Economic & Commercial Report for the month of August 2015 - Qatar
Name of the Country: Qatar
1.1 Al Meera Consumers Good Company (Al Meera), announced that its subsidiaries, Al Meera Holding Company and Al Meera Development Company LLC have completed (July 29) the sale of shares representing 49% of the capital of Al Oumara Bakeries Company LLC to Qatar Quality Food LLC for a purchase price of Qatari Riyal three million (QR 3,000,000). [August 12, 2015]
1.2 The Public Works Authority (Ashghal) has issued 11 tenders for several projects such as development of roads worth QR3.5mn; designing and creating key elements of a drainage system (QR2.5mn); service contract to check and clean sewage networks (QR2.45mn) and a contract to design and create a system for treated sewage water (QR2.5mn). Ashghal has launched an e-payment service to enable bidders to download and buy tender documents through its website. [August 2, 2015]
1.3 Masraf Al Rayan has signed an agreement to sell its equity stake in Seef Lusail Real Estate Development Company. As part of the agreement, Masraf Al Rayan has sold its 50% equity stake in Seef Lusail to Qatari Diar Infrastructure Company (49%) and Qatari Diar Real Estate Investment Company (1%). [August 7, 2015]
1.3 State-run Economic Zones Co (Manateq) and the Logistics Committee of the Ministry of Economy and Commerce have signed an agreement with Qatar'sMasraf Al Rayan to provide a QR1.8bn (about $494m) of financing to be used to build the largest logistics project. [August 9, 2015]
1.4 With the end of disclosure period for the first half of 2015 (H1), 42 companies out of the 43 listed companies at Qatar Exchange (QE) have disclosed their financial statements results for the six month period ended June 30, 2015. The combined net profit of all companies as of June 30 amounted to QR 24.3 billion versus QR 21.6 billion for the corresponding period in 2014, an increase of 12.23%. [August 13, 2015]
1.5 Hamad Port project has received the second commercial ship to be docked a the port to deliver the second shipments of cranes of Hamad Ports operations according to schedule. The shipment consists of 10 cranes including 4 Ship-to-Shore (STS) cranes and 6 Travelift Rubber Tired Gantry (RTG). The third and last shipment of cranes will arrive by the end of 2015 to bring the total number of cranes to 8 STS cranes and 26 RTGs. The new Hamad Port is expected to handle more than 6mn containers a year once all three phases of the project is completed. [August 16, 2015]
1.6 Qatar, under pressure to ensure migrant workers are paid on time, has postponed the much publicized reforms till Nov 2, 2015. The change would have made it mandatory for the firms to pay fully and on time through the bank. The so-called Wage Protection System signed six months ago was meant to go into force from Aug 18, 2015. The proposed law stipulated that companies which do not pay salaries on time could be fined up to QR 6,000 Qatari riyals (US$1,650) and could be prevented from hiring new employees. [August 17, 2015]
1.7 As per data for 2014 released by International Monetary Fund (IMF), Qatar’s private sector employs about 12,400 citizens compared to 1.47 million expatriate workforce. Qatar is the only GCC country with the smallest number of nationals engaged in the private sector. The figure in 2006 was only 3,600 Qataris employed with private, a 248% increase. As for expatriates, in 2006, about 417,000 were employed in the private sector. The number has multiplied by 254% in nine years, more than Qataris. [August 22, 2015]
1.8 Doha Bank expects to sell a record QR200mn (US$55mn) of gold in 2015 as consumers take advantage of lower prices and investors seek profits from falling equities and weakening currencies.The bank, the first lender authorised to import and sell gold in Qatar, took in 23,818 ounces in the first seven months of 2015 compared with 15,830 ounces in the same period last year. Prices fell 10% in one year, and traded at a five-year low of $1,077.40 an ounce in July. World Gold Council said demand for gold jewellery in the Middle East declined 20% and investment bar and coin consumption dropped 37% in Q2 of 2015. [August 24, 2015]
1.9 Exports from Qatar were down 41.7% in July this compared to the same month in 2014. Data from Ministry of Development Planning and Statistics indicated that exports for July were worth QR23.5 billion (US$6.5 billion), a 1.1 percent month-on-month drop but 41.7% decline year-on-year. In particular, petrol and hydrocarbon exports were down by 40.5% month-on-month to QR15.6 billion. Imports were up 13.5% month-on-month to QR9.2 million . However, trade balance surplus of QR14.3 billion in July was recorded, down 1.4% compared to the previous month and 55.6% compared to July 2014. [August 30, 2015]
