WELCOME TO

BUSINESS ENTRY PLAN FOR AN INDIAN CONSTRUCTION COMPANY

IN
QATAR
• Introduction
– Location
– Geography
– Population
– Basic economy
– Construction industry in brief
• Transportation
• FIFA 2022
• Vision 2030
• Development of non-oil sector
• HAMAD medical city
• Series of infrastructure projects are in the pipeline
 Political System
• Absolute monarchy
• Emir of Qatar- head of state, head of Govt.
• Emirate is hereditary
• advisory council ,many smaller council
and ministers
• Constitution of Qatar
Article 1
Qatar is an independent sovereign Arab
State. Its religion is Islam and the Shari'a Law
shall be the principal source of its legislation.
Its political system is democratic. The Arabic
Language shall be its official language. The
people of Qatar are a part of the Arab
nation.
 Legal System
• Executive authority- Emir
• Assisted by cabinet/council of ministers
• Shari(Islamic law)- main source of legislation
• Shura council- legislative authority
• Cabinet/ Shura council proposes new
legislation Committee Shura council
Emir
• Foreign investment law
 Taxation
• No income tax
CORPORATE TAX
• Pvt. firms- 10% on their taxable profit
Exceptions- agriculture and fishing
• Petroleum companies engaged in oil and gas
operations- min 35%
Exceptions- listed in Qatar Exchange
2.5% contribution to special fund- sporting,
cultural, social and charitable activities
Subsidiaries of firms
 WITHHOLDING TAX
Applies to payments made to non-residents
with respect to activities not connected with a
permanent establishment in Qatar
• 5% on royalties
• 5% on technical services
• 7% on commissions, interest, brokerage and
for other services
• If I do business in Qatar through an overseas
company, without establishing a legal
presence in Qatar, can I avoid corporation
tax?
• Is there any capital gains tax?
• What if I establish a business in Qatar
Financial Centre (QFC)?
 Social Insurance
• Pension program is the only one
• Qatar labour law mandates payment at the
end of service- 3 weeks base wage
• Health insurance program- 2013
Construction Output
 Qatar Oil And Gas Sector
• 3rd largest
reserves of
natural gas
• 33.6 trillion
cubic metres,
most of it in its
North Field
• Exploration of
North Field
• Deep Sea
activities
Qatar Power & Water Desalination Sector
Change in demand of water and power
Commodity Duration Increment in
demand
Water 1990 to 2012 53 MIGD to 300
MIGD
Water Recent years 11%

Water Present to 2022 308 MIGD to 482

MIGD
Electricity 1990 to 2012 1 GW to 9 GW

Electricity Recent years 10%

 Qatar Power & Water Desalination
Sector
• Investment of 20 billion US$
Expectations Purpose

Smart grid system Ensure availability of water in emergencies

Improve power distribution network – 29 Cater commercial, residential & industrial

substations, 300 kms of cabling schemes

Utilize waste water & improvement in Avoid future shortage

technologies
2 desalination plants 1 million cubic meter water

Power plant 2000 MW power

Desalination plants plants connecting Water storage for 7 days

North and South Qatar through continuous
line of water supply by interlinkage of five
giant reservoirs
Qatar Building Construction Sector
• QNV 2030 & World Cup 2022
• Increased activities in residential,
educational, commercial, healthcare, retail,
hospitality segments
• Consistent growth from last quarters of 2011
• 2nd largest destination in GCC after Saudi
Arabia for investors
• Construction industry grew at 18.5% in 2013
& 2014
• Ease of regulation of foreign ownership,
residency permits, investment in real estate
• Successive budgets of 2013 & 2014
Qatar Building Construction Sector
Expectations from the construction sector:
• Population growth:
Richest population base in terms of per capita income
Tourist interest
• Establishment of number of companies,
• Increase quality & standard of living of
people in Qatar
• Addition of 45000 hotels for players for
World cup
• Demand for high quality villas for residence
due to higher per capita income
 Qatar Infrastructure Sector
• Government is spending on programmes to
boost growth
• Tourism, hospitality and world cup 2022 spur the
need for infrastructure growth
• A rail network comprising Doha Metro, light rail,
freight and high speed lines at a cost of US$ 35
billion slated for completion in phases by 2024
• The initial phase involves the core elements of
the Doha metro and light rail networks that are
likely to be completion in 2020, in time for the
World Cup.
• The project would also include 300 kilometres of
railways, including passenger and freight.
• Road networks, expressways, bridges
 Qatar Industrial Sector
• Growth of over 18% in 2011 & 2012 due to increase in
demand from construction industry for cement &
metals
• Qatar has planned nearly US$ 125 billion worth of
projects across the industrial sector according to its
most recent National Strategy
• Expansion of its two larger industrial cities, namely, Ras
Laffan Industrial city located in the north of Doha and
the Mesaieed Industrial City in the principality of
Mesaieed in the South of Doha,
• Drivers:
Cheap gas and availability as feedstock for industries
Tax incentives and special concessions for investment
Special encouragement to SMEs under vision 2030
WHY QATAR
Understanding Qatar’s Culture through it’s
architecture
Reflecting the traditional dependence on sea
trade and fishing
Doha
Metro

