1. How would Your Excellency evaluate the bilateral relations between China and Qatar?
The bilateral strategic partnership between the two countries has steadily deepened since its establishment in 2014 on the basis of mutual respect, equality, mutual benefit and shared development. Joint efforts have been made to follow through the many consensuses reached between the two countries on the development of bilateral relations, thereby bringing tangible benefits to the two peoples. The two countries are now working to enhance the synergy between their respective development strategies. China renders full support to the State of Qatar in exploring its own path towards development that suits its own realities, whilst the State of Qatar also gives its strongest support to China on issues concerning China's core interests.
The two countries have brought into initial being a new pattern of cooperation that takes oil and gas as the mainstay, infrastructure as the main focus, and finance and investment as the new growth poles. Both countries are making sustained headway in spheres such as energy, infrastructure, high-end technology, and investment.
On the front of people-to-people exchanges, the two countries have ratcheted up cooperation in the fields of tourism, culture, sports and media, especially what can be done by supporting each other in hosting the Olympic Winter Games Beijing 2022 and the FIFA World Cup Qatar 2022.
The launch by the State of Qatar for the first time of a clearing center for the Chinese currency (Renminbi) in the Middle East in April 2015 marks an important turning point in the economic and trade relations linking the two countries and a pivotal achievement in terms of bilateral economic and financial cooperation. The center provides financial settlement services in the Chinese currency, well contributing to the ever-expanding trade and investment relations between the two countries. The launch of "Made in China Exhibition" by the Qatar Chamber of Commerce and Industry provides further evidence of the Qatar's keenness to develop closer trade and economic cooperation with China.
2. Why is Qatar a good place to invest?
Not only is the State of Qatar one of the strongest economies in the region, it is also among the most promising economies across the globe. The State of Qatar has maintained balanced growth in spite of a variety of global challenges. During the past years, Qatar has succeeded in cementing its lead on the map of the global economy in accordance with the course set by His Highness Sheikh Tamim bin Hamad Al Thani, Emir of Qatar, and will continue down the path of achieving Qatar National Vision 2030 towards building a diversified and competitive knowledge-based economy.
This systematic economic policy has contributed to supporting all sectors of the State to bolster national economy and beef up confidence amongst investors. In this context, the State of Qatar has been keen on building an enabling investment environment in the priority sectors of national economy, polishing up its administrative and legislative systems that would stimulate business operations, establishing an appropriate legislative framework undergirding business development and investment introduction, and promulgating laws aimed at encouraging and attracting both domestic and foreign investment.
The State of Qatar has put in place a multitude of measures to improve its business environment, such as setting up an one-stop service window for investors, providing advanced electronic services for business establishment, optimizing procedures and relaxing conditions for awarding construction licenses for business centers, facilitating the conditions and procedures for granting business licenses, and granting attractive privileges to international investors wishing to invest in the State of Qatar. The State of Qatar's approach towards adopting open economic policies and building a diversified economy has contributed to enhancing the attractiveness of its investment environment by kicking off important projects highlighting the productive partnership between the public and private sectors and provided lucrative investment opportunities in sectors such as logistics, food security, education, health, tourism, and sports.
3. How has Chinese investment been doing in Qatar?
The Qatari-Chinese partnership is a stellar example of the foreign economic relations of the State of Qatar. Whilst dozens of Chinese companies are already operating in the State of Qatar, there are many more Chinese companies in the middle of application and deliberation for entering the Qatari market. The Public-Private Partnership Law and the new Investment Law have also opened up a wealth of opportunities for Chinese investors. In addition to the many advantages that help Qatar rise to prominence in a wide array of sectors, pro-business policies and the development of investment legislation are also drawing more foreign investors to Qatar.
