When we think about the wealth of Gulf states, Qatar is the wealthiest state in the universe in footings of per capita with significant militias of oil and gas. It has an first-class substructure and free market economic policy. Qatar is a member of World Trade Organization ( WTO ) and other international fiscal organic structures and as a member it offers mature and sophisticated banking environment to investors. Qatar has an economic system with a growing rate increasing at 10 % per twelvemonth from past few old ages. The jurisprudence permitted up to 100 % foreign ownership for the first clip in sectors like agribusiness, fabrication, wellness, instruction, touristry etc. Investors apart from acquiring a figure of inducements, besides get the freedom to repatriate all net incomes to the investor ‘s state of beginning.

About two old ages ago, some cardinal proviso made for the non-Qatari investors, and as per those foreign investors can hold 100 % ownerships in concerns such as IT, consultancy houses, services related to athleticss, civilization and amusement every bit good as distribution services. Qatar offers the concern sector all the advantages of extremely developed economic system with substructure and services lucifer to the highest international criterions.

Qatar Government ‘s economic development scheme has been really successful. In add-on to this political and societal stableness, banking services, beforehand substructure and investing inducements are lending in making an first-class concern clime for puting up a new concern.

The advantages of originating a concern in Qatar are: –

No income revenue enhancement

No societal security tax write-offs collectible on rewards and wages.

As of 1st Jan, 2010, corporate revenue enhancement on foreign companies is 10 %

Developed Transportation substructure.

State of the art telecommunication substructure.

Top international exhibitions and conference locales.

High quality offices and residential adjustment.

In-expensive work force.

Simple enlisting processs.

Progress installations.

Exports and usage responsibilities start merely at 5 %

Luxury Hotels, infirmaries, schools etc.

For Foreign companies who want to get down their commercial presence in Qatar, there are a few options, one of the most popular one being the Limited Liability Company ( L.L.C ) . As per LLC company must hold one or more national spouses whose portion in the company capital must non be less than 51 % . That is why foreign investors who wish to get down concern operation in Qatar engaged in most of the commercial concern activities must make so with a spouse who is Qatari citizen.

All licences are issued by ministry of concern and trade but nevertheless licences for some classs of concern require blessing from certain ministries and other authorization ‘s illustration being: –

Health attention entities- require blessing from Ministry of wellness

Industrial companies- require blessing from Ministry of Energy and Industry

Law office companies- require blessing from Ministry of Justice.

Educational Entities- require blessing from Ministry of Education.

Tourism Companies- require blessing from Qatar Tourism Authority.

Engineering Consultancy office- require blessing from Ministry of Municipal personal businesss and Agriculture.

PESTEL ANALYSIS OF QATAR

As the name suggests, PESTEL stands for Political, Environmental, Socio-cultural, Technological, Economical and Legal factors. PESTEL is used to analyze or analyse the planetary concern environment. It provides an overview of macro-environmental factors and helps the organisations to take determinations on their international operations and analyse the market state of affairs and possible. This PESTEL analysis gives us basic elaborate information about Katar

( Beginning: Google images )

Political Factors

Qatar is an Arabic emirate with an absolute crowned head where the AL Tharni household is governing since mid 1800 ‘s.

Political factors like: –

Regulative organic structures and procedures

Political systems

Government policies

Government term and alteration etcaˆ¦

The Emir of Qatar is non merely caput of province but every bit good the caput of authorities, he plays an of import function every bit far as political factors are concerned. He is being consulted before major determinations are taken and the citizens have the right to personally appeal to the Emir.

Though Emir is the ultimate swayer of Qatar, he can non go against the Sharia, which is the Islamic jurisprudence and he has to take the sentiments of taking leading lights and the spiritual constitutions. His place is institutionalized in the consultative council of Qatar.

The Advisory council of Qatar is an appointed organic structure who assist the Emir for explicating policies and other Torahs of the state. It is non appointed by an electoral system.