1.10 Qatar Petrochemical Company (Qapco) has hosted two senior officials from Total, who were on a courtesy visit to Qatar to strengthen the two companies’ long-term partnership. Xavier Bontemps, senior vice-president (Polymers Business Unit) at Total, and Philippe Montagne, vice-president, PolyOlefins Orient at Total Refining & Chemicals, Qapco facilities in Mesaieed Industrial City. They also toured Qapco’s major assets: an ethane cracker with a capacity of 720,000 tonnes per year (tpy) and three low-density polyethylene (LDPE) plants with a combined capacity of more than 700,000 tpy. [August 31, 2015]
1.11 Qatar Development Bank (QDB) has announced that it will host the International Trade Centre’s (ITC) “15th World Export Development Forum” (WEDF) on Oct 20 & 21 in Doha. Being held for the first time in the Middle East under the theme “Sustainable Trade: Innovate, Invest, Internationalise,” the forum is expected to be attended by more than 600 international experts. [August 31, 2015]
2. Trade with India (Month-wise & annual)
NIL
3. Trade Promotional Activities organized (month / year) in Qatar and activities planned in the next six months.
International Trade Centre’s (ITC) “15th World Export Development Forum” (WEDF)
Oct 20 & 21, 2015
Power Qatar Summit 2015
October 26-27, 2015
Qatar Maritime Security Conference (QMARSEC)
October 28, 2015
7th Middle East District Cooling Summit (MEDCS)
November 10 - 11,2015
4th Qatar International Agricultural exhibition (AGRITEQ 2015)
November 10-12, 2015
4. Trade and Commercial delegation from India to Qatar, and Trade and Commercial delegation from Qatar to India.
NIL
5. Important International Trade Fairs/Exhibitions in Qatar. Report on recent such fairs/exhibitions, including details of Indian participation & response.
NIL
6. Important Trade & Investment activities by other countries in Qatar and Analysis of export performance of competing countries.
Qatar- Australia
Hassad Australia, a subsidiary of Hassad Food, Qatar’s premier investor in food and agri-business sectors will supply the second batch of Australian chilled sheep carcasses through Widam Food to the local market over the next six months. Hassad Australia owns and operates 300,000 hectares of land that supports 250,000 sheep and produces 130,000 tonnes of grains a year.[August 8, 2015]
Qatar-Brazil Q-flex liquefied natural gas (LNG) vessel 'Al-Huwaila' has arrived for the first time at the Bahia Regasification Terminal (TRBA) located in Baia de Todos os Santos, Salvador, in the state of Bahia on the eastern coast of Brazil. The arrival of our fully-loaded Q-flex vessel at Bahia extends larger ships’ reach to 56 terminals in 18 countries across the globe allowing for greater cost-efficiency for our customers. [August 11, 2015]
Brazil's National Petroleum Agency (ANP) ruled that Royal Dutch Shell and its Qatari and Indian partners need to treat oil and gas fields in the Parque das Conchas area as a single deposit, a move that could increase taxes on output. Shell owns 50% of Parque das Conchas, its main Brazilian asset. Qatar's state oil company Qatar Petroleum owns 23% and India's ONGC owns 27%. [August 18, 2015]
Qatar-China
Qatar Chamber of Commerce and Industry (QCCI) discussed with a delegation representing China's Ningxia Province possibility of jointly promoting economic cooperation and trade relations. This came during a meeting of business delegations between QCCI Acting Director General, Saleh Hamad Al Sharqi, with the visiting Chinese delegation led by the Deputy Director General of the Trade Directorate of Ningxia Province, Hu Hwan Gong. China invited Qatar to participate in the exhibition called "China and Arab Countries," due in Sept, 2015. The event is the third largest exhibition in China.[August 15, 2015]
Qatar-France
Veolia Water has signed a contract (wastewater management) with Dolphin Energy to engineer, procure and deliver the plant, at Dolphin Energy’s natural gas production and processing facilities in Ras Laffan, Qatar. The contract includes HPD evaporators used for kinetic hydrate inhibitors (KHI) removal and distillate recovery. Scheduled to start in September 2017, the plant will have a capacity of 40m'b3 per hour. [August 11, 2015]