China is the second largest buyer of LNG and chemicals from Qatar, and China's demand for LNG has grown exponentially. In 2020, China and Qatar struck a deal to build LNG carriers worth USD 3 billion; the Qatari Q-Max LNG carrier made its first trip to the Chinese port of Tianjin; and the two sides also inked an contract for the export of 2,814 electric buses and diesel buses from China to Qatar, in a drive to contribute to Qatar's goal of green transportation for World Cup 2022. Chinese companies are increasingly involved in many major projects in Qatar, such as the Water Security Mega Reservoirs Project, Lusail Stadium, Hamad Port, telecommunications network, etc. A number of measures have been taken by both sides to boost financial cooperation and to build currency trading platforms and bond markets in Asia. Qatar benefits a lot from the technology and expertise provided by Chinese companies. On the other hand, China is an attractive destination for Qatari investors in the fields of shipbuilding, manufacturing, petrochemicals, advanced technology, hotel services, tourism, financial services, etc.
4. Which sectors in Qatar could be the main target sectors for investors in the coming years?
The State of Qatar is a privileged destination for Chinese investments. The agreements and MOUs signed between the two countries are conducive to engaging Chinese investors in investment projects that serve the aspirations of the two countries. The most promising investment sectors for the coming years in the State of Qatar include energy, tourism, information technology services, advisory and technical services, industry, development and exploitation of natural resources, education, agriculture, health, mining, sports, entertainment and cultural services.
The Qatar Investment Authority always seeks to establish partnerships with leading companies in the global market, which are united by strong investment partnerships and alliances. The Authority are more inclined to engage into existing operational projects. The Invest in Qatar Center within the Ministry of Commerce and Industry is responsible for reviewing foreign investment applications and provides comprehensive information about the local business environment, existing investment projects in the country, and future investment projects. The following are the priority sectors for investment in the State of Qatar:
-Energy (renewable energy industry and sustainable technology)
-Tourism (business events, culture and heritage, desert safari services, free activities and entertainment, sports and recreation, organized tours, tourist accommodation, transport and communications services, etc.)
-IT services (artificial intelligence, robotics, drones, automotive technology, cybersecurity, 3D printing, blockchain technology, virtual reality, the Internet of things, data analysis, computing power, etc.)
-Industry (cement industry, metal industry and manufacturing industries)
-Education (establishing private schools, higher education institutions, vocational, research, educational and training centers)
-Agriculture (sustainable and smart technologies, including automatic irrigation systems, hydroponics, hydroponic farming, agricultural technology, agricultural equipment and agricultural facilities)
-Health (medical tourism, vaccine manufacturing, e-health)
-Mining (iron, steel, aluminum, copper, etc.)
-Development and exploitation of natural resources.
Furthermore, there are also priority sub-sectors such as financial services, professional services, sports entertainment services, and logistics (real estate investment, infrastructure, and services).
5. What measures has the government of Qatar taken to attract new investors?
The quick rise of the Qatari economy is inseparable from the systematic policies rolled out by the wise leadership to enhance the openness of the national economy and to attract investments and direct them towards sectors conducive to creating promising opportunities that would cement Qatar's position as a leading destination for trade and investment in the region. Chinese companies looking to invest in the State of Qatar can take advantage of a broad array of incentives and advantages provided by Qatar, including its strategic location linking east and west, and the possibility of 100% ownership in all sectors and economic and commercial activities, in addition to ensuring full protection of intellectual property rights, ensuring the freedom of movement of foreign capital, and the availability of an advanced network of free zones, logistical zones and industrial parks up to the highest international standards. All these efforts have contributed to an increase in the total foreign investment flowing into the State of Qatar. The incentives can be summarized as follows:
-Exemption from income tax for a period not exceeding ten years.
-Exemption from tariffs on machinery and equipment required for the construction of foreign-invested projects.
-Land can be allocated to investment projects on a long-term lease for a period not exceeding 50 years, and the lease is renewable.
-Customs exemptions are available for industrial projects importing raw materials and semi-finished products required for production that are not available in the local market.
The general privileges are as follows:
-Import of everything needed to establish, operate or expand the project.
-Freedom of entry and exit of capital to and from Qatar.
-Freedom to transfer profits and assets whenever the investor so desires.
-Transfers can be made in any convertible currency.
-Non-Qatari investments are not subject to expropriation or any procedure with a similar effect based on Law No. 13 of 2000 that regulates non-Qatari investments.
-Freedom to transfer ownership of the investor's investment to another Qatari or non-Qatari investor.