It should be noted that political parties are banned over at that place.

Before Independence, Qatar was a settlement of the British Empire.

Earlier every bit far as political footings are concerned, Qatar was a traditional society which was non leting any foreign investors. But now it has evolved as a modern public assistance province and this is helping the state as more and more foreign companies and investors are attracted to put here.

Qatari governments like consultative assembly and consultative council maintain a comparatively tight rein on freedom of look and equality issues. However in comparing with its neighbouring gulf states like Saudi Arabia, Qatar is a comparatively broad province.

Advisory assembly is a squad of 35 members which are appointed with merely a advisory undertaking.

Regulative organic structures and procedures

Qatar Financial Centre ( QFC ) : – It regulates and supervises all the houses which work in a fiscal sector and the houses need to register itself in the QFC.

ictQatar, the supreme council of information and communicating engineering. It is independent telecommunication regulator.It is mandated to protect consumers and concerns from unjust patterns.

Legal construction for concern

Harmonizing to Qatari Torahs entire local equity is non less than 51 % in any commercial company. Qatari Laws defines seven classs of concern organisation, which can be established in Qatar mentioned in Law. It includes demands in footings stockholders, managers, minimal capital degrees and incorporation process.

Following are the seven classs of Business organisation define by Qatari Laws:

Simple Partnership Company: It is the most basic signifier of concern organisation. Under which two or more persons to associated for the intent of holding commercial activity in Qatar. In this signifier concern spouses have unlimited liability and besides trade name of the partnership company will reflect the names of the spouses.

Joint partnership company: It is similar to a simple partnership company, nevertheless joint partnership company will hold two categories of spouse

Joint spouses

Trustee spouses

Joint venture Company: This signifier of concern organisation comprised of two or more individuals that associated to transport out a undertaking. The joint venture company is an unincorporated entity without legal personality as provided in Qatari Laws.

Limited liability Company: LLCs are the most normally used concern entity in Qatar which has limited liability.

Limited portion partnership company: This signifier of company has at least one or more joint spouses and at least four legal guardian shareholding spouses and minimal demand of portion capital is 10,00,000 Qatari Riyal

Public Shareholding Company: This signifier of company is besides known as joint stock company or Qatari Shareholding Company. Under Qatari Law following are two discrepancies of public shareholding company including

Public shareholding company-open

Private or Closed public shareholding company

Keeping company: This signifier of company must be a shareholding company or limited liability and which has direction and fiscal control on the company by having at least 51 % of that company. Minimum capital demand for Keeping company is 10 million Qatari Riyal.

Foreign investors are more commonly prefers limited liability companies.

A Qatari company required minimal one manager and two stockholders.

In Limited Liability Company foreign investors are allowed up to 49 % of the province provided that there is one more Qatari spouse.

In following specialist sectors of on a petition aliens are allowed to 100 % of interest in Qatari company:

Agribusiness

Health

Education

Tourism and development of natural resources

Consultancy services

Information engineering ( IT )

Servicess related to athleticss

Culture and amusement

Distribution services

The Ministry of Economy Commerce located in Doha approved name of the company and besides company required to subject its Articles of association and memoranda of association to The Ministry of Economy Commerce.

Minimum capital demand for Qatar LLC are 2, 00,000 QR.

The lower limit needed capital should be deposited in to a Local Qatari Bank.

Qatar LLC is apt to pay corporate income revenue enhancement at the rate of 10 % on net income which is sourced in Qatar.

International contract parties are free to take the Law in legal power which will regulate that contract and if non the contract will be governed by the Qatari Civil Code.

Technological Analysis

Qatar is chiefly progressing in assorted industries like research, fabrication, viing engineering development, Technology entree, licencing patents, Global communications and Information and communications.

Qatar is passing a batch of financess and resources on improvizing research and development plans which over all will press frontward the states hereafter and technological environment. Qatar ‘s place has n’t be recognized technologically in the past decennary and in order to acquire a new place and acknowledgment in the planetary technological environment Qatar has been developing a batch of scientific discipline and engineering Parkss recently.