Qatar-Germany
Siemens has been awarded a US$519.8 million order by Qatar's state-owned utility company Qatar General Water & Electricity Corporation (aka Kahramaa). As part of the project to expand Qatar's power distribution network, Siemens will deliver 18 turnkey substations to supply power and help cater to the increasing electricity demand. Completion of the project is scheduled for 2017. [August 20, 2015]
Qatar - Jordan
Qatar Airways and Royal Jordanian members of the global one world alliance have signed a code-share agreement. Members of the airlines’ frequent flyer programmes will also be able to collect points on each other’s flights, with this initial route paving the way for additional code share expansions in the near future between the airlines across destinations in the United States and Asia. [August 3, 2015]
Qatar Chamber (QC) chairman Sheikh Khalifa bin Jassim al-Thani is scheduled to head the QC delegation to participate in the Gulf-Jordanian Economic Forum in Amman on Sept 2 and 3. The forum is being held under the patronage of King Abdullah II of Jordan and co-organised by the Federation of Gulf Co-operation Council Chambers (FGCCC) and Jordan Chamber of Commerce. The event aims to enhance economic co-operation between the GCC countries and Jordan and explore business and investment opportunities on both sides. Over 100 representatives from GCC countries are expected to participate. [August 06, 2015]
Qatar -Malaysia
Prime Minister Mohamed Najib Tun Abdul Raza met Qatar’s Emir Shaikh Tamim Bin Hamad Al Thani on July 31. The Emir highlighted that Qatar Investment Authority was keen to invest 1MDB assets and purchase land in its Bandar Malaysia project. They also reviewed co-operation and ties between the two countries and ways to develop them in various fields. The two leaders also discussed a number of regional and international issues. [August 1, 2015]
Qatar - Morocco
Morocco’s national carrier Royal Air Maroc and Qatar Airways have announced a codeshare agreement which came into effect from Aug 20. It will benefit passengers by allowing them to purchase a single itinerary combining flights on both airlines’ global networks. The agreement also means one-stop ticketing and baggage check-in. Royal Air Maroc passengers will now be able to connect via the Qatar Airways hub in Doha onto new destinations in Asia and the Middle East such as Beijing, Singapore, Manama and Hong Kong.[August 21, 2015]
Qatar-Philippines
Association of Filipino Real Estate Executives in Qatar (Afreeq) is organizing first Philippine Property Investor Show in Qatar (PPIS-Q) slated on October 23 and 24 in Doha. Afreeq is exploring investments in Resort-oriented properties and tourism-related real estate from the Qatar Government, Qatar-British and Qatar-Indian business communities. [August 11, 2015]
Qatar- Sudan
Minister of Finance Ali Shareef Al Emadi met with Sudanese ministers of Finance and Economic Planning and Water Resources, Irrigation and Electricity Badreddin Mahmoud and Mutaz Musa Abdullah (respectively) and their accompanying delegation. During the meeting they discussed relations between the two countries and explored possibility of Qatari investment in Sudan. [August 16, 2015]
Qatar- Turkey
Turkish President Recep Tayyip Erdogan received a Qatari private sector delegation led by Sheikh Dr Khalid bin Thani Al Thani, Chairman of Ezdan Group Holding, at the presidential palace in Ankara. Both sides discussed ways to promote bilateral trade and investment. Ezdan Holding Group is one of the largest investment groups in Qatar. The trade volume between Qatar and Turkey is amounted to about US$1.5bn, a rise from $800m in 2014. The Qatari investments in Turkey are in the second place in terms of size, which exceeds US$20bn. About 60 major Turkish companies operating currently in the Qatari market, and about 150 small companies operating in the contracting, electronics and trade fields. These companies are currently implementing several projects in Qatar worth about US$14bn, most of which has been awarded during the last ten years. [August 27, 2015]
The Qatar Stock Exchange (QSE) and the Borsa Istanbul have enhanced their co-operation by signing an MoU to “formalise co-operation” between the two markets. Besides exchange of information and sharing of expertise, the MoU seeks to explore the opportunities of dual listing of securities to increase the competitiveness of both Borsa Istanbul and the QSE. [August 30, 2015]
