Case Study 5: Government Intervention Qatar Welcomes New Foreign Investment atar, looking forward to speed up its economic growth have been issued or replaced [Investment law No. 13 of and improve its external competitiveness, has identi- 2000, and Commercial Companies Law No. 5 of 2002 fied the importance of trade and investment liberaliza replacing the Commercial Companies law No. 11 of 1981, tion economic growth. It has been implementing development as amended; and the Commercial Agency law (Law No. 8 of strategy to reduce the high dependence on crude oil since the 2002)] to help attract foreign investment inflows. Incentive op- mid-1990s by "raising the production and exports of liquefied portunities for investors have been enhanced after the 2000 natural gas, as well as promoting gas-intensive industries, such investment law: "A one-stop window for investment procedures as petrochemicals and fertilizers, and, more recently, tourism; has been established to increase transparency, reduce red creating more job opportunities for all Qatari nationals; improv- tape, and ease the approval process for land and industrial ing education, health services, and modernizing the infrastruclicenses." Under the new laws, the majority of foreign firms ture; and addressing some of the deep-rooted structural problems operating in Qatar are required to import certain products built over the previous decades, including that key industries, through local agents. Only firms granted 100 percent foreign such as transport, energy, and telecommunications, remain ownership are excluded from the local agent requirement with dominated by a public company." The gradual structural reforms distributor rights. Foreign Direct Investment helps advance helped create an environmentally friendly business environment Qatar's technology infrastructure, R&D, programmers, techni- and aim to increase the role of the private sector in the economy. cal or marketing assistance, and education or training of the Authorities have been implementing these strategies to local labor force. Qatar strongly favors trade liberalization improve the investment environment in the country. New laws through the multilateral framework; the rules-based multilateral system should contribute to the further integration of least-developed and developing countries into the world economy. Creating a business in Qatar requires eight procedures. The minimum capital needed is half the average annual income in Qatar. It is still relatively time-consuming to obtain the necessary per- mits to trade. In the majority of cases, foreign investment in businesses is capped at 49 per cent. Qatar is now considered to be the richest country in the world. Its 2m population has a GDP Per Capita of $100,889. In the period up to 2015 there was a 10.7 per cent 5-year compound annual growth. Questions 7-1. Outline Qatar's trade liberalization. Is the Qatari government likely to continue this process ? 7-2. What are the major exports into Qatar and are these likely to change? 7-3. Identify and assess the main investment opportunities in Qatar for overseas investors? SOURCES: "Further reforms would help sustain already impressive economic growth." February 21, 23, 2005. Accessed October 23, 2012. http://www.who.org/english/tratop_e/tpr_e/1p244_e.him Wallace, Douglas. "Consider Qatar." Accessed October 22, 2012. http:// export.gov/ middleeast/country_information/ qatar/ ConsiderQatarGuide.pdf