Although Qatar has been invariably seeking to acquire a topographic point in the planetary technological environment there has been a few draw dorsums due to certain industries utilizing engineering unsuitably. For illustration: the building industry of Qatar. Though this industry has been rather straightforward it uses merely basic accomplishments of unemployed workers majorly.

Supply industry is another illustration of draw back in Qatar ‘s technological development. The supply industry contains basic goods but does non supply typical elaborate merchandise catalogues. Which once more proves that Qatar is non been progressing in technological environment wholly.

Environmental Analysis

Two major factors that contribute to the environmental surveies of Qatar are Ecological and environmental issues and Environmental consciousness.

As it is a common fact about Qatar that there is n’t a batch of verdure in the state the state ‘s major focal point has been on the environmental development. Qatar is puting to a great extent in protecting and continuing the environment. Apart from state ‘s overall development, the preserving of environment is one of the top most precedences of the state. Sustainability and “ green ” enterprises are more and more of import on all undertakings in the state. The slogan of the state is to go “ greener and better ” .

There are assorted establishments that take attention of environmental issues of Qatar. One of the major establishments is SCENR, which is the Supreme Council for the Environment and Natural Reserves. Their responsibility is to publish policies to protect the environment of Qatar and continue a healthier environment for the state.

Economic Factor

Qatar ‘s economic is the 25thfreest economic system by doing 71.3freedm mark in the 2012 Index. Its mark is 0.8 point better than last twelvemonth. This shows betterments in freedom from corruptness and pecuniary freedom. Qatar is ranked 2nd out of 17 states in the Middle East/North Africa part, and its overall mark is above the universe and regional norms.

Quick reappraisal of Qatar ‘s Economy

Currency

Qatari riyal

Trade organisations

OPEC, WTO

Doha is the fiscal Centre of Qatar

Statisticss:

GDP

$ 181.7 billion ( 2011 est. )

GDP growing

18.7 % ( 2011 est. )

GDP per capita

$ 102700 ( 2011 est. )

Inflation ( CPI )

2.8 %

Population below poorness line

0 %

Labor force

1.32 million ( 2011 est. )

Unemployment

0.4 % ( 2011 est. )

Main industries

Crude oil production & A ; refinement, ammonium hydroxide, fertilisers, petrochemicals, steel reenforcing bars, cement, commercial ship fix

Ease of making concern rank

36th

External:

Exports

$ 104.3 billion ( 2011 est. )

Export goods

LPG, crude oil merchandises, fertilisers, steel

Main export spouses

Japan, South Korea, India, Singapore, United Kingdom

Imports

$ 25.33 billion ( 2011 est. )

Import goods

Machinery & A ; transport equipment, nutrient, chemicals

Main import spouses

United States, Germany, UAE, South Korea, UK, Japan, Saudi Arabia, Italy, France

Gross external debt

$ 82.05 billion ( 31 December, 2011 est. ) .

Public fundss:

Public debt

8.9 % of GDP ( 2011 est. )

Grosss

$ 112.79 billion ( 2011 est. )

Expenses

$ 37.88 billion ( 2011 est. )

Recognition evaluation

Standard & A ; Poor ‘s:

AA ( domestic & A ; foreign )

AA+ ( T & A ; C appraisal )

Mentality: stable

Moody ‘s:

Aa2

Mentality: stable

Beginning: CIA World Fact Book

The economic system of Qatar is chiefly dominated by oil and natural gas, which accounts for 70 % of export income. Qatar has been used oil and gas grosss to diversify the economic system, including the development of chemicals, steel, cement, and fertiliser industries and banking.