Vaulted space- derived from vernacular Islamic

architecture
Reflecting traditional trade of pearl
Every religion has a (basic) moral trait. The
moral trait of Islam is modesty and pudency.
Approaching the Qatar Construction Market:

• JVs – with local companies

• Local companies – manage administrative requirements and help
in import of construction goods

Major Qatari Construction companies:

1. Qcon – Industrial Engineering, oil & gas

2. Qatar Building Company – buildings, water supply,
power distribution
3. Al Jaber Trading and Contracting Co- commercial
and residential buildings
4. Sharq al Jazeera - marine construction
 Tendering
Open Tender • Prequalification • Design and Build

• Tender Bond is a normal requirement

• Insurance Requirements are high

• Company registration in Qatar

• Experience essential – world class required, gulf or Qatar experience

usually sought

• High Quality Conforming CVs essential

• Post Tender Presentations and Negotiations a norm

QCS 2014: Qatar Construction Specifications

1. Section 1 – Requirements to comply with construction design management

2. Section 2- QA/QC
3. Section-11 – Health and safety

The QCS requirements are the minimum requirements and to be included in

contract.

It has been used as a legal framework for construction contract disputes.

 Business in Qatar - challenges

• Most decision makers are locals – you must adapt to them, not
the other way around

• Payment

• Approvals - Many stakeholders

• Shari’ah law – no interest on late payments

Key Agencies

 Ashghal (PWA) – Public Works Authority

 MMUP – Ministry of Municipality and Urban Planning
 PEO – Private Engineering Office
 Qatar Rail – Railway Procurement Agency
 Qatari Diar – Development Agency
 Kahramaa – State Water and Electricity Company
 Qatar Foundation – Foundation for Education, Science and Community
Development
 Hamad Medical Corporation
 Qatar Petroleum – National Oil and Gas Company
 Qatar Ports Management Co
 Qatar 2022 Supreme Committee
 Qatar Tourism
 What Qatar wants

• ASHGHAL(PWA): QATAR DESERVES THE BEST

• World Class delivery – Right first time

• Heavy emphasis on Health ,Safety & Quality

• Innovation –Sustainability

• Relevant Experience
India’s relations with Qatar
 What we can offer
• Adaptability – used to a range of contract forms and types

• Engrained knowledge of Health, Safety and Quality Assurance

• Specialist works

• Innovation and leadership

 Conclusion

 Significant opportunities across range of programmes

 Qatar Deserves the Best

 Market Challenges and Risk

 Business is done differently in Qatar

 Needs careful and patient preparation

1. PwC report on Doing business in Qatar- a tax and legal guide,
2015
2. Qatar construction industry- world cup and beyond, Ventures
publication, Feb 2015
3. Doing Business in Qatar 2016, World Bank
4. Qatar Construction Sector, Commercial Bank of Qatar report,
2012
5. Economic profile – Qatar, World Economic Forum
6. Qatar Economic outlook 2015-17, MDPS, Qatar
7. Qatar National Vision 2030 document, Gen Sec, Development
Planning , Qatar.
8. PwC economy watch – Qatar, 2015
THANK YOU - SHUKRAN