Qatar - UAE Leighton Contracting Qatar, a division of UAE-based Habtoor Leighton Group, has signed a QR2.2 billion (US$604 million) project finance deal with Qatar’s Doha Bank to support the construction of a water reservoir. The reservoirs of Qatar General Electricity & Water Corporation’s (Kahramaa) Water Security Mega Reservoirs Project- Rawdat Rashed, the largest reinforced concrete reservoirs in the world, feature a capacity of 100 million gallons each. [August 09, 2015]
Fujairah-based Oryx Industries has announced to supply Qatar Primary Materials Company (QPMC) with two million tonnes of quarry products over one year to meet the growing demand from Qatar’s booming construction sector. Oryx Industries has signed a new offtake agreement with QPMC for delivery of quarry products. Oryx has three subsidiaries that produce around 10m tonnes and trades up to 12m tonnes of gabbro products. It has a 60% percent share of readymix concrete in Fujairah and the eastern coast of the UAE, the country being the world’s third largest exporter of quarry products.[August 21, 2015]
Qatar-United Kingdom
Braeburn Estates, venture between Qatari Diar Real Estate Investment Co. and Canary Wharf Group, has agreed to sell two office buildings in London’s South Bank district to Almacantar SA for more than £550 mn (US$857 mn). [ August 4, 2015]
SIG PLC, a leading distributor of specialist building products in Europe has acquired a majority shareholding in Drywall Qatar. SIG PLC is a FTSE 250 company listed on the London Stock Exchange and has sales in excess of US$4bn. Drywall Qatar is an independent distributor and specialist installer of interior finishing materials in Qatar.[August 16, 2015]
Qatar-Vietnam
Thailand Ambassador Piroon Laismit at a press conference said that the $4.6bn Long Son Petrochemical Project in Vietnam’s Ba Ria-Vung Tau province could help boost economic contributions of Association of Southeast Asian Nations (ASEAN) countries to Qatar. The trilateral project, is being built on a 400-hectare complex inside the Long Son Industrial Zone, is a joint venture (JV) between Qatar Petroleum International (QPI, which is set to be integrated with parent QP), PetroVietnam, and Thailand-based Siam Cement Group (SCG). The project is expected to commence operations in 2019. [August 06, 2015]
7. Trade Enquires from country India and Trade Enquires from Qatar.
India - (38) Enquiries
Qatar - (0) Enquiries
8. Status of trade and investment related issues taken up by the mission with the Government of Qatar and India.
NIL
9. Important policy changes by the Government of Qatar and India, especially with respect to trade, investment, aid / credit facilities etc.
NIL
10. Details and Result of meetings & interactions of the Mission with Trade, Industry & Economic Ministries / Department / Agencies in Qatar and India.
10.1 Mr. Rajat Mathur, Chief Executive, Emerging Markets and Mr. Uday Shankar Area Director – Middle East, Larsen & Toubro Infotech called on Ambassador on 4 August. They discussed L&T Infotech’s business and further business opportunities in Qatar.
10.2 Mr. Mohanish Verma, Protector General of Emigrants and Joint Secretary, Ministry of Overseas Indian Affairs, led a 4-member delegation to the 3rd meeting of the Joint Working Group on Labour and Manpower Development between India and Qatar held in Doha on 17 August, 2015. The Qatari delegation was led by Mr. Saleh Saied Al-Shawi, Director, Department of Legal Affairs, Ministry of Labour and Social Affairs.
10.3 Ambassador briefed the delegation on the labour issues and the welfare of Indian nationals in Qatar. Prior to the delegation level talks Ambassador along with the visiting GOI’s delegation called on HE the Minister of Labour and Social Affairs Dr. Abdullah Saleh Mubarak Al Khulaifi. The Minister conveyed his Government’s deep appreciation for the vital contribution of the large, accomplished and highly regarded Indian community to the progress of Qatar. He also underlined Qatar Government’s commitment to the ongoing process of labour reforms in Qatar. At the delegation level talks of the Joint Working Group, both sides had cordial and fruitful discussions on a wide range of issues related to the well being and welfare of Indian nationals in Qatar, with particular focus on Indian workers. The Indian delegation availed this opportunity to discuss some specific humanitarian cases. The Indian delegation also visited the Labour City in the Industrial Area in Doha.