SOCIO-CULTURE

Islam is the most popular faith in Qatar about 77.5 % out of entire Muslim population are Sunni Muslims while some are shi’as. There are besides people of other faiths like, Buddhists, Sikhs, Christens and besides Hindus who are largely Indians. Harmonizing to the 2004 informations, 77.5 % of the population are Muslim, 8.5 % are Christian and 14 % are other. Shi’as comprises around 10 to 13 % of the Muslim population in Qatar.

Language

Arabic is the official linguistic communication in Qatar, other linguistic communications like English, Farsi, and Urdu are besides widely spoken. The Qatari idiom of Arabic is similar to the linguistic communication spoken in the other Gulf States and is called Arabic. The adjectiveA khaleejiA ( “ of the Gulf ” ) that is used to depict the local idiom besides distinguishes citizens of the six Gulf States from North African and Levantine Arabs. Many foreign workers are the consequence that many other linguistic communications are normally spoken like English, Urdu and Hindi, Malayalam, and Tagalong.

Food

Muslims by and large refrain from eating porc and imbibing intoxicant, and neither is served publically. Foods cardinal to Qatar ‘s culinary art include the many native assortments of day of the months and besides seafood like Lobster, crab, Shrimp, Tuna, Kingfish and Red Snapper. Sour apples and fresh Prunus dulciss are besides local daintinesss. The traditional dishA machbousA is amply spiced rice combined with meat and/or seafood and traditionally served from a big communal platter. The chief repast is eaten at noon, with lighter repasts in the forenoon and late eventide household repasts in the eventides. During the month of Ramazan, when Muslims fast from morning to dusk, lucubrate and gay repasts are served at dark.

Coffee is chief drink in Qatar. They have Arabian java which is made up of a lightly roasted bean that is sweetened and spiced with cardamom.

Classs and Castes:

Social stratification is done chiefly on the footing of nationality and business. Certain nationalities are concentrated in peculiar occupations, and wages differ depending on nationality. The broadest division one can happen is between citizens and aliens there are besides subdivisions based on part of beginning, family tree, and cultural patterns.

Internal stratification is done harmonizing to certain factors such as tribal association, spiritual religious order, and historical links to colony forms. For illustration, Qataris with genealogical links to Arabia are likely to place with Bedouin cultural values and be disciples of Sunni Islam and so on.

Role and position of work forces and adult females in Qatar

Schooling is gender-segregated. After finishing schooling, work forces and adult females can obtain employment in authorities bureaus or private endeavor. Qatari adult females tend to take authorities occupations, peculiarly in the ministries of instruction, wellness, and societal personal businesss. High-level places are held dominated by work forces. Presence of the foreign work force has put more adult females in the populace sphere ; foreign females are hired largely as amahs, instructors, nurses, nursemaids and clerical or service workers.

Gender functions are comparatively distinguishable. Men engage in the populace sphere more often than make adult females. Womans have entree to schooling and employment and have the right to drive and go outside the state. However, societal mores influenced by Islam and historical case in point leave many adult females uncomfortable among aliens in public. Alternatively, their activities are conducted in private infinites. Family yearss are designated where in work forces are allowed in certain promenades, restraints etc merely if they are with household.

DEMOGRAPHIC ENVIRONMENT

For get downing up concern in Qatar & A ; to explicate market schemes it really necessary to analyze the factors of demographic environment in which our organisation is to be established. Now we would analyse in item about QATAR ‘S demographic factors.

Population

Following are the last twelvemonth ‘s informations of QATAR ‘S population

Year

Population

2000

7,44,483

2001

7,69,152

2002

7,93,341

2003

8,17,052

2004

8,40,290

2005

8,63,051

2006

8,85,359

2007

9,07,229

2008

8,24,789

2009

8,33,285

2010

8,40,926

2011

8,48,016

2012

19,51,591

Population Growth Rate

Year

Population

2000

3.35

2001

3.18

2002

3.02

2003

2.87

2004

2.74

2005

2.61

2006

2.5

2007

2.39

2008

1.09

2009

0.96

2010

0.87

2011

0.81

2012

4.93

Age Structure

Age construction gives us the segregation of the population depending on their age based on 2011 Data.

