Qatar Major Business Sectors

Compiled by:

Embassy of Switzerland
Kuwait, October 2011

Overview and trends

Qatar has emerged as a global success story, as it now continues to be the fastest growing economy in the world with its real GDP expected to soar by around 21 percent in 2011. Moreover, Qatar was ranked the richest country in the world in 2010. The country's gross domestic product (GDP) purchasing power parity (PPP) per capita stood at $90,149 (current international dollars), according the US-based Global Finance magazine The country's budget surplus is projected to rise to $ 8.5 billion (4.9% of GDP) in 2011/2012 before easing slightly to $ 7.5 billion (3.8% of GDP) in 2012/2013", said a study by the Qatar national Bank QNB. Based on QNB forecasts for growth and Qatari oil prices, actual revenues are expected to grow by around 18% to $ 51 billion in 2011/2012 and by a further 3.8% to $ 53 billion in 2012/2013. Qatar had projected a surplus of QR9.7 billion ($ 2.6 billion) in its current fiscal year, which started on April 1. Expenditures were estimated at QR117.9 billion and revenues, mostly from the sale of oil and liquefied natural gas, at 127.5 billion. Oil and gas exports are the main pillars of the economy accounting for the bulk of the state revenues. Qatar is an OPEC member currently producing around 800000 barrels a day of crude oil. Proven oil reserves are estimated to last for some 65 years at this level of production. Oil exports accounted for 62.1% (QR 96.8 billion) of total revenues in 2010-2011, compared to 49% (QR 82.2 billion) in the previous fiscal. But gas has been increasingly growing as a major source of revenue and Qatar is now one the worlds largest three exporters of LNG (Liquefied Natural Gas) and GTL (Gas To Liquid). With proven gas reserves of more than 970 trillion standard cubic feet, the current production level can be maintained for about 300 years. The oil and gas receipts have helped Qatar build a sovereign wealth fund (SWF) worth an estimated USD $65 billion. The fund is acting as the states investment arm which has acquired high quality assets mostly in Europe (Germany, France, and UK) as well as in South Africa and in Asia. In Switzerland, it has stakes in the Credit Suisse bank and in real estate (Brgenstock) Public expenditures, which continue to increase in line with government plans to accelerate the pace of economic development, currently stand for 45% of total expenditures and are being fuelled by the mega infrastructure projects associated with the 2022 FIFA World Cup, to be hosted by Qatar.

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Major projects underway or planned:

Project Rail/Metro network (already underway) Qatar-Bahrain Causeway Hotel &Towers New Doha International Airport Mesaieed seaport power & water infrastructure road system update 12 stadiums 36 training sites 64 team base camps Lusail sea-front village Cost estimate $25bn $20bn $17bn $13bn $3bn $3bn $20bn $3bn n.a. n.a. $662m

Gross Domestic Product by major business sectors

Period: 2010 Business Sector % of GDP Overall Economic Activity Oil and Gas Sector Non-oil and Gas Sectors Total nominal GDP Non-oil and Gas Sectors Agriculture and Fishing Manufacturing (non-oil, non-gas) Water and Electricity Building and Construction Trade, Restaurants and Hotels Transportation and Communication Finance, Insurance, Real Estate, and Business Services Social Services
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% change

value in US $ mn

51.7 48.3

+50.3 +13.9 +30.2

65864 61468 127300

0.1 10.6 0.4 5.2 6.9 3.9 13.4 7.6

+21.6 +46.5 +15.4 -5.4 +8.3 +12.7 +6.9 +13.1

146 13512 569 6633 8877 5020 17066 9645

from previous year US$ 1 = QAR 3.64

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Source: Central Bank of Qatar 34 Annual Report

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Imports
Period: 2010 Product Machinery, nuclear reactors, boilers, etc Aircraft, spacecraft, and parts thereof Vehicles other than railway, tramway Electrical, electronic equipment Ores, slag and ash Articles of iron or steel Total Note countries of origin: Japan 30%, South Korea 13.1%, India 8%, Singapore 7.7% and UK 4.2% % of imports 17.32 15.44 11.27 10.06 4.85 4.78 % change
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US$ thousands -8.53 6.53 4.12 -5.32 3.46 4.61 2784089 2481264 1810435 1617199 779040 768803 16065794

Exports
Period: 2010 Product Mineral fuels, oils, distillation products Plastics and articles thereof Organic chemicals Fertilizers Aluminum and articles thereof Inorganic chemicals, precious metal compound, isotopes Total % of imports 93.35 1.67 1.49 1.172 0.39 0.35 % change
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US$ thousands 1.36 -0.31 -0.01 -0.358 0.38 -0.07 56545689 1010897 907330 709974 241823 215796 60573740

Note destination countries: USA 15.5%, Germany 9%, UAE 7.3%, South Korea 6.5%, UK 6.1%, Japan 5.6%, Saudi Arabia 5.4%, Italy 5.3%, France 4.5% and China 4.2% Sources: https://www.cia.gov/library/publications/the-world-factbook/geos/qa.html http://www.trademap.org/tradestat/Product_SelCountry_TS.aspx

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From previous year From previous year

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Promotion opportunities
The magnitude of economic growth and the volume of projects in the pipelines have rendered Qatar the focal point in the Gulf region, with companies from various parts of the world taking an aggressive approach to the Qatari market. The absence of Swiss companies has been so visible that government officials and Qatari business community leaders have made critical remarks on more than one occasion. Now that work has already begun to prepare for the 2022 World Cup, Swiss companies would be well-advised to make up for lost time and take the initiative to find a foothold in this market. The list of project on page 2 shows that Qatar will require a very vast range of products and services. On the products side, supplies are needed for hotels, sports facilities, sea and air ports, power plants, roads and rail. With regards to services, there is strong demand for engineering consultancy, project management, facility management and quality control. Trade missions are the favored vehicle, from the Qatari perspective, for promotion. In view of the cut-throat competition, Swiss companies will have to make visits in order to get a first-hand impression of the market and to find the right local partners. In the past two years, there were three Swiss trade and economic missions to Qatar, including one which was led by State Secretary Jean-Daniel Gerber in Nov 2010. The other two were made by SwissRail (2009) and by OPI (Office de Promotion des Industries et Technologies.) in Oct 2010. Very few Swiss companies have made their own individual fact-finding missions.

Further information and links

http://www.qsa.gov.qa/ http://www.qcb.gov.qa/ http://www.qatarchamber.com/ Qatar Statistics Authority Qatar Central Bank Qatar Chamber of Commerce and Industry

Date: Author: Authors address:

October 16 2011 Ziad Tarakji Embassy of Switzerland Kuwait, Bahrain, Qatar

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