10.4 Ms Amruda Nair, CEO, Asiana Hotels & Resorts called on Ambassador on 13 August. They discussed business and investment opportunities between India and Qatar especially Aiana’s 50:50 joint venture for high end service apartments & studios with Faisal Group currently under construction in West Bay, Doha.
10.5 Ambassador, accompanied by Defence Attaché, visited the shipyard of Nakilat -Keppel Offshore & Marine Ltd (N-Kom) at the Ras Laffan Industrial City (19/08). The CEO of N-KOM, Mr. Chandru S Rajwani gave a presentation on the company’s activities, followed by a tour of the operations. Ambassador of South Korea was also present on this occasion.
10.6 Mr. Azeez Narain, Manager (Development), Taj Hotels, Resorts & Palaces called on Ambassador on 20 August. They discussed business and investment opportunities between India and Qatar, with focus on hospitality industry.
10.7 Mr. Giovanni Luchetti, Editorial Associate, Oxford Business Group (OBG) and his colleague called on Ambassador to discuss possibility of select India as the focus country for OBG’s next annual business report on Qatar (25/08). Ambassador gave them a detailed briefing in the context.
10.8 A delegation led by Shri Prabhat Singh, Acting Managing Director and CEO of Petronet LNG arrived in Doha 26 August for technical discussions with Ras Gas, a leading liquefied natural gas (LNG) producing company in Qatar with whom Petronet has a long term contract, on 27 August. Ambassador met with the delegation on their arrival and also before their departure.
10.9 Mr. Anil Dhirubhai Ambani, Chairman, Reliance Group, accompanied by a team of senior executives, visited Doha on 30 August, 2015. Ambani’s visit underlined Reliance Group’s keen interest to play a larger role in the growing economic partnership between India and the State of Qatar. After meeting Ambassador Sanjiv Arora, Mr. Anil Ambani called on HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister and Minister of Interior; HE Mr. Ali Shareef Al Emadi, Minister of Finance; HE Sheikh Abdullah bin Mohammed bin Saud Al Thani, CEO of Qatar Investment Authority (QIA); HE Sheikh Abdullah bin Saoud Al Thani, Governor of Qatar Central Bank; and HE Mr. Saad Sherida Al Kaabi, President & CEO, Qatar Petroleum (QP). mbani also met with a number of top Qatari businessmen and investors at an interaction hosted by Dr. R. Seetharaman, Group CEO, Doha Bank and his team at which HE Akbar Al Baker, Group CEO, Qatar Airways was the Guest of Honour. Ambassador participated both in Mr. Ambani’s meetings with Qatari dignitaries as well as his interaction with businessmen. At his meetings, Ambani highlighted the operations of Reliance Group in diverse sectors and discussed possible areas of interest for expanding business cooperation with Qatar to the mutual benefit of both sides. HE the Prime Minister and Minister of Interior and other dignitaries, and Qatari businessmen deeply appreciated the distinctive strengths and achievements of various companies of the Reliance Group. They emphasized that there was vast potential to further expand business collaborations between India and Qatar in mutually identified sectors, and welcomed Reliance Group’s keenness to contribute more significantly to this process.
11. Indian investment in (company wise and sector wise), and performance of existing Indian Subsidiaries/ Joint Ventures / Collaborations, if any, in Qatar.
NIL
12. Status of ongoing major investments by Indian PSU’s/Pvt. Sector in Qatar and proposed Indian investments in Qatar.
12.1 L&T bagged US$130 million order from Qatar's Qatar General Electricity and Water Corporation 'KAHRAMAA'. L&T said the order is ongoing Qatar Electricity Transmission network expansion plan - phase XII. The order encompasses the engineering, procurement, and construction of two substation packages. The first substation package includes upgradation and strengthening of two 400kV substations and the extension of a 132kV substation while the second package is for construction of 4 new 66kV substations. [August 26, 2015]
Source: Commercial Section, Embassy of India, Doha