Old ages

Percentage

Male

Female

0-14

21.8 %

95,240

89,446

15-64

76.7 %

4,60,673

1,89,914

65 old ages and above

1.5 %

7,311

5,432

Birth Rate & A ; Death Rate

Following rate gives us the mean of birth and decease taking topographic point during a twelvemonth per 1000 individuals in the population of QATAR.

Year

Birth rate

Death rate

2000

16.07

4.19

2001

15.91

4.26

2002

15.78

4.34

2003

15.68

4.43

2004

15.6

4.52

2005

15.54

4.61

2006

15.56

4.72

2007

15.56

4.82

2008

15.69

2.47

2009

15.61

2.46

2010

15.54

2.44

2011

15.48

2.43

2012

10.23

1.55

Nationality

Nationality depicts whether that single belongs to which state. Peoples belonging to QATAR are called Qatari.

Cultural Group

There are different cultural groups in QATAR which constitutes its population. Out of entire population 40 % are Arabs, 18 % Indians, 18 % Pakistani, 10 % Persian and 14 % belongs to other groups.

Religion

In QATAR the people by and large follows Islamic faith or Christianity or some other faith. Harmonizing to the statistics of 2004 nose count 77.5 % follows Islam, 8.5 % follows Christianity and 14 % follows other faith.

Language & A ; Capital

The official linguistic communication of QATAR is Arabic and English is used as 2nd linguistic communication.

Doha is the capital province of QATAR dwelling of 4, 27,000 population harmonizing to 2009 informations.

Literacy ( IN % )

Rate shows us the per centum of population being educated.

State

1995

2003

2004

2010

% of population

79

82.5

89

96.3

Education Outgo

Education is the cardinal factor for the growing of economic system of the state. From the above statistics we can see that the literacy rate in QATAR is 96.3 % in 2010 which is a great per centum to look at. This states that in QATAR batch of importance is given to instruction. Recent information shows that from the entire GDP of QATAR 3.3 % is channelized in to instruction disbursals.

Detailed analysis of Economical environment

Qatar ‘s economic system is turning at faster rate and GDP for 2011 is 18.8 % . It is expected to be about 6.2 % in the twelvemonth 2012. GDP growing of Qatar depends on crude oil industry. Oil monetary values will back up financial and external payments strength. 70 % of the GDP growing is notices due to petroleum industry. Inflationary force per unit area impacting the full planetary economic system will hold a mild impact on the Qatar economic system.

GDP values for the undermentioned old ages: –

Year

GDP ( % )

2008

17.7

2009

12

2010

16.6

2011

18.8

Real GDP from 1970- 2010 in US billion $

Background of Qatar

Qatar has 3rd largest proven gas militias in the universe followed by Russia and Iran. Other states like U.S.A. , U.A.E. , and SAU are far behind.

Soviet union

Persia

Katar

Proven gas militias

( in millions of three-dimensional metres )

44

29

26

Qatar is universe ‘s largest manufacturer of LNG.

Katar with its high growing, external current history and high financial excesss has overcome from the planetary crisis and regional confusion.

The major economic developments in economic footings for Qatar for the twelvemonth 2011 were: –

Liquid and Deposits

Entire sedimentations dropped down to 0.4 %

Corporate Deposits fell down to 12.3 % but personal sedimentations were at a nice 15.4 %

Recognition: – Continued to speed up by 35.3 %

Budget

In comparing with 2011 budget has been increased by 28 % in 2012.

Increase in budget is smaller against outgos expected.

The authorities has planned to increase outgo specially on Health & A ; Education.

Interest rates

The economic system of Qatar and GDP is so strong that they do n’t necessitate to increase or diminish involvement rates.

Consumer monetary value rising prices

Headline rising prices has cut down to 1.1 % and nucleus rising prices dropped to 3.7 %

Leases

Harmonizing to the CPI from Qatar Statistics Authority, rent, public-service corporations and other lodging services has dropped down to 6.2 % . So it indicates that adjustment has been cheaper.

