Qatar lures foreign money with ownership incentives
Qatar is seeking to draw in more foreign investors and cut its dependence on gas revenues by setting up special economic zones that will allow for 100% overseas ownership.
The world's top LNG (liquified natural gas) exporter is one of the richest countries per capita, but faces a projected QR46.5bn budget deficit this year and like other Gulf states has had to borrow abroad to shore up its finances.
A draft law approved by Qatar's cabinet allows for the creation of an airport or sea port in the economic zones which will allow companies "unrestricted transfer of capital out of the country", state news agency QNA reported.
Foreign firms looking to expand into the Gulf state have typically required a local partner to own at least a 51% stake, though different rules apply for Qatar's Science and Technology Park and the Qatar Financial Centre.
Under the draft law, approved on Wednesday, Qatar plans three economic zones.
These are a warehousing and logistics hub specialising in airfreight and technology, close to Hamad International Airport; a light manufacturing site for petrochemical and food processing firms; and a zone near the Saudi border that would focus on businesses involved in construction materials and machinery.
The first phase of the warehousing hub will be completed in early 2017, Fahad Rashid Al Kaabi, the chief executive of Manateq, which will develop and run the zones, said in November.
Kaabi said that in addition to allowing full foreign ownership, the zones would get work visas for expatriates, provide competitively-priced power, water and gas supplies, and allow duty-free import of some goods and machinery.
Qatar's gas wealth, infrastructure projects under way before it hosts the 2022 soccer World Cup, and the resources of its sovereign wealth fund give it strength as a business centre.
But it will face tough competition to lure foreign capital with Dubai, which has a more open and longer-established business culture.
Courtesy: tradearabia.com
Agree with WT. I don't think it makes sense at all to invest here unless you have a written guarantee from the government that it will buy your overpriced product/services for 10 years to come
WT: There will be many willing to take the risk.. However, I do agree that cometition with Jebel Ali will be stiff - since it is already established
One must be an idiot to invest money in Qatar!
Partners are often welcomed ........... let we prosper together policy is welcome .................. so nice ...........