law cemented local conservative Islamic traditions by giving the Emir the ultimate power. In June 2013, the ruling emir, Hamad bin Khalifa Al Thani, abdicated in favor of his son, Tamim bin Hamad.

The Emir rules the country, continuing the traditional rules of consultation, seeking consensus, and the right of citizens to personally address the Emir. The Emir, being directly accountable to no one, however, cannot violate the Sharia (Islamic law) and in practice makes decisions, taking into account the opinions of prominent people of the country and the Islamic institutions of Qatar. Their positions are concentrated in the Consultative Council, an appointed political body that assists the emir in carrying out his policies. Qatar does not have an electoral system. Political parties are prohibited.

The state apparatus of Qatar consists of the Council of Ministers, ministries, high councils and state bodies. The system of government in the country is based on the separation of powers. The executive power is headed by the Emir with the assistance of the Council of Ministers.

The legal system of Qatar is characterized by a combination of civil law and Islamic law (mainly in family and personal matters).

Economy

Qatar is one of the fastest growing regional economies. And one of the most promising in the world, maintaining a balanced growth rate, despite various global problems.

The State is currently moving towards a diversified, competitive and knowledge-based economy in line with Qatar's National Vision 2030.

Main exports:

• liquefied natural gas;
• oil and oil products;
• aluminum;
• nitrogen fertilizers.

Main imports:

• equipment;
• vehicles;
• metal products;
• food;
• wood products.

The country has an oil and gas producing, oil refining, petrochemical, chemical, and metallurgical industries based on imported raw materials. Most of the industrial enterprises and services are owned by the state, but the volume of private investment in production is also growing.

The basis of the country's welfare is the extraction and export of natural gas. Liquefied natural gas is produced in the industrial center of Ras Laffan on the coast of the Persian Gulf. The main shareholder of the leading LNG companies "Qatargas" and "RasGas" is the state-owned company "Qatar Petroleum", the shareholders are also the companies "ExxonMobil", "Total", "Shell" etc.

Oil and natural gas production generates about 50% of GDP, 85% of export value and 70% of the state budget revenue. In order to achieve sustainable and stable development, the government of Qatar is pursuing a policy of diversifying the economy and moving away from dependence on the oil and gas sector of the economy. For this, private and foreign investments in the non-energy sector are encouraged.

Agriculture is poorly developed and satisfies about 10% of the country's food needs. Agriculture is concentrated in oases where vegetables, fruits, dates, corn, and millet are grown. Animal husbandry is occupied by nomadic and semi-nomadic tribes who breed camels, sheep and goats. Fishing is carried out (tuna, mackerel, sardines, horse mackerel, etc.) and pearl mining.

A highly developed infrastructure has been created and is constantly being improved in the country.

The banking system of Qatar includes 16 large commercial banks (including branches of a number of leading foreign banks).

Qatar — member of the Gulf Cooperation Council. Member of the WTO (World Trade Organization).

The state is also a founding member of the Pan-Arab Free Trade Area (PAFTA).

Business climate

The main advantages of establishing a business in Qatar are:

• no income tax or social security contributions payable on wages;
• Foreign investors are offered full repatriation of capital and profits abroad in foreign currency;
• Corporate tax for foreign companies is 10%.

For entrepreneurs wishing to establish a business in Qatar, there are several structural options, the most common of which is LLC (Limited Liability Company).

With this type of company, it is mandatory to have at least 51% local ownership and 49% foreign ownership. The minimum number of shareholders is 2, the maximum number of — 50.

If a foreign individual owns 49%, a copy of a certified passport and proof of address of residence must be provided.

If a foreign legal entity owns 49% of the shares, corporate documents of the company are provided, the list of which is determined by the country of registration of the company. Documents must be notarized and legalized at the Consulate of Qatar.

There are no restrictions on activities, with the exception of some activities that can only be owned with 100% local ownership (insurance, banking, investing, security-related activities, etc.).

Authorized capital — a minimum amount of 200,000 Qatari rials, which must be deposited in a local Qatari bank.