As more & A ; more lodging options have become available, it will be more cheaper due to over supply.

Foreign Exchange Militias

Foreign exchange militias have decreased from $ 30.7 billion to $ 23.1 billion. Which implies that imports have relatively increased.

But it has improved by 6 % compared to last twelvemonth. So growing has been stable.

Qatar exchange

Rate of the Qatar exchange has accelerated by 0.5 % comparison to last twelvemonth.

Population

Population of Qatar has increased from 1.7 million to 1.8 million as per Qatar statistics authorization ( QSA ) .

Population has increased by 6 % .

The banking sector is good capitalized: –

QIA has injected $ 2.8 billion which has strengthened the economic system of Qatar.

Monetary and recognition development norms have been made easy.

Qatar economic mentality prediction method

Qatar Economic mentality has forecasted some of the rates as follows: –

Ratess

2012

2013

Qatar cardinal bank nightlong sedimentation rate

0.75

0.75

Qatari riyal/ $ exchange rate

3.64

3.64

Current disbursement

142.1

145

Capital disbursement

64.1

76.7

Global growing

3.5

4.1

This prognosis has been derived from internally numerical representation of Qatar economic system 2011.

The above forecasted rates have been derived on the footing of following premises: –

Oil and Gas monetary values

Hydrocarbon production volumes

Pace of planetary economic activity

Dollar appreciation/depreciation

Flow of US dollar involvement rates.

Government disbursement parametric quantities.

Following tabular array shows the Real & A ; Nominal GDP, consumer monetary value rising prices for the twelvemonth 2010-11 and QEO has estimated the same for the twelvemonth 2012-13.

In %

2010

2011

2012

2013

Real GDP

19.4

12.5

6.2

4.5

Nominal GDP

28.4

20.1

11.2

4.7

Consumer monetary value rising prices

1.1

4.2

2.0

2.5

Global economic system chances

As per World Economy Outlook ( WEO ) of 2012, the prognosis for planetary economic growing is downgraded to 3.5 % in April 2012 from 4 % in September 2011, which shows extremely unsure environment.It was extremely affected due to crisis of Euro zone.

The euro zone crisis slowed down due to support of the “ Firewall ” . The “ firewall “ included relieving liquidness jobs, prosecuting financial accommodation and structural reform steps of to a great extent indebted states of Euro.

To steer economic administration within the euro zone, new policies and institutional mechanism are get downing to take form. These mechanism are yet to be applied.

GLOBAL REAL GDP GROWTH PROJECTIONS ( % )

Explanations: –

Global existent GDP has fallen drastically from 4.5 to 3.3 in the period April 2011 to January 2012.

The GDP has somewhat improved in April 2012.

The projections for April 2013 is 4.1 % .

Compared to the planetary existent GDP, Qatar ‘s GDP for 2011 was 12.5 %

This implies that economic system of Qatar is executing better than the other states of the universe.

It means that more figure of goods and services are available in the state, which in bend will increase the life style of the people and convey stableness to extremely volatile environment.

Regional Real GDP growing projections ( % )

Explanations: –

Above graph shows existent GDP growing for three back-to-back old ages 2011, 2012 & A ; 2013.

Compared to all the developed states of Euro zone, US & A ; Japan, Middle East and North Africa are bring forthing a better GDP.

It means that although being a developing state Qatar is supplying a better growing chance so other developed states.

This basically shows that the development states are come oning vastly in comparing to the developed states.

ANNUAL INFLATION PROJECTIONS ( % )

Explanation:

Compared to other states rising prices has been high in Middle East and North Africa.

Inflation is high because of the fast development of Middle East and North Africa.

Although rising prices is high, it is cut downing at a good gait in MENA.

Foreign exchange rates are increasing quickly which has become the chief ground for the high rising prices.