Top 3 reasons you should be doing business in the Middle East
Top 3 reasons why you should be doing business in Qatar
If you’ve been considering expanding your business to the Middle East, but are unsure about how to approach company formation in Qatar, or perhaps, you’re unsure whether the risk will be worth it?
To help shed more light on the ins and outs of business in Qatar, we’ve taken a look at some of the top reasons for starting a business in Qatar.
- Consistent Economic Growth
Once one of the poorest Gulf States, Qatar now stands tall, as the wealthiest country in the world per capita. Why? Well, one of the major reasons for this turnaround is the exploitation of its extensive natural resources. Yes, Qatar just happens to be situated on the world’s third-largest natural gas reserve.
Qatar’s economy has seen consistent growth in recent years – as has its population. According to the 2004 census, Qatar had a population of 744,000. By the end of 2016, however, an estimated 2.6 million people were living in Qatar, with the majority calling the capital, Doha, home.
Qatar has worked hard to support this rapid population growth, encouraging advances in economic, human and social development, while continuing to progress politically. Despite these changes though, Qatar has maintained its cultural and traditional values as an Arab and Islamic nation, promoting the ideal of family as the main pillar of society.
2. Major Industries and Projects
It comes as no surprise that the oil and gas sectors remain the major drivers of Qatar’s economy, in that they account for more than 50% of government revenue. However, other important industries in Qatar include manufacturing, and finance, insurance and real estate.
Following on from those big hitters are building and construction; trade, restaurants and hotels; transport and communications; and electricity and water.
Top Projects in Qatar
What about the top projects in Qatar? Rail projects account for the most amount of activity in Qatar, followed by construction projects, ports projects, power plants and transmission grids projects, and airports projects.
3. Qatar National Vision
As a result of its expansion, Qatar launched the Qatar National Vision 2030 (QNV) back in 2008. Designed to transform Qatar into an advanced society capable of achieving sustainable development by 2030, this national vision created development goals based around four central pillars.
Human Development: Understanding the need to foster a healthy and capable workforce, the QNV prioritises improved education, healthcare, cultural awareness and employment opportunities for locals.
Social Development: Building on this, the QNV looks to promote social development by introducing social programs that create a sense of community, promote sports as a physical activity, and foster cultural heritage and family cohesion.
Economic Development: The QNV also aims to ensure the efficient management of the national economy, by taking a responsible approach to managing its natural resources, while working to develop a knowledge-based economy.
Environmental Development: With a rapidly growing population comes various challenges, such as increased air pollution and damage to natural habitats. The QNV looks to address this with its adoption of more advanced technology, and by promoting sustainable urban growth and environmental awareness.
Why you should be considering doing Business in Qatar
There are plenty of reasons why companies choose to set up in Qatar. Firstly, there’s that growth. In terms of economic growth, Qatar has seen an average annual growth rate of 10% since 2009. With that growth comes a greater need for infrastructure.
In fact, Qatar is to award $200 billion in infrastructure projects by 2030, with $19 billion going to construction projects, and $40 billion going to road works, ports and rail network projects.
As it stands today, Qatar already has an impressive infrastructure, offering residents and business owners’ well-developed electricity, telecommunications and healthcare systems, many of which are subsidised by the government.
Residents of Qatar can also rely on a modern transportation system, made up of a network of roads, ports and airports. It’s also worth pointing out the investments to be made to Qatar’s infrastructure in preparation for the 2022 World Cup, with extensive improvements planned for the transportation infrastructure.
And as for population growth, Qatar has become a magnet for global talent, creating the ideal climate for revitalised business management with increased business opportunities.
As we mentioned before, Qatar is now the wealthiest country in the world. With the wealth generated on the back of strong oil prices, Qatar has developed a dynamic local consumer market, which has driven growth in industries such as real estate, hospitality, retail, leisure and healthcare.
Tax incentives also encourage business setup in Qatar, with corporate tax on foreign companies at a low rate of 10%, and import duty tax at 5%. Qatar’s system also features no personal income or export tax, while its economic zones can offer a wide range of benefits.
On top of that, Qatar offers a high standard of regulatory efficiency, allowing business establishment in Qatar to proceed in a relatively smooth manner.
Lastly, as a member of the World Trade Organisation (WTO), Qatar has worked to improve its investment climate. It has done this by reducing tariffs, removing unnecessary restrictions and barriers to trade, and expanding opportunities for foreign investment.
Reasons to do Business in Dubai
In case you already have your Qatar business up and running, another option for you to consider is expanding your operations into the UAE. Expanding your business into Dubai can have many advantages. First up, Dubai’s economy is sufficiently diversified into other industries, so that it’s not solely reliant on oil. Aviation, tourism, trade, financial services and other industries have all seen significant growth in Dubai.
Dubai is expanding its infrastructure and real estate opportunities in preparation for the next World Expo in 2020, while more than $300 billion is to be spent on tourism-related infrastructure through to 2030. On top of that, Dubai South and the Dubai Canal offer further growth in coming years.
Interested in finding out more about doing business in the Middle East?
For more information on how to start a business in Qatar or Dubai, Fusion Middle East is the expert on helping you to get your business running. Offering a local business partnership and essential services related to company formation in Qatar and the UAE, we can help to answer any questions you may have around getting started, and give you the support you need to succeed.
Contact our team today for a free, no-obligation consultation!