I would also like to stress the strategic opportunities that would be brought by the cooperation with Qatar in the energy sector. China is a strategic importer and Qatar is a strategic exporter, and we must deepen our cooperation in all fields in order to serve the common interests of our two peoples, especially in sectors such as energy, investment and infrastructure. In parallel with the pickup in the production capacity of the North Field, it's likely for China to ramp up its import of Qatari gas. Considering the long-term strategic interests between the two countries, Chinese companies can be part of the development of the North Field in all its stages, not just buying and selling gas.
6. What potential or opportunities do you think the two countries have in furthering bilateral cooperation, especially in the sphere of technology and investment cooperation?
In the coming years, Qatar will take further steps to consolidate the bilateral cooperation, to increase the volume of bilateral exchange, to facilitate the flow of goods, services and investments, to strengthen the role of the private sector, and to clear off the obstacles hindering certain projects. Such bilateral cooperation has contributed to increased trade volumes and undergirded their further growth.
It can be said that although global trade exchanges are under pressure from sluggish global economic growth and bottlenecks in global supply chains, the prospects for trade between China and Qatar remain promising.
Accounting for 13.5% of the total volume of Qatar's foreign trade, China has become the largest trading partner of Qatar. Accounting for 40% of China's LNG imports, Qatar has also become the largest exporter of LNG to China. Upon the execution of a long-term agreement between Qatargas and PetroChina, China's demand for LNG is expected to reach 3.4 million tons per year by 2040.
On the other hand, Qatari investments in the finance, banking, real estate and other sectors in China has increased substantially. These are considered effective investments of a developmental nature, as the Qatar Investment Authority holds a 13% stake in the Agricultural Bank of China Ltd. Under the framework of the China-Qatar Joint Economic and Trade Committee, the private sector will be placed at the core of bilateral efforts to develop cooperation and partnership. We should further promote the development of the private sector.
The Qatari private sector sees China as a unique and attractive investment destination, and the Qatari businessmen are looking to strengthen alliances with their Chinese counterparts and to launch projects in both countries. After Qatar's adjustments to its investment environment to make it more organized and responsive to the business climate, Chinese companies can now achieve 100% ownership in various sectors and economic, commercial and real estate activities, in addition to a broad spectrum of other advantages available for foreign investments. By virtue of an encouraging environment, the Qatari economy is cementing its lead as one of the most balanced economies with the best growth potential in the region, and ranked first globally in the index of countries achieving economic growth over the past 20 years.
In the technology realm, the State of Qatar has a global reputation as a center for technological development and the home to many leading international technology companies and research centers. By developing a network of sustainable partnerships with leading companies and industrial conglomerates across the globe, the State of Qatar has brought in the much-needed international expertise to enable the successful development, implementation and commercialization of new technologies, products and services.
The State of Qatar has also forged an enabling environment that supports aspiring entrepreneurs in every step of their career by providing loads of opportunities that help them turn their dreams into successful businesses. This is done by way of the Qatar Open Innovation Program, a first-of-its-kind and the largest technology entrepreneurship program in the Middle East and North Africa region, through which participants can establish a new company in just 10 days.
Qatar has incubated a raft of technology-focused businesses and promoted technology entrepreneurship locally. The business incubation program seeks to expedite the process of setting up technology startups, to stimulate their growth through rapid establishment, to make room for collaborative work, to promote business growth, and to provide support services including online expert counselling.
Qatar runs a research funding and technology transfer program to support the scientific research community in Qatar by providing a complementary path for intellectual property marketing and the launch of technology startups. This program aims to bridge the gap between industry and academia by facilitating interaction between technology entrepreneurs and research institutes, launching new technology projects capable of attracting investors, and licensing intellectual property developed in Qatar.
The State of Qatar has established the Product Development Fund, which is a cost-sharing fund whereby the government offers up to 50% of the total budget as a grant to encourage local start-ups and SMBs in the private sector to develop products and services that meet the needs of the local market. Qatar also maintains a Tech Venture Fund, which is a strategic venture fund aimed at supporting innovative local startups, and attracting international companies looking to expand into the region. The Fund provides an opportunity for local, regional and global tech entrepreneurs to secure early-stage funding for their fledgling projects.