To operate in Qatar, you need to obtain a license (permit) from the Ministry of Economy and Trade of Qatar.

In order to employ employees in the company, it is necessary to agree on the Labor Quota. For a large number of employees, it will be necessary to provide employment contracts and justification for the Labor Committee to provide this quota.

The LLC is required to file an annual tax return. If the annual profit exceeds QAR 100,000, the declaration must be accompanied by financial statements prepared by a Qatar certified auditor.

An equally popular form is the branch of a foreign company — Foreign Branch Office (FBO). The main condition is 100% ownership of a foreign company.

A branch is established under the specific government contract for which it was established. The branch can serve parallel or consecutive contracts, however, outside the contract, trading and operational activities are prohibited.

It takes 6-8 weeks to establish a branch. It will also take an additional 2 weeks to obtain a Trade License. For the parent company, corporate documents will be required, the list of which is determined by the country of registration of the company. Documents must be notarized and legalized at the consulate of Qatar.

In order to employ employees in the company, it is required to agree on the Labor Quota. For a large number of employees, it will be necessary to provide employment contracts and justification for the Labor Committee to provide this quota.

Investment climate

The advantage of doing business with Qatar is that, in general, the region of the Middle East and, in particular, the Persian Gulf is regarded as one of the most capacious, solvent, dynamically growing and promising markets in the world. Although competition in the region is very high, in Qatar it is somewhat lower than in neighboring states. In addition, public and private companies in Qatar are investing huge amounts of money in various sectors of the Qatari economy and in mutually beneficial projects abroad. Business cooperation based on Qatar provides foreign businessmen with the best opportunities to expand the scope of supplies and sources for investment in neighboring countries — Saudi Arabia, UAE, Bahrain, Kuwait. Although Arabic is the official language in Qatar, English is widely spoken.

Among the difficulties of doing business, which are noted by foreign partners, there are relatively long terms for consideration of issues by Arab partners, the need to send your own representative to Qatar on a permanent basis or select a reliable partner, the obligatory presence of a Qatari citizen as a "sponsor"; a company that gives preference to the world's most famous brands and trademarks.

There are several options for setting up a law firm in Qatar, including free zones. These free zones are aimed at providing a level of economic security regarding the free flow of goods to the local market.

Two new free zones opened in Qatar for local and international investors.

Port Free Zone — Um Alhul

Umm el-Hole Free Zone, located next to Hamad Port.

Subjects suitable:

• Marine industry.
• Heavy production.
• Industrial sectors.
• Developing technologies.
• Logistics center.

Airport Free Zone — Ras Bu Fontas

The second free zone, Ras Bu Fontas, which is located near Hamad Airport, will facilitate cargo operations and similar operations. Ras Bu Fontas will also be launched this year and will be equipped with advanced technology.

Subjects suitable:

• Easy production.
• International Business Services
• Aviation sector.
• Development of technology.
• Logistics center.

Business and investment support structures

Some of the key structures and initiatives related to business and investment support in Qatar:

• Qatar Ministry of Economy and Trade (MOTC). MOTC plays an important role in developing economic policy, supporting entrepreneurship and investment. They provide information and advice to foreign investors and can help set up a business.
• Qatar Free Zones Authority (QFZA). The QFZA is responsible for establishing and managing special economic zones that provide tax breaks, simplified registration procedures and other benefits for foreign companies.< /li>
• Qatar Investment Authority — QIA. QIA is Qatar's Sovereign Investment Fund. He is engaged in investing the country's funds in various industries, both in Qatar and abroad.
• Qatar National Bank (QNB). The largest bank in Qatar provides financial services for businesses and investors, including foreign companies. 
• Vision 2030 Initiative. This strategic initiative aims to develop a diverse and sustainable economy in Qatar, reduce dependence on oil revenues and develop the skills of local people.
• Qatar Financial Center — QFC. This is a legal and regulatory framework designed to attract financial companies and provide financial services.
• Startup Support Programs Qatar is also developing programs and initiatives to support start-ups and innovation projects, including incubators, accelerators and funding.